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Need some help with some of my business and economics revision for my a level? - Josh - 01-24-2013 10:50 AM
I have like a tick list of the sorts of things I should know so if you could explain some of these I would greatly appreciate it thanks!
What makes a market?
what should firms supply?
what consumers need or want
researching demand for the business idea
is there a market for the business idea
is there a market for the business idea
positions the business idea
product trials opportunity cost
- aha! - 01-24-2013 10:58 AM
I haven't done A Level Economics, although I have done A Level Business Studies. However, I have done Economics related degrees, so I may be of some help.
What makes up a market?
By definition, it's where buyers and sellers gather, so buyers and sellers. You can have agents, representatives, and exchange houses, but these don't fit the definition of a market.
What should firms supply?
Whatever is demanded and is profitable for them? You can say socially responsible goods, but I don't think that fits the definition.
What consumers want or need?
Business stuff: shelter, food, warm, water, clothes. You can go into Maslow Hierarchy of Needs, but I don't think that's what they are asking for.
Researching demand for the business idea?
This is something I haven't been taught thoroughly. By the books, we should do market research on an idea. However, that's kind of vague and has its own biases. i.e. what people think they want may not be what they actually want, and hence Henry Ford's quote: if I asked what my customers want, they will say they want a faster horse. Besides, there is no telling what price customers say they will pay will be the price they will actually pay. It's one of those fiercely debated issues in market research.
Is there a market for the business idea?
Again, ask through market research, if you by the books. However, I argue you can only tell if you actually test the market by offering the product for a limited time. I would also add you need a bit of common sense and there needs to be some sort of fundamental support for your argument. e.g. you say the local area could do with a fish and chip shop; you should really check whether there is one in the local area first.
Is there a market for the business idea?
I am only going to answer the same question once. See above.
Positions the business idea?
Product portfolio, product mix, Boston Matrix, Ansoff Matrix. All marketing. 4/5 Ps of product positioning: place, product, price, people, promotion, etc. or whatever you have been taught.
Product trials?
Focus groups. Beta testers. Samples. Stratified random sampling. Test runs.
Opportunity cost?
What other things you can do with the money, time, effort? Technically, the opportunity cost is the next most profitable project foregone. However, this can be based on other factors as well. e.g. doing a degree can mean I am forgoing 3-4 years of social life, job earnings, leisure time, etc.
I don't know what else to really add. It depends more on what you've been taught than what I can regurgitate from what I know.
Hope this helps though.