Mock Revision Flashcards
Joint Venture
two or more businesses agree to work
closely together on a particular project and create a
separate business division to do so
Private Limited
a small to medium-sized
business that is owned by shareholders who are family members or friends, it cannot sell
shares to the general public
Public limited
a limited company, of en a large
business, with the legal right to sell shares to the general
public – share prices are quoted on the national stock
exchange.
Limited Liability
the only liability – or potential loss – a
shareholder has if the company fails is the amount invested
in the company, not the total wealth of the shareholder.
Sole Traders
Business in which one person provides the permanent finance and in return has full control of the business and keeps all of the profits i.e. Window cleaner, plumber, Florist
Partnerships
Businesses owned by two or more people with shared capital investment and usually share responsibilities i.e. Dentist, Lawyers/ solicitors.
What are the 4 P’s?
Price, Product, Promotion, Place
Market share
Percentage of the total shares of a market a business owns.
Name as many Marketing Objectives
Gain market share Increase total sales Increase average number of items purchased per customer visit Increase frequency of customer visits Increase percentage of customers who are returning customers Increase number of new customers Increase customer satisfaction Increase brand identity
Product orientation
An inward looking approach that focuses on making products that can be made- or have been made for a long time- and then trying to sell them
Market orientation
An outward looking approach basing product designs on consumer demand as established by market research
What are the 4cs
Customer solution
Cost to customer
Communication with customer
Convience to cutomer
Promotion
ways in which a business attempts to draw consumers’ attention to a product.
What is AIDA
Attention
Interest
Desire
Action
Promotion Objectives
Increase sales by raising consumer awareness
Increase purchases by existing customers or attract new ones
Demonstrate superior qualities/specification
Create or reinforce the brand image
Correct misleading reports the public or other businesses may have seen
Develop the public image of the business
Encourage retailers to stock the products.
Advertising
Presentation and promotion of ideas, goods, or services by a business.
Advertising
Presentation and promotion of ideas, goods, or services by a business.
Sales promotion
Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability
Direct Marketing
a form of advertising that allows businesses and non profit organisations to communicate straight to the customer, with advertising techniques
Sponsorship
When a business pays to be associated with a certain event, in order to get its name/product seen by potentially millions of viewers or other interested parties.
Public relations
Communications (either personal or written), or service, which can be free, provided by the business incorporating news about it or a favourable presentation of it in the media.
Above the line promotion
mass media is used to promote brands and reach out to the target consumers. These include conventional media such as television and radio advertising, print as well as internet.
Below the line production
promotional techniques which aim to reach consumers more directly and which are more within the organisation’s control.i.e Direct messaging, fair trades, text messages
‘Percentage of sales’ method for expenditure budgets
budget varies with level of sales. Good if sales are increasing (more money available). Not so good if sales are decreasing
‘Objective based budgeting’ method of expenditure budget
calculate the level of sales required to meet objectives, then assess how much is needed to support this level
Competitor based budget
trying to match the amount spent by the main competitor. Could lead to budget spiralling out of control and competitor may have a very effective, creative promotional team, and therefore cannot be easily matched.
What the business can afford budget method
at the start of a business promotion is sometimes seen as a luxury, to be paid for after all other expenses have been paid and therefore not much money will be available. This does not take account of either market conditions or marketing objectives
Incremental budgeting
Take last year’s budget allocation and simply add on an extra amount – usually in line with either inflation or increased level of sales. Drawback it does require Marketing Manager to justify the amount being spent just the added increment
Cash flow forecast
Simple statement showing cash inflows, cash outflows as well as closing and opening balances
