Short questions Flashcards
P60
employer gives to employee at end of every tax year
details gross pay,PAYE,PRSI and USC
claim a tax refund/evidence
P45
when employer leaves job
gross pay,PAYE,PRSI and USC
claim social welfare
give to new employer
Form 12A
must fill in when they start working for the very first time
send to revenue to work out tax and tax credits
P21
revenue to employee
difference between how much tax he paid that year and how much he actually owes
refund/pay revenue
accrued expenses
bills for services that are used now and paid later
e.g. electricity
advertising
the paid,non-personal communication of information about a product/service through various media
agenda
document listing items to be discussed at a meeting
agri-business
converts farm produce into food
APR
shows the cost of a loan,including interest and any other charges
asset stripping
offensive reason for business expansion
business takes over a company in order to sell their assets at a profit
backward vertical integration
defensive
business takes over supplier
bad debts
debts that have to be written off because the customer cannot pay them
balance sheets
financial statement-what the business owns and all the money it owes
benefit in kind
non cash payment to an employee
brand name
a name,symbol,design or logo used by a business to distinguish its products from others
capital
money used to set up a business
cartel
an illegal secret agreement between businesses to restrict competition
caveat emptor
buyer beware
certificate of incorporation
document sent by the registrar of companies to the shareholders of a private limited company
enables the company to start trading
certificate of trading
sent by registrar of companies to the shareholders of a PLC-start trading
constructive dismissal
employee forced to resign because of unfair treatment by employer
consumer price index
measure of the level of rices in the economy.(family shop)
contract-condition
fundamental part
break-contract terminated
contract-warranty
not fundamental
credit control
aims to eliminate bad debts and encourages customers to settle their debts promptly
credit rating
reputation for paying back loans
customs duty
tax paid on imports from a non-EU country
debenture
long term loan that has to be paid in one lump sum in the future
debt capital
money an investor lends to an entrepeneur for a business
expects to be paid back with interest
differentiation strategy
products so different,they stand out from competitors
direct debit
account holder instructs bank to regularly pay money from her account into someone else’s
e.g. rent
DIRT
tax paid on the interest earned on savings
dividend
share of business profits,paid to shareholders
e-commerce
the use of internet and technology to conduct business
economies of scale
the more products a business produces,the less it costs to produce each individual product
EDI
electronic date interchange
system that links two computers of different companies so that they can exchange standard documents without human intervention
embargo
ban on all foreign imports/from a specific country
emergency tax
tax on employees until they fill out form 12A
endowment policy
life assurance policy where the insurance company pays out when the insured person reaches a specific age/dies whichever occurs first
equity capital
money the owners and shareholders have invested in a business
equity finance
money an investor gives to an entrepeneur for a business,in return the investor receives a share in the business and gets an annual dividend
ethics auditor
independent outsider who examines every aspect of a business to see whether the business is behaving ethically
factoring
short term source
business sells its debtors to the bank for cash
factoring with recourse
business must reimburse bank if debtors fail to pay
factors of production
essential items needed to make a product
land,labour,capital,enterprise
form A1
form completed by owners of a private limited company
forward vertical integration
defensive
takes over firm it distributes its products to
free trade
ability of a country to buy and sell products with other countries without any restrictions
Low gearing
owners have invested more than they borrowed
high gearing
owners have borrowed more than they invested
iliquid
lack of available cash to pay bills
indigenous firm
irish business set up by irish people that makes its products here
inflation
% increase in general level of prices in ireland in a year
inorganic growth
quick expansion of a business using a merger,strategic alliance and takeover
invoice
bill for goods sold on credit
just in time
stock control strategy where the business aims to have exactly the right amount of stock needed at any time
Interest group
an organisation of people who come together and campaign for a common goal by pressuring those who make decisions.
more power, more money and talents so are more likely to be listened to
Lobbying
putting pressure on decision makers by contacting them and meeting with them to persuade them to make the decision that the interest group wants
Entrepeneur
person who spots an opportunity (gap in the market) and takes the initiative to set up a business to make a profit.
financial+personal risk
Investor
gives money (capital) to the Entrepreneur that she needs to set up and run her business in exchange for a return on investment.
