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business paper 1 > adv and dis > Flashcards

adv and dis Flashcards

1
Q

mass market definition

A

product has wide appeal
sells to large groups of buyers

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2
Q

niche market definition

A

product is specialised
sell to specific group of buyers

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3
Q

mass market adv

A

increased sales volume as selling to more customers
achieve EOS
meaning produts can be sold cheaper

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4
Q

niche market adv

A

less compeittion

specialised productes-charge higher prices

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5
Q

niche market dis

A

narrower range of consumers
more risky
if change in market that affects what customers want to buy, they could quickly lose sales and struggle to survive

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6
Q

market size

A

total value of sales in a makret over a period of time

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7
Q

market share

A

total proportion of total market that the business holds

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8
Q

what ways can dynamic markets change

A

Consumer prefernces can change e.g advancements in fahion, technology
Innovation-new products emerging
Competiors can enter or leave the market
ways in whcih consumers want to shop e.g growth of online shopping

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9
Q

what does being dynamic mean

A

change and evolve rapidly

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10
Q

online retailing

A

selling via the internet

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11
Q

adv of online retailing

A

reduce firms costs as wont have to hace physical shop, dont have to hire as many staff
therefore, can chnage lower prices

customers can shop from anywhere, whenever

customers can easily compare their prices

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12
Q

dis of online retailing

A

delivery costs/people havig to pay more then would in shop

face more comp as can easily shop around abd finding cheapiest prices

some customers would want he face to face intercation especially before buying a costly product e.g sofa

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13
Q

direct competition

A

when two busienss sell simialr products to the same groups of buyers
e.g asda, tesco

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14
Q

indirect competition

A

when two business difefrent porducts to appeal same group of buyers
e.g takeway chinese, indian

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15
Q

level of competition

A

marking mix
product-high quality, materials, unqiue appeal, difefrentiating it
place-distibution channel,
price-high price, low price, what pricing stragetu
pomotion-using campaigns, advertising

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16
Q

risks

A

things that may go wrong
within managerial control

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17
Q

uncertainities

A

unexpected events
e.g hurricane
beyond control

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18
Q

product orientation

A

where focus more on the product(design, performance) rather then who selling too
hope can persuade customers to like it

e.g apple

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19
Q

market orinetation

A

where busienss focuses more heavily on customer preferenecs
spend lot of time and investment into market research to make sure customers will like it and want to buy it

more modern adn successful approach
less risky strategy

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20
Q

market research

A

collection and analysis of market information

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21
Q

adv of market research

A

finds out what customers need and want

allows business to predict how much demand there will be fore product

how customers behave in relation to a product e.g how they buy products e.g online or in store

shows how much customers will be prepared to pay for product

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22
Q

quantitive data

A

objective
statistical info and graphs etc
multiple choice questionaries
fixed answers

adv-easy to analyse
dis-rstricted answers

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23
Q

qualatative data

A

subjective
based on optinions
open questions meaning doesnt restrict to multipe choice

adv-more informative as people can elaborate
dis-takes longer time

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24
Q

primary reseach

A

first hadn data
e.g questionaires, surveys

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25
Q

adv of primary rresearch

A

exculsive and comeptiors cant benefit from it
specific for its purpose needed

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26
Q

dis of primary resaerch

A

labour intensive
slow
expensive

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27
Q

secondary data

A

second hand data e.g magazies, internet soucres

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28
Q

adv of secondary makret resaerch

A

quick
fast
cheap

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29
Q

dis of secondary makret research

A

risk of being out of date

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30
Q

represnative sample

A

using samll sample of peole rather than whole market
keeps costs down and saves time and resources

simialr peope; of age, gender,

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31
Q

market research needs to avodi bias

A

interviewer bias-where they say certain things to prompt answer they wanna hear

respondant bias-where dont give true response just say what they think interviewer wants to hear

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32
Q

adv of using technology in market research

A

cheaper
easier
quicker

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33
Q

ways of doing makret research online

A

using own website

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34
Q

adv of using own website

A

can look at what time of day website most used

what visitors clicking on website

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35
Q

did of using own website

A

some people who go on website don’t end up buying products

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36
Q

social networking definition

A

can be used for market research
use of internet based platforms to connect with people
e.g facebook

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37
Q

adv of social networking

A

can post content on social networking sites and monitor the responses they get
cheap and easy way to carry out market research

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38
Q

did if social networking

A

not all consumers use the same social networks
e.g fewer old people use twitter than facebook

