Unit 7 activity 2 btec business revision notes for exam
start up a business - ANSshow potential investors there is a market for the product
Gap in the market - ANSRepresents opportunities for companies to expand:
Business
Customer base
Finding a gap can be done by:
Businesses strengths
Finding a niche
Developing/improving/copying
Research trends
Competitors - ANSRival against another business that offers similar product
Can carry out competitor analysis - gives a competitive advantage
Location
Pricing
competitor analysis - ANSan organized approach for evaluating the strengths and
weaknesses of current or potential competitors' marketing strategies
Current Trends - ANSAbility to respond to changes in economic,market and social
trends
economic trends - ANSIncrease in the size and power of corporations
market trends - ANSShifting preferences in the market. Trends reflect changing
opinions, habits, and ideas that can affect what types of products and services
customers will buy.
Social Trends - ANSThe patterns of change in society
Likely demands - ANSCan be discovered through market research
Size of market
Price
Sale volume/turnover
Consumer views
Developing business - ANSGenerates new ideas if outdated may switch to
competitors
Changes in economic climate - ANSThe general state of regional,national or global
economy
Reflects state of jobs and market
Trends - ANSa general direction in which something is developing or changing
, Sellers influence - ANSInnovative products
Advertising
Brand image
Distribution
buyers influence - ANSPattern of expenditure
Providing feedback
competition - ANSMay lead to diversification! Due to market competition the
consumer has a choice of which product to purchase from which supplier
consumer choice - ANSThe range of competing products and services from which a
consumer can choose.
Depends on:
Price
Quality
Service
Reviews
After sale service
Brand image
Availability of cheaper substitutes
Purpose of a business - ANSThe core aims and objectives of what the business
wants to achieve
Aims - ANSAn overall goal for a business
objectives (goals) - ANSGoals in place to get to the aims
Structure of a business - ANSBusiness functions can be grouped together and
managed in different ways
Hierarchy business structure - ANSDifferent levels of authority
Superior and subcordinate
Matrix business structure - ANSBased on project teams- specialist in a certain area
Flat business structure - ANSFew or no levels of middle management
Product and service - ANSThe business exists to provide goods and services that
are good quality work
quality control - ANSthe strategy for minimizing errors by managing each stage of
production
Quality Assurance - ANSThe maintenance of a desired level of quality in a service or
product to minimise defects
start up a business - ANSshow potential investors there is a market for the product
Gap in the market - ANSRepresents opportunities for companies to expand:
Business
Customer base
Finding a gap can be done by:
Businesses strengths
Finding a niche
Developing/improving/copying
Research trends
Competitors - ANSRival against another business that offers similar product
Can carry out competitor analysis - gives a competitive advantage
Location
Pricing
competitor analysis - ANSan organized approach for evaluating the strengths and
weaknesses of current or potential competitors' marketing strategies
Current Trends - ANSAbility to respond to changes in economic,market and social
trends
economic trends - ANSIncrease in the size and power of corporations
market trends - ANSShifting preferences in the market. Trends reflect changing
opinions, habits, and ideas that can affect what types of products and services
customers will buy.
Social Trends - ANSThe patterns of change in society
Likely demands - ANSCan be discovered through market research
Size of market
Price
Sale volume/turnover
Consumer views
Developing business - ANSGenerates new ideas if outdated may switch to
competitors
Changes in economic climate - ANSThe general state of regional,national or global
economy
Reflects state of jobs and market
Trends - ANSa general direction in which something is developing or changing
, Sellers influence - ANSInnovative products
Advertising
Brand image
Distribution
buyers influence - ANSPattern of expenditure
Providing feedback
competition - ANSMay lead to diversification! Due to market competition the
consumer has a choice of which product to purchase from which supplier
consumer choice - ANSThe range of competing products and services from which a
consumer can choose.
Depends on:
Price
Quality
Service
Reviews
After sale service
Brand image
Availability of cheaper substitutes
Purpose of a business - ANSThe core aims and objectives of what the business
wants to achieve
Aims - ANSAn overall goal for a business
objectives (goals) - ANSGoals in place to get to the aims
Structure of a business - ANSBusiness functions can be grouped together and
managed in different ways
Hierarchy business structure - ANSDifferent levels of authority
Superior and subcordinate
Matrix business structure - ANSBased on project teams- specialist in a certain area
Flat business structure - ANSFew or no levels of middle management
Product and service - ANSThe business exists to provide goods and services that
are good quality work
quality control - ANSthe strategy for minimizing errors by managing each stage of
production
Quality Assurance - ANSThe maintenance of a desired level of quality in a service or
product to minimise defects
