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buisness > theme 1 buisness > Flashcards

theme 1 buisness Flashcards

1
Q

what is a mass market

A

large market in which products with mass appeal are targeted

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2
Q

what is a niche market

A

small market within a large market or industry that focuses on specific wants of consumer groups

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3
Q

2 benefits of mass marketing

A
  • higher production = economies of scale = lower unit costs

- can use mass media advertising

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4
Q

2 benefits of nice marketing

A
  • meeting consumers needs so change charge higher prices

- easier for firms to enter with limited financial resources

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5
Q

what is market share

A

the proportion of total shares in a particular market for which 1 or more brands are operating

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6
Q

how do you calculate market share

A

sales of business / total sales in market X 100 = %

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7
Q

how would you evaluate how a market changes

A 
PESTLE analysis :
Political 
Economics
Social 
Technological 
Legal 
Environmental
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8
Q

how does competition affect markets

A
  • need to drive costs down
  • maintain competitive prices
  • develop innovative products
  • maintain high quality products
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9
Q

what is qualitative data

A

data about beliefs or attitudes

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10
Q

what in quantitive data

A

data that can be quantified (numbers)

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11
Q

what is market segmentation

A

useful way to split up market into different groups of consumers who share similar characteristics and needs

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12
Q

what is market positioning

A

deciding exactly what image your trying to create for your brand relative to its rivals

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13
Q

what is demand

A

the quantity of product bought at a given price over a period of time

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14
Q

name 2 factors that effect demand and why

A
  • substitutes - cheaper option but provides same function
  • seasonality
  • fashion tastes
  • changes in consumer income
  • branding
  • external shocks
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15
Q

what is supply

A

the amount of a product that is willing to be offered to market by a supplier at a given cost

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16
Q

if demand is higher than supply what will happen?

A

price will increase until demands falls back to level of supply (equilibrium )

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17
Q

What is PED

A

Price elasticity of demand is the responsiveness to change in quantity demanded to change in price

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18
Q

what is the formula for PED

A

percentage change in quantity demanded
divided by
percentage change in price

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19
Q

what does inelastic demand mean

A

change in price results in a smaller proportional change in demand

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20
Q

what value of PED is given to an elastic product?

A

greater than 1

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21
Q

what value of PED is given to an inelastic product?

A

between 0-1

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22
Q

what does elastic demand mean

A

change in price result in a greater proportional change in demand

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23
Q

what is IED

A

the responsiveness to change in quantity demanded to change in income

24
Q

how do you calculate IED

A

percentage change in quantity demanded
divided by
percentage change in income

25
Q

if value of IED is greater than 1 what is its elasticity

A

income elastic

26
Q

if value of IED if between 0-1 what is its elasticity

A

income inelastic

27
Q

what does income inelastic mean

A

that the responsiveness to a change in quantity demanded is less than the percentage change in income

28
Q

what does income elastic mean

A

that the responsiveness to change in quantity demanded is relatively greater than the percentage change in income

29
Q

what Income elasticity are necessity’s

A

income inelastic

30
Q

what Income elasticity are luxury’s

A

income elastic

31
Q

what is an inferior good and what IED would they have

A

cheaper options and a -ve IED inelastic

32
Q

what IED would normal and luxury goods have

A

+ve IED elastic

33
Q

name 3 ways to build a brand

A
  • advertising
  • USP
  • viral marketing
  • emotional branding
  • sponsorship
34
Q

what are 2 suitable pricing strategies for new products in a market

A

price skimming

price penetration

35
Q

what is penetration pricing

A
  • when a new product is launched at low price to entice customers to try it
  • only for short time
  • to get established in market
36
Q

what is price skimming

A
  • launch of new product at high price while its unique
  • to generate high revenue before competitors enter
  • low price later
  • only use if price inelastic
37
Q

give 2 problems of price skimming

A

image suffers when price falls

early buyers frustrated

38
Q

give 2 problems of penetration pricing

A
  • product image shown as cheap

- retailers unwilling to stock

39
Q

what is cost plus pricing

A

deciding a price by adding any % mark up

40
Q

what is predatory pricing

A

using low prices to force competitors out of business

41
Q

what is competitive pricing

A

bases on prices charged by rivals (charging same prices)

42
Q

what is psychological pricing

A

tricking the customer into thinking its cheaper than it is $99.99

43
Q

what is a centralised organisation

A

decisions made at top and passed down

44
Q

what is decentralised organisation

A

decision making pushed down chain of command and away from centre of organisation

45
Q

what is a tall structure organisation

A

narrow span of control

long chain of command

46
Q

what is a flat structure organisation

A

wide span of control

short chain of demand

47
Q

what is a matrix structure

A

project teams from different departments working together in a project

48
Q

what did Tayor says motivated people

A

money

49
Q

what did Mayo say motivated people

A

works have freedom over own work

50
Q

what did Maslow say motivated people

A 
hierarchy of needs:
self actualisation 
esteem needs
social needs 
safety needs 
physical needs
51
Q

what was the 2 factor theory

A
  • hertzberg 2 factor theory :

- hygiene and motivators

52
Q

what is autocratic leadership

A

instructions given , obey them

53
Q

what is paternalistic leadership

A

listens to employees but overall decision is leaders

54
Q

what is democratic leadership

A

gives staff some power and involved in decision making

55
Q

what is laissez-faire leadership

A

leave to do (lazy) approach

buisness (5 decks)

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