Business Unit 1.4 Flashcards
What is marketing mix?
The combination of factors which help the business to take into account customer needs when selling a product – usually summarised as the 4 Ps, which are price, product, promotion and place
What is the keyword?
“The amount of money customers have to give up to acquire a product “
Price
What is a product?
A good or a service produced by a business or organisation and made available to customers for consumption
What is meant by the term Promotion?
Communication between the business and customer, making the customer aware that the product is for sale, telling or explaining to them what is the product, making the customers aware of how the product will meet the customers’ needs and persuading them to buy it for the first time or again.
Give the keyword
“The way in which a product is distributed - how it gets from the producer to the consumer”
Place
What is a sole trader?
The only owner of a business which has unlimited liability
What is unlimited liability?
A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.
Give the keyword
“When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company. “
Limited Liability
What do HM Revenues and Customs (HMRC) do?
They are responsible for collecting tax for the government
What is VAT (Value Added Tax)?
A tax on the value of sales: it is paid by businesses to government.
What is the keyword?
“A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings. “
Income tax
What is meant by the term National Insurance Contributions (NICs)
A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.
What is Corporation tax:
A tax on the profits of limited companies
Give the keyword
“The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.”
Customer Service
What is customer satisfaction?
A measure of how much products meet customers’ expectations.
