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business mock revision paper 3 > runthrough > Flashcards

runthrough Flashcards

1
Q

market size

A

value of all sales within a market

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2
Q

market share

A

proportion of total market business holds

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3
Q

mass market

A

aimed at large groups of buyers
often acheive EOS
more compeittion
higher market size
have to focus more on bradning to be recognised

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4
Q

niche markets

A

aimed at specific buyers with specific requirements
e.g moofree choclotae
high makret share

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5
Q

adv of mass market

A

EOS
can make things cheaper
higher sales volume

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6
Q

dis of mass market

A

more competition
constantly having to keep up with compeitors
need a lot of capital

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7
Q

adv of niche market

A

less compititon
can charge higher prices

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8
Q

dis of niche market

A

more risky/narrower range of consumers
change in market could easily affect business

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9
Q

market size

A

value of sales in a market

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10
Q

market share

A

porportio of makret business holds

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11
Q

reasons dynamic markets may have to change in fashion industry

A

makrets that constanly ahve to change due to

changes in preferences-changes in fashion trends, advancements in technology

innovation-new products pr processes emerging. may grow for some and may decline for others

ways in which e.g more shopping online

compeitors entering and leaving the markets

changes in income-more disposable income wanting to buy more, less income rather save then spend
e.g prinark
high incoem e.g gucci, louis vuriton

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12
Q

what is online retailing

A

selling via the internet

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13
Q

adv of online retailing

A

can change lower prices as costs are reduced e.g no need for shop, less staff to pay

consumers can shop anyywhere they want

consumers can esily compare priecs and get cheapest one

e.g vinted coming in allowing people get second hand and much cheaper

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14
Q

dis of online retailing

A

consumers can easily compare prices so businesses have to make sure their prices are low

delivery costs, often cost more for delivery

second hand shops making more compeititon

have to have staff trained

consumers may want face to face encounter when purchasi a big item/may want to see it first

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15
Q

direct compeittion

A

two businesses sell similar products to same market
e.g supermakets asda and lidl

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16
Q

indirect competiton

A

two businesses sell different porducts but to same market
e.g takeawy chineses and indian

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17
Q

marketing mix within fashion industry

A

product-high quality, materials
is it worth the price

place-locate where a lot of conusmers will be located
easy for them to access e.g online shopping

promotion-advertising
using difefrent role models/celebrity endorsement e.g victoria backham
idolise that person and want to look like them
using insta reels videos of them actually wearing the items
using different body types/less discrimiation
making it more diverse/equal
weakening body standards

price-making it low to competitiosn
making it high to lookk better quality
penetration pricing-low to high

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18
Q

risks

A

something that could go wrong e.g risk the clothing collection wont be popular

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19
Q

uncertaintires

A

unexpected events
e.g hurricane
enbviromental effects
changes in income

CAN NOT PREDICT

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20
Q

product oreintation

A

focuses more on design of a product rather then the market/who they are selling too

e.g Gucci comes out with random designs

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21
Q

market orientation

A

business focuses more on market liking them
may do makret research
care less about prodcuts and more about if their consumers will like it
e.g Shein

