The dynamic nature of business Flashcards
What is an entrepreneur?
A risk-taker who sets up a business in return for financial gain
What is a dynamic market?
A market that is constantly changing.
Why might a business have to innovate?
-changes in technology
-changes in what consumers want
-products and services becoming obsolete
-new and original ideas
-adapting existing products, services and ideas
What is ‘E-commerce’?
A transaction that takes place using the internet
What are the impacts of E-commerce?
Businesses can sell to different customers and countries on a much larger scale
What are the impacts of social media on business?
-Businesses can create a personal relationship with their customers
-A cheap and effective way to create brand awareness
-Easy and quick customer feedback
-Companies can sponsor influencers to promote their product, this is cheaper than traditional advertising
What are demographics?
characteristics of a population
What are some examples of demographics?
-age
-gender
-disability
-nationality
-religion
-ethnicity
-income levels
What is a target market?
A group of people or area of a market that a business aims to sell its products to
What is a product life cycle?
the sales of a product over time, from its launch and throughout its lifespan and decline
What does obsolete mean?
out of date
What happens at the end of a product’s life cycle?
It is often replaced by an updated version of the product or a totally different product
What is invention?
Creating something that did not previously exist
What is innovation?
The successful commercialisation of an invention or adaptation of a product.
Why might an entrepreneur adapt a product?
-To satisfy customer demands for a product
-Its less risky than making a new product
