What is a business?
- A company that provides a service to the genereal public to make a profit.
- Is set up by either an individual or a team
- A business either provides a service or sells a product/products
- There are normally businesses that a business has to compete with because they have similar brands. They compete for customers and profit, and differentiate from each other by having different prices, unique selling points, advertising and target markets.
- When opening a business you have to think about cost, customers and competitors.
What does a business provide?
A business either provides a service or sells a product.
Good: Physical objects that companies sell that you can touch
Service: Is an experience a business provides that you can't physically touch
- 70% of businesses in the UK provide a service
- 8 in 10 people work for a company that provides a service
Buys from suppliers
Sells to customers
Customer needs: A customer need is a requirement of a potential buyer that can be solved through the purchase of a product.
It is important that a start-up business identify customer needs through market research.
Primary Research methods
- Surveys and questionnairesIn depth interviewsfocus groupsObservations
Secondary Research methods
- National and local government data
- Acedemic bodies' information
- Proffessional bodies research
Start - up market research
- Informs sales forecasting
- Identifies potential demand
- Helps assess feasibility
- Part of a business plan
- It's likely to be small
- Limited by budget
- Lack of experience
This gathers non - statistical infomation thaat gives a company insight into reasons behind customer behaviour. It therefore focuses on quality. Business owners use focus groups, taste panels, and open ended questions to research this.
e.g. A customers opinion on a product.
Quantitive data is the gathering on research based on numbers and statistics, focuses on customer behaviour but dies not give reasons. It therefore focuses on quantity. Companies do this with observations, surveys and closed questions.