spotting a business opportunity Flashcards
(29 cards)
why is price important
customers want value for money. they will pay that they believe matches the worth of the good/service
why is quality important
the good/service does what it is intended to
why is choice important
customers want a variety, so businesses need to offer a range of goods/ services
why is convenience important
a business aims to make the customers life easier, the easier it is for the customer the more the business meets its needs
why is efficiency and reliability important
want needs consistently met, key to influencing repeat purchases
why is design important
valued above price, customers want stuff that makes them feel great e.g clothes that make them look great
why do businesses need to identify customers
they need to find out who they are like age, gender etc… to see what they want
why do businesses need to understand customers
need to know why customers do what they do, allows them to make a product/ service to suit them
why do businesses carry out market research
identify customer needs, identify gaps in the market, reduce risk
what is secondary research
when businesses uses research that has already been carried out for another purpose
what is primary research
research conducted first hand that is tailored to the businesses specific needs
What is qualitative research
opinions and views to provide an insight into why customers buy a product e.g focus groups
what is quantitive research
factual research, provides statistical reliable results e.g a survey
use of research in the market
business needs to analyse the data it collects to ensure its meaningful and reliable
what is a market segment
the sub segments in the whole market that have similar buying characteristics
what are the 5 market segments
location, income, lifestyle, age and demographic factors
market segment - location
share common factors in relation to where they live
market segment - income
people with similar income have a similar amount of money to spend
market segment - lifestyle
relates to hobbies and personal circumstances
market segment - age
massively influences products e.g elderly zimmer frames
market segment - demographic factors
factors such as gender, race, cosmetics and religion all influence buying choices
what is a market map
a graph containing 2 factors to identify areas of overcrowding or a gap within a certain market
what is competition
other businesses operating within your market or sector
what is a gap in the market
an area shown on a market map where there a few businesses
