Business 1.2 Spotting a business ideas

Flashcards covering key concepts from business studies lecture notes.

Customer needs

Price

Quality

Choice

Convenience

Choice

Range of products means wider audience

Convenience

Save customers time and effort eg. location of store

Importance of identifying+understanding customers

generating sales(in order to survive)

business survival(must find customer needs/wants)

Purpose of market reserach

Identify and understand customer needs

Identify gaps in market

Reduce risk

Methods of market research

Primary-survey

secondary-internet

Qualitative data

Non numerical info aimes at gaining opinions on product/service

Quantities data

Numerical info that can be measured

Role of social media for market research

real time and up to date responses

trends can be tracked

Market segmentation

Location

demographics

lifestyle

Market mapping

Find market gaps

enables to make your product different

Price competition

Lower cost=low profit

start of proce war

Quality competition

If business improves quality,increase cost

Increase cost means less profit

Location competition

Convenient location

free customer parking

Product range competion

Range of products leads to increase cost of production

wide range suits customer needs

Customer service

Loyal customers

less customers

Benefits of competition

Improve customer service

Competitive pricing

Improve product against competion

Effects of weak competition

Monopoly-Single business dominates market with no competition