AS Business Studies: Conducting Market Research for Start-ups

Hey, here are some revision notes for the AQA AS Business Studies Unit 1 exam, but it can be sued for other exam boards too. I hope this helps you to revise! Please rate and comment on how to improve :D

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Preview of AS Business Studies: Conducting Market Research for Start-ups

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Market Research for

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Conducting Start-up Market Candidates should be aware of the
Research relative value of different
· methods of primary and approaches to market research.
secondary market Methods of sampling should include:
research random, quota and stratified.
· qualitative and quantitative Candidates should be aware that the
research available finance, the nature of the
· size and types of samples product, the risk involved
and the target market will influence
factors influencing the choice of the choice of sampling method and
sampling methods. size of sample.…read more

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Market Research
Market research = "The process of identifying, anticipating (predicting) and
satisfying customer needs profitably"
The entrepreneur has the business idea, or perhaps has narrowed the choice
down to a few business ideas. She/he may know which market the new business
wishes to enter.
Now they must undertake market research. For a start-up, this is a crucial activity.…read more

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Finding a Niche
A Niche market is a small segment of the market.
The purpose of market research for a start-up is the find a position in a niche
market that will enable the business to charge a reasonable price and to earn
reasonable profits once the business has been set-up and established.
Why should start-ups aim for a market niche? Because surviving in high volume or
mass-market segments is rarely possible for a start-up.…read more

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Primary (Field) Research
Primary (or Field) Research/Data = This is research that collects primary data.
This is data or information collected first hand and does not already exist. It is
carried out by market research companies or the business itself
In most cases, a start-up will still have gaps in its understanding of a market even
after looking at the available secondary data.…read more

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Main Sources of Primary
Research…read more

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Main Sources of Primary
Research…read more

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Advantages and
Disadvantages of Primary
Advantages Disadvantages
First hand information Money can be wasted if the research is
not carefully targeted.
Can be highly focussed and relevant Results can be hard to analyse, especially
where open questions are used.
Tailored to the needs of the business Large samples are needed and this makes
the research expensive.…read more

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Secondary (Desk)
Secondary (or Desk) Research/Data= the collection of data that is already in
existence that has not been collected specifically for the purposes of the
For a start-up, it is most likely that secondary research will be the main source of
market research. This is because it is less costly and quicker & easier to obtain.
Gaps in knowledge might be filled with some primary research.
Once a business starts trading, it quickly develops data that can help it understand
the market.…read more

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Methods of Secondary
Google Start here! Effective searching on Google quickly identifies the data
that can speed up the research process
Government Office of National Statistics provide detailed insights on the UK
sources economy and society; individual departments provide reports on
many industry sectors
Trade Industry (or trade) associations promote their market and protect
associations member interests.…read more


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