AP Business

Business

• Want to solve a problem

• Provides a "need or a want”for the customer

  • Need- something you cannot live without

  • Want- Something you dont want to live without, but you can

• Want to make a profit

  • Contribute to the economy by providing jobs & being sustainable in the market

Organization

• Business are organizations

  • Provide and distributes goods and services

• Can range in size & levels of ownership

• Can operate locally all the way to globally

  • Have a brick or mortar building or all virtual

Consumer vs. Customer

Customer

• Purchases a good or service

Consumer

• Person who uses a good or service whether or not they purchased it.

Demographic Factors

• Factors that educate an organization what their target market will be

  • Age, ethnicity, income, etc.

Problem Solution Fit

1. Finds a customer problem

2. Comes up with a Solution

   1. Target a correct customer/consumer

Value

Worth or benefit of a product to a customer

Value creation

• Actually meets customer needs

Value capture

• Being able to attain some of the value of a product from profit

KPI

Key Performance Indicator

• measurable value that shows how well a company reaches its goals