Memorisation sheet Flashcards
Methods of ensuring high quality customer service.
Having a customer complaints procedure – process followed by customers/ business if the customer is unhappy and wants to make a complaint, makes sure complaints are handled in the best way possible.
Good After sales service – opportunity for customers to ask questions after purchase.
Providing warranties – this is a promise for a free replacement or repair within a certain amount of time.
Train staff to have good product knowledge.
Benefits of providing high quality customer service
Increased Customer Loyalty: If customers receive a good quality service, they will be more likely to return. This will lead to increased sales and profits. Customers are less likely to go to a rival competitor.
Improved Reputation: Customers who have received a good service are likely to recommend the company to family and friends. A good reputation may attract new customers meaning a larger market share for the company.
Motivated Workforce: Working for a business that provides a high level of customer satisfaction can be very motivating for employees. They are also likely to have fewer complaints to deal with.
Business could be nominated for awards – may also win money – increased finance
Many people will want to work for the business, this means that it is easier to recruit high quality staff
Benefits of target marketing
Products can be varied to suit the different market segments – customers get exactly what they need – increases customer satisfaction.
Marketing can be targeted more specifically to the different groups – prevents wasted promotions targeted to wrong people - reduces finances spent on wasted advertisements, increases customer knowledge in customers who have a need for the goods/service
Allows prices to be set – target customers will be able to afford goods/services - increase sales
Ensures products are sold in the appropriate places for the target market – target customers will be able to see product and purchase it – increases sales.
Product Life cycle
STAGE 1
Introduction; Product is just released into market, high advertising costs, sales low, no profit.
STAGE 2
Growth; Customers are now aware of the product leading to rapidly increasing sales, product begins to become profitable - company breaks even, costs still relatively high.
STAGE 3
Maturity; This is where the product is most popular; sales and profit peak, costs low.
STAGE 4
Decline; The product has been replaced by new products on the market, sales and profit fall, costs begin to increase to advertise or develop new products, product eventually becomes obsolete and must be withdrawn from the market.
Selection Process
Q test – measures candidates mental and intellectual capabilities.
Fitness test – measures candidates’ physical strength and health.
Interview – the candidate meets with an interviewer and is asked questions about themselves and why they would be well suited to the job, their responses are evaluated
Gathering in CVs – these are documents, prepared by, most job applicants and provide a short summary of the applicant e.g address age, education, qualifications…
Legislation
Health and Safety at Work Act 1974 – Provide protective clothing, when necessary, maintain and store property and machinery properly, store and use hazardous substances properly, provide staff with information and training on how to safely perform their job.
The Equality Act – prevents discrimination in terms of different protected characteristics such as gander, race and age.
Technology in Finance
Online banking – many companies now pay bills via the internet.
Website – many banks use websites to display intertest rates on loans and mortgages ect…
E-mails – can be sent to clients to remind them of upcoming repayments on loans.
Spreadsheets – such as Microsoft excel, can be used to store numerical information and automatically carry out calculations, reduces chance of human error.
Purpose of a cash budget
Cash budgets are statements of estimated cash flow, show expected receipts (money in) and payments (money out) monthly, to predict times of potential cash flow issues.
Purpose of income statements
Purpose of income statements
Provides records of all transactions, as well as profit or loss made over a period (usually a year)
Used to show cost of sales, profit for the year, ect.
product development
Product development is the process of taking a business from an idea through to launching it on the market. Development of a new product involves a number of different stages. This includes:
idea generation and development
prototyping
testing
modification
patents and copyrights
launching to market
Technology in marketing
spreadsheets for calculating break even and pricing decisions.
databases for storing information about customers and market profiling.
online marketing through the use of video and web-based communication.
social media platforms enabling businesses to contact customers personally via smart phones and tablets.
