Cambridge Nationals Enterprise and Marketing Revision Guide Sample

Page 24

The purpose of market research

see p. 67

What you need to know •

Identify and explain the purpose of carrying out market research.

Market research is the process of finding out about the market in which a business operates by collecting, presenting and analysing information and data.

To aid decision making

To understand the market

Using market research data helps an entrepreneur to make good, informed decisions that are more likely to lead to a successful result.

It allows the entrepreneur to know what is happening in the current market and identify any gaps within it. The entrepreneur can adapt their product to meet changing customer needs and wants.

It helps an entrepreneur to understand their target market and the customer profile within the target market. It helps them develop a product that suits the needs of their target market, and allows them to know how and where to promote the product.

M

To gain customers’ views and understand their needs and wants

It helps an entrepreneur to make an informed decision as starting a new business can be very risky. It also reduces the likelihood of making an incorrect decision.

PL E

• To reduce risk

It helps them understand what the target market thinks of the product and what might need changing to make it more desirable before spending money developing the product.

SA

To inform product development

To understand how a good/service complements others on the market

It allows an entrepreneur to know what others are doing and make informed decisions about features of the product, prices etc. to make their product more appealing and develop a unique selling point (USP).

Practise it!

Remember it!

1

Market research is an ongoing process.

It allows an entrepreneur to understand the needs and wants of their target market so that they can make a product that continues to meet those needs.

2

22

Explain one purpose of carrying out market research. (2 marks) Explain how market research can inform product development. (2 marks)

Revision Guide

Original material © Cambridge University Press 2022. This material is not final and is subject to further changes prior to publication.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.