business management unit 2 Flashcards
channels of distribution
the method a company uses to get a product or service into the hands of a consumer as quickly and efficiently as possible.
7Ps
product
promotion
place
price
people
process
physical evidence
marketing includes:
market research
product design
pricing
advertising
distribution
customer service
packaging
People
Reputation of the brand
All employees and customers
The people who make contact with customers in delivering the product
Process
The systems and processes that deliver a product to a customer.
Delivery/product service
Waiting times
User-friendly experiences
Helpfulness of staff
Overall experience
Physical evidence
A clean and tidy store
The elements of the physical environment the customer experiences.
What the customers see
Channels of distribution examples
wholesalers, retailers, distributors, and the Internet and Direct selling
and Selling through intermediaries.
Fixed costs
Fixed costs remain the same regardless of sales (rent, salaries, insurance, property taxes, interest expenses, depreciation etc)
Variable costs
Variable costs change based on your sales activity (sales commissions, labour, materials etc.)
Set-up costs
location, machinery, deposits to the landlord, utilities etc.
Running costs
wages, salaries, insurance payments, cost of purchasing materials etc.
4 factors of production
land, labor, capital, and entrepreneurship.
Land as a factor
agriculture land, commercial real estate, reasources available (oil, gold etc.)
Labour as a factor
the effort used by individuals to bring a product or service
construction worker at a hotel site is part of the labor
Capital as a factor
Items that allow a business to produce goods and services (machinery in a factory, computers in a tech company)
