Pearson Edexcel Business Theme 1.1 (Paper 1) ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Exam with accurate detailed solutions ||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is 'the market' - correct answer✔✔Where buyers and sellers come together to
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trade goods.
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(1.1.1) What is risk? - correct answer✔✔When an entrepreneur commits resources (such as
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money) that could be lost. ||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is uncertainty? - correct answer✔✔A condition that exists because business
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operate in an ever-changing environment where they are subject to changing external
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factors. e.g. legal, economic, social
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(1.1.1) What are the five main markets? - correct answer✔✔- Consumer goods market
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- The housing market
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- Market for services
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- Financial Markets
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- Commodities Market
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(1.1.1) What is marketing? - correct answer✔✔Involves activities used to support the
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process of communicating with customers.
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(1.1.1) What is the purpose of marketing? - correct answer✔✔- understanding customer
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needs
- understanding the dynamics of the market (competitors)
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- promoting the business and its products
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, (1.1.1) What is a mass market? - correct answer✔✔A market for generic goods produced in
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large quantities. ||/|\|||
(1.1.1) What are the characteristics of a mass? - correct answer✔✔- Targeting a large
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population of the market. ||/|\||| ||/|\||| ||/|\|||
- Requires production on a large scale and investment in capacity.
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- Competition in the market. (High Demand)
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- Promotion involves mass market techniques e.g. TV, Radio
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- Business compete on price.
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(1.1.1) What are the advantages of operating in a mass market? - correct answer✔✔- Higher
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demand and sales opportunity. ||/|\||| ||/|\||| ||/|\|||
- Economies of scale.
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(1.1.1) What are the disadvantages of operating in a mass market? - correct answer✔✔- Lots
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of competitors, could drive the price down.
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- Products must be differentiated to be successful.
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- operational costs e.g. marketing is more expensive.
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(1.1.1) What is a niche market? - correct answer✔✔A market for specialised goods produced
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on a small scale.
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(1.1.1) What are the characteristics of a niche market? - correct answer✔✔- Targeting a
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faction of the market with a specialised product. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- Small scale bespoke production.
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- Low volume high profit margins.
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Exam with accurate detailed solutions ||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is 'the market' - correct answer✔✔Where buyers and sellers come together to
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
trade goods.
||/|\|||
(1.1.1) What is risk? - correct answer✔✔When an entrepreneur commits resources (such as
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
money) that could be lost. ||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is uncertainty? - correct answer✔✔A condition that exists because business
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
operate in an ever-changing environment where they are subject to changing external
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
factors. e.g. legal, economic, social
||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What are the five main markets? - correct answer✔✔- Consumer goods market
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- The housing market
||/|\||| ||/|\||| ||/|\|||
- Market for services
||/|\||| ||/|\||| ||/|\|||
- Financial Markets
||/|\||| ||/|\|||
- Commodities Market
||/|\||| ||/|\|||
(1.1.1) What is marketing? - correct answer✔✔Involves activities used to support the
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
process of communicating with customers.
||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is the purpose of marketing? - correct answer✔✔- understanding customer
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
needs
- understanding the dynamics of the market (competitors)
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- promoting the business and its products
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
, (1.1.1) What is a mass market? - correct answer✔✔A market for generic goods produced in
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
large quantities. ||/|\|||
(1.1.1) What are the characteristics of a mass? - correct answer✔✔- Targeting a large
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
population of the market. ||/|\||| ||/|\||| ||/|\|||
- Requires production on a large scale and investment in capacity.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- Competition in the market. (High Demand)
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- Promotion involves mass market techniques e.g. TV, Radio
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- Business compete on price.
||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What are the advantages of operating in a mass market? - correct answer✔✔- Higher
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demand and sales opportunity. ||/|\||| ||/|\||| ||/|\|||
- Economies of scale.
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(1.1.1) What are the disadvantages of operating in a mass market? - correct answer✔✔- Lots
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of competitors, could drive the price down.
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- Products must be differentiated to be successful.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- operational costs e.g. marketing is more expensive.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
(1.1.1) What is a niche market? - correct answer✔✔A market for specialised goods produced
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on a small scale.
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(1.1.1) What are the characteristics of a niche market? - correct answer✔✔- Targeting a
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faction of the market with a specialised product. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
- Small scale bespoke production.
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- Low volume high profit margins.
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