Do you think selling to different market segments is the best way for a small business to respond to increased competition? Justify your answer
Yes, selling to other segments means spreading risk as not reliant on one market for sales. This is much better than charging lower prices could revenue.
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15
Define ‘focus group’
customers OR people who have similar characteristics to the target market who give their opinions on a product / service.
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15
Identify two reasons why market research is needed.
A firm needs to find out how many people would want to buy the product it is planning to offer for sale. It can identify customer needs in a competitive market.
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15
Define ‘business plan’
A document containing the business aims/objectives and important details about the operations, finance and owners of a business
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15
Define ‘market research
Process of collecting, recording and analysing data about customers, competitors and market for a product
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15
Explain one advantage and one disadvantage to a firm of using e-commerce to sell its products.
Less rent/fewer employees needed which can help reduce costs. Lack of personal service
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15
Do you think selling franchises is a better way for a retail business to expand than opening more of its own shops? Justify your answer
Franchisor shares risks with franchisee, More of its own shops: Have total control over the operations
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15
Identify and explain one advantage and one disadvantage of changing its brand image.
Customers like something new therefore they are more likely to try the product. Damage customer loyalty as existing customers do not like the new logo created
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eraser
Reset score!
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star
Double points!
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shark
Other team loses 25 points!
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banana
Go to last place!
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15
Do you think a firm should use sponsorship or newspaper advertising as the main method of promotion? Justify your answer.
Sponsorship can target the intended market attracting more customers. Newspaper advertising can be seen by a lot of people
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15
Explain two methods (other than pricing) a firm could use to improve sales. Recommend which a firm should use. Justify your answer.
advertising, other promotional methods e.g. discounts, introduce new designs/features, target new markets e.g. country or gender
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15
Identify and explain two advantages of selling franchise.
Cheaper way to expand the franchisees pay some costs. Widen brand awareness as logo is seen in more places
