1. What is the purpose of market research? What are some of the benefits and some of the
limitations of market research? Explain.
2. How might a business use market research in order to identify industry trends and potential
markets, analyze demand, and forecast sales? What are some of the components of market
research that might be used to accomplish these things?
3. Consider some of the successful businesses in your area. What do you think makes these
businesses successful? Identify and explain any possible competitive advantages that these
particular businesses may have that contribute to their success.
4. What is market segmentation? Identify and briefly describe each of the four categories of market
segmentation and how each category can help a business meet the needs of their customers.
5. Imagine that you are currently involved in the market analysis process. You have created a plan
for your research and are ready to move onto the next step collecting data. What are the two
types of research that you will likely use during this step? Identify and explain the two types of
research, possible sources of these types of research, and the purpose that each serves during
market analysis.
Answers: 1
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