The purpose of market research:
● to identify and understand customer needs
● to identify gaps in the market
● to reduce risk
● to inform business decisions.
Methods of market research:
● primary research: survey, questionnaire, focus group, observation
● secondary research: internet, market reports, government reports.
Discover
Delve
Your friend wants to open a café in Leicester. Write to him/her explaining:
Why it is important to understand customer needs and wants.
How market research can be used to help them with the opening of the Cafe.
Demonstrate Question
This question is an explain question. You MUST use the BLT format. An example is below for a different explain question. The structure of your answer should match the example.
Explain an advantage of having limited liability. (3 marks).
One advantage is that you only risk losing the money you invest in the business.
This is because you and your business have separate legal identities
This leads to being more willing to take calculated risks with the business
Therefore having greater returns when those risks are successful
Have a go at your own
Explain one benefit to a small business of carrying out market research.
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Mark Scheme
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