small businesses-notesz Flashcards
how does a change in technology improve products and services and allow new business opportunity to arise?
new technology can:
- make products and services faster
- make product more compact
- make products cheaper
- make products and services easier to use
- make products safer
what business opportunities can come from changes in consumer wants and needs?
- changes in fashions
- changes in the economy
- changes in national demographics
changes in lifestyle such as the way consumers spend their leisure time - changes in technology
describe what is planned obsolesces?
Many products are designed to last on a short time.
consumers are encouraged to buy newer and improved versions of these products.
this itself is called planned obsolesces
what the rewards of starting a business?
- Business success - personal satisfaction, excellent products/services, growth, awards and recognition
- Profit
- Independence
what are the risks of starting a business?
- business failure
- financial loss
- lack of security - not working for someone else means no guaranteed income, sick pay or holidays
how can risks for a business be reduced?
. market research
. business plan
. ensuring that the business is competitive
. raise a sufficient amount of start up business
what makes a business more riskier then others?
- seasonal demand
for example ice cream is usually only for summer - small market
-a highly competitive market with lots of competitors - an owner who knows a little about the product or market
what is the role of a business enterprise?
the purpose of a business or an enterprise is producing goods and services to meet the needs of customers
the purpose of all products and services is to meet the needs of customers often in order to make a profit
how does a business add value to their product?
- lowering costs
- adding a special feature to make customers pay more
- better design
- unique selling point
- more convenience
-improved quality
- branding
- greater speed of service
what do customers need?
customers want four things
1. a convenient and cheap price
2. a wide range of choice
3. good convenience
4. good quality
what is important about a customers personal circumstances?
it is important to understand each and every individual customer as each have different wants and needs
what are some examples of understanding customers?
- family needs
customers with children will have different from families with no children - financial needs
people with different incomes will choose to buy products and services at different price points - personal taste and preference
all customers have different preferences based on style, colour, function etc - emotional needs
some customers may have a strong emotional connecting to a particular product or brand
what is market research
market research is gathering information about the market or the customers’ needs and wants
to help with the business decisions
what is the purpose of market research
- identifies gaps in the market
- understand competitors
- understand trends in the market
- reduces the risk associated with making business decisions
- understand other people view on the business
- understand customer needs
what is primary research?
- examples
- advantages
- this is collecting information that did not exist before
- it if first hand data
e.g.
focus groups
surveys
observations
experiments
questionnaires
social media - more accurate
- up to date
- specific to needs
- qualitative data
- direct customer contact
