Unit 36 – M1 Kojar Ahmed
In this report, I will talk about the methods I could use to identify my target market and how I will do so. I
will talk about market research, sales forecasting, competitor analysis and environmental analysis.
One method I can use to identify my target market is market research. There are two main methods of
market research I can use that vary in reliability. The first of these is primary market research. Primary
market research is research that has been collected first hand by either the business itself or a market
research company, it is also tailored towards the business itself and its product. A few methods of market
research are questionnaires, surveys and focus groups. Primary market research is seen as a reliable
source because the information is tailored to the business and it has just been collected, which makes it in
date and accurate. The second method of market research that can be used is secondary market research.
Secondary market research is information that has been collected second hand for a different purpose, it
is also known as ‘Desk’ research. A few methods of secondary market research are the internet, financial
records and customer reviews.
There are multiple ways I can use both primary and secondary market research for my business. Firstly, I
could use a questionnaire to ask my target market about their preferences, this will then give me a better
idea about my target market. Despite this, using primary market research, especially a questionnaire, can
be expensive for a small business such as mine as it will require a large allocation of resources and time.
Another option if I want to conduct market research is secondary market research. Secondary market
research is usually less accurate but is much cheaper, and may still provide relevant information. A
secondary market research method I can use to identify my target market is customer reviews/the
internet. I can analyse customer reviews to find out what customers liked and disliked about my services
and how I can improve in the future.
It is important that any business, even a small one, keep track of its sales and finances at all times in order
to prevent financial issues and predict any future financial problems. To do this, the business should use a
variety of primary and secondary market research methods to help identify the demand for their product
or service. As well as this, I will need to know how likely it is that customers will purchase a product or
service from a new business, how often they will purchase this product or service, how they will pay for
the product or service and do the consumer’s buying patterns change over time. To determine this I can
conduct both primary and secondary market research.
One way to ensure the success of my business is to identify my competition and their
strengths/weaknesses. Competitor analysis is defined as identifying your competitors and evaluating their
strategies to determine their strengths and weaknesses relative to those of your own product or service.
The analysis seeks to identify weaknesses and strengths that a company's competitors may have, and
then use that information to improve efforts within the company. An effective analysis will first obtain
important information from competitors and then based on this information predict how the competitor
will react under certain circumstances.
Source: http://www.businessdictionary.com/definition/competitor-analysis.html
Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements,
which can affect the organization’s performance. The analysis entails assessing the level of threat or
opportunity the factors might present. These evaluations are later translated into the decision-making
process. The analysis helps align strategies with the firm’s environment.
There are many strategic analysis tools that a firm can use, but some are more common. The most used
detailed analysis of the environment is the PESTLE analysis. This is a bird’s eye view of the business
conduct. Managers and strategy builders use this analysis to find where their market currently. It also
helps foresee where the organization will be in the future.
Source: http://pestleanalysis.com/what-is-environmental-analysis/
In this report, I will talk about the methods I could use to identify my target market and how I will do so. I
will talk about market research, sales forecasting, competitor analysis and environmental analysis.
One method I can use to identify my target market is market research. There are two main methods of
market research I can use that vary in reliability. The first of these is primary market research. Primary
market research is research that has been collected first hand by either the business itself or a market
research company, it is also tailored towards the business itself and its product. A few methods of market
research are questionnaires, surveys and focus groups. Primary market research is seen as a reliable
source because the information is tailored to the business and it has just been collected, which makes it in
date and accurate. The second method of market research that can be used is secondary market research.
Secondary market research is information that has been collected second hand for a different purpose, it
is also known as ‘Desk’ research. A few methods of secondary market research are the internet, financial
records and customer reviews.
There are multiple ways I can use both primary and secondary market research for my business. Firstly, I
could use a questionnaire to ask my target market about their preferences, this will then give me a better
idea about my target market. Despite this, using primary market research, especially a questionnaire, can
be expensive for a small business such as mine as it will require a large allocation of resources and time.
Another option if I want to conduct market research is secondary market research. Secondary market
research is usually less accurate but is much cheaper, and may still provide relevant information. A
secondary market research method I can use to identify my target market is customer reviews/the
internet. I can analyse customer reviews to find out what customers liked and disliked about my services
and how I can improve in the future.
It is important that any business, even a small one, keep track of its sales and finances at all times in order
to prevent financial issues and predict any future financial problems. To do this, the business should use a
variety of primary and secondary market research methods to help identify the demand for their product
or service. As well as this, I will need to know how likely it is that customers will purchase a product or
service from a new business, how often they will purchase this product or service, how they will pay for
the product or service and do the consumer’s buying patterns change over time. To determine this I can
conduct both primary and secondary market research.
One way to ensure the success of my business is to identify my competition and their
strengths/weaknesses. Competitor analysis is defined as identifying your competitors and evaluating their
strategies to determine their strengths and weaknesses relative to those of your own product or service.
The analysis seeks to identify weaknesses and strengths that a company's competitors may have, and
then use that information to improve efforts within the company. An effective analysis will first obtain
important information from competitors and then based on this information predict how the competitor
will react under certain circumstances.
Source: http://www.businessdictionary.com/definition/competitor-analysis.html
Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements,
which can affect the organization’s performance. The analysis entails assessing the level of threat or
opportunity the factors might present. These evaluations are later translated into the decision-making
process. The analysis helps align strategies with the firm’s environment.
There are many strategic analysis tools that a firm can use, but some are more common. The most used
detailed analysis of the environment is the PESTLE analysis. This is a bird’s eye view of the business
conduct. Managers and strategy builders use this analysis to find where their market currently. It also
helps foresee where the organization will be in the future.
Source: http://pestleanalysis.com/what-is-environmental-analysis/
