Key term
Edexcel GCSE Business 1BS0
Enterprise and Entrepreneurship
Spotting a Business Opportunity
Putting a Business Idea Into Practice
Making the Business Effective
Understanding External Influences on Business
Growing the Business
Making Marketing Decisions
Making Operational Decisions
Making Financial Decisions
Spotting a Business Opportunity
- 5 subtopics
- 15 things to know
- Paper 1
What Spotting a Business Opportunity covers
Spotting a Business Opportunity is examined in Paper 1, Investigating small business (Theme 1). It covers customer needs, purpose and methods of market research, market research data and its reliability, market segmentation and the competitive environment.
Where it is assessed
Paper 1
Theme 1, Investigating small business, 1 hour 45 minutes and 50% of the GCSE.
Check the Pearson Edexcel specification ↗The 5 subtopics
Each one has its own page.
- Customer needsPrice, quality, choice and convenience as customer needs, how needs differ between segments and change over time, and why meeting them drives sales, loyalty and survival.Open →
- Purpose and methods of market researchWhy businesses research their market, finding gaps and reducing risk, surveys, questionnaires, focus groups and observation, secondary sources, and choosing research for a new service.Open →
- Market research data and its reliabilityQualitative and quantitative data and their strengths and weaknesses, survey percentages, social media as a research tool, and why samples, bias and leading questions make data unreliable.Open →
- Market segmentationSegmenting a market by location, demographics, lifestyle, income and age, why segmentation helps targeting, and how a market map reveals gaps and competition.Open →
- The competitive environmentJudging rivals on price, quality, location, product range and customer service, how competition shapes decisions and products, and how a small business responds to a large competitor.Open →
What you need to know
Answer each one before you reveal it.
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Key term
Give three reasons why market research data might be unreliable.
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What are customer needs?
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What is a market segment?
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What is meant by the competitive environment?
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Name the four customer needs that a business must understand.
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What is market research?
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What is qualitative data?
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What is market segmentation?
Evaluation
Name five features a business can use to judge the strengths and weaknesses of competitors.
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Why is price a customer need?
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What is a gap in the market?
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What is quantitative data?
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Name five ways a market can be segmented.
Evaluation
How can price be a competitor's strength or weakness?
Take Spotting a Business Opportunity further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Primary research vs Secondary research
Primary research: new information collected first-hand for a specific purpose. Secondary research: existing information gathered earlier by someone else.
Qualitative data vs Quantitative data
Qualitative data: information about opinions, feelings and reasons. Quantitative data: numerical information that can be counted and measured.
Survey vs Questionnaire
Survey: the whole process of gathering views from a sample of people. Questionnaire: the written set of questions used to collect answers.
Questions from this topic
Each one with the model answer underneath.
- 1
What are customer needs?
Model answer
Customer needs are the things customers want from a product or service. A business must provide them to win the sale.
- 2
Name the four customer needs that a business must understand.
Model answer
The four customer needs are price, quality, choice and convenience.
- 3
Why is price a customer need?
Model answer
Customers want a price they can afford and that is fair for what they get. Price-sensitive customers will switch to a cheaper rival.
- 4
What does quality mean as a customer need?
Model answer
Customers expect a product to work properly, last and match its description. The level of quality expected rises with the price paid.
- 5
Why do customers value choice?
Model answer
Customers want a range of products, sizes, colours or options to pick from. A wide choice means each customer can find something that suits them.
- 6
What is meant by convenience as a customer need?
Model answer
Convenience means a product is easy to get and use, saving the customer time and effort. Late opening, home delivery and online ordering all add convenience.
What is inside Levo
Six ways to work the same material.
Spotting a Business Opportunity revision questions
- What does Spotting a Business Opportunity cover in Edexcel GCSE Business?
- 5 subtopics: customer needs, purpose and methods of market research, market research data and its reliability, market segmentation and the competitive environment. Each one has its own page with questions and model answers.
- How is Spotting a Business Opportunity organised?
- By the Edexcel 1BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Spotting a Business Opportunity, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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