Theme 1 Flashcards
What is motivation
The will or desire to work due to enjoyment of work itself
Why is motivation important
- reduced recruitment costs, increase retention
- improve reputation, due to better customer service
What are the 4 theorists
- Taylor
- Maslow
- Herzberg
- mayo
Taylor features
- scientific management
- money motivates
- piece rate
- specialisation/division of labour
- autocratic
Herzberg theory
- 2 factor theory
- hygiene factors
- motivators
What are hygiene factors
- hygiene factor: necessary to go to work, not motivating.
E.g. Pay, working environment
What are motivators
- motivators: factors that motivate.
E.g. Training, bonus
Maslow theory
- hierarchy of needs Self actualisation (H) Esteem (H) Social belonging (H) Safety (L) Physiological (L) - assumed all motivated by the above in order.
Mayo theory
- human relations approach
- Hawthorne experiment: factory female workers
- changed aspects of working environment e.g. Lighting, rest breaks.
- workers motivated by having social needs
What is a mass market
- where a business sells into the largest part of the market
- where there are many similar products on offer
What is a niche market
- where a business targets a smaller segment of a larger market - where customers have specific needs and wants
Mass markets characteristics
- customers form majority of market
- needs and wants more general
- higher output and capacity
- low cost, wide distribution
Niche market characteristics
- loyal customers
- higher profit margins
- lack economies of scale
- can attract competition if successful
What is market size
- the total volume of a market
- in terms of no.of sales or value of sales
What is market share
- the percentage/segment of a market which a business controls
Why are brands useful
- product can be given ‘personality’
- product differentiation
What is a dynamic market
- a market which is constantly changing
Four key factors to consider in dynamic markets
- online retailing
- how markets change
- innovation and market growth
- adapting to change
How does online retailing impact a dynamic market
- development of technology
- increase in online retailers
- can cause store based retailers to lose market share
- online market shares predicted to increase
How does competition affect dynamic markets
- can reduce market share of other companies
- can stimulate innovation
- can prevent monopolies
- lower prices
Difference between product and market orientation
- product, where a business chooses to focus on what it does best
- market, where a business focuses on customer preferences
Pros and cons of secondary market research
- cheap
- usually based on sales figures
- outdated
- not specific
Pros and cons of primary research
- specific to objectives
- latest info
- expensive
- bias
Qualitative data examples
- focus groups
- interviews