Topic 1 Spotting A Business Opportunity Flashcards
Define a customer
A person or organisation that buys or is supplied with a product
Define a supplier
A business which sells or suppliers products to another business
Define a consumer
The person who uses or consumes a product
Define markets
Where buyers and sellers meet to exchange goods and services
What are customer needs?
The want and desires of a customer of a business
Define market research
The process of gaining information about customers, competitors and market trends through primary or secondary data
Primary research
Gathering new information yourself that had not been collected before
Define a survey
Research by questioning an individual or organisation
What are respondents?
The people who provide information for a survey. This is usual by answering questions in a questionnaire or an interview.
What is a questionnaire
A list of questions designed to gather information about customer’s tastes. Answered by respondents.
What is a focus group
Where a group of people are brought together in market research to answer questions and discuss a product.
What is secondary data?
Gathering information that has already been collected
Define qualitative data
Information described by words
What is quantitative data?
Data that is expressed by numbers
What is a market segment?
It is a part of a market that contains a group if buyers with similar buying habits
Define price sensitive
When the price is very important in a sale where it decide whether to buy or not.
What is a market map?
A diagram that shows the range of possible proportions for two features of a product.
What is a gap in a market?
This occurs when there is no business currently serving the need of customers for a particular product.
What is a product range?
It is a group of similar products made by a business
Define a brand
A product that a customer can see as being different to others and by which they can identify them.
Define added value
The increased worth of a product; difference in how much a business pays for it and how much they charge
What does a USP stand for and what is it?
A characteristic of a product that makes it different from others. This could be the quality or design
What is a franchise?
The right given by a business to another to sell goods or services under its name.
What is a franchisee
A business that agrees to manufacture, distribute or provide a branded product under a licence by a franchisor
What is a franchisor?
It is the business that gives franchisees the right to sell its product for a fixed sum of money or loyalty payment
