Unit 1.2

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Why do entrepreneurs carry out Market Research?

- Demand - how many people will buy it?

- Prices - how much they want to pay

- Competitors - what they sell.

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How does market research improve a small business?

- Can find competitiors

- help to choose the right location

- determine the target market

- they can differentiate themselves

- help to spot risks - contingency plan

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What are the methods of researching the market?


  • internet research
  • Promotions produced by competitors - looking at their menu's or catalogues etc.


  • Questionnaire
  • Supplier feedback - e.g. ask what products are the most popular
  • Customer feedback
  • Focus group
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Why change the marketing mix?

  • change in economy
  • competition
  • market research
  • seasonal changes
  • customer needs
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What do entrepreneurs look for in a product?

  • something they are interested in
  • something there will be demand for
  • a product or service that doesn't require expensive premises or equipment
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What are the aims of promotion?

  • to increase customers geographically
  • to give customers information about the changes in your business
  • to develop the brand, image and reputation of the business
  • to try encourage new people to use the business for the first time or entice new customers to return.
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What are the methods of promotion?

  • Advertising in local media
  • Sales promotion
  • Direct mail
  • personal selling
  • Public relations
  • Merchandising
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