Theme 1 Flashcards
1
Q
Online retailing benefits
A
- lower costs = no physical store
- Orders come at any time
- Prices can be easily compared
2
Q
Online retailing drawbacks
A
- More competition due to higher accessibility
- Some people want physical interaction
- Some feel uncomfortable giving their personal details
3
Q
Direct competiton
A
Similar products to appeal to same group of customers
4
Q
Indirect competition
A
Business sell different products but are competing for the same customers ie restaurants
5
Q
Production Orientation
A
Focuses heavily design , quality or performance and ASSUME customers will like it
6
Q
Market Orientation
A
Focuses on customer preferences and invests on market research and what customers are WILLING to buy
7
Q
Quantitive research
A
Numerical statistics - facts and figure
ie multiple choice questionnaires
8
Q
Qualitative research
A
Opinions - tends to be more informative
9
Q
Primary Market research (new data)
A
- Questioners or surveys
- Test marketing
- Sampling
- Focus groups
10
Q
Secondary Market research (using available data ) (3)
A
-Government publications
- Internet
- Market reports
+ Easy to gain access
- May be out of date
11
Q
Demographic market segment
A
- Age
- Gender
- Class
12
Q
Geographic market segment
A
- Dvided by region , country , world
ie range of cultures
13
Q
Income market segment
A
Aimed at either low income groups or high income groups
14
Q
Behavioural market segment
A
- Amount of use
- Lifestyle
- Interests and hobbies
15
Q
Examples of competitive advantages (8)
A
- Low costs
- Innovative product
- Successful advertising
- Product differentiation
- High quality
- Good customer service
- Convince
- ADDED VALUE
16
Q
Demand factors (8)
A
- Substitutes
- Complimenatry products
- Consumer income
- Seasoanl change
-External shocks
-Trends/ consumer preferences
-Demogrpahics - Advertising and branding
17
Q
Supply factors (6)
A
- Production costs
- Indirect taxes
- Subsidies
- New technology
- Weather conditions
- External shocks
18
Q
PED dependent factors
A
- Necessary products will be price INELASTIC
- Brand loyal customers will cause elasticity to decrease
- Internet and substitutes will increase elasticity
- High priced products tend to have high elasticity
- Regular bought product tends to have INELASTIC pricing
19
Q
Marketing mix (4Ps)
A
Product
Price
Place
Promotion
20
Q
Design Mix (3)
A
Aesthetics - look good and not too complicated
Function - fit for purpose and fulfil customer needs
Cost - cheap to produce but ensuring good quality
21
Q
Social changes that influence the design mix
A
- Ethically sourced
- Sustainable materials
- Recyclable and reusable products
22
Q
Types of promotion (4)
A
- Advertising = build brand image , target specific groups , social media is cheap version
- Sale promotions = raises awareness of business
- Personal selling through a salesperson
- Sponsership / PR = may be expensive and taken the wrong way OR can raise brand awareness and create good public image
23
Q
Type of branding (3)
A
Corporate branding = How business is presented
Product branding = How individual product is presented (clear logo , name , statement) , product tends to have a higher price as customers trust the brand
Own brand branding = Supermarket brand product , cheap to produce and typically sold at low price but are known for lower quality
24
Q
Benefits of strong branding
A
- Add value to product
- Make product less price elastic
- Seen as a higher quality product making it more desirable than the subsidies
- Can prevent new entrants
25
How to build a brand
- Give product a USP which helps differentiate the product
- Advertising will build customer awareness
- Sponsorship although costly it will be advertised to anyone attending or watching
- Strong social media presence - low cost and can target several groups
26
Price skimming
New product sold at HIGH STARTING price , then fall after a year or if there are cheaper alternatives
27
Penetration pricing
Launching a new product and setting at the lowest
possible price
-Suitable for price elastic products to gain market share
-Customers may be expecting price to remain low
28
Predatory pricing
Business lowers prices to undercut other business out of the market
- Effective on new entrants trying to become established
29
Competitive pricing
Prices are lower or match their competition
30
What social trends can affect Pricing strategies ? (2)
- Online retail = easier for customers to compare prices
Many subsidies available
- Price comparison websites = save time and effort with comparison of products
31
Product life cycle
Development
Introduction
Growth
Maturity
Decline
32
Extension strategies to keep product growing (2)
- Product development
- Promotion change
33
Importance of a mixed product portfolio
- If one product is in the declining stage , then the business can still depend on other products to remain successful
34
Boston Matrix
High market share , High market growth = Star
High market share , Small market growth = Cash Cow
Small market share , High market growth = Question mark
Small market share , Small market growth = Dog
35
Limitation of Boston matrix
- Can’t exactly predict product turnout
- Profit of the product may be different to the suggested matrix
36
B2B marketing
Sale of one business products to another business
ie surgery gloves to hospitals
- More informative
- Not likely to be heavily advertised
- Customers are CAUTIOUS of cost over the quality
- Important to have a long-term relationship
- Must have effective customer service
- More specialised products
- High production volume
37
B2C marketing
Selling a product directly to a consumer
ie food in supermarkets
- Customer may feel an emotional component
- Customer focuses on quality not price
- Traditional advertising is used to target a mass audience
38
Customer loyalty importance
- Leads to repeated purchases
- Salespeople and after sale is vital to ensure good customer relations
- More expensive the brand the more the customer will bevalued
- Loyalty cards can bring retailer and customer together
39
