Produce an imaginary business

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This project requires me to produce an imaginary business. To do this I must research into all aspects of a business, using books, people, and computer resources. To help me do this I will create action plans that I will evaluate and redesign as I proceed during the project. The reason for the action plan is to help keep track and organise what I am doing, it also shows points that I must cover for my business to be successful. In this project there are certain parts of the project that can be decided before I created a action plan these are: What will I sell- I will sell electrical goods like televisions, videos, and hi-fis

My shop name- I will call my shop “RPES” (Raj Popat’s Electrical Goods Store. ) After a lot of thinking I have decided to place my shop in Wood Green shopping Centre. The cost of rent in the particular shop I have decided on is i?? 36,000 per annum. From what I already know I have decided to make my business a sole trader operation as these are the easiest to set up. Also in a sole trader business I will get to keep all of the profits. Also as I am a sole trader business there are fewer regulations that I have to comply with. As a sole trader I do not have to make my business accounts available to any one except the Inland Revenue.

This is useful as it saves me time, and it keeps my business dealings secret to the public. What is the aim of ” RPES ” The aim of ” RPES ” is primarily to be able to compete with other companies in the local area. Also to brake even, but provide a high quality service to the public. Then it is to make a profit. For the first year the aim of my business will also be to become a well-established business, and to remain open (not be forced to close due to lack of business). what is a market? A market is where the sellers meet the buyers to exchange money for a product of service.

The term “market” is actually used to describe the people whom the product is sold to. This does not always involve face-to-face selling; it could sell over the television. For a shop there can be different markets, e. g. domestic, and business. My market- my market is going to electrical goods sold to domestic customers. Product-oriented vs. Market-oriented business a product-oriented business is when the product is produced first, then a market is found. Business rarely uses this type of marketing. Companies that use the type of marketing, usually make basic products needed for life.

In some cases though a product must be made first before a person realises that they need it. This is normally the case when new technology is involved. A market-oriented business is when a business will find what product people want and then sell it to them. This normally involves market research. This is where the business will identify what the customer wants. These types of business normally survive longer, as they are able to adapt to what the customer wants. My business strategy- I will have a product oriented market, as I will be selling new technology that is constantly changing.

This is because people do not normally realise they need a new television, videos, or Hi-fi until the product is made. This method has a lot of risk involved, as there is no guarantee that a person will want my product. What is marketing Marketing is not advertising, it is actually finding out who wants to buy your product. Marketing is finding out what a customer wants, and then giving them that. The goal of marketing is to predict what the customer wants in the future, by looking a past trends, and carry out market research.

This is useful as the person characteristics find out what a certain group thinks, a bout any topic. My method of research- the method that I will use is random sampling in the local area. This is so that I can see what a wide range of people think and want in the local area. This is so that I get data that is relevant to me. I will use primary research, in the form of questionnaires. This is because the primary research will be accurate, and more relevant, as it is being carried out for a specific purpose. The reason that I am using a questionnaire is that it allows gathering very detailed information.

There some limitations to my research methods, the major one being that it will take a long amount of time. This is very important as this affects most aspects of my business. When I say, “what market aims I aiming for? ” I mean am I aiming for the ultra cheap, low end of the market or the upper end of the market. To decide I will carry out research into what markets are not catered for by the large companies, I will then cater for this market. To do this I carry out questioners or use research already carried out by an other company. I will group the people on there response to some questionnaire in social grades.

This is because this will help to create an image of the average wage, and class in the local area. Then I will cater for the group that the majority of people fit into. Market segmentation Market segmentation is a method of dividing up the market, into smaller subgroups. An example is that products like drinks may appeal to one group like young people, while an other may appeal to older men. This means that the market will break up by age, and gender. This is very important when advertising, as different adverts will apple to different people in each group.

The most common methods of market segmentation are: Life style A married person with a kid who has the same wage, as a single person will buy different products. This means that the advertising for some products will be aimed at the single person. While some will be aimed at the married person. Age People of different age buy different products. This means that an old person will buy different products to a young person. Gender Males only bring certain products, and females only bring some, so the advertising targets that group.

Sometimes both groups bring the products, but the advertising is just aimed at one. Region People in different areas of the country will buy different products. A person in a wet part of the country will buy clothes for wet weather, while in a dry part people wont. This also applies to when a product is exported. Income These are created depending on a person’s income. The highest in the groups are the managers while the lowest are the unemployed. Products that are to aimed art the highest income group will have a high price, while a product aimed the lowest will have a low price.

This also means that the advertising campaign will be different for each group. Use of product a product can be used by domestic home users or business. This will influence the way the product is sold and advertised. If selling to a business then the company may go direct to the business and sell face to face. While if selling to the domestic, market they may just sell over the phone. A product that is aimed at a business user may not be advertised on television, unlike a domestic. Instead brochures may be used. This means that the same product could have to different advertising campaigns.

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