Podcast
Questions and Answers
An entrepreneur is best characterized by which action?
An entrepreneur is best characterized by which action?
- Managing daily operations within an established corporate framework to ensure consistent profitability.
- Maintaining a passive investment portfolio, relying on professional fund managers for financial decisions.
- Adhering strictly to traditional business models to minimize potential losses and ensure stability.
- Assuming financial risk and dedicating resources to capitalize on a market opportunity for profit. (correct)
Which scenario exemplifies the most comprehensive application of employability skills?
Which scenario exemplifies the most comprehensive application of employability skills?
- A sales representative who excels at building client relationships through strong oral communication skills.
- A freelance graphic designer with advanced computer literacy who creates visually appealing marketing materials.
- A team member who uses mathematical skills to interpret sales data, communicates findings clearly in writing, manages project timelines effectively, and collaborates with colleagues to implement data-driven strategies. (correct)
- An employee proficient in data entry who consistently meets daily quotas with minimal errors.
A business owner identifies a significant shift in consumer preferences towards eco-friendly products and decides to launch a line of sustainable goods. Which entrepreneurial action does this best represent?
A business owner identifies a significant shift in consumer preferences towards eco-friendly products and decides to launch a line of sustainable goods. Which entrepreneurial action does this best represent?
- Market Saturation
- Exploiting a Gap (correct)
- Niche Marketing
- Diversification
In the context of business legal structures, what is the most critical distinction between a general partnership and a corporation regarding liability?
In the context of business legal structures, what is the most critical distinction between a general partnership and a corporation regarding liability?
A prospective entrepreneur is evaluating the feasibility of a new mobile app designed to connect local farmers with consumers. Which approach would provide the MOST insightful data for assessing market demand?
A prospective entrepreneur is evaluating the feasibility of a new mobile app designed to connect local farmers with consumers. Which approach would provide the MOST insightful data for assessing market demand?
A tech startup initially prices its innovative product high to capture early adopters willing to pay a premium. As competitors emerge, they gradually lower the price to attract more price-sensitive customers. Which pricing strategy does this best exemplify?
A tech startup initially prices its innovative product high to capture early adopters willing to pay a premium. As competitors emerge, they gradually lower the price to attract more price-sensitive customers. Which pricing strategy does this best exemplify?
A local bakery is trying to understand the total potential revenue they could generate from selling their signature sourdough bread within their city. What concept does this align with most closely?
A local bakery is trying to understand the total potential revenue they could generate from selling their signature sourdough bread within their city. What concept does this align with most closely?
A consumer holds a strong belief that locally sourced products are inherently superior in quality and environmental impact. However, they purchase a mass-produced item due to its lower price and greater convenience. What psychological phenomenon is most likely to arise?
A consumer holds a strong belief that locally sourced products are inherently superior in quality and environmental impact. However, they purchase a mass-produced item due to its lower price and greater convenience. What psychological phenomenon is most likely to arise?
A startup company is deciding whether to conduct its own surveys and focus groups or to analyze existing industry reports and competitor data. Which accurately describes the distinction between these approaches?
A startup company is deciding whether to conduct its own surveys and focus groups or to analyze existing industry reports and competitor data. Which accurately describes the distinction between these approaches?
A business prides itself on sustainability and ethical sourcing, building this into its brand identity. However, customers consistently perceive the brand as overpriced and out-of-touch with average consumers. How would you describe this discrepancy?
A business prides itself on sustainability and ethical sourcing, building this into its brand identity. However, customers consistently perceive the brand as overpriced and out-of-touch with average consumers. How would you describe this discrepancy?
A business aims to enhance its brand image and customer engagement through a social media campaign. Which metrics should be prioritized to effectively measure the campaign's impact on the overall marketing strategy?
A business aims to enhance its brand image and customer engagement through a social media campaign. Which metrics should be prioritized to effectively measure the campaign's impact on the overall marketing strategy?
A tech startup is preparing to launch a new software product. Considering the elements of the marketing mix, what is the MOST strategic approach for their distribution strategy to maximize market penetration and user adoption?
A tech startup is preparing to launch a new software product. Considering the elements of the marketing mix, what is the MOST strategic approach for their distribution strategy to maximize market penetration and user adoption?
An established retail business seeks to revamp its promotion strategy to attract a younger demographic. Which promotional activity should be evaluated as MOST likely to align with current marketing trends and effectively engage the target audience?
An established retail business seeks to revamp its promotion strategy to attract a younger demographic. Which promotional activity should be evaluated as MOST likely to align with current marketing trends and effectively engage the target audience?
A local bakery wants to increase foot traffic and sales. Which sales promotion would MOST effectively achieve these goals, while also building customer loyalty?
