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Commerce End of Year Exam > Promoting and Selling > Flashcards

Promoting and Selling Flashcards

1
Q

What is a customised approach?

A

A customised approach is when a business modifies their marketing strategies to take into account the differences among countries’ cultures, religion and tastes.

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2
Q

What is a promotional mix?

A

A promotional mix is the various strategies a business uses in its promotional campaign.

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3
Q

What is the Code of Ethics?

A

The Code of Ethics refers to doing the right thing.

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4
Q

Ways businesses can act ethically:

A
  • Paying employees decent wages
  • Environmental sustainability
  • Having a diverse workforce
  • Providing honest information when advertising
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5
Q

What is advertising?

A

Advertising is creating and sharing messages to promote products or services.

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6
Q

What is a brand?

A

A brand is a unique name, term, design, symbol or other feature that distinguishes a product or service from competitors.

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7
Q

What is market segmentation?

A

Market segmentation is the process of diving a business market into sub-groups of consumers based on shared characteristics.

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8
Q

What is promotion?

A

Promotion is all the activities that communicate the benefits of a product and persuade customers to buy it.

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9
Q

What is personal selling?

A

Personal selling is a face-to-face selling technique.

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10
Q

What is a target market?

A

A target market is a group of customers a business plans to sell its products and services to.

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11
Q

What is product differentiation?

A

Product differentiation is the process of distinguishing a product or service from others to make it more attractive to a particular target market.

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12
Q

Key considerations for planning and organising a small business:

A
  • Market research
  • Location
  • Demographics
  • Competition
  • Target markets
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13
Q

Define marketing.

A

Marketing is a total system of interacting activities designed to plan, price, promote and distribute products to customers.

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14
Q

What is a niche market?

A

A niche market is a narrowly selecred target market segment.

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15
Q

What are the 4 P’s?

A
  • Product
  • Price
  • Promotion
  • Place
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16
Q

What are the 5 legal structures of businesses?

A
  1. Sole trader
  2. Partnership
  3. Private company
  4. Public company
  5. Incorporated association
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17
Q

What does the term ‘incorporated’ refer to?

A

‘Incorporated’ refers to the process companies go through to become a separate legal entity from the owner.

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18
Q

2 characteristics of a private company:

A
  • Usually has between 2 and 50 shareholders with limited liability
  • Businesses are small to medium sized.
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19
Q

2 characteristics of a public company:

A
  • Unlimited number of shareholders
  • Listed on Australian Stock Exchange (ASX)
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20
Q

2 characteristics of an incorporated association:

A
  • Small, non-profit and non-commercial
  • Has its own legal identity
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21
Q

Types of finance:

A
  • Debt
  • Equity
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22
Q

Define debt.

A

Other people’s money from banks, finance companies and trade suppliers

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23
Q

Define equity.

A

The owners or shareholders’ contributions (captial, retained profts or ordinary shares).

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24
Q

Advantages of debt financing:

A
  • Owner does not have to sell any ownership in the business to raise funds
  • Tax deductions
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25
Q

Advantages of equity financing:

A
  • Does not have to be repaid unless the owners decide to leave the business
  • No interest payments
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26
Q

What is a loan?

A

A loan is an agreement to burrow an amount of money that needs to be repaid within a certain period of time.

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27
Q

What is a secured loan?

A

A secured loan is when the burrower offers an asset as security.

28
Q

What is an unsecured loan?

A

An unsecured loan is when a burrower does not need to have an asset to offer as security but the interest rate is usually higher.

