Unit 1 Small Businesses

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  • Created by: Sophie
  • Created on: 26-02-14 19:39
BUSINESS
An organisation whose purpose is to produce goods and services to meet the needs and want for the customer.
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SUPPLIER
A business that sells supplies to another business.
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PRODUCTION
Using raw materials, labour and machinery to make products.
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CUSTOMER
The person who buys the goods or services.
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CONSUMER
The person that uses the goods or services.
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What Can Market Research Tell Us?
What features the customer wants; How much they are willing to pay; what gender they are; how much demand there is for the product.
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What are the two types of market research? Define them.
Primary Research- Research that is done yourself, it didn't exist before; Secondary research- someone else did the research, it already exists.
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Give three examples of primary research
Focus groups, questionnaires, observations, surveys, experiments
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Give three examples of secondary research
Internet sites, government statistics, market reports, sales data, newspapers
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Give three benefits of using primary research
More up to date, more accurate, effective at collecting qualitative data, specific to what they need
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Give three benefits of using secondary research
more general, less time consuming, effective at collecting quantitative data.
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What are the two types of data? Define them.
Qualitative Data- word data e.g. opinions and judgments; Quantitative Data- data that can be expressed as numbers e.g. statistics
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Define market segment. Give three examples of different market segments
A market segment is a group of people with similar buying habits. e.g. age, gender, lifestyle, income
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Define market mapping
A diagram that can be used to compare which products are in different markets and help a business to identify where customer needs aren't being met and thus a gap in the market.
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Give three examples of ways that a business may compete with other businesses.
Better customer service; higher quality; better product features; wider product range
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Define the term brand
a named product that customers can easily identify and associate with.
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Give three examples of ways to add value to a product.
Better design, USP (unique selling point); better quality; branding; more convenience
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Define the term franchising.
When the right is given by a business to another business to sell goods or services using its name.
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Give three benefits to setting up under a franchise
established brand; specific training; established customer base; more chance of survival; tried and tested products
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Give three drawbacks of setting up under a franchise
expensive start up; lack of control; don't get all the profits; don't get to make your own decisions
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Other cards in this set

Card 2

Front

SUPPLIER

Back

A business that sells supplies to another business.

Card 3

Front

PRODUCTION

Back

Preview of the front of card 3

Card 4

Front

CUSTOMER

Back

Preview of the front of card 4

Card 5

Front

CONSUMER

Back

Preview of the front of card 5
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