Business Theme 1 Flashcards
Features of a mass market
1.) products aimed at most of the market
2.) customer needs and wants are general
3.) associated with larger brands
Features of a niche market
1.)small segment
2.) less comp
3.) specialised products
Primary research examples
1.) first hand data collected
2.) observation/ focus groups
3.) questionnaires
4.) online surveys
pro - own collected data - only urs
con - time consuming, no data if new
secondary research examples
1.) research that already exists
2.) competitor websites
3.) google
pro - easy to extract
con - anyone can access
Market positioning
1.) Marketing map - shows 2 of the attributes or characteristics of a brand
ben - identifies gaps + analyses comps
con - gap doesn’t mean demand + does guarantee success
2.) Adding value - build strong identity + offer convenience
ben - charge higher prices + creates use
Product and design mix
1.) function
2.) aesthetics
3.) costs
Types of promotion
1.) above the line - informative, persuasive, reassuring
2.) below the line - coupons, loyalty cards, competition
Types of branding
1.) manufactured brands - brands created by the producers of goods and services
2.) own - label brands - (distributor or private brands) e.g f&f sold at Tescos
3.) generic brands - products that are only contain the name of the actual product category - e.g foil
Pricing strategies
1.) cost plus pricing - adds a % mark up to the cost of making/buying a product
2.) price skimming - charges high prices at release to earn high profits
3.) penetration pricing - lower price to attract customers
4.) predatory pricing - low prices to drive out comp
5.) competitive pricing - price to match competitors
Distribution
1.) direct selling - (internet or door to door)
2.) retailing - (superstores or online retailers)
3.) agent or brokers (estate agents)
Marketing strategy
1.) development stage - r and d, high initial costs
2.) introduction stage - new product/low sales - cash-flow neg
3.) growth - sales growing, cashflow becoming pos, advertising costs
4.) maturity stage - sales growth slow, pos cashflow, high profit for large MS
5.) decline stage - sales falling, market saturated
Extension strategies
1.) product adjustments
2.) promotion
Boston Matrix
1.) stars - high market growth + high market share
2.) cash cows - relatively high market share
3.) question marks - relatively low market share in growing markets
4.) dogs - low market share with low growth
Approaches to staffing x2
1.) staff as an asset - (value them and concern for their welfare
- holidays, sickpay, maternity leave
- safe and comfortable working environment
- job security + chances for promotion
2.) staff as a cost - (try to minimise)
- paying nmw
- 0 hour contracts/neglecting training
use of financial motives to raise productivity
Recruitment x2
1.) Internal
- cheaper and already familiar
- good motivational factor
2.) External
- New and different ideas
- can attract multiple applications
Training x3
1.) induction - help employees settle in faster by working with someone
2.) job rotation - spend period doing one job then moves onto the next
3.) apprenticeships - undertake 3-5 years training
4.) off the job training - college or uni
Tall structures
hierarchical - long chain of commands
- those at the top (managers) have tighter control
- employees more closely supervised
- can help motivate employees
Flat structure
short chain of control - wider span
- communication better - quicker
- management costs are lower
- decision maker quicker
- better motivation - employees more involved
Matrix structure
used as a way of organising people (mainly used in projects)
- based on expertise and skills of employees
centralised structure
decisions are made by senior management
decentralised structure
share out authority to more junior staff
Taylor’s motivation theory
scientific management - improve productivity
- ‘piece per rate’
- division of labour
Mayo’s theory
Human relations
- relationship between manager and employees
- working in teams
- pay attention to them
Maslow’s theory
Hierarchy of needs
- self actualisation - development of new skills
- self esteem - promotion, rewards - bonuses
- social needs - good working conditions, new
- safety - pensions, sickpay
- physical needs -
