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Business-Theme 1 > Topic 1.4+ > Flashcards

Topic 1.4+ Flashcards

1
Q

Define proximity

A

Nearness to something

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2
Q

List the proximity to key factors

A
  • Market
  • Labour
  • Material
  • Competitors
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3
Q

What does proximity to market mean?

A

How close a business is to customers

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4
Q

What is the importance of proximity to market?

A

Customer’s convenience - customer is unlikely to travel a long way to buy essentials or snacks but is likely to buy luxury products

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5
Q

How to check if proximity to market is good enough

A

Business may look at demographics (gender, age, religion, health) and footfall of the area

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6
Q

What is proximity to labour

A

How close business is to labour

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7
Q

Importance of proximity to labour

A

Business may want to locate in an area with plenty of labour (lots of potential workers)

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8
Q

What does labour include?

A
  • No. of workers in an area

- Availability of workers with the right skills

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9
Q

Where may a technology company want to locate their business?

A

Near the M25 around London - plenty of workers with technology skills

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10
Q

What is the National Minimum Wage?

A

The minimum amount that a business is legally allowed to pay its employees

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11
Q

What does the availability of workers in a certain area affect?

A

The wages a business will need to pay

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12
Q

If a business needs to recruit a large number of unskilled workers, what should they do?

A

Choose to locate in an area with high unemployment - contains a large number of workers willing to work for National minimum wage - keeps costs down

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13
Q

What is proximity to materials?

A

How close a business is to raw materials

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14
Q

Examples of types of companies choose to be as close as possible to raw materials

A

Juice and cider producers choose to locate in near raw materials (apple orchards)

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15
Q

When considering proximity to materials, what does the decision depend on?

A

Whether business’s products are bulk-gaining or bulk-reducing

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16
Q

What is a bulk-gaining product?

A

An end product that is bigger (difficult/expensive to transport) than the raw materials used to make it, such as a bicycle

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17
Q

What is a bulk-reducing product?

A

A product that is smaller tan the raw materials it uses, such as paper

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18
Q

How does proximity to competitor affect the location of a business?

A

Businesses which sell convenience goods locate away from competitors. Businesses which sell shopping goods locate closer to competition.

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19
Q

What is what are convenience goods?

A

A product that a customer buys frequently

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20
Q

What are shopping goods?

A

A product that a customer takes time to consider before purchasing

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21
Q

How does the nature of business activity affect the location of a business?

A

Determined by the businesses daily activity

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22
Q

What are some instances in which business activity can have an impact on location?

A
  • Importing and exporting
  • Distribute around the UK – easy access to major roads or motorways
  • Agriculture – topography – climate or soil. Coast
  • Tourist related – primary and secondary resources.
  • Specialist support or providers of raw materials. Car parts based near Sunderland factory
  • Traditional association – cotton mills in Lancashire – clothes makers.
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23
Q

What is topography?

A

The physical characteristics of a landscape such as being flat or hilly

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24
Q

What is inertia?

A

A tendency to keep things as they are rather than change

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25
Q

What is e-commerce?

A

Using the internet to carry out business transactions

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26
Q

What is m-commerce?

A

Using mobile technologies to carry out business transactions

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27
Q

What are some benefits for e-commerce?

A
  • Lower operating costs
  • Reach wide audience
  • Trade 24/7
  • Ability to responds to consumer buying habits – like adapting so that easier to use a mobile phone to make a purchase.
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28
Q

What are the 7P’s?

A
  • Price
  • Product
  • Place
  • Promotion
  • People
  • Process
  • Physical environment
29
Q

How can a business find out what price to charge their product?

A
  • market research

- sole trader decides themselves

30
Q

What are the two types of pricing methods

A
  • penetration

- skimming

31
Q

What is penetration pricing?

A

Reduce price first then increase

32
Q

What is skimming?

A

Start selling at a higher price. When new products come out, prices drop

33
Q

How do you increase the product life cycle?

A
  • new packaging
  • different pricing strategies
  • re-branding
  • sell to audience abroad(other countries)
34
Q

How does re-packaging increase the product life cycle?

A
  • new image

- new market

35
Q

How does discounting increase the product life cycle?

