bus paper 1

Created by

j a

Cards (56)

ways the technology can improve products
products are faster
they are cheaper
easier to use
explain one way in which technology can change products
the internet has made it faster for people to buy products
they can use apps to look at products and buy items
many companies will be able to deliver them in a few days
what are needs and wants caused by
changes in fashion
changes in demographics
changes in economy
changes in lifestyle
what are the risks of starting a business
financial loss- lose investment
lack of security- no income guaranteed like a job
business failure- no sales /income
what are the rewards of starting a business
profit
recognition
independence
business success
why are some maekets riskier than others
competion
small market
seasonal demands
how do you minimise risk
market research
writing a business plan to identify potential problems
ensuring there is enough finance available
usp over competition
know competitors weakness
how can a business add value to its products
convince
branding
quality
design
usp
speedier service
what do entrepreneurs do
take risks
identify gaps in the market
organise resources
make business decisions
run and grow business
what are the benefits to the economy of people becoming entrepreneurs
creates economic growth
creates jobs
creates products that are needed
pays taxes to the government
products exports for country to seal
why is it important that a business meets customer needs
to generate sales and gain revenue to ensure survival
what will customers do if you meet customer needs
will be loyal
good WOD may attract customers
customers will repeat purchase
why would a business sale a range of products
to meet needs of many customers
to increase potential revenue
to raise more profits
what are the main customer needs
choice
price
convenience
quality
what are the main purposes of market research
identify gaps in the market
identify customer needs
understand trends
know customer views on products
make decisions to minimise failure
what does market research help a business understand 
customers
competitors
markets
what wre the main types of market research
observations
experiments
focus groups
surveys/questionnaires
social media
what are the advantages of primary research
specific information to your company
good for qualitative data (words)
uptodate
direct from customers
more accurate
explain one advantge of primary research
about customers- meet their needs- sell more
what are the main types of secondary research
sales data
internet sites
market reports
newspaper
what are the advantages of secondary research
less time consuming
cheaper so lesstime taken
can back up primary findings
good for qualitative data
explain one adavntage of seconadary research
quick-can make produscts- 1st in the market- become mma
how can you make mrk research more effective
large sample and do both types
what is the problem with carrying out mrk research
expensive
time consuming get right info
explain how a large sample can can make your data more appropiate
more likely to represent your customers- more correct info-better decisions
how can social media help with mrk research
quicker to find
up to date+ large sample
why is reliable data important for a business
decision is better, more likely to be successful
how can you make data more reliable
ask appropiate Q
representative sample
why might data be bias
people may know the answers
not representative
questions my be phased to give bias
explain how comanies can use peoples profiles on socail media
to find their target market.
see what they buy/like. then produce it
what are the advantages of mrkt mapping
finds gaps
identify close rivals
can make decisions about brand
see if its worth entering the market
help segment the market
waht are the limitations of market mapping
could be perception not fact
only two variables so simple
what is a market segment
a group with similar characteristics and buying habits
what characteristics can be used to segment a market
age
gender
demographics
lifestyle
location
what are the benfits of segmenting your market
can meet specific needs
can differentiate
taget marketing at customers
focus on a group and get good at it
develop a usp/brand image
explain why a business would choose to segment their market
meet needs
loyal customers
will pay more
what are the limitations of segmenting your market  
could lose other customers
costly to change to meet their needs
demographics could change over time
what are the benefits of differentiation
can gain advantage of competition
customers will see their needs being met+ stay loyal
can position product and target precisely
what is a competitive market
large number of customers to try gai as many as possible
lots of businesses selling similar products
what are the problems with a highly competitive market
you have to reduce prices to compete
lower profit margins
have to monitor comp alot
difficult to expand
may have to decrease costs