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1.2, Generate sales- if the product satisfies the target market then it is…

- - - - If reilable
        
        Business can make informed decisions e.g product design/innovation
        
        Allows profits to be best invested, maximising the profits stored and reducing profits wasted
        
        Allows a business to act more efficently in responses to changes in the market
      - If not reliable
        
        The business might make poor decisions leading to it falling behind competitors or falling out of favour with customers
        
        The business might waste profit/investment completing product innovation in areas with little demand or growth.
  - - - Benefits
        
        Quick and easy to obtain e.g via governmental website
        
        Cheap as research has already been completed and results are readily available
      - Drawbacks
        
        Not specific to the business as it produces general trends which the business will have to condense to gain specific conclusions
        
        Not (as) reliable since the information has not been gathered by the business there is no guarantee of its credibility
        
        Not all information is available, therefore the business might need to complete Primary research anyway.
      - Examples
        
        Governmental enquires/surveys
        
        Internet polls
        
        Cookies?
        
        A business' published figures- business has lower revenue possibly because it is not fulfilling market.
    - - Benefits
        
        Specific towards the business so the responses can analyse key areas (can gather qualitative and quantitative)
        
        Allows the business to gain valid results which they trust.
        
        The business can tailor there market research to what would engage their customers to make responses e.g social media, whilst also picking the best method for the intel required
      - Drawbacks
        
        Typically expensive/more expensive than secondary
        
        Can be a slow process with multiple stages and trials, therefore business would not gain results quickly and thus might be slow to respond to changes in the market- lost revenue
      - Examples
        
        Focus groups- where a small number of people are gathered and questioned on products and opinions
        
        Surveys and questionnaires- Questions are asked to the general public/consumers to gain information e.g to see whether a consumer would purchase a product
        
        Observations- Consumers are observed with a/the product to see whether it has its intended appeal/use.
        
        Social Media- A quick and cheap way of completing surveys and engaging with the market as posts can reach many stakeholders in a short space of time. / Also allows the business to make observations on viral trends and needs which it could fulfill
  - - - Can give emotional responses to a product to gain a trend
      - Gives case by case data which can be tricky to draw conclusions from
      - Typically requires surveys/questionnaires etc. to be performed- Time consuming
      - Done in smaller samples e.g focus groups
    - - Can be measured and easily depicted in graphs and trends
      - Useful for gaining amounts of sales which can be used in forecasts
      - Typically obtained via sales records/mass information gatherers e.g market trends
      - Easily done on a large scale
- - - - Allows the business to identify gaps in the market and create a product to fulfill a previously unsatisfied market's needs
      - Allows the business to launch more successful products as they have made informed decisions on where a product would be needed.
    - - Gender
      - Luxuriousness
      - Price
      - Quality
      - Duration of use
      - Ethicality
  - - - Income
      - Age
      - Gender/Sex (stereotypically)
      - Ethnicities
    - - Allows the business to specifically target and fulfill its target market's needs
      - Can reduce capital wasted on failed products
      - Allows the business to tailor itself to its target market e.g via advertising or brand image etc.
    - - Can be time consuming to complete and might need to be done regularly
    - - Demographical- the characteristics of a consumer e.g their age
      - Behavioural- how a consumer behaves e.g spending habits
      - Lifestyle- How a consumer "goes about life" e.g smoker
      - Geographical- a consumers location e.g by the seaside
- - - - Examples
        
        Customer needs (price, choice, convenience and quality)- A business might seek to provide a cheaper product for a lower quality or a faster service for a higher price in order to fulfill the market a make sales
        
        Location- A business might either situate itself near or far to competitors in order to lure potential customers and increase market share e.g a car showroom will typically be situated near competitors to give customers a choice of products and allow them to not feel obliged to purchase from a singular manufacturer.
        
        USP- A business will alter its product/service so it differentiates from competitors, this allows consumers to choose a product which is unique and possibly satisfies their need better than the array of products currently on offer.
        
        Also a business which launches a unique product might lure customers in by creating an exclusive product.
      - Why compete?
        
        If a business competes it is more likely to gain a competitive advantage and thus to succeed and increase its market share. therefore greater potential for profit.