29
Q

3 ways of going into business:

A
  • Setting up a new business
  • Purchasing an existing business
  • Purchasing a franchise
30
Q

3 Factors to consider when choosing a location for a business:

A
  • Cost
  • Visibility
  • Closeness to comeptitors
31
Q

Planning considerations involved in running a business:

A
  • Staffing
  • Location
  • Equipping premises
  • Obtaining realistic valuations
32
Q

Keys to success:

A
  • Prior experience in the field
  • Ability to learn from mistakes
  • Working with a strong team
  • Access to information
  • Entrepreneural abilities
33
Q

Barriers to success:

A
  • Unwilling to take risks
  • Not enough time or energy
  • Difficulty raising capital to finance the business gesture
  • Failure to plan
34
Q

Key considerations involved in running a small business:

A
  • Regulations
  • Marketing strategies
  • Ethical decision-making
35
Q

What is taxation?

A

Taxation is the compulsory payment of a proportion of earnings to the government.

36
Q

Types of taxation:

A
  • Income tax (PAYG)
  • Company tax
  • Goods and Services Act (GST)
  • Fringe Benefits Tax (FBT)
37
Q

What is PAYG?

A

Pay As You Go is tax paid in installments by withholding a certain amount of tax from employees’ paycheck.

38
Q

What is company tax?

A

Company tax is paid on the earnings of a company and is calculated on their taxable income.

39
Q

What is the GST Act?

A

The Goods and Services Act is a tax of 10% on the supply of most goods and services consumed in Australia.

40
Q

What is the Fringe Benefits Tax?

A

Fringe Benefits Tax is paid by employers for any benefits they provde to an employee in place of salary or wages.

41
Q

Ways to investigate business opportunity:

A
  • Market research
  • Location
  • Demographics
  • Competition
  • Target markets
42
Q

What is market research?

A

Market research is the process of information gathering.

43
Q

What is location?

A

Location is the place of the business.

44
Q

What are demographics?

A

Demographics are population characeristics that affect customer spending

45
Q

What is competition?

A

Competition is rivalry among businesses that try to supply the needs and wants of a market.

46
Q

What is a target market?

A

A target market refers to the group of customers to whom the business intends to sell its products.

47
Q

Ways a business can be socially responsible:

A
  • Minimise waste and pollution
  • Conserve the use of energy
  • Protect the health and safety of customers
48
Q

Sources of support and advice to small businesses:

A
  • Accountants
  • Solicitors
  • Universities, TAFE or colleges
  • Bank managers
  • Trade associations
49
Q

Government agencies that provide support:

A
  • Services Australia
  • Austrade
50
Q

Purpose of finanical records:

A
  • Meet legal obligations
  • Tax benefits
  • Managing cash flow
51
Q

Key business documents:

A
  • Profit and loss statement
  • Balance sheet
  • Cash flow statement
52
Q

What is a profit and loss statment?

A

A profit and loss statement shows a company’s profit or loss through expenses

53
Q

What is a balance sheet?

A

A balance sheet is a statement of finanical position of a business at a particular time.

54
Q

What does a balance sheet record?

A
  • Value of assets
  • Value of liabilities
  • Owner’s equity
55
Q

assets =

A

liabilities + owner’s equity

56
Q

What are current assets?

A

Current assets are assets that will be used up or change value within a year.

57
Q

What are non-current assets?

A

Non-current assets are assets that will last longer than a year.

58
Q

What are liabilites?

A

Liabilities are debts owed by a business to others. There are two categories: current and non-current.

59
Q

Whta are current liabilites?

A

Current liabilites need to be repais in less than a year.

60
Q

What are non-current liabilites?

A

Non-current liabilities need to be repaid in longer than a year.

61
Q

What is a cash flow statement?

A

A cash flow statement indicates the movement of cash receipts and cash payments.

62
Q

Define liquidity.

A

Liquidity is the ability of a business to pay its short-term debts on time.

63
Q

What is risk management?

A

Risk management is assessing risks, estimating costs, and minimizing them.

64
Q

List some possible risks:

A
  • Rising bad debts
  • Lawsuits
  • Falling sales
65
Q

What are the business functions?

A
  • Management of operations
  • Management of Human Resources
  • Management of marketing
  • Management of finance

Commerce End of Year Exam (3 decks)

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