Business topic 1.2

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  • Business topic 1.2
    • Market research
      • Primary research
        • Primary research is original data gathered by the researcher.  The information does not yet exist, so it could not be found on the Internet, a website, in a magazine or anywhere else 
      • Secondary research
        • Secondary research is also called desk research. The information already exists in some format, someone has already collected the data 
    • Market segmentation
      • Demographics
        • statistical data relating to the population and particular groups within it. For example market segmentation helps film and book companies because everyone has the same interests
      • Lifestyle
        • A business may decide to segment the market according to lifestyle This may be a combination of; values attitudes, perceptions, beliefs This may also include hobbies and interests
    • The competitive environment
      • Price
        • Lower prices may mean lower profits.  This will mean the business will have to lower costs. This may also mean that it starts a price war with other competitors
      • Quality
        • If the business decides to improve the quality of its products this will cost more. If costs increase then this will mean that profits will be lower.
      • Customer service
        • Retailers that provide customers with a helpful and friendly service will win their loyalty. For example Marks and Spencer have a “goodwill” returns policy


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