Producer
makes finished products to sell to consumers. Producers are manufacturers who take raw materials and use manufacturing process to turn them into a finished
Co operative relationship
same objective so they work together to achieve their goals. This is a win-win situation as working together produces better results than working alone
e.g.employee and employer
Competitive relationship
one party in business wants to be more successful than another. This is a win-lose situation as only one can win so they fight against each other and become rivals e.g. Tayto and walkers
Dependent relationship
parties need each other in order to be successful. They cannot achieve their goals on their own. They rely on the other party to provide what they need to be a success e.g. producer and consumer
Dynamic relationship
constantly changing.
e.g. competitive business hold town festival Rose of Tralee
Offer
one person asks another to enter into a deal with her
Invitation to treat
indication that the seller would like to receive offers for its products
Acceptance
the other person agrees to all the terms of the offer without any conditions. They can accept the offer by speaking, writing or by conduct.
Intention to contract
both parties to the agreement must mean it to be a legally binding contract. Both parties must understand that it is a legally binding contract and that they will end up in court if they break the promise
Capacity to contract
person has the legal right to make a legally binding contract.
under 18
mentally incapacitated
diplomats with immunity
consent to contract
both parties must give their real, voluntary and genuine permission to enter into it.
contract-performance
contract ends when each person carries out their side of it exactly as they agreed.
Contract-agreement
voluntarily agree to end it
contract-frustration
event happens that was not reasonably foreseeable when the contract was made and was not under direct control of either party
contract-damages
pay
financial compensation to the innocent party to compensate
him for what he has lost as a result of the breach
contract-specific performance
carry out exactly as she promised she would under
the terms of the original contract.
Rescind the contract
contract be set aside and the two people be returned to exactly the position they were in before the contract was agreed.
Negotiating
process of bargaining to try and reach a mutually acceptable solution to the conflict
Commercial practice
means any conduct (action) or description offered by a business to a consumer before, during or after the consumer transaction.
types of unfair consumer practices
misleading
aggressive
prohibited
misleading consumer information
false info,deceives
It is an offence to make a false or misleading claim about the following:
nature of the product
results of the product-e.g. wrinkle cream photoshop
main characteristics e.g. sports channels
geographical origin e.g. harps on chinese products
price/previous price
prior usage/history
aggressive commercial practice
harrasses,unfair pressure
threatening/abusive language
taking advantage of misfortune e.g. funeral home
prohibited practices
unsupported claims a product can cure an illness
‘closing down sale’-no intention
direct appeal to children
‘free gift’-costs to claim
competition offering top prize that is not available
demanding payment for unsolicited goods
pyramid scheme
doesn’t actually sell products
scam-people deliberately set out to make money at expense of others
getting a consumer to pay money to join the scheme with promise that the more people he can get to join,the more money he will earn
Penalties under the Consumer Protection Act 2007
Gives CCPC a range of powers compliance notice-orders it to stop and obey the law prohibition order-forcing them to stop fines name and shame
Consumer Act 2007-redress
exemplary damages-extra sum of money from the business as punishment
Compensation Order-forces a business to pay financial compensation
Functions of the CCPC
Informs consumers of their rights-phone service,website
Adive to businesses
Investigates breaches-power to enter premises,take evidence,apply to courts
Make sure businesses obey consumer legislation-fines,name and shame,prohibition order,Consumer protection list
Advise the government
Small claims court
easily, quickly and cheaply without involving a solicitor.
max €2000.
application form +fee of €25 to the local district court.
online using Small Claims online.
Small claims court procedure
business contests-both sides meeting by the Small Claims Registrar to try solve the dispute. (private+informal)
Small Claims Registrar cannot resolve the dispute-District Court for a hearing. (public+formal)
Evidence provided under oath and witnesses present
Solution: judge listens to both sides and makes her ruling.
If the judge rules in the consumer’s favour, the business has 4 weeks to pay compensation.
Ombudsman
investigate complaints about consumers who have been unfairly treated by public bodies
Ombudsman procedure
Complaint-in writing,phone or email
Investigation-can go to public body,request to view documents and interview staff
Recommendation-consider evidence and make recommendation (not legally binding)
Skill
an ability or expertise that people get through practice, experience, training.
