The role of market research (Edexcel GCSE Business): Flashcards
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Practise the cards
13 cards from this deck
Market research definition
Market research definition
Business activity helping companies understand their operating environment
Main goal of market research
Main goal of market research
Gather info on customers, competitors, and market
Understanding customer needs purpose
Understanding customer needs purpose
Know what customers want to develop products people will buy
Market gaps in research
Market gaps in research
Areas where customer needs aren't being met (opportunities)
Why understand competitors?
Why understand competitors?
Know strengths, weaknesses, pricing & positioning for differentiation
Purpose of recognising market trends
Purpose of recognising market trends
Identify if markets are growing, declining, or changing direction
Evaluating business performance via research
Evaluating business performance via research
Understand customer perspective on existing products/services
How research informs decisions
How research informs decisions
Provides data for confident choices & reduces risk of ventures
Competitive advantage from research
Competitive advantage from research
Finding market opportunities early before competitors
Biggest mistake in market research
Biggest mistake in market research
Assuming what customers want without conducting proper research
Critical rule for data interpretation
Critical rule for data interpretation
Base conclusions on evidence not assumptions
Risk reduction benefit of market research
Risk reduction benefit of market research
Understand market before investing to avoid costly mistakes
Better resource allocation benefit
Better resource allocation benefit
Focus resources on most promising opportunities not guessing