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:
-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.
-It’s not that useful
-Because they want the other businesses to close down