Topic 1.1 Spotting A Business Opportunity

1. Market Mapping

1.1. Once an entrepreneur has identified an appropriate segment of the market to target, the challenge is to position the product so that it meets the needs and wants of the target customers.

1.2. •High price v low price

1.3. •Basic quality v High quality

1.4. •Light v heavy

1.5. •Lo-tech v high-tech

2. Competition

2.1. Meaning is=competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.

2.2. Price: If there are several retailers, each retailer will lower the price in an attempt to win customers.

2.3. Product range: In order to attract and satisfy customers, companies need to produce products that are superior to their competitors.

2.4. Customer service: Retailers that provide customers with a helpful and friendly service will win their loyalty.

3. Added Value

3.1. Definition. an amount added to the value of a product or service, equal to the difference between its cost and the amount received when it is sold. Wages, taxes, etc. are deducted from the added value to give the profit.

3.2. Building a brand – a reputation for quality

3.3. Delivering excellent service – high quality, attentive personal service can make the difference between achieving a high price or a medium one

4. Buisnesses

4.1. If a product sells in one area, take it to another.

4.2. Take a basic product and make it special, either by adding value to it or marketing it as a status product.

4.3. There are over 4 million businesses in the UK

4.4. Suppliers buys from the business and the business sells to the customers

5. Understanding Customer Needs

5.1. Convenient Location

5.2. Reasonable Price

5.3. Good Range

5.4. Good Quality

5.5. Knowledgeable and friendly customer service

6. Franchising

6.1. A franchise is a business system in which private entrepreneurs purchase the rights to open and run a location of a larger company.