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Business Nat 5 > Unit 2 - Management of marketing and operations > Flashcards

Unit 2 - Management of marketing and operations Flashcards

1
Q

What is marketing?

A

Involves trying to meet the needs and wants of cutomers by finding out what they want

page 50

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2
Q

Different kinds of markets

A
  • On a website
  • In a shop
  • Over the phone
  • Through an internet-enabled telephone or tablet computer

page 51

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3
Q

Why is marketing important?

A
  • Can attract new customers
  • Can allow the business to enter new markets
  • Helps the business grow
  • Increases the profit a business makes

page 51

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4
Q

The role of marketing

A

Can help a business increase the number of customers buying from the business (Market Growth)

page 52

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5
Q

Market segments

A
  • gender
  • age
  • occupation
  • religous/cultural belief
  • Income
  • geographical location
  • lifestlye

page 53

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6
Q

The marketing mix

The four P’s

A
  • Product
  • price
  • place
  • promotion

page 55

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7
Q

Product development

A
  1. Market research
  2. ideas for the product created
  3. A prototype is made
  4. Test marketing
  5. Potential changes made
  6. Method of production decided
  7. Price decided
  8. Place of selling decided
  9. method of promotion decided

page 58

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8
Q

Branding

A

Can be a logo, name or symble given to a group or type of product

page 61

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9
Q

Pros of having a brand

A
  • Recognisable for customers
  • Encourages brand loyalty
  • Higher prices may be charged
  • Easier to introduce new products

page 61

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10
Q

Cons of having a brand

A
  • If a product is poor, it damages the whole brand
  • Some people try to copy brands
  • Can be time consuming and expensive to establish

page 62

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11
Q

Factors affecting pricing

A
  • Life cycle of the product
  • Price charged by competitors
  • Cost of production
  • How much profit is wanted
  • How much of the product can be supplied
  • Market segment

page 62 - in depth descriptions on page 63

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12
Q

Pricing strategies

A
  • Low price
  • High price
  • Promotional pricing
  • Cost-plus pricing
  • Psycological pricing

page 64

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13
Q

Factors affecting placement

A
  • where the customer is
  • Availability of suitable premises
  • Parking facilies
  • suitable infastructure
  • governemt incentives and grants
  • the market segment
  • employee availability
  • competition
  • environmental impact

page 65

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14
Q

Distribution methods

A
  • Cars/road vehicles
  • train
  • aircraft
  • boat

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15
Q

Pros of car distribution

A
  • Often cheapest method
  • Quicker
  • Product recieved at door

page 64

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16
Q

Cons of car distribution

A
  • Difficult to transport large products
  • Not environmentally friendly
  • Roadworks can cause delays

page 64

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17
Q

Pros of train

A
  • Large products are easy to transport
  • Large quantities can be transported

page 64

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18
Q

Cons of train

A
  • There is not a train station in every location
  • Not a door-to-door service

page 64

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19
Q

Pros of aircraft

A
  • Products can be transproted around the world quicker than sea
  • Large amounts of small products can be transported
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20
Q

Cons of aircraft

A
  • large items cannot be transported
  • products need to be taken to the airport to be loaded onto the aircraft - can be expensive
  • Not a door-to-door service
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21
Q

Pros of boat

A
  • Larger products can be transported
  • Products can be transported across the world
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22
Q

Cons of the boat

A
  • It is time consuming for international delivery
  • Not a door-to-door service
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23
Q

Types of advertising

A
  • Internet websites
  • Quick response codes (QR)
  • E-commerce
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24
Q

Pros of E-commerce

A
  • Customers can be targeted worldwide
  • Can buy online 24/7 from wherever
  • Online discounts can be given
  • Product information can be updated quickly
  • Stock avalibility can be checked instantly
  • Environmentally friendly
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25
Q

Cons of E-commerce

A
  • Goods cannot be seen or handled before purchase
  • Customers may not wish to disclose personal information online
  • No personal contact with organisation
  • Employees need training to maintain and update the website
  • Can be expensive to make and maintain a website
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26
Q

Pros of Apps

A
  • Can be used on the move
  • Can often access free wifi to access internet
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27
Q

Cons of apps

A
  • People need to buy a smartphone, computer ect which is expensive
  • Training is needed to design the app
  • Internet connection depends on your location
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28
Q

