U2 AOS2 KK2 External Factors Flashcards
Fill in the gaps:
External factors include _________ and _____________ factors.
Macro factors are factors which the business has ____ control over.
Operating factors are factors which the business has ______ control over.
Macro
Operating
No
Some
External factors (macro and operating) can affect the establishement of a business’ ___________ _________ and _________ ____________.
Customer base
Brand identity
Finish the sentence stem:
Operating factors that can impact the establishment of a customer base include…
Customers
Suppliers
Competitors
Finish the sentence stem:
Macro factors that can impact the establishment of a customer base include…
Economic factors
Technological factors
Legal factors
Social factors
Why is it important to meet customer needs when it comes to establishing a customer base?
Customers generate most of a business’ revenue.
Therefore, customers need to be kept happy and satisfied if a business is wanting to establish and maintain a customer base.
How can suppliers help a business to establish and maintain its customer base?
By providing high quality products (supplies) in a timely manner (reliability) can improve customer satisfaction and overall perception of the business.
How can marketing be used to attract customers from competitor businesses?
Marketing can be used to differentiate the business and generate more customer value than what competitors offer, which will attract customers to the business and away from competitors, thus helping to establish and maintain a customer base.
How can economic factors such as inflation, unemployment and interest rates impact on a business’ ability to establish a customer base?
Economic factors can impact on consumer purchasing behaviours.
Fill in the gaps:
If inflation in high, consumers will be ______ likely to spend and will _____ instead.
If interest rates are high, consumers will be ______ likely to spend and will _______ instead.
If unemployment is high, consumers will have _______ disposable income to spend on goods and services and will _______ rather than spend.
Less
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Less
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If inflation in low, consumers will be ______ likely to spend rather than _______.
If interest rates are low, consumers will be ______ likely to borrow to spend and will be _______ likely to ________.
If unemployment is low, consumers will have _______ disposable income to spend on goods and services and will be less likely to _______ .
More
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more
less
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more
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How can technology help a business to establish its customer base and brand identity?
Technology can improve efficiency in processes and service delivery as well as improve communication and enable rapid response times.
These advances in technology can lead to improved customer satisfaction, enabling a business to establish and maintain its customer base and brand identity.
How can legal compliance assist a business to establish and maintain its customer base as well as build brand identity?
If a business adheres to the law and acts in an ethical and socially responsible manner, customers are more likely to trust the business and purchase from it, therefore helping the business to establish its customer base and brand identity.
Why is it important for a business to consider social factors such as societal beliefs, behaviours and trends when establishing a customer base and brand identity?
Social factors are constantly changing. If a business adapts its marketing strategies to take advantage of customer trends, the business will be perceived as socially aware and this will help to build brand identity and customer base.
