Theme 1- Investigating Small Businesses Flashcards
What can new technology affect?
Makes products and services faster
Makes products smaller
Makes products and services cheaper
Makes products and services easier to use
Makes products safer
What can affect customer wants and needs?
Changes in fashion
Changes in economy
Changes in national demographics
Changes in lifestyle
Changes in technology
How can risk be reduced?
Market research
Business plan
Raise sufficient start-up finance
What makes some businesses riskier than others?
Seasonal demand
Small markets
Competitive markets
How can a business add value?
More convenience
Branding
USP
Improved quality
What is a supplier?
A business that sells products to another business
What is a USP?
A Unique Selling Point
What affects the price of a product or service?
Choice, Convenience or Quality
Why is market research used?
Identify gaps in the market
Understand how well the business is doing
Identify customer needs
Identify competitors
Give examples of primary research
Surveys
Focus groups
Social Media
Observations
Questionnaires
Give examples of secondary research
Market reports
Internet sites
Local newspapers
Sales data
Give benefits of primary research
More accurate
Up to date
Specific to needs
Direct customer contact
Give benefits of secondary research
More general
Less time-consuming
Effective at collecting quantitive data
What is qualitative data?
Information of people’s opinions
What is quantitative data?
Data that can be expressed as numbers and statistically analysed
What is one use of market segmentation?
A business understanding its customer needs and to target their customers better
What are some limitations to market segmentation?
Can be costly to target multiple different types of customers
Customer characteristics change over time
Give some benefits of market segmentation
Meets specific customer needs
Differentiate its products
Targets its marketing actively
Build close customer relationships
What is market mapping?
A diagram that can be used to position and compare products in a market
What is a market map most commonly used for?
Finding gaps in the market
Limitations to market maps?
Based in opinions not data
Only compares businesses based on two variables
