Developing a Business Idea
Investigation 1:
There are two types of market research, Primary and Secondary.
• Market research is gathering and analysing different types of data.
• Primary Research is collecting research first hand. E.g.: surveys, consumer panels, and testing and observing a new idea.
• Secondary research is data which is ready to use, has been used previously by other businesses. This type of data could be found on the internet or in books
Primary Research:
I would strongly advise Tom to use Primary research as he is gaining firsthand experience. This will play a vital part in the opening of his own catering and entertainment business, as he has no experience in this type of business. I would advise Tom to use questionnaires as a research method as he will be gaining various different results and as a result this will give him an idea of the demand of the business. By Tom using a questionnaire as his main research method he will be able to choose various different Areas for him to question people in and as a result he will know what area to target and make the most money out of. (Using questionnaires is cheap and because Tom has not got money at this stage it will be very beneficial and helpful to him). By Tom using a questionnaire he will be able to ask a range of different questions open or closed and will be seeing the person filling the questionnaire out and this will make the data reliable.
Other types of primary research are that Tom could set up a consumer panel. By Tom setting up a consumer panel the panel can analyse and feedback to Tom in depth. This will give Tom an idea of whether or not his idea of the business will work or not. Also for Tom to set up the consumer panel it will be very easy and quick therefore will not be every time consuming setting up and also will not cost a lot. However the consumer panel ideas feedback of the idea may be bias therefore may be time wasting for Tom. Setting up the panel will not be time
There are two types of market research, Primary and Secondary.
• Market research is gathering and analysing different types of data.
• Primary Research is collecting research first hand. E.g.: surveys, consumer panels, and testing and observing a new idea.
• Secondary research is data which is ready to use, has been used previously by other businesses. This type of data could be found on the internet or in books
Primary Research:
I would strongly advise Tom to use Primary research as he is gaining firsthand experience. This will play a vital part in the opening of his own catering and entertainment business, as he has no experience in this type of business. I would advise Tom to use questionnaires as a research method as he will be gaining various different results and as a result this will give him an idea of the demand of the business. By Tom using a questionnaire as his main research method he will be able to choose various different Areas for him to question people in and as a result he will know what area to target and make the most money out of. (Using questionnaires is cheap and because Tom has not got money at this stage it will be very beneficial and helpful to him). By Tom using a questionnaire he will be able to ask a range of different questions open or closed and will be seeing the person filling the questionnaire out and this will make the data reliable.
Other types of primary research are that Tom could set up a consumer panel. By Tom setting up a consumer panel the panel can analyse and feedback to Tom in depth. This will give Tom an idea of whether or not his idea of the business will work or not. Also for Tom to set up the consumer panel it will be very easy and quick therefore will not be every time consuming setting up and also will not cost a lot. However the consumer panel ideas feedback of the idea may be bias therefore may be time wasting for Tom. Setting up the panel will not be time