BUS2 Spotting a business opportunity mind map

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Customer needs

Priorities: Price, quality, choice and convenience vary by customer
Trade-offs: More choice can increase costs or slow service
Evidence: Identify the target group’s needs; avoid assumptions
Survival: Meet needs → possible sales; manage costs and cash too

Research

Purpose: Evidence informs the mix; reduces, not removes, uncertainty
Primary: New surveys, focus groups and observation; each has limits
Secondary: Existing internet, market and government reports; check relevance
Data: Quantitative: numbers; qualitative: reasons and experiences
Reliability: Neutral questions; representative sample; check social-media bias
Sample result: 36 ÷ 120 × 100 = 30%; intentions are not guaranteed sales

Segmentation

Groups: Location, demographics, age, income and lifestyle can overlap
Targeting: Focus spending; verify needs within the chosen segment
Market map: Two relevant axes locate competitors and apparent gaps
Gap?: Few rivals may mean weak demand or high costs; investigate
Consistency: Product, price, promotion and place must suit the segment

Competition

Alternatives: Direct rivals and other uses of customers’ time or money
Comparison: Price, quality, location, range and service; monitor changes
Price pressure: Matching a cheaper rival can reduce profit per sale
Differentiation: Valued service or convenience can avoid price-only competition
Effects: Innovation and quality may rise; costs and lost share may too
Collection case: Same-day convenience may win sales, but stock ties up cash

Connections

Research → Segmentation: Evidence tests whether a market gap has demand
Customer needs → Competition: Valued differentiation can win customers