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15 terms

Edexcel GCSE Business Studies Unit 1 Spotting a Business Opportunity

section 1 of unit 1 glossary of key terms
STUDY
PLAY
entrepreneur
Someone who is prepared to take risks in order to bring a business idea to life
market
Describes the system by which buyers and sellers of a particular product or service carry out transactions with each other
primary research
Research carried out by or on behalf of a business, specifically for their needs or requirements. (Expensive, but tailored to the business' requirements).
secondary research
Research that is already in existence which can be used by businesses to find out about the market in which they want to operate. (Cheaper and quicker but not tailored to specific requirements)
quantitative research
Research that takes the form of figures and data that can be analysed to look for trends and differences. Requires questions that have specific responses.
qualitative research
Research that takes the form of attitudes, beliefs and opinions of people. Will require open questions that enable people to respond fully.
ad hoc research
Takes place at a specific time to support a particular project e.g. whether to develop and launch a new product or service
continuous research
Research that takes place on a regular basis, such as monthly calls to customers to find out their views about the service received, or annual research in to a market and the trends and developments within it.
market segment
A set of potential customers within a market who have a particularly common trait (e.g. single females aged 25 to 30). This enables businesses to promotoe products and services to particular groups in a way that appeals to them
market map
A method of analysing the market and potential competitors using two product attributes or customer requirements. For example, cheap vs expensive and modern vs traditional
competitor analysis
The process of investigating the strengths and weaknesses of potential competitors before starting a business. This enables an entrepreneur to target a customer need which may not be met very well at present.
adding value
The way in which a business convinces a customer to pay significantly more for a product or service than it costs to produce. There are a variety of techniques business use.
franchise
An established business operation which can be operated by a someone in return for an investment and share of the profit.
franchisor
A person or business who sells the right for someone to trade using the franchisor's name and products
franchisee
Someone who purchases the right to operate a business using an established trade name. They get marketing and training in return for a one-off fee up front and have to pay a % of their sales or profit.