Business paper 2 Flashcards
What is the role of marketing in a business?
To identify customers and increase sales
Give an advantage and disadvantage of questionnaires
A
They are cheap
D
The people answering the questions may not understand the question
Give an advantage and disadvantage of interviews
A
The interviewer can make sure they understand
D
They can be expensive
Give an advantage and disadvantage of trials and focus groups
A trial
Trials are conducted in a small area so can save money
D trial
They are still costly to set up
A focus groups
The data is usually accurate
D focus groups
Not representative
What are the 5 methods a market can be segmented
- Age
- Gender
- Income
- Location
- Lifestyle
What are the 4 P’s in the marketing mix
Price
Population
Place
Promotion
Give a pricing method used by businesses
- Competitor pricing
- Penetration pricing
- Skimming
- Promotional pricing
- Cost - plus pricing
Give an advantage and disadvantage of digital distribution
A
Customers have constant access to it
D
Websites can crash
What is included in financial information?
- The costs and revenues of the business
- Break even output forecast
- Information on profit or loss
How can a business raise finance? (4 points)
- Owners capital
- Retained profit
- Sale of assets
- Overdraft
- Trade credit
- Share issue
- Crowdfunding
- Taking on a new partner
- Loan
What are fixed and variable costs?
Fixed costs dont change even if there is no sales
Variable costs change depending on how much is being produced
What are the two types of profit?
- Net profit
- Gross profit
What does the word liquidity mean?
The ability to turn assets into cash
State two long term sources of finance
- Crowd funding
- New partner
