GCSE Business Studies
What is Business?
Businesses are organisations which provide goods. They do this by using resources such as raw materials, labour and machines. Many of the goods may be tangible meaning you can touch it and others may be intangible meaning you cannot touch it. There are many types of Businesses such as sole traders, partnership and company. Every business has an aim to achieve. In order to this this they will spread their business internationally, make loads of profit, advertise their business so that people around the world will be interested in the company and want to buy from them and exchange their money for first class goods.
What is a consumer?
A consumer is a person who will buy goods/services in exchange for money. Businesses buy their goods from suppliers or in other words wholesalers.The consumer is the one who pays to consume the goods and services produced, however when these businesses buy these goods they will buy it with a different price and then sell it to the consumers for a different price.
What is a supplier?
A supplier, is a person or company that provides goods and/or services to other companies as one of the contributors to the development process on the way to the ultimate customer. A supplier could produce and deliver raw materials, partially assembled components, custom parts, or any consumable supplies.
A supplier could provide labour, consulting or management services.
What is a customer?
A customer is the recipient of a good, service or product obtained from a seller, consumer or supplier. A customer purchases goods; a consumer uses them. An individual or business that purchases the goods or services produced by a business. The customer is the end goal of businesses, since it is the customer who pays for supply and creates demand. Businesses will often compete through advertisements or sales in order to attract a larger customer base.
What is market research?
Market research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps businessmen make wise and profitable business decisions. The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you.
What is primary research?
Primary research is when you gather your own information about the selling product to the consumers, this consists of original data collected by the researcher. There are man different types of primary research as shown in the following:
- Telephone interviews
- Direct observations
What is secondary research?
Secondary research is when you use different sources or help with different texts with your research. Secondary sources consist of data that has already been produced and can be contemporary or historical, qualitative or quantitative.
Secondary sources include
- Referencing other forms of research and using quotes
What is quantitative research?
Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you. To get reliable statistical results, it's important to survey people in fairly large numbers and to make sure they are a representative sample of your target market.
What is qualitative research?
Qualitative research is about finding out not just what people think but why they think it. It’s about getting people to talk about their opinions so you can understand their motivations and feelings. Most of the time during the process of a qualitative research the most important thing in this type of research is knowing how much of something the consumer likes or dislikes but always preferred in a focus group.
What is a focus group?
A focus group usually means a group of people assembled to participate in a discussion about a product before it is launched, or to provide feedback on a political campaign.
What is a Market map?
A market map illustrates the range of positions that a product can take in a market based on 3 dimensions that are important to customers:
- High quality, low price
- Low quality, High price
- Middle quality, high/low price
What is a market segment?
Market segment is when breaking up a larger market into a small market. The reason why markets need segments is because the customer needs differ, creating separate products for each segments makes sense and provides customers with a better solution. By segmenting markets, target customers can be reached more often and at lower cost. Though careful segmentation and targeting, businesses can often become the target leader, even ti the market is small.
Some examples of expensive shops.
- Karen Millen
- Emporio Armani
- Armani Jeans
What does it mean by a gap in the market?
When someone says there is a gap in the market it means that there is a segment, or part of that market where the competitors are not catering for the customers needs.