Market research and segmentation

Which one of the following is an advantage of starting as a franchisee?

Select one answer.

Figure 1 shows the total costs per year for a small business from 2021 to 2023.

Using the information in Figure 1, calculate the percentage increase in total costs between 2021 and 2022. You are advised to show your workings.

Explain one advantage to a small business of creating a cash-flow forecast.

Explain one disadvantage to a small business of using primary market research.

Discuss how proximity to market could influence the location of a small business.

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

State one way that Teendrive must meet employment law.

Table 4 shows the price of block booked driving lessons at Teendrive.

Using the information in Table 4, identify which block of lessons would be the most expensive per individual lesson .

Outline one reason why the idea of Teendrive came about.

In order to increase market share, the owner of Teendrive is considering two options:

Option 1: use market mapping to target new customers

Option 2: increase spending on advertising.

Justify which one of these two options Teendrive should choose.

Evaluate the likely impact of an improvement in the economic climate to the success of Teendrive. You should use the information provided as well as your knowledge of business.

Which one of the following is a way of segmenting a market?

Select one answer.

Which one of the following is a definition of insolvency?

Select one answer.

Explain one disadvantage of starting a business as a partnership.

Explain one advantage to customers from increased competition.

Which two of the following could be used to collect secondary market research?

Select two answers.

Which two of the following are covered by employment law?

Select two answers.

Table 1 contains information for a small business.

Using the information in Table 1, calculate the total costs for the small business. You are advised to show your workings.

Explain one disadvantage to a small business from using retained profit for expansion.

Explain one advantage of opening up a business as a franchise.

Which one of the following could market mapping be used for?

Select one answer.

Which one of the following is an impact of a decrease in interest rates?

Select one answer.

Explain one advantage of starting a business as a private limited company.

Explain one way the internet may affect where a small business chooses to locate.

Table 2 shows forecasts from the business plan for month one of Lili Heating Ltd.

Using the information in Table 2, calculate Lili Heating Ltd ’s forecasted closing balance at the end of month one. You are advised to show your workings.

As part of her market research Amelia collected quantitative research from the Birmingham City Council website. Some of this information can be seen in Table 3.

(Source: adapted from https://www.birmingham.gov.uk/downloads/file/ 10293/2017_birmingham_population_tool)

Using the information in Table 3, calculate to 2 decimal places, the percentage of people in the age group 45–49 that are female. You are advised to show your workings.

Analyse the impact on Lili Heating Ltd of using the internet to collect secondary market research.

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

State one example of a risk for an investor in Ripple.

Table 4 shows the percentage of different energy types used to produce electricity in the UK in 2018 and 2019.

(Source: adapted from https://smarterbusiness.co.uk/blogs/ where-does-the-uk-energy-supply-come-from/)

Using the information in Table 4, identify which type of energy use declined the most between 2018 and 2019.

Outline one benefit to customers from Ripple asking questions to identify its customer needs.

In order to help small businesses, such as Ripple, become successful the UK government is considering two options:

Option 1: reduce the tax paid by small businesses

Option 2: provide free training if businesses recruit new employees.

Justify which one of these two options would have the most significant impact on the success of Ripple.

Evaluate the importance of price in Ripple ’s marketing mix. You should use the information provided as well as your knowledge of business.

Which one of the following is an example of a variable cost?

Select one answer.

Which one of the following could be used to identify a market segment?

Select one answer.

Explain one risk for an entrepreneur when starting a new business.

Explain one way a small business could add value to a product.

State one non-financial aim that Melanie may have had when starting Little Movers.

Outline one benefit to Little Movers of having an online booking system.

Little Movers is considering two options to carry out market research for possible new franchises in Poland:

Option 1: internet research to identify competitors in Poland

Option 2: conducting focus groups with parents living in Poland.

Justify which one of these two options Little Movers should choose.

Which one of the following is a long-term source of finance?

Select one answer.

Which one of the following could be used to identify customer needs?

Select one answer.

Explain one drawback to a business of having low levels of cash.

Explain one way an entrepreneur can reduce the risk of failure when starting a new business.

Which two of the following can be interpreted from a break even diagram?

Select two answers.

Which two of the following are types of technology that could be used by a business?

Select two answers.

Table 1 shows the cash-flow forecast for a small business.

Complete the table with the two missing figures.

Explain one reason why an entrepreneur may adapt an existing product to come up with a new business idea.

Explain one disadvantage to a small business of using a focus group to collect market research data.

Sports Tours Ltd has been organising football tours to Munich, Germany since 2010. The price of a hotel room in Munich in 2010 was €100.

Table 2 shows the value of the pound (£) in euros (€) in June 2010 and June 2019.

Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of a hotel room in 2010. You are advised to show your workings.

In 2019 the cost of a hotel room had increased to €130.

Using the information in Table 2, calculate, to 2 decimal places, the price in pounds (£) of a hotel room in 2019. You are advised to show your workings.

Analyse the impact on Sports Tours Ltd of using market mapping to target customers.

Which two of the following are examples of secondary market research?

Select two answers.

Which two of the following are examples of variable costs?

Select two answers.

Table 1 contains information about cash payments of a small business in one month. The business sold 200 units in this month. All customers paid in cash.

Using the information in Table 1, calculate the net cash flow for this month You are advised to show your workings.

Explain one disadvantage of starting a small business as a partnership.

Explain one way the marketing mix of a small business may change due to changing consumer needs.

Which one of the following is a characteristic of a sole trader?

Select one answer.

Figure 1 shows the total costs for a business between May and July.

Using the information in Figure 1, calculate the percentage change in total costs between May and July. You are advised to show your workings.

Explain one reason why new business ideas come about.

Explain one advantage to a small business of using market mapping.

Discuss how the decision making of a small business may be affected by increased competition.

State one market segment that On Your Bike has targeted.

Outline one impact on On Your Bike of an increase in the value of the pound.

To expand its business in response to the growth in the cycling market, On Your Bike is considering two options:

Option 1: open a second shop

Option 2: start to use e-commerce on its website.

Justify which one of these two options On Your Bike should choose.

Which one of the following is a short-term source of finance?

Select one answer.

Which one of the following is a definition of an exchange rate?

Select one answer.

Explain one benefit to an entrepreneur of buying a franchise to start a business.

Explain one way a small business could use market segmentation to target customers.

Which two of the following are elements of the marketing mix?

Select two answers.

Which two of the following areas are covered by employment law?

Select two answers.

Table 1 contains information about a small business for one month. The business sold 340 units in this month.

Using the information in Table 1, calculate the total costs for one month. You are advised to show your workings.

Explain one possible non-financial aim an entrepreneur may have when starting a small business.

Explain one disadvantage to a small business of using qualitative data for market research.

The new head chef carried out secondary market research to identify information about the food market.

State one benefit to Last Course Patisserie of conducting secondary market research.

Outline one impact on a stakeholder group of Last Course Patisserie if it relocates to new premises.

In order to increase the number of desserts that can be produced to meet the extra demand, Last Course Patisserie is considering two options:

Option 1: investing in new machinery

Option 2: employing more staff.

Justify which one of these two options Last Course Patisserie should choose.