THEME 1: 1.1 and 1.2 Flashcards
What is business enterprise?
Process of identifying new businesses and taking advantage of them. This could be by starting a new business or helping an existing one by expanding it by coming up with new ideas.
What are the purposes of business activity?
Provide a good or service, meet customer needs and.
Explain why a firm might try to make a product more convenient for a customer.
They are more likely to buy it because it’s easier to get or use.
What does USP stand for?
Unique selling point
Explain 3 reasons why new business ideas come about.
Changes in technology, changes in customer needs and products becoming obsolete.
What is an entrepreneur?
Someone who takes on risks of enterprise activity.
List 3 things an entrepreneur must be able to do in order for business success.
Organise resources, take risks and make business decisions.
Explain 3 rewards an entrepreneur may get form starting a new business.
Seeing their business become a success, profit and independence.
Describe the 3 meanings of market.
Place where goods are traded, trade in a particular type of product and potential customers of the product.
List 5 areas where businesses may compare themselves to competitors with.
Price, customer service, quality, product range and location.
Describe 2 factors two factors about a business that can make it stand out from its competition.
Lower prices, higher quality, larger product range etc.
Why is it important for a business to understand customer needs?
So customers buy the product otherwise they won’t survive.
Give 3 types of business decisions which may be informed by a business market research.
Make informed decisions (what products to sell,where to sell them and at what price), spot gaps in the market (when a certain group of customers have needs that aren’t being met) and reduce risks.
Explain how market research can help a business to reduce its risks.
Helps make informed decisions that will help the business to avoid and reduce risks and costly mistakes.
What is the main difference between primary and secondary market research.
Primary is finding the information yourself such as questionnaires and surveys whereas secondary research is using other peoples market research such as reading magazines and using the internet.
Give 4 methods of primary market research.
Questionnaires, surveys, focus groups and observation (which is observing what people do or say rather than asking them).
Give 2 methods of secondary market research.
Market research and government reports and newspapers and magazines on the internet.
Explain whether a small firm is more likely to use primary or secondary research.
Secondary because its cheaper than primary research (and they’re a small firm so they won’t have lots of money) and the data is easily found and instantly available.
Give one example of how a business may use social media for its market research.
Post a new feature or product and use likes and comments to find out potential customers opinions about the product.
Whats the difference between quantitative and qualitative market research.
Quantitative is information that can be measured or reduced to a number (data).
Qualitative is information that is about peoples feelings and opinions.
What is meant by reliable market research.
The right kind of data that’s correct and up to date.
Why might a firm want to segment a market when conducting market research.
The firm can identify the target market and find out information specific to them.
Give 4 different ways of segmenting a market.
Age, location, lifestyle, gender, income.
Give 2 pieces of information which a business might find out from a market map.
Its own location within the market, where competitors are within the market and any gaps in the market.