Characteristic
personality trait
Skill:Human Relations
good with people. They know how to get along with them. They bring out the best in them and persuade them to do what the business needs.
e.g. Mary Ann O’Brien loan from AIB
Decision Making
list all possible solutions to a problem or opportunity, go through the advantages and disadvantages of each solution and choose the best one for the business.
Example: Sir James Dyson
Skill:Time Management
getting all essential tasks that need to be done to achieve the business’s goals completed in the time available.
This involves listing all the tasks that must be done and prioritising the most important tasks.
e.g. Mary Ann O Brien ensures products delivered on time
Skill:Risk Management
planned approach to minimising the risks a business is exposed to
identify all risks
calculate cost if risk occurs
cost of protecting risk
Examples of risk management techniques
Insurance
Security measures
Skill:Reality Perception
Sees situations as they really are and not how they would like them to be
e.g. Aer Lingus 6 million order of chocolates
Skill:Planning
set goals and strategies to achieve those goals
e.g. Mary Ann O’Brien cash flow forecast
Characteristics of an entrepeneur
Proactive Independent Self motivated Decisive Need for achievement Ruthless Creative Confident Risk taker
Proactive
do not sit around
take action
e.g. Mary Ann o brien approached superquinn to buy her products
Independent
Like to be in charge and give orders
Do not like being told what to do
e.g. Richard Branson
Self motivated
push themselves to achieve their goals
driven
e.g. bill gates
Decisive
good decisions quickly and firmly so they don’t miss opportunities
e.g. Dyson set up his own factory
Risk taker
not afraid to take a chance even though they might fail
sensible risks
e.g. denis o brien
Intrapeneur
employee working within a business who uses his initiative and thinks of a new idea to help the business he works in without being asked to. They do not take such a high risk
Examples of intrapeneurship
XBOX
3M-post it notes
Importance of enterprise in business
idea generation
business success
wealth creation
corporation tax
Importance of enterprise in community
Job creation
More spending
Government budget
entrepeneurship encouraged
Benefits of intrapeneurship
new products
business growth
increased productivity
Innovative workplace
Define:management
working with people and using resources such as money and equipment to ensure that the business achieves its goals
Managing director
overall control of running the business to make sure it achieves its objectives.
lead,motivate and communicate successfully
Characteristics of a manager
decisive hard worker good with people flexible initiative charismatic
Manager:decisive
analyse a situation and quickly come to a solution
e.g. aer lingus london to belfast saving measure
Manager:hard worker
time and effort
work overtime
e.g. aer lingus-stayed all night to solve trade dispute
Manager:good with people
know how tog et them on their side
get along with people and get the best out of them
e.g. River island manager
Manager:flexible
adaptable and change their methods and approaches as business changes
e.g. controller to facilitator
manager:initiative
do not have to be told to do
drive to come up with ideas
e.g. Michael o learyy cost saving measures
manager:charismatic
persuasive,inspirational,motivate employees,charm
e.g. steve jobs
Leadership
ability to direct people and positively influence them so that they follow and obey you.
Autocratic leadership
manager makes all decisions-does not ask employees opinions
orders+expects to be obeyed
uses authority to get his way]
fear+threats
Democratic leadership
involve employees in decisions invite them to share their views reason with them delegate e.g. Google
Laissez faire leadership
do not interfere with how employees do work give them goal and time limit delegate reason with them e.g. Steve Jobs
Delegation
manager assigns authorith to employee to carry out a task/project for him
gives employee power to do some of his management work for him
ultimate responsibilty lies with manager
e.g. HR manager asks assistant to screen job applications
Advantages of delegation
efficiency-focus on more important tasks
training-skills
staff morale-employees feel valued
productivity-faster
Advantages of leadership
change
efficiency
co-ordination
retention
Theory X Manager
Negative view do not like work lazy no ambition want to be told what to do
Theory Y Manager
positive view
employees enjoy work
hardworking
have ambitiona nd want responsibility
How do theory X managers motivate employees?
supervision/punishment
financial reward
How do theory Y managers motivate employees?
