How can market research help a business spot a gap in the market?

Research can reveal what customers want but cannot find in the market. A business that fills the gap faces little competition at first.

Why do businesses research demand?

Research into demand shows how many customers are likely to buy a product and at what price. A business can then plan production and set sales targets.

Why do businesses research the competition?

Research into competitors shows their prices, products, strengths and weaknesses. A business can then find ways to be different or better.

Why do businesses research their target market?

Research into the target market shows who the customers are and what they want. The business can then design a product and marketing to suit them.

AQA GCSE Business 8132

Business in the Real World

Topic overview What a business is and why people start one Goods, services, needs, wants and factors of production Business sectors, entrepreneurs and a changing business environment Sole traders, partnerships, limited companies and not-for-profit organisations Business aims and objectives Why business objectives differ and change Stakeholders and their influence on businesses Factors affecting business location Business planning and basic financial terms Expanding a business and economies of scale

Influences on Business

Topic overview E-commerce and digital communication Ethics, the environment and sustainability Interest rates, employment and consumer spending Globalisation and exchange rates Employment, health and safety and consumer law Competition, risk and uncertainty

Business Operations

Topic overview Job, flow and lean production Managing stock: just in time and just in case Suppliers, procurement, logistics and supply chains Quality control, quality assurance and TQM Customer service and the sales process

Human Resources

Topic overview Organisational structures, span of control and delegation Recruitment, selection and contracts of employment Financial and non-financial methods of motivation Induction, on-the-job and off-the-job training

Marketing

Topic overview Identifying and satisfying customer needs Market segmentation Purpose of market research and primary and secondary research Market research methods and interpreting findings Pricing methods and factors affecting price New products, USP, brand image and the Boston Matrix Product life cycle and extension strategies Promotional methods and the promotional mix Channels of distribution, e-commerce and m-commerce The integrated marketing mix

Finance

Topic overview Sources of finance Cash flow and cash flow forecasts Financial calculations and average rate of return Break-even charts and margin of safety Income statements and statements of financial position Profit margins and judging financial performance

Marketing

Purpose of market research and primary and secondary research

3 things to know
Paper 2

Overview

Why businesses research gaps, demand, competitors and target markets, primary against secondary research, internet and press sources, and when a small or large business uses each.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is secondary research, and what are its benefits and drawbacks?

Key term

What is market research?

Key term

Why do businesses carry out market research?

Questions from this subtopic

Each one with the model answer underneath.

1
What is market research?
Model answer
Market research is the collection of information about customers, competitors and the market. A business uses the findings to make better marketing decisions.
2
Why do businesses carry out market research?
Model answer
Market research reduces the risk of a business making poor decisions. Research helps a business identify market opportunities and understand its customers and competitors.
3
How can market research help a business spot a gap in the market?
Model answer
Research can reveal what customers want but cannot find in the market. A business that fills the gap faces little competition at first.
4
Why do businesses research demand?
Model answer
Research into demand shows how many customers are likely to buy a product and at what price. A business can then plan production and set sales targets.
5
Why do businesses research the competition?
Model answer
Research into competitors shows their prices, products, strengths and weaknesses. A business can then find ways to be different or better.
6
Why do businesses research their target market?
Model answer
Research into the target market shows who the customers are and what they want. The business can then design a product and marketing to suit them.

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Business in the Real World

Influences on Business

Business Operations

Human Resources

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