Topic 3 - Evaluating a business opportunity Business studies unit 1 3.0 / 5 based on 1 rating ? Business StudiesASAll boards Created by: Stuart KightleyCreated on: 01-04-12 14:34 Understanding Markets 1 Markets are where sales happen There are 4 types of markets: Industrial markets Where businesses sell to other businesses Consumer markets Where firms sell to individual customers Local markets Where firms sell to customers who live nearby Electronic or virtual markets Where buying and selling is done over the internet Market analysis lets business spot opportinities in a market by looking at market conditions. Market conditions are: Market size Businesses estimate the size of their market by the total number of sales in the whole market Market share Business like to know what share of the market they have, e.g. 1/4 Pc's sold were Dell, so Dell has a 25% market share 1 of 3 Understanding Markets 2 Businesses try to increase their market share by increasing demand for their products If they sell more products, they make more profit Markets are segmented into groups of simiar customers for analysis, examples are: Income Social Class Age Gender Ethnic groups Family size Life style 2 of 3 Market Research Market research is done for 3 main reasons: Helps businesses spot opportunities Helps businesses to work out what to do next It helps businesses to see if there plans are working Quantative research produces numerical statistics (fasts and figures) Qualitative research looks into the feelings and motivations of consumers Primary research is where a business gathers new data Secndary research is done by analysing sata that's already available Market research needs to avoid bias to increse its accuracy 3 of 3
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