Promotion and delegation
Needs in Maslows hierarchy
Physiological Safety Social Esteem-respected and feel good Self actualisation-personal growth
contingency plan
back up plan that takes account an unforeseeable event to prevent closure of business
Limitations of Maslow hierarchy
needs may not be satisfied in order
needs of different values to each employee
minutes
summarised written record of what happened at the meeting
importance of agenda
clear communication
proritisation
preparation
Role of chairpeson
start,control and conclude open close quorum vote maintain order
role of secretary
organise venue and equipment
prepare notice and agenda
record minutes
deal with paperwork
Report
written document where one person sets out their findings of an investigation of an issue
Factors to consider when choosing method of communication
cost urgency confidentiality legal requirements nature of message
Barriers to communication
Language
Prejudice
Info overload
Poor listening
Principles of good commmunication
Appropriate language Read and write well send message on time listen carefully honesty
Video conferencing
meeting held between people who are in different locations. People sit in front of computers and images and sound are sent to each other
Internet
collection of information on any topics that can be access using a computer with internet connection. Many businesses have a website
Advantages of internet for business
advertise
increased sales
decision making
advantage of email
reduced costs and fast
disadvantages of email
security and virus
rights of data subject
get a copy
have any errors corrected/deleted
remove details from direct marketing list
compensation
obligations of data controllers
obtain info fairly and openly
keep info safe and secure
delete info once no longer needed
give copy to anyone who asks for it-within 40 days,can charge but no more than 6.35
role of data protection commissioner
investigate complaints
force data controllers to give info-written information notice
force data controllers to correct/delete-enforcement notice
keep register of data controllers-allow public to see who has their personal info
3 strategies
low cost leadership
differentiation
niche
low cost leadership strategy
business keeps costs as low as possible
cheaper product
e.g. Ryanair
Differentiation strategy
make business stand out from competition
brand name
customers appreciate the difference and are willing to pay more
e.g. abercrombie
Niche strategy
spot group of consumers with specific need
e.g. ferrari
Manpower planning
enough workers with the right skills to do the jobs
too few-not meeting demand and need to recruit
too many-idle,redundancies
estimate future demand+calculate existing supply
Benefits of manpower planning
minimise overstaffing
minimise understaffing
Cashflow forecast
a written document-cash expects to receive and spend in the coming months.
aim-make sure the business has enough cash to pay bills.
Benefits of a cashlfow forecast
identify shortfall
identify surplus
Mission statement
overall objective of the business and its reason for existence e.g.argos ‘we provide our customers with the best value for money through the most convenient shopping experience’
Strategic plan
long term
senior managers
divides mission into major plans
Tactical plan
short term
middle management
specific department
divides strategic plans into smaller plans
Advantages of planning
guide to success
motivates
eliminate weaknesses
help avoid future problems
Organising
arranging all resources of the business in order to achieve objectives
Organisation structure
splitting all the work to be done in the business into departments
appointing people to be in charge
making sure each department achieves it objectives.
Types of organisational structure
Functional
Product
Geographic
Matrix
Functional organisational structure
splitting into different jobs/departments
someone in charge of each
Product organsiation structure
split up into departments based on products made
Geographical organisation structure
split up into departments based on geographical areas
Matrix organisation structure
combines two types;functional and project team
for major temporary projects
advantages of a matrix organisation structure
motivation
better coordination
disadvantages of matrix organisation structure
two bosses
increased costs
Advantages of product organisation structure
focus on customer
competition
lower costs
disadvantages of product organisation structure
duplication
brand cannibalisation
Chain of command
unbroken line of authority that links all individuals in an organisation and specifies who reports to who
Span of control
the number of employees who report directly to a manager
narrow
wide
What does the span of control depend on?
employees experience
managers experience
type of work
location
Controlling
manager makes sure business stays on target
check regulary to see if on/off target
Types of control
Stock
Credit
Quality
Financial
Stock control
making sure the business has the right amount of stock in the business at all times
too much stock-money wasted,gone off,going out of date
too little stock-sales missed,unhappy customers
To prevent too much stock
re-order quantity
max level
To prevent too little stock
minimum stock level
re-order point
Advantages of stock control
Lower insurance premium
Customer satisfaction
Reduced costs
Satisfied customers
Quality control
make sure quality of business meets a very high standard to ensure products surpass expectations
Quality control strategies
Inspections
Quality Circles
ISO 9000
Inspections
trained inspector physically examines the products before they leave
pass-shipped out
Sampling
Quality circle
uses the employees to spot quality problems in the factory and come up with suggestions to solve these problems.
