Theme 1: Topic 1.2 - Spotting A Business Opportunity

Question 1

What is a market?

Answer 1

A market could be

1. A place e.g. Farmer’s market
2. A product e.g. The oil market
3. A group of people e.g. age 18-25 market

Question 2

Why does a business need to understand the Market?

Answer 2

Businesses need to know what the market they are in is and how well the market is performing. They also need to know the market size and market shares.

Question 3

What is the market size?

Answer 3

The market size is the number of individuals within the market which are potential buyers or sellers of products.

Question 4

What are the market shares?

Answer 4

The market share of a business is the proportion of the total sales within the market that is controlled by the business

Question 5

What are the five main decisions should a business take when facing competitors?

Answer 5

1. Price
2. Customer service
3. Quality
4. Product range
5. Location