Topic 1.1 Flashcards
Supplier
A business who sells(or supplies) products to another business.
Customer
The person who buys or is supplied with a product
Consumer
The person who ultimately uses a product.
Markets
Where buyers and sellers meet to exchange goods or services
Customer needs
The wants and desire of buyers or a product or the customers of a business.
Market research
The process of gaining information about customers, competitors and market trends through collecting primary and secondary data.
Primary research
The gathering of new information, which has not been collected before.
Survey
Research involving asking questions of people of organisation.
Focus group
A group of people brought together to answer questions and discuss a product, brand or issue.
Qualitative Data
Information about opinions, judgement and attitudes.
Quantitative Data
Data that can be expressed as numbers and can be statistically analysed.
Market Segments
Part of markets that contains a group of buyers with similar buying habits, such as age or income.
Brand
A named product which customers see as being different from other products and which they can associate or identify with.
Franchising
The right given one business to another to sell goods or services using it’s name.
Franchise
A business that agrees to manufacture, distribute or provide a branded product, under license by a franchisor.
Franchisor
The business that gives franchisees the right to sell its product in return for a fixed sum of money or a royalty payment.
What is secondary research?
The process of collecting data which has been collected before
Price sensitivity
When the price determines whether the product is brought or not
Why does price need to be reasonable
So customers feel as if they are paying the right price
Why does location need to be convenient
So customers find it easy to get to the shop
A busy location will attract more customers
Why is a good range important
A good range will interest the customer and make them want to return - it allows them to buy what they want
Why is friendly staff important
It gives a good impression and allows customers to ask questions and makes them more likely to return
Why is the quality of products important
A good quality product will reassure the customers that the business is the right place to be. People do not pay for items which do not meet standard
What is EPOS
This is monitoring tills to check the buying habits of customers
What is interview
Asking a group or one to one of the target market what they think of a product
What is survey
This could be face to face or via post - questions about a product that respondents fill in for you
What is a focus group / consumer panel
Asking the target market questions about the product - what they think
What is an example of observation
Looking at cctv to see the buying habits of customers
What is experimentation
Launching a product in a certain location of the country before releasing it to everywhere else, to see if it will be successful
