Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business studies > jan mock : paper 1 > Flashcards

jan mock : paper 1 Flashcards

1
Q

what is a market?

A
  • any place that buyers and sellers come together to exchange goods/ services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a mass market?

A

-the attempt to create products/ services which are targeted at a whole market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is a niche market?

A

the attempt to create products or services aimed at a specific segment of a market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are characteristics of mass markets?

A
  • aimed at entire market
  • wide-appeal product
  • competitive pricing
  • usually low cost per unit
  • economies of scale
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are characterises of niche markets?

A

more specific TM

  • high quality
  • usually higher cost per unit
  • charge higher price/ premium pricing
  • hard to achieve EOS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is market size?

A

the total value/ volume of sales in the market

can be measured I either volume or value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

how do you calculate market size?

A

value =number of units sold x price

volume= total revenue/ total sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is market share?

A

the proportion of total market sales that one firm has

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

how do you calculate market share?

A

sales of one firm/ total market sales x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is a dynamic market?

A

a market that is constantly changing due to factors such as:

  • social trends
  • technology changes
  • consumer tastes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is a static/ stable market?

A
  • change is slow and minimal

- little innovation required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is online retailing?

A
  • process of buying and selling producers on the internet (e-commerce)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is a brand?

A
  • the creation of a brands identity

- adds value to the product/ service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

how does competition affect a market?

A
  • influence on pricing (competitive pricing)
  • buying power of customer]
  • selling power of supplier
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is the degree of competition?

A

the number of firms that exist within the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

how can business adapt to change?

A

offensive- try to increase sales/ develop new markets

defensive- react to competition/ try maintain market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is market growth?

A
  • the percentage increase or decrease in the size of a market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

how do you calculate market growth?

A

year 2- year 1/ year 1 x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is risk?

A

the chance of something going wrong

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is uncertainty?

A

when a business is unaware of the outcome of something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is an opportunity cost?

A

the cost of missing out on the next best alternative when making a decision
eg. open a new store or franchise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is a trade off?

A

a negative consequence of a choice made by a business

eg. buying a cheap top the consequence is poor quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

how do you calculate percentage change?

A

new-old/ old x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what is a businesses product portfolio?

A

the range of products that a business sells

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what is the Boston matrix?

A

a tool used to analyse a products market share and growth within a market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what are the 4 quadrants in Boston matrix?

A
  • cash cow
  • rising star
  • problem child/ ?
  • dog
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is a dog in boston matrix?

A
  • low market share, low market growth (divesting)
  • poor profits
  • in decline stage of PLC
  • try improve/ get rid of
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what is a rising star in boston matrix?

A
  • high market share, high market growth (holding)
  • high sales turnover/ revenue
  • high competition
  • needs lots of promotion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what is a cash cow in boston matrix?

A

-high market share, low market growth (milking)

  • established products
  • maturity stage of PLC
  • little promotion needed
  • less competition threat
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

what is a problem child in boston matrix?

A

-low market share, high market growth (building)

  • low sales revenue
  • low demand
  • lots of competition
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

what are some advantages of a DOG in Boston matrix?

A
  • huge potential growth

- can use extension strategies to extend PLC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what are some disadvantages of a DOG in Boston matrix?

A
  • poor position in market
  • significant investment required
  • no guarantee of success
  • lots of risk involved
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what are some advantages of a RISING STAR in Boston matrix?

A
  • rapid growth

- potential to turn into a cash cow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what are some disadvantages of a RISING STAR in Boston matrix?

A
  • risk of competition entering

- lots of investment/ promotion needed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what are some advantages of a CASH COW in

Boston matrix?

A
  • less investment needed as already established
  • generates lots of income
  • less threat of competition/ new entrants
36
Q

what are some disadvantages of a CASH COW in Boston matrix?

A
  • risk of entering decline stage in PLC

- no room for growth

37
Q

what are some advantages of a PROBLEM CHILD in Boston matrix?

A
  • huge growth potential

- they have high market growth so could be demand

38
Q

what are some disadvantages of a PROBLEM CHILD in Boston matrix?

A
  • high maintenance/ investment
  • low income generated
  • low demand
  • lots of competition as market is growing
39
Q

what are some advantages of the Boston matrix as a tool?

A
  • helps with allocation of resources
  • aids decision making
  • assess timings of when to launch/withdraw product
40
Q

what are some disadvantages of the Boston matrix as a tool?

A
  • may be subjective
  • oversimplified
  • only looks at 2 variables (market growth and share)
41
Q

what is B2B marketing ?

A

the process of selling products/services to another business eg. costco

42
Q

what is B2C marketing ?

A

selling directly to customers who buy their products for personal use

43
Q

what are some advantages of using B2B marketing?

A
  • usually more revenue per order
  • reduced advertising costs
  • can tailor more easily as specific target market
  • benefit from economies of scale (EOS)
44
Q

what are some disadvantages of using B2B marketing?

A
  • can be time consuming to build relationship
  • more difficult to setup
  • harder to stand out as B2B brands not as well known
  • smaller target market so limited sales
45
Q

what are some advantages of using B2C marketing?

A
  • larger target market so increased sales
  • more avenues to grow
  • easier to diversify due to brand awareness
  • B2C brands are more well known and so have increased loyalty
46
Q

what are some disadvantages of using B2C marketing?

