Week 3 round up

Choose two ways in which you might identify gaps in the market

• Evaluate competitors to find underserved segments.

• Follow popular influencers for product ideas.
• Use random guessing to determine consumer preferences.
• Conduct market research to analyse consumer needs

Which is not a component of a business plan?

• Executive summary
• Personal opinions
• Market analysis
• Financial projections

What is an indirect competitor?

• A business that offers the same products at a lower price.
• A company that provides services in a completely different industry.
• A competitor that only targets a different demographic.
• A business that offers different products or services that satisfy the same customer need.

What are variable costs?

• Variable costs are fixed expenses regardless of production.
• Variable costs remain constant regardless of output levels.
• Variable costs are unrelated to production volume.
• Variable costs are costs that fluctuate with production volume.

What is skimming pricing?

• Skimming pricing is a strategy that involves setting a low initial price and increasing it over time.
• Skimming pricing is a method of pricing that focuses on reducing costs rather than setting prices based on demand.
• Skimming pricing refers to offering discounts on existing products to attract customers.
• Skimming pricing is a pricing strategy that involves setting a high initial price for a new product and then lowering it over time.

Which is a challenge you may face when self employed?

• Flexible work hours
• Guaranteed salary
• Unlimited vacation days
• Inconsistent income

Who may be classed as underserved by businesses?

• High-income individuals
• Urban professionals
• Tech-savvy entrepreneurs
• People with disabilities

Which would you not include in your customer segmentation?

• Personal details like favourite colour or pet's name

• Purchase history and preferences
• Geographic location of customers
• Customer age and income level

Which would you look at when researching a competitor?

• Focus solely on their employee benefits
• Examine their office location and size
• Investigate their historical sales data
• Marketing tactics

Which is a benefit of cost plus pricing?

• It leads to unpredictable pricing.
• Attracts more attention

• Enhances brand image

• Provides a consistent rate of return