1.1.1 Flashcards
What is a product?
A product is anything that is capable of satisfying customer needs
What is a service?
A service is an act that a
business person carries
out for you in exchange
for money, for example:
Dental treatment
Accountancy
Travel agents
Gardening
Cleaning
Hairdresser
Definition: Obsolete
Obsolete means a product that is no longer used or
out of date
For example we can make a product obsolete by
replacing it with something better
Definition: Original ideas
Original ideas are ones that have not been used before to
put a product or service into production e.g. pet hotels
This may be to solve problems
It may be because an entrepreneur has a passion or interest
A gap in the market may have been spotted
A business may have carried out some research into the
wants and needs of shoppers and be creating products to
meet those needs
Original ideas – solve problems
This is Art Fry – he
invented the post-it
note by accident
Originally it was called
the press and peel
It was yellow as he had
yellow paper to hand
He invented it to keep
the page open in his
hymn book
Original ideas – gap in the
market
A successful business will be one
that spots an opportunity to
make a profit
This could be an idea that
no-one has thought of before –
for example Trunki luggage
The opportunity could be where
there are lots of businesses
already making a healthy profit
The entrepreneur may also spot
an opportunity to trade and also
make a difference to society –
this is called a social enterprise
Original ideas – carried out
Vet Joe Inglis and 7 friends realised
that there were 8.5 million dogs in the
UK and 4 out of 5 owners treat the pet
as one of the family and want the best
food possible
They created a niche business which
makes tailored food to the dog’s age,
breed or medical condition and is
delivered to their door
Now TAILS.COM have 40,000 UK
customers
Adapting existing ideas
A business could create a new product by:
Mix and match
New version of an old product
Cheaper version of an old product
Wants and needs: “Free from”
foods
Consumers are also
demanding organic, free
range, sustainable, eco
friendly products as we
become more aware of our
impact on the environment
