Some topic 1 mostly topic 2

Question 1

Internal growth:

Answer 1

Is achieved from growing within the business. E.G.

• selling more stock.
• new shops, products.
• getting more customers
• making existing customers buy more.

Question 2

External growth:

Answer 2

Growing buy taking over other businesses.

Question 3

An acquisition:

Answer 3

A business buying another business.

Question 4

Merge/join:

Answer 4

Agreeing to come together in business.

Question 5

Examples of external growth;

Answer 5

• horizontal growth.
• backwards vertical growth.
• forwards vertical growth.
• diversification.

Question 6

Horizontal growth:

Answer 6

Buying or merging with a company who are at the same stage of production of a product. E.G:
- two shoe makers coming together.

Question 7

Backwards vertical growth:

Answer 7

Merge with someone who supplies the original business.E.G:

- a shoe makers merging with a leather makers.

Question 8

Forward vertical growth:

Answer 8

Merging with a company you supply, E.G:

- a shoe makes merging with shoe shops.

Question 9

Diversification:

Answer 9

A business merging with a company where they have little to nothing in common.E.G:
- a shoe makers merging with a green grocers.

Question 10

Advantages of external growth:

Answer 10

• new brand name.
• more market share.
• more sales.
• could lead to organic growth.
• publicity.

Question 11

Disadvantages of external growth:

Answer 11

• costs money.
• could be unsuccessful.
• risk
• lose money and time.
• need to employ more staff.

Question 12

Marketing definition:

Answer 12

Finding what customers want and matching it.

Question 13

Role of marketing:

Answer 13

• helps identify customers.
• helps a business inform customers of there business.
• helps the business increase there sales revenue.

Question 14

Primary market research:

Answer 14

(First hand information, found from source.)

• questionnaire.
• focus group.
• observations.
• interviews.

Question 15

Secondary market research.

Answer 15

(Information you can discover from your desk)

• internet
• old research
• the government information.
• books/lose papers.

Question 16

Questionnaire advantages and disadvantages.

Answer 16

• can target a specific audience.
• you can have many responses and a clear average.
  However,
• some people will leave gaps or may miss-understand the question.
• other people may lie tom impress (salary.)

Question 17

Focus group advantages:

Answer 17

• qualitative data.
• you get a feel of best products.
• choose who you want to be in te group.
• ask further questions.
• good feedback if improvements need to be made.

Question 18

Disadvantages of focus groups:

Answer 18

• its expensive.
• only a small number of people.
• one or two people can take over.
• hard to come to a conclusion.
• some people may not collaborate and the talk may not get anywhere.

Question 19

Advantages and disadvantages of trials:

Answer 19

• cheaper than doing it on a big scale.
• can be improved with suggestions or feedback.
  However,
• it can be expensive.
• competitors can see your new products.

Question 20

Secondary research definition:

Answer 20

• it is existing research that you can view.

Question 21

Census data:

Answer 21

It is collected by the government every ten years. Questioning the entire population about salary and occupation.

Question 22

Market segmentation:

Answer 22

Splitting the market for different products. E.G:

• age
• gender
• income
• occupation
• location
• lifestyle

Question 23

Why you need market segmentation:

Answer 23

• more profit.
• more growth opportunities.
• retain more customers.
• target marketing of customers.
• bigger market share.