Topic 1: The need for business activity

  • Created by: EReynolds
  • Created on: 12-06-15 16:04
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  • Topic 1: The need for business activity
    • Businesses provide products to markets
      • Making sure that the business knows what customers want, and then providing it, is essential to success. By providing products to the customers who want them, businesses are operating in a market.
    • For the business to succeed they need to find a gap in the market.
      • New business look for a gap in the market. A gao on the market is where a demand exists, but it is not being met. Businesses can find out about the wants of customers through market research.
        • Some businesses are able to create a gap in the market by, for example, offering a completely new type of product.
    • A product will either be a good or a service.
      • Goods are things that can be touched
      • Services are done for or to a customer.
    • Business will target parts of a market called segments.   Segments can be easily targeted.
      • Common ways to segment a market are by age, geography, gender, hobbies, and interests, and socio economic group-that is the level of income and education enjoyed by a household.
    • Markets
      • A market is anywhere that buyers and sellers come together to agree on the price for an amount of a product.This does not have to be a physical place:  markets can take place via telephone or online.
    • Businesses that succeed attract competitors. (Competition in a market is constantly changing).
      • All businesses operate in competitive markets, so they will seek ways to compete more effectively. As businesses succeed or fail in this, markets are constantly changing and businesses need to adapt to that change


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