A local bakery wants to increase foot traffic and sales. Which sales promotion would MOST effectively achieve these goals, while also building customer loyalty?
A company relies heavily on word-of-mouth marketing. What strategy would MOST effectively amplify this organic promotion method?
A company relies heavily on word-of-mouth marketing. What strategy would MOST effectively amplify this organic promotion method?
Flashcards
Small Business
Small Business
Independently owned with less than 500 employees, aiming for profit.
Entrepreneur
Entrepreneur
Someone who risks time and money to make a profit.
Business Opportunity: Gap
Business Opportunity: Gap
An unmet need or opportunity in the market revealed from changes.
Sole Proprietorship
Sole Proprietorship
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Basic Rent
Basic Rent
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Direct Competition
Direct Competition
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Indirect Competition
Indirect Competition
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Market Potential
Market Potential
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Primary Research
Primary Research
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Secondary Research
Secondary Research
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Marketing Mix
Marketing Mix
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Promotion Strategy
Promotion Strategy
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Publicity
Publicity
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Sales Promotions
Sales Promotions
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Distribution Strategy
Distribution Strategy
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Study Notes
- A small business is an independently owned organization that exists to make a profit and has fewer than 500 employees.
- An entrepreneur is someone who risks money, time, and effort to make a profit.
- All business owners, freelancers, and self-employed individuals are entrepreneurs.
Employee vs Entrepreneur Skills
- Employability skills include oral and written communication, mathematics, time management, teamwork, and computer literacy.
- Entrepreneurial skills include financial planning, sales/negotiation for relationship building, and people management to recruit, train, and motivate.
Business Idea
- A business opportunity can stem from an unmet need or gap in the marketplace, often resulting from change.
- Specialization involves focusing on a particular product or service.
- Targeting means specializing in a specific group or groups of potential customers.
Legal Business Structures
- A sole proprietorship exists when only one person owns the business and has the legal right to operate it, bearing unlimited liability for the company's debts.
- A general partnership involves two or more people who own and manage a company together, with each owner having unlimited liability for all the company's debts.
- A corporation is a legal entity separate from its owners (shareholders), who have limited liability for company debts.
Feasibility and Research
- Feasibility assesses the likelihood that a concept or plan will succeed.
- Market research involves gathering and organizing information about potential customers that your business aims to serve.
- Marketing research includes collecting information about the process of getting products or services to customers.
Basic Rent
- Basic rent is the minimum rent charged by a landlord for commercial space.
Competition
- Direct competition involves businesses providing similar products or services and targeting the same potential clients.
- Indirect competition refers to alternative solutions that customers might use to satisfy their needs.
Definitions
- Market potential measures how much money a group of potential customers will spend on a particular product or service.
- Primary research involves gathering new information from original sources.
- Secondary research uses existing information that has already been collected and published.
- A sales forecast estimates how much money a business will bring in over a given period.
Marketing
- Marketing is the process of selecting target customer groups, identifying their needs, and creating a strategy to meet those needs.
- A projected image is the impression of a business that is created in the minds of potential customers by everything you do.
- An expected image is the impression carried by potential customers of what your business should be like.
- Cognitive dissonance is the psychological discomfort felt when trying to hold two opposing ideas in mind at the same time.
Pricing Strategies
- Penetration pricing is a marketing strategy where businesses attract customers to a new product/service by offering a lower price initially.
- Price skimming starts by charging the highest price that early customers will pay. The price is lowered over time, but it can target early adapters.
Marketing Mix
- The marketing mix is a combination of marketing elements that ensure the business can find and satisfy the needs of its customers.
- The marketing strategy includes product or service strategy, pricing strategy, distribution strategy, and promotion strategy.
Marketing Strategy
- Promotion strategy is the approach a business uses to inform and persuade its customers.
- Advertising uses strategies like social media, direct mail, print ads, billboards, vehicles, radio, newsletters, and referral programs.
- Effective ads grab attention, project the right image, prompt action, and can be measured by activity, sales, and profit.
How Products Reach Customers
- Distribution strategy focuses on how products or services get to the end-user, including location, mobile services, and product selection.
- Considerations also include the manufacturer-distributor-professional-consumer chain, inventory management, ordering, storage, and transportation.
Promotion Strategy
- Promotion strategy includes publicity by spreading information about a company, product, or service without paying for space or time, and word of mouth.
- Sales promotions include techniques for getting potential customers to buy goods or services.
- Examples are give-aways, coupons, 2-for-1 deals, events, tradeshows, displays, and free samples.
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Description
Overview of small businesses and entrepreneurship. Includes the difference between employee and entrepreneur skills. Also explains how to find a business idea and the different legal business structures.
