MODULE 2: BUSINESS UNDERSTANDING AND COMMERCIAL AWARENESS Flashcards
What are the four sections of business understanding and commercial awareness?
Characteristics and plans of the business and sector,
marketing’s contribution,
understanding target audience,
sector-specific legal frameworks.
What is the purpose of a business plan?
To outline the company’s future, including strategy and key goals.
What should the executive summary of a business plan include?
Business stage, objectives, strengths, unique offerings, mission, and vision statements.
Why is competitor analysis important?
To identify strengths, weaknesses, and develop strategies for competitive advantage.
What are some examples of barriers to market entry?
Changing technology, lack of investment, experienced personnel, government regulations.
What does operations and management encompass?
Daily functions, organizational structure, divisional tasks, financial factors, logistics, capital, and overhead expenses.
How can businesses mitigate financial risks?
By estimating capital and overhead expenses accurately, and managing cash flow effectively.
Define economic activity in the context of business.
The process of making, selling, providing, or purchasing goods or services that contribute to economic growth.
What are some examples of risks businesses face?
Changes in customer trends, costs of supplies, unexpected competitor actions, taxes, overhead costs.
What are the five stages of the buyer decision-making process?
Need recognition, information search, evaluation of alternatives, purchase decision, post-purchase evaluation.
How does perception influence purchasing decisions?
It impacts brand reputation, pricing, quality perception, and influences buyer decisions.
What is a mission statement?
An overview of a business’s fundamental purpose, explaining what it does and why.
What is a vision statement?
A statement that outlines the future aspirations and goals of the business, inspiring stakeholders and guiding decision-making.
What is the difference between business aims and objectives?
Aims are broad, long-term goals, while objectives are specific, measurable targets to achieve those goals.
Why is it important to align marketing strategy with business objectives?
It ensures focused efforts, measures success, and maximizes resources effectively.
What is straight rebuy?
Routine purchases made from the same supplier without changes.
Define impulse buying.
Making a purchase without prior planning or consideration, often driven by emotions or immediate needs.
What are the main psychological factors influencing buyer behaviour?
Perception, motivation, learning, attitudes, and beliefs.
How does perception impact purchasing decisions?
It shapes how individuals interpret and organize information about a brand or product.
Explain the concept of motivation in buyer behaviour.
Motivation refers to the internal needs or desires that drive individuals to make purchasing decisions.
How does learning influence buyer behaviour?
Learning involves acquiring information and experiences that affect future purchasing decisions.
What role do attitudes and beliefs play in buyer behaviour?
Attitudes and beliefs are formed based on:
Personal experiences
Opinions
Cultural influences, which can influence purchasing decisions and brand loyalty.
What are the main social factors influencing buyer behaviour?
Reference groups, roles and status in society, and family influences.
How do reference groups affect consumer behaviour?
Reference groups consist of individuals that consumers compare themselves to, influencing their purchasing decisions and brand preferences.
Explain the role and status in society in buyer behaviour.
An individual’s position and role in society influence their purchasing decisions, as they may buy products that align with their perceived status.
How does family influence buyer behaviour?
Family dynamics, including household structure and lifecycle stage, impact purchasing decisions, disposable income, and brand preferences.
What are the main cultural factors influencing buyer behaviour?
Culture, sub-culture, and social class.
Explain the role of culture in buyer behaviour.
Culture encompasses the shared values, beliefs, customs, and traditions of a society, influencing consumer preferences and purchasing decisions.
What is sub-culture, and how does it impact buyer behaviour?
Sub-culture refers to smaller groups within a society with distinct characteristics or interests, influencing consumer behaviour and brand preferences within specific demographics.
How does social class influence buyer behaviour?
Social class, determined by factors like income, education, and occupation, influences consumer purchasing decisions, lifestyle choices, and brand preferences.
Define economic activity in the context of business.
Economic activity refers to the production, distribution, and consumption of goods and services, contributing to economic growth and development.
What is profit, and why is it important for businesses?
Profit is the financial gain realized from business operations, essential for growth, expansion, and sustainability.
Differentiate between risks and uncertainties in business.
Risks are predictable future outcomes that can be managed, while uncertainties are uncontrollable and unpredictable events with unknown outcomes.
List examples of risks businesses face.
Changes in customer trends, costs of supplies, unexpected competitor actions, taxes, overhead costs, and changes in economic conditions.
Define the primary sector and provide examples.
The primary sector involves sourcing raw materials, including mining, fishing, and farming.
What activities are associated with the secondary sector?
The secondary sector includes manufacturing and construction activities.
Describe the tertiary sector and its role.
The tertiary sector provides direct services to customers, such as retail, hospitality, and healthcare.
What characterizes the quaternary sector?
The quaternary sector comprises knowledge-based industries, including IT, computing, and research and development (R&D).
