Unit 1.1 Spotting a Business Opportunity

Question 1

What is a supplier?

Answer 1

a business which sells(or supplies) products to another business

Question 2

What is the difference between a customer and a consumer?

Answer 2

a customer is the person who buys the item, whilst the consumer is the person who uses the product

Question 3

What are the 4 main customer needs?

Answer 3

Value for money, disability access, good quality, safe environment

Question 4

How are surveys and respondents linked?

Answer 4

a survey asks the respondents the questions, the respondents answer the question

Question 5

What is the difference between a survey and a questionnaire?

Answer 5

a survey involves asking questions to people and organisations whereas a questionnaire shows a list of questions to be answered by respondents, designed to gather information about consumers’ tastes

Question 6

In market research, a group of people brought together to answer questions and discuss a product, brand or issue.

Answer 6

Focus group

Question 7

what is Qualitative data?

Answer 7

Information about opinions, judgements and attitudes. E.g interviews, focus groups, questionnaires

Question 8

Data that can be expressed as numbers and can be statistically analysed. E.g survey, sales data

Answer 8

Quantitative data

Question 9

What is market segmentation?

Answer 9

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

Question 10

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

Answer 10

Price sensitive

Question 11

Market Map (Perceptual Map or Positioning Map

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.

Question 12

What is a gap in the market?

Answer 12

Occurs when no business is currently serving the needs of customers for a particular product.

Question 13

What does Product range mean?

Answer 13

A group of similar products made by a business like a number of different soap products.

Question 14

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

Answer 14

Brand

Question 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.

Answer 15

Added value

Question 16

Unique selling point or USP

Answer 16

A characteristic of a product that make it different from other similar products being sold in the market such as design, quality or image.

Question 17

How does a franchise and franchisee differ?

Answer 17

A franchise is The right given by one business to another to sell goods or services using its name.

A franchisee is A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.

Question 18

What is a franchisor?

Answer 18

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.