Business As Usual Flashcards
Mass market
Largest part of the market
Niche market
Smaller part of the market
Primary Research
Questionnaires, research conducted first hand
Secondary Research
Online data, data conducted by somebody else
Quantitative data
Numerical data
Qualitative data
Non numerical, descriptive data
Market Segmentation
Dividing the market into segments depending on demographics such as age, income
Product Orientation
Designing a product and then finding a market for it
Market Orientation
Creating a product based on the needs of the market
Competitive Advantage
factors allowing a company to produce goods better or more cheaply than rivals
Market Mapping
method of using a graph to visually plot a businesses position in the market against competitors
Demand
Quantity willing or able to be purchased
Factors affecting demand
Income, seasonality, advertising and branding, taste and fashion trends, price of substitutes or complimentary goods
Supply
Quantity willing or able to be supplied
Factors affecting supply
Technology, changes to production
Graph move right or left when shifts in Supply and demand
Up to the right, down to the left
How to calculate PED
% change of demand / % change of price
Its elastic when…
answer is more than one - products with lots of substitutes are more likely to be elastic
Its inelastic when…
answer is less than one
Calculate YED
% change in quantity demanded / % change in income
Function
how the product works, what it does
Economic cost
How much it costs to make
Aesthetics
How the product appeals
Methods of promotion
advertising, direct marketing, word of mouth, public relations, sales promotions
Psychological pricing
Pricing below a round number to create illusion of ‘cheaper’
Cost plus pricing
Add a mark up to the cost of a product to make a guaranteed profit
Competitive pricing
Price at similar prices to competitiors
predatory pricing
pricing extremely low to eliminate the competition
price skimming
charge a high initial price and gradually lower to attract price-sensitive customers
penetration pricing
marketing strategy used by businesses to attract customers to a new product
Distribution channel
process a product goes from producer to consumer
Boston Matrix : 4 types
Dog, star, problem child, cash cow
Product life cycle
Intro, growth, maturity, decline
Type of workers
Temporary, part time, full time, permanent
Flexible workforce
Multi skilled, mix of part time and full time, flexible hours and work from home, using temp contracts at certain times, outsourcing
reducing the workforce
Dismissal, firing an employee
Redundancy, paying off a worker who is no longer needed
tall structures
more layers with a narrow span of control
flat structures
have less layers but a wider span of control
matrix structure
no traditional hierarchy as people report to multiple managers
centralisation
decision making happens at the top of a business
decentralisation
decision making is delegated away from a central authoritative group
autocratic
firm decisions comes from one individual at the top of hierarchy
democratic
consultation happens on decisions, but leader makes ultimate decision
paternalistic
leader considers subordinates part of a family
laissez faire
laid back
entrepreneur
someone who shows initiative and takes risks by starting a business
roles of an entrepreneur
creating and starting a business, running and expanding the business, innovation
skills of an entrepreneur
creativity, resilience, risk-taking, organisation, determination
financial objectives
profit maximisation, profit satisfying, survival
non financial objectives
ethics or social reasons, independence and control
limited liability
personal assets are protected
unlimited liability
personal assets are not protected
sole trader
one person on their own running a business that has no separate legal identity
partnership
2-21 people sharing the risk and work of a business
private limited company
a registered company under private ownership
public limited company
a registered company that has been floated on the stock market
franchise
a company sells another business the right to sell its products
social enteprise
business with special social objectives that serve a primary purpose
opportunity cost
what is sacrificed when a decision is made
trade off
the more of one thing a business has, the less of another
moving from entrepreneur to a leader happens because..
scale and growth
- may need help
- may need new skills
- may have to give up some control