ISO 9000 award
internationally recognised award
given to businesses
that consistently prove to independent inspectors that their products are of high quality
Steps to credit control
Discount for early payments
conduct a credit check
maximum credit limit
collection procedure
Advantages of credit control
reduces bankruptcy
reduces bad debts
Financial control
make sure the business is profitable and has enough money to pay bills
advantages of controlling
increases sales
improves cash flow
reduces costs
makes sure business achieves objectives
Human resource management
managing employees in the business to ensure they find,keep and make the best possible use of employees
functions of HRM
Manpower Planning Recruitment and Selection Training and Development Performance and Appraisal Pay and Rewards Employer and Employee Relationships
Recruitment
finding suitable people for a job vacancy and encouraging them to apply for it
Selection
choosing the best applicant from those that applied
Steps to recruitment and selection
job description person description encourage suitable candidates screening selection tests interview check references offer the job
Job description
duties and responsibilities of job
Person specification
qualifications and characteristics of the ideal candidates
External recruitment
finding someone who does not work for the business
headhunting,advertising,recruitment agency
fresh ideas,wider selection,less jealousy
Internal recruitment
promotion
demotion
transfer
inside knowledge,motivation and cost savings
CV
document prepared by applicant in which she summarises her qualifications and work experience
application form
document prepared by employer asking personal questions
cover letter
more info about why you want job and would be a good fit
Interview
face to face conversation with the candidate
can be bias-do panel interview
good interview does not mean good job performance-include a practical element
Induction training
first training given to an employee
key people and aims
On the job training
teaches employees skills of the job through practical experience and observing colleagues
Off the job training
teaches them skills of the job outside the office by attending courses away from the place of work
development
teaches skills they can use in any job in the future e.g. communicating
benefits of training and development
higher sales and profits
flexibility
less supervision
Performance appraisal
set targets
monitor performance
evaluate
discuss results
Benefits of performance appraisal
improved industrial relations
identify employees suitable for promotion
motivates
Basic wage
fixed amount per week
easy to operate
no incentive to work harder
Hourly rate
paid per hour
easy to operate
may drag out work to make more money
Piece rate
paid per item
encourages hard work
may rush
commission
employees receive a percentage of sales
encourages hard work
may be too pushy
Bonus
additional payment when target reached
Non financial rewards
Job enlargement
Job enrichment
Improved conditions e.g. flexitime
Job enlargement
given extra responsibilities to relieve boredom
no extra responsibility
Job enrichment
given extra responsibility
extra tasks to develop them
How can a HR manager improve industrial relations?
grievance procedures
regular open communication
careful selection
training
Benefits of good employer/employee relations
motivation intrapeneurship retention delegate goodwill
Empowerment
manager gives employee power to make her own decisions about how she does her job,without having to ask permission
use skills and knowledge
advantages of empowerment
increased motivation
more responsive
trained for promotion
efficient use of time
disadvantages of empowerment
errors made
lack of supervision
conflict
stress
Economic benefit of community development
job creation
income spent locally
entrepeneurship
taxes
social benefit of community development
community spirit
less migration
Area partnership company
help local people set up businesses
train,grants,premisies,mentor
Local Enterprise Office
help small local businesses with aim of developing a strong local economy
advice,grants,workshop,mentor
RDP (leader)
funded by EU
help rural communities develop
aim to reduce poverty,promote social inclusion,broadband tourism etc.
