Lesson 5: Understanding The Market

Question 1

Is a composition of systems, institution, procedure, social relations or infrastructures whereby parties engage and exchange.

Answer 1

Market

Question 2

Is the process by which the prices of goods and services are established.

Answer 2

Market

Question 3

It facilitate trade and enable the distribution and resource allocation in a society.

Answer 3

Markets

Question 4

It allow any trade-able item to be evaluated and priced.

Answer 4

Markets

Question 5

It emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of right of services and goods.

Answer 5

Market

Question 6

Generally supplant gift economies and are often held in place through rules and customs, such as booth fee, competitive pricing, and source of goods for sale.

Answer 6

Markets

Question 7

Structure that allows buyers and sellers to exchange any type of goods, services and information.

Answer 7

Concept of a market

Question 8

The exchange of goods or services, with or without money is called?

Answer 8

Transaction

Question 9

Are the destructive thinkers comma offering innovative yet commercially viable ideas, later culminating in to success business stories.

Answer 9

Entrepreneurs

Question 10

• It means what exists in the mind as a representation or a formulation.
• Is the content of cognition or the main thing one is thinking about or intends to do.
• may apply to a mental image or formulation of something seen or known or imagined, to a pure obstruction, or to something that exist in the mind of a person.

Answer 10

Idea

Question 11

Celebrated economies who perceived an entrepreneur as a person having the willingness in the ability to convert a new idea or invention into a successful innovation.

Answer 11

Joseph Schumpeter

Question 12

A person having the willingness and the ability to convert a new idea or invention into a successful innovation.

Answer 12

Entrepreneur

Question 13

Seven features of sound business idea

Answer 13

1. Fullfil a customer need - a problem is solved
2. Clear focus
3. Innovative number
4. Unique
5. Sustainable
6. Profitable in the long term

Question 14

3 Aspects to be considered

Answer 14

1. End User’s Benefit
2. Market
3. Revenue Mechanism

Question 15

The first vital aspect of a business successful business idea is to clearly describe what need will be catered to and how.

Answer 15

End User’s Benefit

Question 16

USP mean

Answer 16

Unique Selling Proposition

Question 17

Identify how big the target market is for the product or service offered and how it differentiates itself from the products and services of competitors.

Answer 17

Market - second aspect

Question 18

Business idea should be clearly reflect the manner in which the revenue will be earned along with the quantum of revenue to be earned by selling the product or service.

Answer 18

Revenue mechanism re

Question 19

Concerned with collection, compilation and analysis of economic data for the eventual purpose of locating possible opportunities for investment and with the development of such opportunities.

Answer 19

Project identification

Question 20

Three kinds of opportunities according to Drucker

Answer 20

1. Additive
2. Complementary
3. Breakthrough

Question 21

Opportunities which enable the decision maker to better utilize the existing resources without in any way involving a change in character of business.

These opportunities involved minimum disturbance to the existing state of affairs and hence the least risk.

Answer 21

Additive opportunities

Question 22

Opportunities involved the introduction of new ideas and such do lead to a certain amount of change in the existing structure.

Answer 22

Complementary opportunities

Question 23

Opportunities involved fundamental changes in both the structure and character of business.

This opportunities involve minimum disturbance to the existing state of affairs and hence the least risk.

Answer 23

Breakthrough opportunities

Question 24

One of the most important sources of project ideas.

Answer 24

Observation

Question 25

Provide a very fertile source of project ideas.

Answer 25

Trade and professional magazines

Question 26

Is the exchange of capital, goods, and service across international borders or territories because there is a need or want of goods or services.

Answer 26

International trade

Question 27

Several sources

Answer 27

1. Observing markets 2. Prospective consumers 3. Developments in other nations 4. Study of Project profiles 5. Government Organizations 6. Trade fairs and exhibitions 7. Attending motivation campaigns

Question 28

Generating ideas

Answer 28

1. Brainstorming 2. New ways of doing old things 3. Converting hobby into business 4. Utilizing waste material 5. Improving an existing product

Question 29

Is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Answer 29

Brainstorming

Question 30

Three different customers

Answer 30

1. Purchasers 2. Influencers 3. End users

Question 31

Is an organization created by an individual or individuals to conduct business, engage in a trade, or partake in similar activities.

Answer 31

Business entity

Question 32

Is an organization that uses economic resources to provide goods or services to customers in exchange for money or other groups and services.

Answer 32

Business entity

Question 33

Three major type of businesses as to product

Answer 33

1. Service business 2. Merchandising business 3. Manufacturing business

Question 34

A feature that makes your product attractive to customers.

Answer 34

Value preposition

Question 35

A specific group of consumers food be interested in the product.

Answer 35

Target market

Question 36

A unique feature of your product or service that cannot easily be copied by competitors.

Answer 36

Competitive advantage

Question 37

A list of fixed and variable expenses your business requires to function and how this affect pricing.

Answer 37

Cost structure

Question 38

The ways your company measures success.

Answer 38

Key metrics

Question 39

The physical, financial, and intellectual assets of your company.

Answer 39

Resources

Question 40

Your target customers' pain points, and how your company intends to meet them.

Answer 40

Problem and solution

Question 41

A framework that identifies viable income sources to pursue.

Answer 41

Revenue model

Question 42

The multiple ways your company can generate income.

Answer 42

Revenue streams

Question 43

The amount your revenue exceeds business costs.

Answer 43

Profit margin

Question 44

Describe the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other context.

Answer 44

Business model

Question 45

12 Business Models

Answer 45

1. Subscription model 2. Bundling model 3. Freemium model 4. Razor blades model 5. Product to service model 6. Leasing model 7. Crowdsourcing model 8. One - for- one model 9. Franchise model 10. Distribution model 11. Manufacturer model 12. Retailer model

Question 46

Can be applied to both traditional brick and mortar businesses and online businesses alike.

Answer 46

Subscription model

Question 47

Involves companies selling two or more products together as a single unit often for a lower price than they would charge selling the product separately

Answer 47

Bundling model

Question 48

Involves receiving opinions, information, or work from any different people using the internet or social media. This type of business model allow companies to tap into a vast network of talent without having to hire in house employees.

Answer 48

Crowdsourcing model

Question 49

Means that a company donates one item to a charitable cause for every item that is purchased.

Answer 49

One-for-one model

Question 50

Is responsible for taking manufactured goods to the market. They buy the product in bulk and sell it to retailers at a higher price.

Answer 50

Distribution model

Question 51

Is a process of fixing the value that a manufacture will receive in the exchange of services and goods. Is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business marketing plan.

Answer 51

Pricing