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22
Q

market research

A

collection and analysis of market info

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23
Q

primary research

A

first hand data/business gathers new data

e,g questionaries and surveys

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24
Q

secondary research

A

using data thats already avaibliae e.g magazines, books

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25
adv of primary research
speciifc for its purpose exclusive so competitors can not benefit from it
26
dis of primary ersaerch
labour intesnive-slow production if having to make research time consuming expensive
27
adv of secondary research
quick cheaper to get hold off
28
dis of secondary research
may be out of dare not specifc for purpose
29
what is represnative sample
when people used rtaher then whole makret keep costs down saves lot of time ans resoruesces represnt the whole market
30
market positioning
involves market mapping shows two extrmees of measures that are imporant to customerrs
31
adv of market mappign
can help a business find a gap in market show a business who closest compeitors are
32
dis of market mapping
subjective/based off opinion simpligy things too much
33
comeptitive advanateg
a condition which allows a firm to generate more sales and be more profitable then its rivals
34
wyas to get a competitive advantage
good branding/distinctive lower picres producti innovtion advertisng and makreting good customer servcie!!!
35
adding value calcualtion
price product is sold for-cost of making product
36
factors which influence demand
consumer income-higher income can increase demand lowerr income reduce demand fashion, customer tastes and preferneces advertsiing and branding stop demand falling as cutomer grows brand loyalty to that company external shocks-extreme wether flooding of warehouses study tip: FACE
37
factors which influence supply
costs of production-costs of producio increases fall in supply as making less when preoducing/less prfiut indirect taxes-taxes on goods and services subsidy-money given to a business by government new technology-increase supply asa more fefcient ways of produing, lowering cotss external shocks-supply increases for war study tip: CISNED
38
price elasticity of demand
how much the price affects the demand percentage change in quanity demanded divided by percentage in price
39
income ealsticy of demand formula
percentage change in qualnitity demanded divied by percentage change in come
40
marketing mix
price product place promotion
41
design mix
function aesthetics costs e study tip:face
42
how can fashion indutsry make sure function of their product is good
is it fit for purpose? function-having pockets so more useful is it comfrtable material does it wash well?
43
how can fashion industry concern the aestehtics of their products
does it look good is it made of good materrials is it difefrent from evrything else/different pattern
44
how can fashion industry concern cost for their product
making their costs low, that wya can buy in bulk, achieve EOS make costs high, maes their product look more luxiroisu attract more high income consumers
45
what are the 3 types of branding
manufacturing branding own branding product branding study tip: MOP
46
product branding
speciifcl individual products that a cooperate brand makes own logo e.g rice crispies is apart of kellogs but kellogs sign at the bottom
47
own branding
brands that are in-house to a supermarket or retailer
48
adv of own branding
cheaper alternatives cheap to make and dont have distinctive logo
49
dis of own branding
cant charge high prices may consider as lower quality
50
51
emoitonal branding
branding matcheed to values and aspirations of consumer to trigger an emotional response
52
name all the pricing strategies
price skimming cost-plus predatory pricing penetration pricing
53
price skimming
high to low
54
penetration pricing
low to high
55
cost plus prcing
perceatge to make product is added to product its charged at
56
predatory pricing
price product below or equal too compeittion to push them out of market then increase it again once they leave
57
what is a channel of distribution
route a product takes from manufacatrurer to consumer
58
what do wholesalers do
buy goods from manufacturers in bulk sell them in smaller quanitites to retailers manufacturers don have to wait or consumers before they can get some cash make distribution simplier without wholesalers, manufacturere would have to make spearte deliveres to retailers act as retailes storage cupboard
59
what are the three channels of distribution called
direct (two stage channel) indirect (three stage channel) indirect (four stage channel)
60
direcet selling (two way channel)
using onlien retailung using internet to sell directly to consumers
61
indirect selling (three stage channel)
manufactueres-retiler-consumer
62
indirect selling (four stage channel)
manufacturer-wholealer-retialer-consumer
63
what is buying and selling on the internet called
e-commerce
64
what is multi-channel distribution
sell online and in store allows to tagrt wider market dis-cots
65
product life cycle
Development Introduction Growth Maturity Decline study tip: DIG MD
66
development stage
research and development stage do market research costs are high, sales do ot yet cover costs has high failure rate
67
introduction stage
where product is launched business promotes heavilty to gain sles has to pay off foxied cost of devlopment before product can camke prift
68
growth stage
sales grow fast new customers and repeated customers product is often improved or developed and tagreted at different segments
69
maturity stages
sales reach a peak saturdation, maket is full and reached max growht sales may start to drop
70
decline stage
product doesnt appeal to customers anymore sales fall rapidly profits decrease
71
extension strategies
ways to increase a products life cycle promoting product devlopment, improving or redesigning products
72
boston matrix contrinas what 4 things
star quesion mark cash cow dog
73
quesion marks
all new products small market share high makret growth
74
cash cows
in maturity phase high market share low market grwoth
75
satrs
high makret share and high makret growth in growth phase
76
dogs
low market share and low market growth
77
taylors
broke work down into small repetrive tasks believed in paying workers according to the quanitity they produced beleived finaical incentives would motivate workers most
78
herzbergs two factors theory
hygeine factors-wokring condidtions if not good, workers get dissatisfied motiavting factors e,g interesting work, recognition
79
mayos human relation theory of motivation