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39
Q

market segmention definiton

A

dividing a makret into groups of buyers

Demographic-age,gender
Income-luxury products for high income etc

Geographic segments-neighbourhood, city, country

behaviour-hobbies and interested e.g gym people wanting high protein snacks

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40
Q

market mapping definiton

A

shows extemres of two measures
e.g high price bad low price
laid out as matrix

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41
Q

adv of market mapping

A

can see gaps in market so can be spotted by new business

can see how close competitors are

show how much customers expect to pay

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42
Q

dis of makret mapping

A

subjective/based on opinion
what one person may think is low quality another may see as high

may simply things too much

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43
Q

competitive advantage definition

A

where a business is more profitable than its rivals

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44
Q

ways of achieve competitive advantage

A

product differniation-USP

lower costs from competitors

product innovation-be first in the makret to introduce new functions for an existing good

advertising and marketing-makes it more attractive to consumers and more likely to become loyal

good customer service-polite,knowledgeable and efficient staff

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45
Q

adding value

A

increasing the difference between how much it cost to make the product and how much selling it for

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46
Q

factors influencing demand

A

fashion consumer tastes and consumer preferences-e.g increase in warnings about damage of sugar, fall in demand for sugary drinks

advertising and branding-more adverting, higher demand

consumers incomes-higher income higher demand

completaey goods-products which are used together e.g fall of demand for printers means fall of demand for ink cartilages too

external shocks-e.g risk on flooding, increase in sandbags to protect homes

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47
Q

factoids influencing supply

A

costs of production-if increases, fall in supply

indirect taxes-tax in good increases, increases costs for producer, likely to reduce their supply

subsidises-money given to business by government
increases supply

new technology-increase supply as more efficiency and lower costs

extberal shcoks-can reduce cupply in country if their is war

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48
Q

price elasticity of demand equation

A

percentage change in quantity demanded divided by percentage change in price

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49
Q

price elastic

A

percentage chnage in demand is greater then percentage change in price

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50
Q

price inelastic

A

where percentage change in demand is less than percentage chnage in price

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51
Q

examples of things that are price inelastic

A

necessities e.g milk as change in price doesn’t affect demand much

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52
Q

price elastic products

A

more likely to be products that cost a greater proportion of customers incomes

e.g won’t care much about 20% increase in a newspaper but will care for 20% increase in car and may make them look for an alternative

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53
Q

income elasticity of demand equation

A

percentage chnage in quantity demanded divided by percentage change in income

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54
Q

products affected by income elasticity of demand

A

necessity’s-postive income elatiocity of demand as income rises so does demand

luxury products have income elasticity of demand as income increases so does demand

INFERIOR products(own brands) have a negative income elasticity of demand as income rises, demand falls

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55
Q

design mix

A

Function

Aesthetics

Costs

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56
Q

marketing mix

A

place-distribution
price-pricing strategies
promotion-branding techniques
product-high quailtiy

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57
Q

design mix

A

Function-fit for purpose

Aesthetics-good look

Costs-is it to costly to produce

study tip-FACE

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58
Q

promotion

A

designed to inform consumers about a product, persude them to buy it

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59
Q

types of branding

A

Manufacturer branding-how business presents itself

Own branding-in house

product branding-specific individual products that a cooperate brand makes

study tip:MOP

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60
Q

adv of own branding

A

cheaper to produce
can sell cheaper
cheaper to sell/good alternative

61
Q

dis of own branding

A

low price can be associated with low quality

62
Q

rebranding

A

changing design, promotion pricing or distribution to an existing brand

63
Q

viral marketing

A

involves platforms e.g youtube, instagram, facebook

64
Q

emotional branding

A

branding is matched to the lifestyle, values or aspirations of customers to trigger an emotional response

65
Q

price skimming

A

where innovative products are sold at high price when first reach market

consumers will pay more due to the value

after year or so, price is dropped

66
Q

adv of price skimming

A

keeps brand more exclusive in long term e.g Apple

67
Q

dis of price skimming

A

potential customers can be out of initial high price

customer who brought product for initial price may be annoyed and frustrated when it suddenly drops in price after launch

68
Q

pe eat ration pricing

A

charging low prices when hit market to attract customers
then slowly increasing the price

69
Q

dis of penetration pricing

A

customers may expect low price to continue so sifuicult to raise without losing customers