Wage V Salary (defenition)
wage - paid based off the amount of work completed
salary - fixed amount paid monthly/weekly
40
Types of flexible workforce (7)
- Full time
- Part time
- Zero hour contract
- Work from home
- Shift work
- Flexible hours
- Outsourcing
41
Pros and Cons of INTERNAL recruitment
- Candidates are aware of the business
- Short and cheap hiring process
-Motivated workers to get a promotion
- Leaves a empty job in another department
- Other workers not chosen might feel resentment
42
Pros and Cons of EXTERNAL recruitment
- New and fresh ides
- Brings experience from other organisations
- Large applicant number
-Long and expensive process
- Longer introduction process
- May behave differently to the way they’re presented
43
On-the-job training Pros and Cons
- Easy to organise
-Cheap
-Specific to job title
- Trainers wont be productive
-Some bad habits may be passed on
- Lack of new ideas
44
Off-the-job training Pros and Cons
-Specialist trainers
- New and fresh ideas
- No distractions
- Costly
- May not be specific to specific job listing
45
Hierarchical Structure
- Each level has authority over the level below it
- Clearly shows which employee is accountable to someone
- Shows clear devotions of sections
46
Tall structure
- Long command chain
- Bad communication and less efficient
- Descions take ages to be approved
- Lots of paperwork involved
- High opportunity for a promotion = Source of motivation
47
Flat Structure
-Less levels = more responsibility and freedom
- Message between one level make take time
- Managers have a wide span of control
48
Advantages and Disadvantages of Centralisation (Managers)
- Leaders have a lot of experience
- Mangers get a overview of business as a whole
- No bias toward workers
- Quick descions
- Demotivating to excluded employees
- Likely to react slowly which allows competitors to take action first
49
Advantages and Disadvantages of Decentralisation (Staff)
- Involvement will motivate employees make them feel valued
- Day to day decisions can be made quickly
- Can have expert knowledge on specific sector
- May not have enough experience
- May not version the whole business when finalising the descion
50
Matrix structure pros and cons
- Tends to be project based
- Clear reporting system
-Clear objectives
- Conflict may lead between different segment managers within a project
51
Taylors Scinetific management
- MONEY
- more produced = more pay = motivation
- may lead to a fall in quality
52
Maslow hierarchy of needs
- Needs from lower down the pyramid must be met
- Needs are specific to each individual
53
Herzbergs Two factor Theory
Hygiene factors don’t motivate but ensure satisfaction
ie pay , supervision , relations
Motivation factors will focus on motivation
ie recognition , achievements
54
Mayo’s Human relations Theory
- Manager communications with employees must be prioritised to ensure employee feel valued
- Social needs must be met ie social clubs or free work gatherings
55
Non financial motivation methods (8)
- Job enlargement
- Job enrichment
- Job rotation
- Empowerment
- Consulations
- Delegation
- Team-working
- Flexible working
56
Financial motivation methods (4)
- Piecework = paid per unit produced
- Commission = Bonus on top of their salary
- Performance-related pay
- Bonus schemes
57
Leader vs Manager
Leaders share a vision with others an push people to complete it , often think long term to improve and innovate business
Managers make decisions affecting day-to-day , by setting department objectives to meet targets
58
Autocratic leadership
- Independently form decisions
- Requires heavy supervision
- Used on unskilled workers or projects with quick deadlines
59
Paternalistic leadership
- Leader consults workers before making decisions
- Leader gets involved and cares about employee well-being
- Used on unskilled workers or with quick deadlines
60
Democratic leadership
- Discuss issues with employees and encourages participation
- Leader delegates tasks and tries to keep motivation high
- Hard to implement in big group
61
Laissez-faire leadership
- Rare interference with employees
- Successful when implanted to a highly motivated workforce
62
Qualities of a Entrepreneur (3)
- Set and create a business = notice gaps in the market with market research and raise enough money for start up
- Run and develop a business = up to date on laws and regulations , set new objectives and aims , hire employees
- Innovate the business = New products , take risks , encourage innovation within employees
63
Barriers to overcome Entrepreneurship (4)
- Lack of money
- Lack of confidence
- Lack of training
- Lack the ability to identify growth and development opportunities
64
Entrepreneur characteristics (6)
- Initiative
- Hard-working’
- Creative
- Self confident
- Risk taking
- Resilient
65
Financial motives of setting up a business (2)
- Earn enough to support themselves
- Earn more than through employment
66
Non financial motives of setting up a business (6)
- Indepndece
- Flexibility
- Work from home
- Challenge might motivate them
- Make a difference toward a social problem
- Change in ethical issues
67
Moving from entrepreneur to a leader (3)
- Delegate responsibility to other members
- Develop emotional intelligence (manage emotions)
- Become less reactive (ask others for opinion before finalisation)
68
Business objectives (9)
- Aim and objectives
- Survival
- Maximising profits
- Sale maximisation
- Increased market share and revenue
- Cost effiency
- Improve employee welfare
- Increase customer satisfaction
- Social objectives
69
Sole trader
- Easy and quick
-Profits return to owner
- Personal customer attention
- Risky = hard to establish in the market
- No EOS
70
Partnerships
- Easy to raise capital
- No information is released to the public
- Shared skills , decisions and problems
-Unlimited liability
- Disagreements may occur
71
Private Limited company (Ltd)
- Limited liability
- Can sell shares to raise capital
- Has legal status
- Can employ managers
- Accounts are public
- Expensive to set up
- Can’t sell shares on the stock market
