Unit 1.1 - Spotting a Business Opportunity

Question 1

Supplier

Answer 1

A business which sells/ supplies products to another business.

Question 2

Is “Value for money” a customer need? Name 3 other customer needs.

Answer 2

Yes. Some other ones are disabled access, good quality, safe environment.

Question 3

Primary research or

field research

Answer 3

The gathering of new information which has not been collected before. E.g Survey, focus group, interview

Question 4

How is a Survey different to a focus group?

Answer 4

A survey is research involving asking questions of people or organisations. A focus group is a group of people who discuss a product, brand or issue.

Question 5

What do you call the people that answer questions?

Answer 5

Respondents

Question 6

Questionnaire

Answer 6

A list of questions designed to help the business in market research

Question 7

What is secondary research and what else could you call it?

Answer 7

Desk research. Information that has already been gathered e.g government statistics, newspaper articles

Question 8

What is the difference between Qualitative and Quantitative data?

Answer 8

Qualitative data can be things like opinions - they are in words. Quantitative data is statistics and numbers

Question 9

Part of the public that contains a group of buyers with similar buying habits, such as age or income.

Answer 9

Market segment

Question 10

Price sensitive

Answer 10

When the price is very important in the decision about whether or not to buy.

Question 11

What is a market map and why is it used?

Answer 11

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality. It is used to find the gap in the market (Occurs when no business is currently serving the needs of customers for a particular product.).

Question 12

Product range

Answer 12

A group of similar products made by a business e.g different soap products.

Question 13

What is the USP?

Answer 13

The unique selling point - something original in the business that is different to everyone else.

Question 14

Brand

Answer 14

A named product which customers see as being different from other products and which they can associate or identify with.

Question 15

Added Value

Answer 15

The increase worth that a business creates for a product; it is the difference between what a business pays to its suppliers and the price that is able to charge for the product/ service.

Question 16

What is a franchise, franchisee and a franchisor?

Answer 16

Franchise - The right given by one business to another to sell goods or services using its name.
Franchisee - A business that agrees to manufacture, distribute or provide a branded product, under licence 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.