Business Studies Collins Revision Guide. - StudyGuide.PK

●●MARKET RESEARCH (1)Market research is essential because a business needs to know asmuch as it can about its potential customers in order to reduce therisk of producing or selling the wrong goods. It also needs to knowthe best price to charge, how to sell the goods and where toadvertise them.A business that aims at a small market segment, such as a sportsshop that specialises in water polo, is said to exploit a niche market.IncomeAgeSocio-economic groupGenderHobbiesReligionGeographical areaRaceMarket segments●A business may analyse its own strengths, weaknesses,opportunities and threats. This is called a SWOT analysis to findthe position in the market of its products.Methods of researching the market●There are two methods of gaining information about potentialconsumers:■ desk research■ field research.52