advice to rural entrepeneurs and grants
SOLAS (FÁS)
employment and training programme that helps unemployed people re-enter the world of work
Helps them develop personal+technical skills
help+advice
employers advertise jobs in their offices
work with local colleges to provide courses
training in practical industries
Controller manager
Decisions:told employees what to do,expected to be followed (autocratic)
Errors:caught employees,told them where they went wrong,made sure it never happened again
Supervision:close,made sure rules obeyed,threaten and punish
Facilitator manager
Decision:train+develop employees to give them decision making skills
Errors:help,train and equipment to avoid mistake again
Motivation:rewards
Employee participation
more of a say,allowed input into decisions
work councils,work directors and share options
Stages in forming a team
Forming
storming
norming
performing
Forming
members meet for the first time
polite
discuss job
Storming
get to know each other,conflict
strong personalities
Norming
resolve conflicts
work together
norms-acceptable behaviour
performing
pull together as one and focus on getting the job done
cooperate to achieve objectives
Advantages of teamwork for a business
increased motivation-social (Maslow)
better decisions
better quality
improved coordination
Advantages of teamwork for employees
employee recognition
develops the employees
social needs
protects the employee
Total Quality Management
business management strategy that aims to ensure the business makes 100% perfect products 100% of the time so customers are 100% satisfied
Principles of TQM
Focus on customer
employee empowerment
teamwork-business and supplier
continuous improvement
Benefits of TQM
Increased sales
lower costs
improved motivation
meet legal obligations
How does technology change the role of managers?
Marketing E-commerce Decision making Production-CAD and CAM Redundancies
Impact of technology on personnel
Changing nature of jobs
new types of jobs
redundancies
teleworking
CAM
software used to control machines and tell them what to make
CAD
designs new products by quickly building prototypes etc
Impact of technology on costs
Increased:capital investment and training
Decreased:redundanies and CAM
Impact of technology on opportunities
Design-respond rapidly to changes in the market
International Trade e.g. Dell
Direct marketing-data base to store consumer info e.g. amazon
new products e.g. apps
Reasons to resist change
Fear of losing job and power
fear of failure
laziness
Strategies for managing change
Lead by example
allow employees to participate in change
train employees
lead by example
Example of a TQM:Guinness
Raw materials:best quality barley
Manufacturing:trained testers,modern technology
Pubs:specialised guinness taps,guinness quality team,training
Social responsibility
business’ duty to treat all those it comes into contact with honestly and fairly
obligation to make positive contribution to people and local economy
Stakeholders:social responsibility
Investors e.g. worldcom Employees e.g. ALDI 11.70 Suppliers e.g. Body shop Customers e.g. Nurofen Government e.g. National Irish Bank Local Community e.g. IKEA
Business ethics
set of moral principles that guide businesspeople regarding how they should act in business situations
tells people the right thing to do
Ethical business practice
conducting business according to a set of moral principles
fair,honest and legal manner
How to improve business ethics
lead by example e.g. Sky Sports
encourage employees to report e.g.vodafone
draw up a code of ethics e.g. employees
ethical audits e.g. IKEA
Sustainable development
meet needs of present without compromising ability of future generations to meet their needs e.g. Velvet
Characteristics of environmentally conscious business
Sensitive:reduce,reuse,recycle
Open to new ideas e.g. SPAR
Sustainable development e.g. Velvet
Consult others e.g. tesco
Code of ethics
formal written document that sets out rules for employees +managers to follow when making decisions
tells them the right thing to do
Marketing
identifying needs of consumers
producing and selling products to satisfy those needs
Market research
systematic collection,analysis and reporting of info about marketing issues to enable the manager to make effective marketing decisions
Field research
going out into marketplace and collecting new info directly from consumers
expensive+time consuming
Focus Group
group of consumers discuss business and product to give opinions
Benefits of market research
identify threats
identify new markets
saves business money in long run
reduces risk of failure
Market segmentation
dividing up market into clearly identifiable groups of consumers who have common characteristics
Geographic and Demographic
Geographical segmentation
divided into geographical areas
satisfy local needs e.g. eastcoast fm
demographic segmentation
market divided based on characteristics e.g. nivea for me
Target market
precise description of consumers to whom a product will be aimed at
e.g. penneys budget-conscious
Niche market
small group of potential customers with a specialised need
usually willing to pay a higher price