A
  • heavy competition
  • high advertising/ marketing costs
  • smaller order quantities(smaller revenue per order)
47
Q

what is the product life cycle (PLC) ?

A

a model that shows the lifespan of a products sales from launch to being taken off the market

48
Q

what are the stages of PLC?

A
  • Research and development (R+D)
  • launch
  • growth
  • maturity/ saturation
  • decline
49
Q

what is an extension strategy?

A

the ways in which a business can modify a product to appeal to more customers and maintain sells.

eg. promotion and product modification

50
Q

what are some characteristics of marketing within a mass market?

A
  • more advertising needed as more competitive
  • need to promote a USP
  • generic advertising not tailored
51
Q

what are some characteristics of marketing within a niche market?

A
  • specialist promotion strategy

- not as constant promotion as less competative

52
Q

what is market mapping?

A

a plotting grid of where products/ brands sit in relation to 2 variables against competitors (eg. price and quality)

53
Q

what is market positioning?

A

how individual products/ brands are seen in relation to competitors

54
Q

what are some advantages of market mapping?

A

can help businesses to identify a gap in the market
visually interpreted/ easy to understand
-can influence decision making

55
Q

what are some disadvantages of market mapping?

A
  • subjective tool
  • oversimplifies the market as only looks at 2 variables
  • difficult to plot all brands/competitors in market
56
Q

what is a competitive advantage?

A

an advantage gained over competitors by offering customers greater value

57
Q

what are some examples of how a firm can achieve a competitive advantage?

A
  • customer service
  • value for money
  • brand name
58
Q

what is product differentiation?

A

the extent to which consumers perceive your brand as being different from competitors

59
Q

what is the purpose of product differentiation?

A
  • helps gain competitive advantage

- allows you to charge a higher price if not many substitutes

60
Q

what is added value?

A

the difference between the value of the finished good and the cost to produce

61
Q

what is a global marketing strategy?

A

the adaptation of a marketing strategy to target all markets on a worldwide scale

62
Q

what are advantages of global marketing ?

A
  • economies of scale
  • consistent brand image
  • customer loyalty
63
Q

what are disadvantages of global marketing ?

A

-conflict of differences/ culture
-competition
costly

64
Q

what does globalisation mean?

A

the process where businesses/ economies become more interconnected through global networks of trade

65
Q

what are some advantages of glocalisation?

A
  • greater chance of attracting local customers
  • help gain competitive advantage
  • can lead to lower barriers to entry
66
Q

what are some disadvantages of glocalisation?

A
  • may already be saturated market
  • increased R+D cost
  • risk off damaging brand image if too heavily done
67
Q

what is an EPG model?

A

framework that can be used to consider marketing approaches used by global firms.

68
Q

what is a businesses home nation?

A

where the business originated

69
Q

what is a businesses host nation?

A

where target market of business is based

70
Q

what are the 3 approaches to global marketing?

A
  • ethnocentricity
  • geocentric
  • polycentricity
71
Q

what are the 3 approaches to global marketing?

A
  • ethnocentricity (domestic)
  • geocentric (international)
  • polycentricity (mixture)
72
Q

what is the ethnocentricity approach to global marketing ?

A

where promotion of product is undertaken based on beliefs of home nation and is presented to the host nation

73
Q

what are some characteristics of ethnocentricity approach to global marketing?

A
  • can be restrictive on marketing
  • make not make sales in host country
  • decision making is centralised in home nation
  • ignores local culture of host nation
74
Q

what are some characteristics of the geocentric approach to global marketing ?

A
  • marketing focuses of business benefit
  • recognises global differences
  • aim is to build success and a brand for business
  • mixture of ethnocentricity and polycentricity
75
Q

what is the polycentricity approach to global marketing ?

A

promotion of the product is undertaken based on beliefs of the host country

76
Q

what are some characteristics of the polycentricity approach to global marketing ?

A
  • decision making is decentralised
  • tailoring to host in main aim of the business
  • fully take culture and religion of host Into account
  • targets local needs and wants
77
Q

what are factors that influence a businesses chose approach to global marketing?

A

-nature of the product
-aims/objectives
capital available
-local competition
-nature of the brand/ brand image

78
Q

what is ansoffs matrix ?

A
  • a marketing planning model that helps a business to determine its product and market growth strategies against risk
79
Q

what are the 4 quadrants in ansoffs matrix?

A
  • market penetration.
  • product developmnmet
  • market development
  • diversification
80
Q

what variables does ansoffs matrix consider?

A
  • if a product is new/ existing

- if a market is new/ existing

81
Q

what is an exchange rate?

A

the price of one currency expressed in terms of another currency

82
Q

what does SPICED mean?

A 
stronger
pond
imports 
cheaper
exports 
dearer
83
Q

how can exchange rates affect businesses?

A
  • increase/ decrease competitiveness
  • can impact pricing of product
  • revenues/ profits generated from overseas
  • price of imports/ exports
84
Q

who benefits from weak exchange rates?

A
  • businesses that are exporting into international markets

- businesses earning profit in overseas currency

85
Q

who doesn’t benefit from weak exchange rates?

A
  • businesses importing goods/services

- overseas business that’s trying to compete in domestic market

86
Q

impacts of exchange rates on competitiveness

A

-choosing suppliers in countries where there is a weak exchange rate will increase value for money

87
Q

what is glocalisation?

A

adaptation of product/ promotion to meet local requirements

business studies (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions