Spotting a Business Opportunity

Question 1

Supplier

Answer 1

A business that sells products to another business

Question 2

Customer

Answer 2

A person who buys products or supplies from a business

Question 3

Consumer

Answer 3

A person who uses ( or consumes) a product

Question 4

Customer Needs

Answer 4

It is what a customer is looking for or needs i.e disability access, value for money, good quality and safe enviroment

Question 5

Survey

Answer 5

Research asking questions of people or organizations

Question 6

Respondents

Answer 6

The people who respond/answer questions in a survey providing information in a questionnaire or an interview

Question 7

Questionnaire

Answer 7

A list of questions answered by respondents, used to gather information about consumers’ tastes

Question 8

What is a Focus Group?

Answer 8

A group of people brought together to answer questions and discuss a product, brand or issue

Question 9

Market segment

Answer 9

It is the part of a market where buyers have similar interests or buying habits

Question 10

Whats the difference between qualitative and quantitative data?

Answer 10

Qualitative data is opinions, judgments or attitudes whereas quantitative data is facts and statistics

Question 11

When the price is the decision whether to buy or not to buy

Answer 11

Price sensitive

Question 12

What is the difference between primary and secondary research?

Answer 12

Primary research is gathering new information however secondary research is gathering information that is already collected

Question 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.

Answer 13

Market map

Question 14

What is a gap in the market?

Answer 14

A part of the market where there is an opportunity for a new product to be introduced

Question 15

Product range

Answer 15

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

Question 16

Brand

Answer 16

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

Question 17

Added value

Answer 17

The increase worth that a business creates for a product; it is the difference between what a business pays to its suppliers and the price that is able to charge for the product/ service.

Question 18

Unique selling point or USP

Answer 18

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 19

Franchise

Answer 19

The right given by one business to another to sell goods or services using its name.

Question 20

Franchisee

Answer 20

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.

Question 21

Franchisor

Answer 21

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.