theme 1 buisness

Question 1

what is a mass market

Answer 1

large market in which products with mass appeal are targeted

Question 2

what is a niche market

Answer 2

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

Question 3

2 benefits of mass marketing

Answer 3

• higher production = economies of scale = lower unit costs

- can use mass media advertising

Question 4

2 benefits of nice marketing

Answer 4

• meeting consumers needs so change charge higher prices

- easier for firms to enter with limited financial resources

Question 5

what is market share

Answer 5

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

Question 6

how do you calculate market share

Answer 6

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

Question 7

how would you evaluate how a market changes

Answer 7

PESTLE analysis :
Political 
Economics
Social 
Technological 
Legal 
Environmental

Question 8

how does competition affect markets

Answer 8

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

Question 9

what is qualitative data

Answer 9

data about beliefs or attitudes

Question 10

what in quantitive data

Answer 10

data that can be quantified (numbers)

Question 11

what is market segmentation

Answer 11

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

Question 12

what is market positioning

Answer 12

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

Question 13

what is demand

Answer 13

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

Question 14

name 2 factors that effect demand and why

Answer 14

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

Question 15

what is supply

Answer 15

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

Question 16

if demand is higher than supply what will happen?

Answer 16

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

Question 17

What is PED

Answer 17

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

Question 18

what is the formula for PED

Answer 18

percentage change in quantity demanded
divided by
percentage change in price

Question 19

what does inelastic demand mean

Answer 19

change in price results in a smaller proportional change in demand

Question 20

what value of PED is given to an elastic product?

Answer 20

greater than 1

Question 21

what value of PED is given to an inelastic product?

Answer 21

between 0-1

Question 22

what does elastic demand mean

Answer 22

change in price result in a greater proportional change in demand

Question 23

what is IED

Answer 23

the responsiveness to change in quantity demanded to change in income

Question 24

how do you calculate IED

Answer 24

percentage change in quantity demanded
divided by
percentage change in income

Question 25

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

Answer 25

income elastic

Question 26

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

Answer 26

income inelastic

Question 27

what does income inelastic mean

Answer 27

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

Question 28

what does income elastic mean

Answer 28

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

Question 29

what Income elasticity are necessity's

Answer 29

income inelastic

Question 30

what Income elasticity are luxury's

Answer 30

income elastic

Question 31

what is an inferior good and what IED would they have

Answer 31

cheaper options and a -ve IED inelastic

Question 32

what IED would normal and luxury goods have

Answer 32

+ve IED elastic

Question 33

name 3 ways to build a brand

Answer 33

- advertising - USP - viral marketing - emotional branding - sponsorship

Question 34

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

Answer 34

price skimming | price penetration

Question 35

what is penetration pricing

Answer 35

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

Question 36

what is price skimming

Answer 36

- 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

Question 37

give 2 problems of price skimming

Answer 37

image suffers when price falls | early buyers frustrated

Question 38

give 2 problems of penetration pricing

Answer 38

- product image shown as cheap | - retailers unwilling to stock

Question 39

what is cost plus pricing

Answer 39

deciding a price by adding any % mark up

Question 40

what is predatory pricing

Answer 40

using low prices to force competitors out of business

Question 41

what is competitive pricing

Answer 41

bases on prices charged by rivals (charging same prices)

Question 42

what is psychological pricing

Answer 42

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

Question 43

what is a centralised organisation

Answer 43

decisions made at top and passed down

Question 44

what is decentralised organisation

Answer 44

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

Question 45

what is a tall structure organisation

Answer 45

narrow span of control | long chain of command

Question 46

what is a flat structure organisation

Answer 46

wide span of control | short chain of demand

Question 47

what is a matrix structure

Answer 47

project teams from different departments working together in a project

Question 48

what did Tayor says motivated people

Answer 48

money

Question 49

what did Mayo say motivated people

Answer 49

works have freedom over own work

Question 50

what did Maslow say motivated people

Answer 50

``` hierarchy of needs: self actualisation esteem needs social needs safety needs physical needs ```

Question 51

what was the 2 factor theory

Answer 51

- hertzberg 2 factor theory : | - hygiene and motivators

Question 52

what is autocratic leadership

Answer 52

instructions given , obey them

Question 53

what is paternalistic leadership

Answer 53

listens to employees but overall decision is leaders

Question 54

what is democratic leadership

Answer 54

gives staff some power and involved in decision making

Question 55

what is laissez-faire leadership

Answer 55

leave to do (lazy) approach