Theme 1 Flashcards
what is enterprise?
The process of identifying new business opportunities and taking advantage of them
Give three purposes of business activity?
- Provide people with a good or service
- Meet customer needs e.g. providing goods/services that people will want to but
- Add value to an existing product
Explain why a firm might try to make a product more convenient for the customer?
A firm might make its product more convenient for customers to add value to its product
What does USP stand for?
Unique selling point
Explain three reasons why new business ideas come about?
- Changes in technology
- Changes in what customers want
- Goods/services becoming obsolete
What is an entrepreneur?
An entrepreneur is someone who takes on the risks of enterprise activity
List three things a entrepreneur must be able to do to run a successful business?
- Organise resources
- Take risks
- Make business decisions
Explain three rewards a entrepreneur might get from setting up a business?
- Seeing their business idea become a success
- The reward of profit which could lead to a better quality of life
- The independence of running your own business
Describe three meanings of the term ‘market’
- A place where goods are traded
- Trade in a certain product e.g. Oil market
- The potential customers for a product e.g. age 18-25 customers
List five areas where a business may compare itself to its competitors?
- Price
- Customer service
- Quality
- Product range
- Location
Describe two factors about a business that can make it stand out to competitors?
- The price of a business products compared to its rivals
2. The quality of its products compared to its rivals
Why is it important for a business to understand a customers needs?
The business needs to provide a good/service that customers will want to buy so there business is successful
Give two customers needs that a business might want to identify?
- Convince
2. Quality
Give three types of business decisions which may be informed by a business market research?
- Make informed decisions
- Spot a gap in the market
- Reduce risks
Explain how market research can help a business to reduce its risks?
Using market research can help to reduce the risk of a potentially failed business idea
What is the main difference between primary market research and secondary market research?
Primary research-Doing your own research from customers through surveys, questionnaires and focus groups
Secondary research-Using other similar businesses research for your business
Give four methods of primary market research?
- Opinions
- Questionnaires
- Surveys
- Focus groups
Give two methods or secondary market research?
- Government reports
2. Newspaper/magazine articles
Would a small firm be likely to use primary or secondary market research? Explain your answer.
A small business is more likely to use secondary research as it is cheaper than primary research and is easily found and instantly available
Give one example of how a Business may use social media for its market research?
Social media can be used to find things people enjoy, Business can collect this information and use it for their market research
What is the difference between quantitative and qualitative market research?
Quantitive research-Research that is displayed in a numerical value e.g. how many pizzas will you buy each week
Qualitative research-Research that asks people’s feelings and opinions e.g. what do you think of pizzas
What is meant by reliable market research?
This means the results can be repeated by another researcher, reliable market research presents the people that the business is interested in accurately
Why might a firm want to segment a market when conducting market research?
Segmenting a market can help a business figure out who exactly they are most interested in selling to to maximise profit
Give four different ways of segmenting a market?
- Age
- Income
- Location
- Lifestyle
Give two pieces of information which a business might find out form a market map?
- Competitors selling similar products
2. Any gaps in the market
