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 summarised as the 4 P’s, which are price, product, promotion and place
What are the first 2 p’s of the marketing mix
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
Communication between the business and customer, making the customer aware that the product is for sale, telling or explaining to them what is the product, making the customers aware of how the product will meet the customers’ needs and persuading them to buy it for the first time or again.
What is the last p of the marketing mix
Place The way in which a product is distributed – how it gets from the producer to the consumer
The only owner of a business which has unlimited liability.
Sole trader (or sole proprietor)
What is the difference between unlimited liability and limited liability?
Unlimited liability- A legal obligation on the owner of a business to settle (pay off) all debts of the business. In law there is no distinction between what the business owes and owns and what the business owns and owes.
Limited liability- When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.
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)
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.
A tax on the profits of limited companies.
Corporation Tax
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.
A measure of how much products meet customers’ expectations.
Customer satisfaction
Repeat purchases (or repeat business)
Orders or sales that occur from customers who have bought the product or service in the past.
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.