one group wored in same working condiditons another groups working conditions changed one with changes even if bad, were more motiavted wokred together, producitvity increased
80
peer to peer lending
lending money online match borrowers with lenders
81
crowd funding
raising money using internet put idea up made public so anyone can seeee them and donate if like it then will get discouts dis-if it doesnt go well, reputation may be damaged can easily be copied by other businesses adv-increases sales
82
overdrafts
where bank lets a business have negative amount in bank accoutn adv-easy to arraange flexible dis-interest
83
business plan
a document that outlines a business aims and objectives and how they are planning to acheive them sales forecast
84
sales forecasts
predicting future sales reveue and volume based on past sales data
85
external factors which may affect predicting sales/make it tricky
consumer trends-sometimes more predicatble e.g increase for demand of coats will go up in winter rather then summer also uncertain-people may become more aware about enviroemnt andd will want ethically sourecd matierals out of their clothes e.g doc martens demand reduced eocnomic varbailes-changes in interest rates,, inflation people have more disposbale income to want to buy more actions of compeitions-compeitior reduces price and launches new product, sales could be lost
86
dis of sales foecasts
much harder for fashion industry as very dyanmiac/consuemr preferences and trends consistely changing factors affceting sales are consistenly changing
87
sales volume
sales revenur divided by selling price
88
fixed costs
costs which dont change with output e.g salaries, rent
89
variable costs
chamge with output e.g raw material costs
90
gross profit formula
revenue-cost of sales
91
operating profit
gross profit-other operating expenses
92
net profit
operating profit-interst
93
gross profit margin
revebue divdied by gross porift times 100
94
operating profit margin
revenue divided by operating profit tiems 100
95
net profit margin
revenue divided by net profit times 100
96
statement of comprehensive income
shows how much money coming in and how much going out
97
how are pofit and cash not the same
cash-what you have in hadn for day to day spending profit-can sell something andd not get profit till ages after business thats making kots of profit may still run out of cash
98
statements of financial position
lists assests and liabilities
99
curent assets
likely to excahneg within a year
100
non-curretn asste s
keep for longer the eyar
101
current liabilties
give back within a year
102
non-current liabiltes
dont give back within a year
103
what are debts
never payed back
104
liquidity ratios
show how quickly miney is avalible to pay for bills
105
current ratio
curreent assets divided by current liabilties
106
acid test ratio
current assests-inventory divided by current liabaiites s
107
workign capital
amount of money for day to day spending
108
working capital formula
current assets MINUS current liabilties
109
what are all the types of production methods
job batch flow cell
110
job producion
making one off items produced by skilled workers adv-can change higher prices dis-time consuming cant buy in bulk pay high wages staff need to be trained
111
flow production
indentical prodcust produced down an assmeblt line adv-can operate 24/7 quick no stoppages EOS dis-if stoppage, producion is compelety slowed down boring for workers
112
batch producion
identical products are madde in one bulk adv-
113
lean production
effiecientform of production that focuses on waste minimisation using as few resources as possible recycling or reusing matierals in house to minimise waste
114
adv of lean production
good compeitiev advanateg good repuation
115
perfect competition
116
organic growth
growing form within a business
117
adv of organic growth
less risky can maintain management stles, culture and ethics easier to manage as have more control producivity reimns high as less disruptive changes
118
dis of organic growth
take long time to grow miss out on opportunities for ambitious growth slower less EOS rivals may grow faster inorganically
119
inorgnic growth
growth from outside the business e.g mergers and takeovers
120
adv of inorganic growth
synergy-double everything more staff EOS fast
121
dis of orgnica grwoth
grow to fast-diseconomeis of scale job insceurity increases/decreases motivation and increases motivation culture clashes costs increased risk moevemtn of workplace havign to change hpw you operate change communciations
122
mission statement
tells you about a businesses intentions
123
cooperate objectives
overall aim as business as a whole
124
departmental objecitves
aim in just that department
125
objectives should be SMART
speciifc measurbale agreed releastic time bound
126
ansoff matrix
market penetration product devlopment market devlopment diversification
127
market penetration
lowest risk increasing market share in existing market e.g advertising
128
product development
selling new products in exisitng makret
129
market devlpemny
selling existic products to new makret
130
diversification
sellign new products to new makrets most risky
131
porters three generic strategies
cost leadership-lowest cost of production differentiation-having unique attributesz focus-in between concentrates on niche markets either lowering costs as much as psosible or focuing on difefrentiation
132
kays capabiltieis
Archeticture-relationships with stakeholders e.g customers Reputation-having good customer service Innovation-USP competitive advanatge E S
133
SWOT analysis stand for
strangrhs weakness opportunities threats
134
Pestle analysis
POLTICIAL ECONOMICAL SOCIAL TECHNOLPGICAL LEGAL ENVIROMENTAL
135
POLITICAL
policy of taxation
136
inorganic growth adv
access to new techonolgoies more staff synergy EOS
137
inorganic dis
transport job insecurity increases change the way they work culture clashes disagreements dieconomies of scale-grow too fast
138
what is disecnimes of scale
when unit costs increase as scale of production icnreases may be due to losing control when growing inorgnically/too fast staff having to learn new procedures, lead to poor customer servcie,lead to loss of sales
139
effects of MNCS
140
what is a MNC
compney that operates in several counteries
141
adv of MNCS
can create jobs increase in local empolyment, increases standards of living espeiclly for lower income as can have better pay, wokring conditions etc need to be good at movig as fashion industries are dynamic, constantly changing
142
dis of MNCS
may take advantge of low income counteries making them work in bad condidiots
143

business mock revision paper 3 (5 decks)

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