Topic 1.1: Spotting a business oppurtunity

Chapter 4: Competition

1 What is meant by the term ‘brand image’?

Brand image is the impression of a product by suppliers or the customers.

2  What brand image might businesses want for the following product?  (a) Helmets for building sites, (b) a club in town centre, (c) a local taxi service.

Helmet building sites will use an image of a helmet only capable used for building sites.

Club in town centre would only use the image of what the club looks like.

A local tax service would only use the image of what the business is, they would use a logo to allow the customers to interpret the brand image of the business.

3  What is meant by the term ‘after-sales service’?

“After-sales service” is when you service someone before the bought any of your products and after as well. (customer service)

4  State two types of after-sales service that could be given by a garage.

5  Explain why a business might want to develop a brand.

A business might want to develop a brand to get more customers and get their business known in order to make good money.

6  Using an example, explain the term ‘product range’ of a business.

Product range is when many different products are made from the same company which creates a collection for example: a selection of cars.

7  List two benefits to customers from competition.

Value of money, for example: “buy one, get one free”. As well as making the products cheaper than before.

8  State three strengths and three weaknesses to a business of opening a small independent sports shop.

Three strengths to a business opening a sports shop:

-Appealing products

-Appropriate products

-Good customer services

Weaknesses to start a business opening a sports shop:

-Not enough useful products

-Where the shop is located

-Having competition with other similar shops

9  Explain why someone with experience of the coffee trade might set up a specialist store.

10  State two reasons why a business might choose to set up a shop near to a rival.

Two reasons:

-It’s not that useful

-Because they want the other businesses to close down

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