business 1.1

?
What are common ways to segment a market
age, gender, body size, income, ethnicity, area, hobbies/interests, religion, socio-economic group
1 of 46
What main two things can market research tell a business
customers needs and wants
2 of 46
What else can market research tell a business
How much they are willing to pay, where they shop, their age and gender, who competitors are, if market is growing or shrinking, most useful features etc.
3 of 46
What is primary research also known as
Field research
4 of 46
What is secondary research also known as
Desk research
5 of 46
What type of businesses mainly use primary research and why
Big businesses as its time consuming and expensive
6 of 46
Which is the general preferred research and why
Primary, because its information thats up to date, relevant, and competitors do not have it
7 of 46
name examples of primary research
Surveys, focus groups, observations, experiments, questionnaires
8 of 46
Name examples of secondary research
sales data, internet, local news papers, market reports, government statistics
9 of 46
What is quantitative data
Data that can be expressed as numbers and statistically analysed
10 of 46
What is qualitative data
Data about, opinions, judgements, and attiudes
11 of 46
What is a market segment
part of a market with a group of buyers with similar buying habits
12 of 46
What does market segmentation allow a business to do
Meet specific customer needs,differentiate product, target market activity, develop a unique brand image, build closer customer relationships
13 of 46
What is a gap in the market
An unmet consumer need or product where no business appears to be selling the product or service
14 of 46
What does a market map help a business to do
identify market segments, and position their products through identifying gaps in the market
15 of 46
What can a market map show
a gap in the market
16 of 46
What is a market map
A map where different conditions are examined to determine trends and problems
17 of 46
Where do buyers and sellers go to exchange good s and services
A market
18 of 46
whats a supplier
A business that sells (supplies) products to another business
19 of 46
What is production
Using raw materials, labour and machinery to make products
20 of 46
What is a person that uses the product called
The consumer
21 of 46
What is the person that buys the product or service off a business or organization called
A customer
22 of 46
What are the advantages of primary research
Target specific markets and their wants an needs, preferences, so its is relevant; Confidential information competitors do not know; Its up to date
23 of 46
What are disadvantages of primary research
Time consuming; could be unrepresentative/biased; could ask wrong people; expensive to collect
24 of 46
What are the advantages of secondary research
Cheap, quick, and easy to collect
25 of 46
What are the disadvantages of market research
Not confidential as competitors know or have access to information; may be biased; may be untrue; may be too small sample size; may be out of date
26 of 46
Wha do small business mainly do
Secondary research
27 of 46
Why might a business analyse and judge a competitors strengths and weaknesses
In order to improve its own business offering an product portfolio, and differentiate form competitor
28 of 46
What are ways to compete with a competitor
Wider product range, better after sales service, stronger brand image, better product features, higher quality, better design, more enjoyable experience,
29 of 46
Why might a business want to business want to produce a strong brand image
So customers see the named product as being different from other products; so that they can associate and identify with that product or business
30 of 46
What is added value
The difference between the cost of the inputs involved in making the product and the price charged to customers for the finished product or service
31 of 46
How can a business add value
By lowering costs or adding something, causing customers to be willing to pay for higher price, or pay same price
32 of 46
what is a USP, and what can it help a business do
a unique selling point, and can help a business to compete
33 of 46
what are some ways to add value
more convenient, have a better USP, better design, improved quality, branding, greater quality and speed or service
34 of 46
what is a strong USP so important
the higher the added value the sooner costs can be paid, and sooner business will receive profit.
35 of 46
what can a better USP increase
chance of survival, success, and long term growth
36 of 46
what is a franchise
the right given form one business to other businesses to sell goods and service using its name
37 of 46
what does a business that buys into a franchise remain
an independent business
38 of 46
What is a franchisor
The business that gives the franchisee the right to sell its products or services using its name
39 of 46
what is a franchisee
a business that manufactures, distribuates, and provides a branded product under license by a franchisor
40 of 46
what does the franchisee have to give the franchisor in return
A share or sales revenue, or a fee
41 of 46
what does a franchisee get from buying a franchise
Access to goods and services, advertising and promotion, operate in an exclusive area, ongoing support, equipment, training, an established brand name
42 of 46
What are the benefits of setting up as a franchise rather than a sole trader
Possibly an established customer base, higher chance of survival, specific training and support provided, expensive marketing costs covered by franchise, established brand image/reputation, access to tried and tested products
43 of 46
whiter the drawbacks of a franchise
Expensive start up costs, royalty payments, complicated application process, lack of control, limited flexibility to make own decisions,
44 of 46
Is location important for all businesses
no; for some businesses location is vital e.g. retail shops, but for others it is not
45 of 46
What are some factors that might matter when choosing location
Proximity to competition, cost, busy (passing trade), access (e.g. parking etc.)
46 of 46

Other cards in this set

Card 2

Front

What main two things can market research tell a business

Back

customers needs and wants

Card 3

Front

What else can market research tell a business

Back

Preview of the front of card 3

Card 4

Front

What is primary research also known as

Back

Preview of the front of card 4

Card 5

Front

What is secondary research also known as

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Starting a business resources »