1.H Market Research And Initial Feasibility Studies

Question 1

Define market research.

Answer 1

A process involving gathering and analysing information concerning a specific market.

Question 2

Identify market research steps.

Answer 2

1. Identify: information needed in order to make decisions about the potential business. eg. pet care business would want to know how many pets are in their area.
2. Gather: relevant information from appropriate sources. eg. survey, interviews, gov statistics.
3. Analysing and interpreting: the results in order to extract information that will assist in decision-making. eg. Pet care business conducted surveys and figured there were only 3 people with pets in the area. So they can decide to not start the business in that area.

Question 3

Identify some market research considerations.

Answer 3

• Is the business concept entirely new or does it already exist?
• Who will buy the product?
• Why will they buy the product?
• What needs and wants have to be satisfied?
• How big is the market?

Question 4

Define the initial feasibility study.

Answer 4

An assessment of the business idea’s potential for success. This involves determining how practical the idea is and if it would successfully translate to the market.

Question 5

What does the initial feasibility study include?

Answer 5

• An assessment of the market
• A consideration of the operations
• An analysis of commercial feasibility
• An appraisal of the potential owner’s management ability
• An understanding of whether others have tried this idea