e.g. rock music radio station
Marketing concept
Most important person-customer
identify needs and make product to satisfy
Advantages of marketing concept
Good rep
Increased profits
Fewer returns
Advantages of a brand name
higher price
brand loyalty
easier to launch new product
power
Own brand names
products that carry the name of the shop that sells them
e.g. tesco value
Advantages of own brand name
retailer discount
power
low price products
competitive advantage
Product design
attractive product
aesthetics,functions,costs
Stages of the product life cycle
introduction-launch,sales slow
growth-sales increase rapidly,product better known
maturity-sales slow,reach highest level,large profits attract competition
saturation-sales at peak+growth stops
decline-sales fall off
Factors to determine price set by a business
cost
competitor price
consumer
legal regulations
Pricing strategies
price skimming penetration pricing price discrimination loss leader premium pricing
price skimming
charge high price when product first launched as customers willing to pay any price e.g. FIFA
penetration pricing
charge lower price than competitor to convince consumer to switch to them e.g. bord gais and ESB
price discrimination
different consumers different prices
e.g. Irish Times student paper
Loss leader
sell one product below cost price to attract customers
e.g. dealz
premium pricing
set price at higher end of price range to attract status conscious consumers
luxury e.g. rolex
promotion
communicating with consumers to let them know about a product and persuade them to buy it advertising sales promotion public relations personal selling
types of advert
reminder persuasive informative generic comparative
reminder advertising
lets the consumer know a product is still around and keeps it in their mind e.g. coca cola
information advertising
information about a product e..g. sales start at 10am
persuasive advertising
convince consumers they must have a product e.g. lynx effect
generic advert
ad for entire industry e.g. buy irish
comparative
shows how much better the product is in comparison
e.g. lidl and aldi
functions of advertising
information remind persuade compete sales
Factors when choosing an advertising medium
media habits e.g. toys during ads on kids shows
nature of the product e.g. washing up powder demonstration
message-technical then written is best eg. computer specs
cost
Sales promotion
incentives/short term offers a business gives to a consumer to encourage them to buy more of a product and sooner
e.g. free samples,free gifts,loyalty cards,merchandising
Merchandising
the business laying out store/products in an eye catching way
Public relations
refers to the efforts made by a business to create and maintain a positive image of the business in the minds of consumers and build a positive relationship with them by obtaining positive publicity
Benefits of PR
attract publicity when launching e.g. ryanair rome
target certain customers
build good image e.g. ronald mcdonald
defend product with bad publicity
PR techniques
events
sponsorship
news conference
public service activities e.g. tescos for schools
Personal selling
the business’ salespeople meet face to face with consumers to give personalised advice specific to their needs and build a relationship with them to get them to buy the product
Evaluation of promotion methods
McDonalds
PR:Ronald Mcdonald
Advertising:’Im Lovin It’
Sales promotion:free gift
Choosing a channel of distribution
cost nature of product target market location of customers Ecommerce Payment
Evaluate a marketing mix
red bull Product-energy+improved concentration Place:intensive distribution strategy:restauraunts,pubs etc. Price:premium Promotion:cliff diving,air race
Marketing plan
written plan that sets out business marketing objectives
essential part of overall business plan
Steps in a marketing plan
investigate market-SWOT
select target market-
research target market
develop marketing mix
Benefits of a marketing plan
roadmap
useful to investors
helps control progress
Margin of safety
how much output or sales level can fall before a business reaches its break-even point.
Margin of safety
how much output or sales level can fall before a business reaches its break-even point.
Job production
individual and unique
exact specification of consumer
e.g. conor mcgregor Louis Copeland suits
features of job production
highly skilled workers
flexible machinery
expensive product
Batch production
large amounts of product all in one go
product is the same for all
e.g. irish times
Mass production
continuous,made 365 days 24/7
same product for all
continuous demand
e.g. velvet toilet tissue
features of mass production
unskilled workers
specialised machinery
economies of scale
cheaper products
Business plan
written document that sets out objectives of business
and strategies to achieve
map
importance of a business plan
guide to success
anticipate problems
secure finance
gain control
Titles in a business plan
Description of business-people,products,objectives
market analysis-viable market,target markets,trends etc.
Marketing plan-strategy
Production plan-job,batch mass etc
Finance plan-collateral-P&L etc.
