1.2 Revision Mindmap
Customer Needs
Quality
Choice
Price
Convenience
Customers should be paying the right amount for products or services. Usually if a customer is looking to buy a higher quality product they will be expecting to pay more.
Customers should expect to get a high quality item if paying more and a low quality item if they are paying less.
When there is a large amount of choices of products customers feel more satisfied.
Customers need have easy access to your shop. A great way is by using the internet as anyone can access your shop from their homes. But if not on the internet then the shop needs to be in or near the neighbourhood where local customers are.
Market Research
Primary Research
Secondary Research
Internet
Interviews
Observations
Questionares
Focus Groups
Qualitative Data
Quantitative Data
Organising interviews can get you accurate information from real people
Taking example from other brands or shops can help you make your product better than others
Creating questionnaires can get you answers to specific questions about your product or business
Focus Groups are a small group of people with similar interests that get together to ask each other questions about the market and their business
Quantitative Data is data that uses numbers. It could help you by telling you how many sales a business made in the past year
Qualitative Data is data that has been written in words. This data is normally very accurate and written in detail.
The internet is one of the easiest way to conduct market research. You have millions of websites with data that can help you make your product or service stand out.
Market Segmentation
Age
Location
Demographics
Lifestyle
Behaviour
An example of this would be someone who is vegan. They will not purchase any animal products which might change the mindset of a business owner. They might start making their products vegan friendly.
Different age groups will want to purchase different items. An example of this would be if a child needed shampoo they would probably want a bottle with a cartoon on it. However an adult wouldn't mind about the bottle but rather about what's inside.
A business should be easily accessible to all people. It should be near a main road so that people can find it easily
A shops size should be big enough to suit the local areas population. If your shop is always crowded people will be less attracted to it.
Competitive Environment
Price
Quality
Location
Product Range
Customer Service
Businesses with a lot of product choices will do better than shops that only have a few. Women like to buy a specific shampoo and having a large choice will suit them better
A business that has higher quality items will probably have more customers than ones who have lower quality. However, LIDL has not the best quality items and is used by many people.
The price of a product has to match the quality of a product. But, if a business has a high quality item but are selling it relatively cheap, they will do very well
A company that has great customer service will build loyalty with their customers which will get more people to visit their shop
A business needs to be easily accessible by everyone. A business near a main road will probably do better than a shop hidden in an unknown road.