70
Q

cost plus pricing

A

firm adds percentage mark up to the costs of making the product

71
Q

predatory pricing

A

business deliberately lowers their prices to force out other business out of makret

raise them back up once business has gone out of buys ones

did-illegal in EU laws

72
Q

competitive pricing

A

pricing products equal to or below competitors to gain competitor advantage

73
Q

psychological pricing

A

making it 1.99 as seems lot cheaper then 2.00

high price as associate with high quality

74
Q

distribution

A

route product takes from menufacturore to consumer

75
Q

distribution channels

A

two stage channel-manufacturer-consumer
(online retailing)

three stage channel-manufacturer-retailer-consumer
(e.g shops)

four stage channel-
manufacturer-wholesaler-retailer-consumer

76
Q

what’s a whole saler

A

buy sum goods from manufacturers in bulk and then sell to retailers in smaller quantities
used as storage

77
Q

adv of wholesaler

A

manufacturers don’t have to wait for product to be sold before getting money

make distribution simplier

without wholsaler, manufacturer would have to make separate deliveries to retailers

can store more goods than retailers can-act as storage cupboard

78
Q

what is multi channel distribution

A

where a business uses several distribution channels at once

e.g online and in store

79
Q

online distribution

A

streaming or downloading media content via internet

80
Q

online distribution

A

there downloading media content as opposed to buying a good-purchasing a service rather than a good

81
Q

adv of online distribution

A

cost savings-no need for money on boxed products

price of downloads for consumer can be cheaper then buying physical good

enviornamylk frindsly-travels or products with plastics

relatively easy and can be run anywhere, don’t have to go to shop

82
Q

dis of online distribution

A

differnt sets of skills
need further training in IT skills

83
Q

what makes up product life cycle

A

Development
Introduction
Growth
Maturity
Decline

84
Q

development

A

research and development department to develop product

costs are high, sales aren’t yet made to cover costs

85
Q

introduction stage

A

product is launched
promoted heavility to build sales
may use price skimming, may use penetration pricing

sales revenue has to pay for fixes costs of development before product can make profit

86
Q

growth

A

sales grow fast

repeated and new customers

competitors may be attracted to new market

87
Q

maturity

A

sales reach a peak and profitability increases because fixed costs of development have been payed for

saturation-makret has reached full growth

sales may begin to crop

88
Q

decline

A

product does appeal to customers anymore

sales fall rapidly and profits decrease

89
Q

extension strategies

A

keep a product going stronger for longer

used to improve sales of a product starting to decline

e.g redesigning the product, changing the packaging

90
Q

boston matrix what does it measure

A

imparts market growth and market share

91
Q

question marks

A

small makret share
high makret growth
aren’t yet profitable
need heavy marketing to give them a chance

92
Q

cash cows

A

high makret share, low market growth
maturity phase
bring in plenty of money

93
Q

stars

A

high market share and high market growth
profitable growth stage
have most potential

94
Q

dogs

A

low makret share
low makret growth
basically a lost cause

95
Q

adv of boston matrix

A

valuable way of showing where business product positioned in makret

96
Q

dis of boston matrix

A

can’t predict exactly what will happen in a makret

97
Q

mass marketing strategies

A

expensive advertising campaigns to maintain brand awareness

sponsorship and celebrity endorsement deals

promotional activities

custodyly loyalt card and saver schemes

98
Q

niche marketing strategy

A

needs to focus on specific marketing segment

more emphasised on creating product that is unique or differentiated

cost effective ways as don’t have big budget

focus more on building a reputation and establish brand loyalty

99
Q

B2B marketing strategy

A

sale of one business product to another business e,g selling surgical gloves to a local hospital trust

100
Q

B2C marketing

A

sales of business products to consumers

101
Q

loyalty cards

A

e.g getting a stamp each time buy a drink
once collected certain amount get free drink

encourages customer to regularly return to business

102
Q

saver schemes

A

customers collect points based on amount they spend e.g TESCO club card

103
Q

how are employees an asset to a business

A

do soemthing in business that has value

skills and abilities add value

104
Q

how are employees liabilities of a busienss

A

have to be paid so cost busienss money

105
Q

dismissal

A

contract endds for the employee

106
Q

redundancy

A

job is no longer needed

107
Q

zero hour contracts

A

firm employees worker but does not offer them guaranteed offers

used when needed

adv-can work around other commitmeents
dis-provides little finical security

108
Q

outsourcing

A

outsource tasks to external businesses

109
Q

what does it mean havign multi-skilled staff

A

means dont have to employs as many staff

workers can be moved when necessary

110
Q

recutiment

A

process of finding and hiring someone for job role that needs filling

111
Q

stages of recuritment

A

identify vacancy
wirte job descirption and job specification
advertise job
process applications
shortlist most suitabel candidates
asses most suitable candidates
appoint most suitbale candidate

