Spotting a Business Opportunity

Primary Research: When a firm carries out first-hand research by field work, e.g. a questionnaire about customer perceptions of its products.

Qualitative Research: In-depth research using depth interviews, used to find out customers' behaviour and attitudes.

Quantitative Research: Research involving large quantities of data, which allows statistical analysis of the results.

Secondary Research: Desk research; Research that has been previously carried out or published for another body or purpose.

Demand Curve: The downward sloping line drawn to show how falling prices lead to rising sales (the 'curve' may be a straight line).

Effective Demand: Demand backed by the ability to pay.

Repeat Purchase: Customer loyalty reflected in regular purchasing.

Market Map: Grid that measures two different aspects of the brand within the market (e.g. young/old compared with luxury/economy).

Market Research: Finding out customer opinions and actions, usually by interviews and by gathering information about sales.

Innovative: A new, perhaps original, product or process.

Unethical: An action or decision that is wrong from a moral standpoint.

Market Segments: Sections of a market focused upon specific types of customer, such as children.

Market Share: One brand's sales as a percentage of all the sales in the market.

Adding Value: Creating something of a higher value to a customer than it's bought-in costs.

Unique Selling Point (USP): A feature of a product or service that is not shared by any competitor.

Entrepreneur: Someone who takes on the risk of starting up a new enterprise.

Royalties: Paying a percentage of the sales revenue generated by a business or product.