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1.1,1.2+1.4 - Coggle Diagram
1.1,1.2+1.4
If it is a brand new business idea then customers may be impressed as they have never seen anything like it before which could lead to your reputation being improved and therefore you are able to charge more for your products resulting in higher profits.
If customers change taste and you are up to date and in fashion then you can beat competitors meaning that you are seen as more successful and therefore there would be more brand loyalty leading to increased chances of survival.
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Market research=The process of gathering information about the market and customer’s needs and wants in order to help inform business decisions, including product design and marketing.
Mass market allows for a lot of the market to be accessed - the product should appeal to many people.
Niche market allows for less of the market to be accessed - the product is likely to appeal to fewer people.
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It must be conducted ethically and they may need to get consent and respect the people being studied.
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A group of around 10 people who are asked about their views towards a product, service, advert or idea.
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Customers should be from the target market and not know each other. Interviewer must make sure group is not dominated and they do not sway the group’s viewpoints.
expectations of a fast food restaurant is a lot lower than a posh, gourmet restaurant. However the business must still meet the expectation even if offering low price - think burnt McDonald's!
Customers are particularly influenced by low prices, this will increase a business’ sales. When launching a new product/service, it is important that market research is completed about what customers are willing to pay.
Customers like to have choice as different customers have different needs. There is a lot more information available through the internet so having so much choice can seem overwhelming. Businesses must make it clear to customers which product is most suitable for them.
sole trader=A business which is owned by only one person, although there may be more employees.
They are often individuals who have specialist skills.
Partnerships=A business which is owned by two or more people (usually between two and twenty).
A deed of partnership is created when starting the business.
Private limited company=A business which is owned by shareholders who are usually family and friends.
The business has LTD after it’s name.
Public limited company=A business which is owned by shareholders who can buy the shares from the stock market.
The business has PLC after it’s name.
The cost of a location is an important one when deciding where to locate a business. This is especially important for small businesses as they need to keep their costs down as they may not be making a lot of money.