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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.

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

Outline two advantages to a business in a niche market.

Less competition, Clear focus/easier to target customers, Builds up specialist skills and knowledge, Can charge a higher price, Customers tend to be more loyal

Identify two reasons why a business might downsize its workforce

Economic crisis, Factory/shop/office closure, Merger or takeover, Need to reduce costs, Changes in management/strategy, Automation or replaced by machinery

Define ‘business plan’

A document containing the business aims/objectives and important details about the operations, finance and owners of a business

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

Identify and explain two ways of segmenting the market that the company could use

Age, Socioeconomic/income groups, Tastes/interests, Geographic, Culture/religious background

State four factors a business should consider when deciding the price of a product

Actions of competitors, Government or legal controls/tax, Stage in product life cycle, Type of productnew product,

State two objectives (other than expansion) a business might have.

survival, make a profit, increase market share, provide a service to the community, be socially/ethically/environmentally responsible

Define ‘market research

Process of collecting, recording and analysing data about customers, competitors and market for a product

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

Identify and explain two factors a firm need to consider when setting a price for its products

production cost, need to cover at least fixed costs or face a loss, Level of demand if it is a popular product might be able to charge a higher price

Outline two benefits of having skilled workers.

skilled workers likely to work more efficiently and likely to make fewer mistakes [

Define ‘niche market.’

highly specialised sub part of a large market

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

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

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

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.

Define ‘focus group’

customers OR people who have similar characteristics to the target market who give their opinions on a product / service.