Finance
What is the difference between revenue and gross profit?
Revenue is total income from sales; gross profit is revenue minus the cost of goods sold (COGS).
Name one method of primary research used to identify customer needs.
Surveys or interviews.
What does the “Product” in the 7 P’s refer to?
The goods or services offered, including their features and benefits.
Name one way social media influences participation in sport.
Influencers promote activities, encouraging followers to try them.
What is the difference between an aim and an objective?
An aim is a broad goal; an objective is a specific, measurable step to achieve it.
What is cash flow and why is it important for a sports business?
Cash flow is the money coming in and out of a business. It helps pay bills, wages, and plan for future growth.
Why is communication important in meeting customer needs?
It builds trust, improves satisfaction, and helps tailor services to customer preferences.
What is the difference between above-the-line and below-the-line promotion?
Above-the-line uses mass media (TV, radio); below-the-line is targeted (direct mail, social media).
What is one benefit and one risk of using AI in sport and leisure businesses?
Benefit: Personalised training plans. Risk: High setup costs or loss of human touch.
What does SMART stand for in SMART targets?
Specific, Measurable, Achievable, Realistic, Time-constrained.
Name two fixed costs and two variable costs in a leisure centre.
Fixed: Rent, staff salaries. Variable: Utility bills, equipment maintenance.
What are two benefits of promotions for customers?
Special offers save money; loyalty schemes reward repeat customers.
Why is “Process” important in customer experience?
It ensures smooth interactions and consistent service, enhancing satisfaction.
How have gyms responded to the rise in popularity of road cycling?
By offering indoor spin classes and cycling tech experiences.
Name three aims of a private sports business.
Make profit, grow the business, achieve market leadership.
What’s the difference between capital expenditure and operating expenses?
Capital expenditure is for long-term assets (e.g. buildings, equipment); operating expenses are day-to-day costs (e.g. wages, utilities).
Describe the 4-step procedure used to meet customer needs in the SAL industry.
Research → Analyse → Plan → Deliver tailored services.
How does “Physical Environment” influence customer confidence?
A clean, welcoming space reassures customers and reflects brand quality.
Explain how wearable tech and virtual platforms have changed customer experience.
They offer personalised feedback, remote training, and interactive workouts.
How does diversification help a sports business grow?
It opens new markets and attracts different customer groups.
How does analysing an income statement help a business evaluate its financial health?
It shows profit/loss by comparing income and expenses, helping assess growth, efficiency, and sustainability.
How can anticipating customer needs lead to long-term business success?
It improves satisfaction, loyalty, and helps businesses stay competitive and relevant.
Apply all 7 P’s to a sports business of your choice.
Product / Price / Place / Promotion / People / Process / Physical environment
Evaluate the sustainability of trend-driven product development in the SAL industry.
It boosts innovation and growth but risks financial loss if trends fade or customer needs are misjudged.
Explain how strong customer service contributes to market leadership.
It builds loyalty, reputation, and competitive advantage.