Characteristics Flashcards by Renee Kober

7 Characteristics of a successful entrepreneur.

Innovation
Creativity
Risk-taking
Communication
Determination
Confidence
Negotiation.

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What is an entrepreneur?

A new businessperson who risks setting up a new business.

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What is innovation?

A new way of doing something.

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Risk can result in…

Reward or failure.

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Why is communication important for an entrepreneur?

Contacting investors or clients, online communication, advertising, pitching ideas.

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What is the first objective in a business?

To survive.

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4 risk taking rewards. IS FM

Independence, self-satisfaction, financial, making a difference.

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4 potential drawbacks of risk taking.

Financial, health and well-being, work-life balance, personal relationships.

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What is cash?

Money in the bank

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What is Primary research (field research)?

New research that has not been carried out.

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What is Secondary research (desk research)

Research that has already been carried out.

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How can you segment a market?

Age
Gender
Income
Hobbies
Job
Living situation
Lifestyle
Interests.

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6 ways of Primary Research.

Interviews
Observations
Focus groups
Questionnaires
Surveys
Consumer Trials.

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5 ways of Secondary Research.

Internal data
Competitions data
Reports
Governmental stats
Books, magazines etc.

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3 disadvantages of Secondary Research.

Potentially biased.
Sometimes Inaccurate.
Sometimes unspecific.

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3 advantages of Secondary Research.

Quick.
Affordable.
Potentially “industry-specific”.

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3 disadvantages of Primary Research.

Money.
Sometimes inaccurate.
Time.

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3 advantages of Primary Research.

Addressing issues.
Specific.
Choice of research strategies.

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What is Revenue?

Money before expenses.

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What is profit?

Money after expenses.

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What is the total cost formula?

Fixed costs+Variable costs= Total Costs.

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Fixed costs are…

Costs that don’t change regardless of profit.

Variable costs are…

Costs that can change depending on profit.

What is Break even?

When a business doesn’t make a profit nor loss.

What is Quantitative data?

Useful information for stat analysis and to review it.

When pricing, businesses have to consider?

How much the product costs to produce. How much customers are willing to pay. How much customers can afford to pay. The competitor products from similar products.

What are extension strategies?

Plans a business can create to extend a products life and increase sales.

4 Main extension strategies.

Advertising, Change of product price, Adding value, Exploration of new markets and new packaging.

Advertising 1pro 1con

Pro: Wide coverage. Con. Expensive.

5 stages of Product lifecycle.

Development Introduction Growth Maturity (produce extension) Decline-withdrawal.

What is an introduction (in a product lifecycle)?

A successful launch means a steady rise in sales.

What is growth (in a product lifecycle)?

This is when there is more interest in a product, with a rapid increase in sales and also could result in repeat custom.

What is repeat custom?

Customers returning.

What is Maturity (in a product lifecycle)?

This is when the the growth of sales slows and the amount of new customers decline, also rivals launch similar products.

What is decline (in a product lifecycle)?

A decline is a big reduction in sales, where there is lots more choice on the market. If this continues, the product could be withdrawn.

What are mass markets?

Markets for products produced in large quantities.

What is the purpose of marketing?

The purpose of marketing is to build a brand name, attract new customers and gain repeat custom.

What is the marketing mix?

Elements of a business including, product, price, place and promotion to make products sell successfully.

What do businesses have to consider when pricing?

How much it costs to produce How much customers are willing to pay How much customers can afford to pay Competitors prices.

What are the marketing mix’s 4 p’s?

The right PRODUCT At the right PRICE In the right PLACE With the right PROMOTIONAL OFFER.

What is competitive pricing?

When a business considers competitors price for similar products first.

What is psychological pricing?

When a business chooses to avoid whole numbers to make products seem cheaper.

What is price penetration?

When a business starts their selling price low, than later increase it.

What is price skimming?

When a businesses charges a high price first, than later reduces it.

What is a disadvantage of psychological pricing?

If it is overused, it wont have much effect.

What is a disadvantage of competitive pricing?

They could make a loss if they only base their price on competitors.

What is a disadvantage of price penetration?

Customers might be put off from the the later price and due to the initial lower selling price , a business might suffer a loss.

What is a disadvantage of price skimming?

The first price might be off-putting for customers.

3 ways to get a strong brand image.

Simple branding Target audience Globalisation.

What’s an advantage of competitive pricing?

It ensures prices do not repel customers away from the brand.

What’s an advantage of psychological pricing?

More people will want to buy it as it seems cheaper.

What is an advantage of price penetration?

Good for crowded markets.

What’s an advantage of price skimming?

You get higher profit at the growth stage.

What are six types of promotional offers?

Free gifts BOGOF (Buy One Get One Free) Loyalty Schemes Point of sale advertising Discounts Competitions.