Business Unit 1 (Edexcel)

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Who do businesses buy from?
Suppliers
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Who do businesses sell to?
Consumers/Customers
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What are the two types of market research?
Primary and secondary
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Give an example of primary research
Surveys, Focus groups, observations, questionnaires, experiments
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Give two advantages of primary research
They're more accurate, up to date, specific to needs, effective at collecting qualitative data, give direct customer contact
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Give an example of secondary research
The internet, local newspapers, government stats, market reports, telephone directories, sales data
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Give two advantages of secondary research
More general, Less time-consuming, effective at collecting quantitative data
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What are the two types of data?
Qualitative and quantitative
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What is qualitative data?
Information on opinions, judgements and attitudes
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What is quantitative data?
Data that can be expressed as numbers
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What is market mapping?
Identifying market segments and the postion of businesses product
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What is a market segment?
A group of buyers with similar characteristics and buying habits
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If a market segment in the market map is empty what is it called?
A gap on the market.
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What is branding?
A named product
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Why is branding useful?
People become loyal to the brands products
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How can businesses differentiate their products?
Price, quality, customer service
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How do businesses compete against eachother?
Design, quality, features, brand iamge, after sales service, product range, experience
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What is added value?
Increased worth of a product
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How can you add value?
Convience, unique selling point (USP), better design, improved quality, branding, faster speed of service
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What is franchising?
It is the right given from one business to another
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Who is the franchisor?
The business that gives the rights for other businesses to sell its products or services
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Who is the franchisee?
A business that agrees to distribute the branded products or services
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What are two advantages of being in a franchise?
Training, equipment, support, established brand name, advertising and promotion
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What are two drawbacks of a franchise?
Lack of control, royalty payments, start-up costs
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What is an entrepreneur?
A person who runs their own business and takes risks
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What is an enterprise?
An initial idea for a business and a willingness to take a risk
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What are enterprises?
Businesses
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Name three enterprise skills
Risk-taking, showing initiative, willingness to undertake a new venture
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What is blue skies thinking?
Coming up with as many ideas as possible in order to solve a problem
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What is lateral thinking?
Trying to think of new unexpected ideas
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What are De Bono's six thinking hats?
Facts about an idea, emotions, difficulties, positive aspects, creative thinking, competitors
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Why do entrepreneurs ask questions?
To find out any problems that may occur
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How can you protect business ideas?
patents, copyright, trademarks
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What is a patent?
Right of ownership over an invention, design or process registered by the government
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What is a copyright?
Legal ownership of materials, so others cannot copy it
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What is a trademark?
A logo, symbol, sign or any other feature of a product or business that cannot be copied
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What is calculated risk?
Looking at whether the benefits outweigh the risks
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What skills do entrepenurs need?
Planning, drive, thinking ahead, determination, seeing opportunities
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What are the four P's in the marketing mix?
Product, place, price, promotion
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What are the two start up business objectives?
Financial and non-financial
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How do you get total revenue?
Price x Quantity
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How do you work out total costs?
Fixed costs + Variable costs
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How do you work out profit/loss?
Total revenue - Total costs
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Other cards in this set

Card 2

Front

Who do businesses sell to?

Back

Consumers/Customers

Card 3

Front

What are the two types of market research?

Back

Preview of the front of card 3

Card 4

Front

Give an example of primary research

Back

Preview of the front of card 4

Card 5

Front

Give two advantages of primary research

Back

Preview of the front of card 5
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