Unit 1.4 - Making the start-up effective Flashcards
Marketing Mix
The combination of factors which help the business to take into account customer needs when selling a product – usually summarized as the 4 Ps.
What are the 4 Ps? What do they mean?
Price - The amount of money customers have to give up to acquire a product
Product - A good or service produced by a business or organisation and made available to customers for consumption
Promotion - Advertising the business to gain more customers and help them understand.
Place - The way in which a product is distributed – how it gets from the producer to the consumer
What is the difference between a sole trader/proprietor and a partnership?
Sole Trader - The only owner of a business which has unlimited liability.
Partnership - between 2 - 20 people all owning a business
HM Revenues and Customs (HMRC)
The government authorities in the UK responsible for collecting tax.
A tax on the value of sales: it is paid by businesses to government.
VAT - Value Added Tax
(around 20% in Britain)
Income tax
A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.
National Insurance Contributions (NICs)
A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.
Corporation Tax
A tax on the profits of limited companies.
Why does a business need good customer service to keep repeat/ loyal customers? (and what are they)
Customer service - The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.
Repeat customers - customers who repeatedly use a business.
Repeat customers are believed to earn the business more profits, they only stay with good customer service.
A measure of how much products meet customers’ expectations/ needs.
Customer satisfaction
Stakeholder
An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful.
