1 Flashcards
Why do new business ideas come about?
🟡products become obsolete
🟡changes in technology
🟡change in customer wants
Hat are the two types of business ideas
💡 adapting an existing product
💡original ideas
What are some risks of starting a new business?
🔹Failure
🔹Financial loss
🔹Lack of security
What may be some rewards for entrepreneurs?
🔵purse an interest
🔵dissatisfaction with current job
🔵financial rewards
🔵be their own boss
What purpose do businesses serve?
🟣goods
🟣services
🟣goods & services eg:Restaurants
🟣 delivery
What do businesses do serve..
🟤peoples wants
🟤peoples needs
What is enterprise?
🔴a business
🔴qualities
🔴factor of production
(Entrepreneurial activity)
How can value be added to a product ?
🔸quality
🔸USP
🔸convenience
🔸branding
🔸design
What are some ways to minimise risks?
Market research
Revenue forecasts
Branding
🔺defines it’s values
🔺creates customer loyalty , which can increase market share
🔺🔺🔺🔺
E-commerce/M commerce
🟡low start up costs
🟡ideas straight to the marketplace
🟡do not need their own payment platform
What quality does an entrepreneur hold?
🔷taking risks
🔷identifying business opportunities
What are some roles of an entrepreneur ?
🟣innovation
🟣organised
🟣willingness to take risks
🟣hardworking
What are the 4 factors of production?
◾️enterprising
◾️capital
◾️land
◾️labour
What are some customer needs?
🟢convenience
🟢quality
🟢price
🟢choice
What is the importance of satisfying customer needs?
🔹they will buy
🔹increase in sales and customer satisfaction
What are some advantages of being market driven?
🟡avoid costly mistakes
🟡find the correct marketing mix
🟡allows them to be competitive
What is found in market research?
🔴demand
🔴competition
🔴target market
What is qualitative research?
Opinions and written stuff
What is quantitative research?
Factual quantified information
What is market segmentation?
Dividing potential customers into different groups
Why do business use market segmentation?
⚫️choosing a marketing mix
⚫️choosing promotion
⚫️market mapping
What are variables in segmentation?
🟦age
🟦location
🟦income
🟦gender
Why is market mapping used
To identify a gap in the market by looking at what competitors have to offer
What can businesses compete on?
🟣location
🟣product range
🟣customer service
🟣price
Why is the impact of high competition?
Price
Quality
What is primary research?
Market research that is done by it’s own firm for its own use. The research can tailor the business’s exact needs
What are examples of primary research?
🔹the likert scale
🔹questionnaires, surveys , interviews
What is secondary market research ?
A firm collecting information on research that has been performed by other people.
It is used for an entire market and is cheap
What is the difference between an aim & an objective
Aim = ultimate purpose
Objective =goals in order to achieve the aim
An objective is normally more specific