112
Q

what is a job descrition

A

job role
salart
repsonbilites

113
Q

job specification

A

includes qualifications of what job needs

114
Q

what are the 3 wasy to select candiadtes

A

assement days
intray exercises
interviews

iai

115
Q

interviews

A

most common method
one to one
or face to face

116
Q

assessment days

A

range of activties to assess candiates
group exercises

117
Q

in tray exercises

A

given a scenerio in which play a member of staff
given list of tasks that need completing

e.g emails, phone calls

118
Q

internal recuritment

A

recuritng someone who is already in the busienss

119
Q

external recuritment

A

recuritng someone outside of the business

120
Q

adv of internal ercurimtent

A

know they get along with other staff

doesnt take long

cheap

motiavtes workers for promotion

121
Q

dis of internal recuritment

A

leaves vacancy in other department

can cause resentment betweeen collegues

122
Q

adv of exertnal recuriment

A

bring in new fresh ideas

may have knowlegde about other businesses

larger numner of applicants

123
Q

dis of external recuritment

A

expensive

long peridod

dont know if we get along with others

124
Q

what are potential costs of recuting

A

costs of vacancy post-adverts placed in magazines

once appointed, may need trainign

125
Q

induction training

A

introducing them to the work place and their new role

126
Q

on the job training

A

training inside business

127
Q

off th job training

A

doing trainign from outside business

128
Q

adv of on the job training

A

specific

cheap

129
Q

dis of on the job training

A

no new ideas brought into business

trainers are not fully productive dueintg training

130
Q

adv of off the job training

A

specialsitis

new ideas brought into business

131
Q

dis of off the job training

A

not specific

expensive

no beefit to business whilst training

132
Q

what are centralised organisations

A

all decisions are made by senior managers at top of business

133
Q

adv of centralised organitstion

A

decisions can be made quickly as dont have to consult anyone

have lots of experince of makign decisions

134
Q

dis of centralised organitation

A

excluding employees from decision making can be demotivating

organisation recats slowly to change

135
Q

decentralised organisations

A

authoity is shared out to more junior employees

136
Q

adv of decentralised organisations

A

involvement in decision making increases motivation

can use expert knowlegdge of their sector

137
Q

dis of decentralised organsiations

A

may not have enough experince making decisions

138
Q

taylors scientific managment

A

concentrate of effeciency

workers were motivated by MONEY
believes would do minimum amount of work if left to own devices

favoured division of labour-breaking down work into a lot of small repetitive tasks

in paying workers by the quantitiy they produced

adv-few workers needed

dis-increase in productivity led to reduction in quality

139
Q

maslows heirachy of needs

A

BSSSS
basic hysic needs-food, shelter
safety-safe work environment
social needs-friendship, team work
self esteem-achievennt
self actusaliton-meating full potential

140
Q

dis of maslows heirachy of needs

A

isnt always obvious whcih level an idnididual is in

someone may put there list of imporatnce in difefrent order e.g may value freinship more then reaching full potential

141
Q

Herzberg’s two factor theory

A

foun two groups that influence motiavtion of workers

hygiene factors-working condicitons, pay

motiavting factors-interesting work

142
Q

mayos human relation theory

A

one group of employees worked in usual workign condiditons

one group had their working conditions changed

e.g changes in length and number of breaks

brightness of workplace

foudn that group exposed to changes showed increase in productivity even if working conditions got worse

attention givent ot workers by managemnt that imporvedd producitty, not any sepcific change in working conditions

showed increase in prodcutivity if worked in teams rather then individually

143
Q

non financial motivation is piecework

A

when workers are paid per unit prodcued

144
Q

commision

A

paid when completed a task

often bonsu on top of their salary

145
Q

leadership styles

A

autocratic-when manager makes all decisions
workers dont ahve say
useful when dealing with unskilled workers

paterlistic-softer form of autocratic
make decsiosn but then talk to staff and persude them that they ar of thier interset

democratic-leader ancourages workers to partciapte in decisions making process
delegate repsonsbility and listen to advice

laissez faire-hands off form of leadership
rarealy interfere with running of business

transformational leader-when business needs to drastically change

146
Q

what is profit maximiatision

A

making as much profit as ossible

147
Q

profit satisying

A

making enough but not pushing to maximise it

148
Q

what are different types of busienss es

A

franchise-an aggrement which allows an entrepreneu to use busienss idea, name,logo to an establishedd business

online businesses0trade though internt

lifestyle businesses-focus on lifestyle not profit

business paper 1 (54 decks)

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