A
  • short term pricing strategy
  • reaches out to a larger target market
  • expands sales
36
Q

How does rebranding extend a product life cycle?

A
  • more extreme approach
  • changes packaging, name and appearance
  • becomes more well known
37
Q

How does expanding abroad increase the product life cycle?

A
  • reaches out to untapped market

- costly but effective

38
Q

What does place mean?

A

The means by which products and services get from producer to consumer and where they can be accessed by the consumer

39
Q

What is direct selling?

A

Selling from factory to consumers

40
Q

What is mail order?

A

Shops like Amazon - order your package/mail online

41
Q

What are wholesaler?

A

Buy in large quantities, sell in smaller quantities

42
Q

What are retailers?

A

Large organisations that have their own outlets for their goods and services where they can control the price and demand

43
Q

Why does Apple invest in businesses around the world?

A

take advantage of local marks and laws to achieve two things:

  • paying tax
  • local market
44
Q

What is promotion?

A

one of the necessities for getting your brand in front of the public and attracting new customers

45
Q

What are some types of promotion?

A
  • advertising
  • selling
  • direct marketing
  • sales promotions
  • public relations
46
Q

What is direct marketing?

A

Sell direct to the public

47
Q

What is indirect marketing?

A

Example is blogging videos (YouTube)

48
Q

What are some passive forms of marketing?

A
  • television
  • radio
  • billboards
  • newspaper
  • magazines
49
Q

What are some types of direct marketing?

A
  • telemarketing
  • email
  • direct mail
  • face-to-face sales
50
Q

Why are contests a form of promotion?

A
  • contests don’t require purchase

- promotes brand and to the public

51
Q

Why is social media a form of promotion?

A
  • offers a way to promote products in a more relaxed environment
  • best type of direct market
  • connects with the world
  • lessens the divide between company and buyer - more appealing
52
Q

Why is mail order marketing a form of promotion?

A
  • offers a free product in exchange for info
53
Q

What are product giveaways?

A
  • Allows customers to sample a product

- methods used often by companies to introduce new food and household products

54
Q

What is point-of-sale promotion and end-cap marketing?

A

These items are placed near the checkout in the store and are often purchased by consumers on impulse as they wait to be checked out.

55
Q

What is the customer referral incentive program?

A
  • encourages current customers to refer new customers to your store.
  • Free products, big discounts and cash rewards are some of the incentives you can use
56
Q

How does charity help promotion?

A

Giving customers a sense of being a part of something larger simply by using products they might use anyway creates a win/win situation

57
Q

What are branded promotional gifts?

A

Put your business card on a magnet, ink pen or key chain

58
Q

What are customer appreciation events?

A

An in-store customer appreciation event with free refreshments and door prizes will draw customers into the store.

59
Q

What are after-sale customer surveys?

A

puts the importance of customer satisfaction first while leaving the door open for a promotional opportunity

60
Q

What is the word of mouth?

A
  • recommendations
61
Q

Define advertising

A

Communication through mass media, the firm will usually pay for this type of communication.

62
Q

Define public relations

A

Developing a positive relationship between the organisation and the media and the public. Good public relationships involves not only creating favourable publicity through the media but also involves minimising the impact of negative situations.

63
Q

Define sales promotion

A

Promotions designed to create a short term increase in sales. Examples of sales promotion include money off coupons, discount codes and “flash sales”.

64
Q

Define personal selling

A

Sales interaction between the firm’s representative and a consumer on a one to one basis.

65
Q

Define direct mail

A

This involves sending marketing to a named individual or organisation. Firms often buy lists of names, e-mails and postal addresses for this purpose. This can be highly effective when the direct mail recipients are within the firm’s target market.

66
Q

Define internet marketing

A

Placing adverts on internet pages through programmes such as Google’s AdWords.

67
Q

Define social media

A

Firms place daily messages on social media such as Facebook and Twitter to keep customers interested in their organisation. They may even run promotions, flash sales and discounts just for their social media readers.

68
Q

Define sponsorship?

A

An organisation or event is paid to use your branding and logos

Business-Theme 1 (6 decks)

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