M1 Explain Methods Used to Identify the Target Market for the Proposed Business

BTEC Level 3 in Business
Unit 36 Starting a Small Business
(a) Explain methods used to identify the target market for the proposed business (M1)

Write a report for your potential investors, in a short report format, which details how you will identify your target market, your report should include;
• Details of market research, primary and secondary
• Competitor analysis
• Evidence of market trends
• SWOT and PEST analysis

In my cake shop that have a lot of potential investors.   Following the primary and secondary marketing research:

Primary research is the first hand research curries out from the business, it is more reliable and accurate than secondary research, because the information was collected by yourself.   Primary research has including questionnaires, interview, observation and focus group.   Usually we can do primary research to find out what the customer like, which cake or service they usually buy, how they feel about the products and how old they are and carry out activities according to age to attract more customers.   Although it is a good opinion to operating the business however primary take a lot of time and can be expensive because some time we have to given a free products that can be tested.

Secondary research is the second hand research that has already been researched by someone and we can find it on the internet, magazines, newspapers, journals and reports from the other business or government etc.   In secondary research, we don’t need to collect information by itself, more cheap, easily accessible and very quickly to find what you need, but the information are difficult to validate because it may not be specific in your area of research.  

Competitor Analysis

To starting a business, we need to analysis our competitor and assess the strengths and weaknesses of the business that is a system that analysis your competitors.   The purpose of this analysis is to estimate the response and strategy to your...