Spotting a Business Opportunity

Question 1

What is a Supplier?

Answer 1

A business that sells (and supplies) products to another business.

Question 2

What is the difference between customer and consumer?

Answer 2

A customer is a person or business which buys or is supplied with a product or by a business. A consumer is someone that ultimately uses the product.

Question 3

What are 4 customer needs?

Answer 3

-Value for money. -Disabled access. -Good quality. -Safe environment.

Question 4

What is Primary (or field) Research?

Answer 4

The gathering of new information that has not been collected before.

Question 5

Is a survey Primary (or field) Research?

Answer 5

Yes, because a survey is a research involving asking questions of people or organisations.

Question 6

What is the definition of Respondents?

Answer 6

Those who provide data for a survey usually by answering questions in a questionnaire or interview.

Question 7

Is a Questionnaire answered by Respondents?

Answer 7

Yes, because a Questionnaire A list of questions to be answered by respondents, designed to gather information about consumers’ tastes.

Question 8

What is a focus group?

Answer 8

In market research, a group of people brought together to answer questions and discuss a product, brand or issue.

Question 9

What is Secondary (or desk) Research?

Answer 9

Information that has already been gathered e.g sales records, government statistics, newspaper articles.

Question 10

Whats the difference between Qualitative and Quantitative data?

Answer 10

Qualitative is Information about opinions, judgements and attitudes. E.g interviews, focus groups, questionnaires whereas Quantitative is Data that can be expressed as numbers and can be statistically analysed. E.g survey, sales data.

Question 11

Define Market Segment?

Answer 11

Part of a market that contains a group of buyers with similar buying habits, such as age or income.

Question 12

What is being Price Sensitive?

Answer 12

When the price is very important in the decision about whether or not to buy.

Question 13

What is a Market Map?

Answer 13

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality.

Question 14

What is a gap in the market?

Answer 14

Occurs when no business is currently serving the needs of customers for a particular product.

Question 15

What is a Product Range?

Answer 15

A group of similar products made by a business like a number of different soap products.

Question 16

What is the definition of brands? (give an example)

Answer 16

A named product which customers see as being different from other products and which they can associate or identify with.

Question 17

What is a USP?

Answer 17

A characteristic of a product that make it different from other similar products being sold in the market such as design, quality or image.

Question 18

Whats the difference between Franchise and Franchisee?

Answer 18

A franchise is a business that agrees to manufacture, distribute or provide a branded product, under licence by a franchiser. A franchisee is The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.