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Business-Theme 1 > Topic 1.2 - Spotting a Business Opportunity > Flashcards

Topic 1.2 - Spotting a Business Opportunity Flashcards

1
Q

What are the main customer needs a buisness must consider?

A
  • Price
  • Quality
  • Choice
  • Convenience
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2
Q

How can customers be influenced by price?

A

Lowering prices will increase sales

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3
Q

Why do customers want a choice?

A
  • Different customers have different tastes and needs

- It can help customers with buying decisions

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4
Q

Why is it important for a business to meet customer needs?

A
  • It can help create customer loyalty
  • Increases sales
  • Business could fail if they don’t meet their needs
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5
Q

What needs and behaviours do customers base their buying decisions on?

A
  • Family Needs
  • Financial needs
  • Emotional needs
  • Brand loyalty
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6
Q

What is market research?

A

Process of gathering information about the market and customer needs and wants

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7
Q

What is the purpose of market research?

A
  • To identify and understand customer needs
  • To identify gaps in the market
  • To reduce risks
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8
Q

What does it mean for a buisness idea to be viable?

A

Able to work properly or successfully

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9
Q

What is stratified sampling?

A

Probability sampling technique where the researcher divides the entire population into different subgroups

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10
Q

What is systematic sampling?

A

Probability of sampling methods in which researchers select members of the population at regular intervals

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11
Q

What is primary research?

A

Research carried out to answer specific questions and issues

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12
Q

What are questionnaires? + What can they be used for?

A
  • They are a set of questions with a choice of answers
  • Type of primary research
  • Provide feedback on information a business needs to obtain from its customers
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13
Q

What factors do businesses have to consider when identifying the type of customer they would like to question?

A
  • Age group
  • Income bracket or social group
  • Home town or region
  • Gender
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14
Q

What are focus groups?

A
  • A group of people who discuss their views on a product/service/advertisement
  • Usually 10 people
  • Participants should not know each other (usually paid)
  • Can be held online
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15
Q

What are observations and how can it be carried out?

A
  • Means watching how customers behave naturally when they don’t think they are being watched
  • Can be seen through CCTV
  • Helps to understand people’s reactions to new products etc.
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16
Q

What are the advantages of using observations?

A
  • Customer behaves naturally

- Research is not biased

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17
Q

What are the disadvantages of observations?

A
  • Time consuming
  • Does not provide a definite answer
  • Must be carried out in an ethical manner (consent etc.)
18
Q

What is secondary research?

A

Using existing resources of information that has been previously researched

19
Q

What is the difference between internally sourced information and external sourced information?

A

Internally sourced info is the data, statistics and research that a business has accumulated in the past. Externally sourced info is info published by people or organisations that are not related to buisness

20
Q

What are some examples of externally sourced information?

A
  • Government agencies
  • Newspapers
  • Trade unions
21
Q

What is a trade association?

A

An organisation founded and funded by business that operate in a specific industry

22
Q

Advantages of primary research

A
  • Tailored to the product

- Research is unique to the business carrying it out

23
Q

Disadvantages of primary research?

A
  • If survey is badly designed it may not give the results the business is looking for
  • Can be very expensive
  • Time consuming
24
Q

Advantages of secondary research

A
  • Quicker to obtain information

- Less expensive

25
Q

Disadvantages of using secondary research

A

It has been collected for another purpose and therefore needs to be adapted

26
Q

What are the 2 types of data used in market research?

A
  • Qualitative data is a descriptive data that cannot be be measured in numbers
  • Quantitative data is numerical data
27
Q

What are the uses Qualitative data?

A

It can be used to find customers views on:

  • Products and services
  • Design and packaging
  • Advertising and marketing messages
  • Price changes
28
Q

Advantages of Qualitative data

A
  • Gives detail of why customers behave in a particular way

- Helps business listen to what customers want

29
Q

Disadvantages of Qualitative data

A
  • Small sample of people are surveyed so results may be biased
  • Responses are very subjective
  • Results can depend on the skills of the interviewer
30
Q

Differences between quantitative data and qualitative data

A
  • Qualitative data are usually collected by ‘open’ questions( long explanations)
  • Quantitative data is collected by ‘closed’ questions (Yes and no questions)
  • Qualitative data only asks a small amount of people whereas quantitative data asks a range of people
31
Q

What are the uses of Quantitative data?

A
  • Can help compare different groups of their customers

- Helps generate statistics

32
Q

What are the advantages of using social media in market research?

A
  • Saves time conducting market research
  • Deepen a business understanding of their market
  • Identify popular trends
  • Improve their products and marketing
33
Q

What is market segmentation?

A

The process of dividing a target market into smaller categories by grouping together consumers with a particular need or interest

34
Q

What are the different types of market segments?

A
  • Location
  • Demographics
  • Behaviour
  • Lifestyle
  • Income
  • Age
35
Q

What is market mapping?

A

The process of creating a diagram that identifies all products in a market and Amos them against 2 of their features

36
Q

What does market mapping allow a buisness to do? + Give an disadvantage of using it

A
  • See all the products or services in the the market
  • Identity it’s competitors
  • Spot any gaps in the market
  • Disadvantage: Can be subjective( based on opinion)
37
Q

What are direct competitors?

A

Businesses that sell the same type of product or service

38
Q

What are indirect competitors?

A

Businesses that do not sell the same product or service but are still in competitors with one another E.g planes, trains, ferries

39
Q

What are the factors that are known as Marketing mix?

A
  • Price
  • Product
  • Promotion
  • Place
40
Q

What are Competitors strengths and weaknesses?

A
  • Price
  • Quality
  • Location
  • Product range
  • Customer service
41
Q

What can SWOT analysis help a business to understand

A
  • Strengths of their competitors
  • Weaknesses of their competitors
  • Opportunities for them and their competitors
  • Threats posed by competitors

Business-Theme 1 (6 decks)

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