Developing a Business Idea

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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 consuming, however by the panel analysing and giving feedback to Tom will be time consuming. Another type of primary research is to go out and take photographs of buildings and businesses currently in the catering and entertainment line. By Tom doing this he will see how a party or the building is set up to attract customers and notify the public of the new business name and boost sales. Also by saving money on the questionnaires as they as they are cheap to make tom can use some of the money saved on consumer panel and this would be very helpful to Tom as he has not got money to splash he needs to use is wisely has he is still young and this is only the first stages of opening a new business.

Advantages of primary research:

• Address specific issues: Tom using primary research he can address specific issues that he is not confident on and the feedback back that he gains will be reliable as he is there when feedback is given.

• Issues related to the subject: All the data that Tom collects it will all be to do with his subject of catering and entertainment business.

• Controlled: Tom as the ability and right to control all his data and analyse all the data himself.

• Own Research: As Tom collected the research himself it will be reliable and also be specific to his business idea.

Disadvantages of primary research.

• Time Consuming: Tom collecting and analysing all the data it will be very time consuming however it will be very beneficial to him for a successful business

• Cost: For Tom to collect and analyse the data it will cost him a lot however it will help him long term.

• Short Term: The data/information that Tom has collected it will be no use of it to him long term. Meaning it won’t be able to use it again however the experience he gains from collecting and analysing data will help him long term

Secondary Research:

Tom can also use secondary research as it will save him time and money and this...
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