Section 1 – Glossary of Key Terms



Section 1 – Glossary of Key Terms

|Term |Meaning |

|Entrepreneur |Someone who is prepared to take risks in order to bring a |

| |business idea to life |

|Market |Describes the system by which buyers and sellers of a |

| |particular product or service carry out transactions with each |

| |other |

|Primary Research |Research carried out by or on behalf of a business, |

| |specifically for their needs or requirements. (Expensive, but |

| |tailored to the business’ requirements). |

|Secondary Research |Research that is already in existence which can be used by |

| |businesses to find out about the market in which they want to |

| |operate. (Cheaper and quicker but not tailored to specific |

| |requirements) |

|Quantitative Research |Research that takes the form of figures and data that can be |

| |analysed to look for trends and differences. Requires |

| |questions that have specific responses. |

|Qualitative Research |Research that takes the form of attitudes, beliefs and opinions|

| |of people. Will require open questions that enable people to |

| |respond fully. |

|Ad Hoc Research |Takes place at a specific time to support a particular project |

| |e.g. whether to develop and launch a new product or service |

|Continuous Research |Research that takes place on a regular basis, such as monthly |

| |calls to customers to find out their views about the service |

| |received, or annual research in to a market and the trends and |

| |developments within it. |

|Market segment |A set of potential customers within a market who have a |

| |particularly common trait (e.g. single females aged 25 to 30). |

| |This enables businesses to promotoe products and services to |

| |particular groups in a way that appeals to them |

|Market Map |A method of analysing the market and potential competitors |

| |using two product attributes or customer requirements. For |

| |example, cheap vs expensive and modern vs traditional |

|Competitor Analysis |The process of investigating the strengths and weaknesses of |

| |potential competitors before starting a business. This enables|

| |an entrepreneur to target a customer need which may not be met |

| |very well at present. |

|Adding Value |The way in which a business convinces a customer to pay |

| |significantly more for a product or service than it costs to |

| |produce. There are a variety of techniques business use. |

|Franchise |An established business operation which can be operated by a |

| |someone in return for an investment and share of the profit. |

|Franchisor |A person or business who sells the right for someone to trade |

| |using the franchisor’s name and products |

|Franchisee |Someone who purchases the right to operate a business using an |

| |established trade name. They get marketing and training in |

| |return for a one-off fee up front and have to pay a % of their |

| |sales or profit. |

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download