Febuary Mock Flashcards
what is a primary sector organisation
activities undertaken by directly using natural resources: - agriculture, fishing
what is a secondary sector organisation
converting raw materials into finished goods: manufacturing and construction
what is a tertiary sector organisation
provision of services
what is a private sector organisation
Business owned by private investors rather than the state
Driven by profit and returns for the business owner
what is a public sector organisation
business owned by the state rather than private investors
not driven by profit rather public well being
what is a Third sector organisation
neither public or private.
voluntary organisations like charities
What is a local market
concerned with customers clustered tightly around the marketer
- can learn great deal about customer and make necessary changes quickly
- potential market is limited and can be susceptible to local competition
what is a national market
Distribute their product throughout the country
- Could involve multiple manufacturing plants and distribution systems including warehouses
- offers tremendous profit potential.
- However exposes the marketer to new aggressive competitors
what is a international market
Operates in more than one country
- Adjustments are normally made in the marketing mix in various country’s
- Legal and Cultural differences alone can be greatly affect strategy’s outcome
- If national markets become more saturated the company can expand into foreign markets
what is a global market
the market in which goods and services of one country are traded to people of other counties
what is the difference between a national and multi-national business
International companies are importers and exporters, they have no investment outside of their home country.
Multinational companies has locations or facilities in multiple countries, but each location functions in its own way, essentially as its own entity
What is a Franchise
Businesses with well known brand names (Franchisers) let a person or group of people (franchisee) set up a shop using that brand.
+ / – of Franchises
+
Firm may not have to spend large amounts of money in order to expand
Products necessary for the franchise to operate are under the franchisers control
applicants can be carefully selected for suitability
–
control issue’s
the cost of supporting the franchisee
the possibility of conflict
what is a co-operative
A business that is owned and run by its members(employees & customers) profits are shared between members and reinvested into the business and the local community
+ / – of cooperatives
+: -legally straight forward to establish(legal documentation is straight forward)
-Liability for members usually limited
- higher quality of service is likely to be provided (as customers are likely to be members)
- customers are usually loyal supporters
- : -capital can be limited (liked to what members contribute)
- weak management (those selected may not have grasp of what business principles)
- slower decision making (too much insolvent of member)
- employees may want more