Pros of text messaging

SMS

A
  • Customer receives the message instantly and directly
  • lots of customers can be targeted
  • Cheaper than other forms of advertising
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29
Q

Cons of text messaging

A
  • Can only include a small amount of text
  • Customers may recieve lots of texts and feel annoyed/fustrated
  • Need to have the phone number of the customer
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30
Q

Pros of email advertising

A
  • An e-mail can be sent any time
  • Documents and files can be attached
  • Email can be sent worldwide instantly at little cost
  • environmentally friendly
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31
Q

Cons of email advertising

A
  • viruses can be spread
  • Emails can fustrate or annoy the customer
  • Some emails may be filtered into the spam bin
  • employees may need training
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32
Q

Pros of TV advertising

A
  • Large audiences can be reached
  • Adverts can be targeted towrads specific segments
  • The product can be shown from different angles
  • Demonstrations can be given
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33
Q

Cons of TV advertising

A
  • The cost of advertising nationally on TV can be high
  • People might not watch adverts - Modern tech means that people skip ads
  • Ads are usually quite short, might not have time to take in all the information given
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34
Q

Pros in newspaper adverts

A
  • The specific location of the customer can be targeted
  • Adverts can be kept by readers for reference later
  • Lots of informatin can be communicated
  • A free sample of the product can be given
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35
Q

Cons of newspaper advertising

A
  • Not all newspapers are in colour
  • No sound or video demonstrations can be given
  • Some specialist newspapers can be expensive to buy and place adverts in
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36
Q

Pros of radio and media advertising

A
  • Free advertising if the report is positive
  • National media reports can reach large audiences
  • Local radio stations can reach people locally
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37
Q

cons of radio and media advertising

A
  • Not all media reports are positive - they also tell people about the negative impact of business
  • The whole situation might not be reported by the media; facts might be missed out or be misleading
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38
Q

Promotion methods

A
  • Special offers
  • Free samples
  • Celebrity endorsement
  • Ethical marketing
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39
Q

Special offers

A

Providing a discount when a product is bought, encourages people to buy a product and return to the business

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40
Q

Free samples

A

A ‘taster’ of the product. Allowes people to try the product without buying it

Costs the business to provide the samples and people may not buy them

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41
Q

Pros of Celebrity endorsement

A
  • Customers are attracted to a product because it is associated with a celebrity
  • Higher prices can be charges as the prduct is seen as exclusive to a celebrity
  • Money can be saved on marketing if the celebrity is well known
42
Q

Cons of celebrity endorsment

A
  • Not everyone will like a particular celebrity
  • THe companys reputation could be damaged if the celebrity gets a bad name
  • Getting a celebrity to endorse a product can be expensive
43
Q

Ethical marketing

A
  • Cutting down on the volume of paper used (fewer posters ect.)
  • Not being misleading in the way it presents information in its adverts
  • COmplying with discrimination laws and good business practice in its adverts
  • Ensuring its marketing activites do not offend beliefs that different people may have
44
Q

Market research

A

Used to find out what customers want and what competitors are doing
* make sure they are providing the goods and services people want
* To make sure they’re ahead of competition

45
Q

Pros of field research

A
  • The research is more up-to-date than the previous existing information
  • The information has been gathered for a specific prupose and is therefore more relevent to the business needs
46
Q

Cons of field research

A
  • Can be expensive to carry out
  • can take a long time to carry out - time is money
  • People need to betrained in carrying out field research which can be expensive
47
Q

Pros of desk research

A
  • Easy to obtain as the research as already been conducted
  • Usually cheaper to gather then field research - saving money
  • Decisions can be made quickly because the information already exists
48
Q

Cons of desk research

A
  • Research carried out for a different reason - information less reliable
  • Information may not be up to date
  • Information may have been biased - wrong decisions made
49
Q

Methods of field research

A
  • personal interview
  • focus group
  • Postal survey
  • Telephone survey
  • Online survey
  • Hall test
  • Observation
  • electronic point of sale (EPoS)
  • Social networking site
50
Q

Pros of Personal interview

A
  • The interview can encourage the respondant to answer questions
  • the interviewer can ask the person they’re interviewing to clarify a point
  • Body language and facial expressions can be observed
51
Q

Cons of a personal interview

A
  • It is time consuming and expensive to carry out
  • The interviewer will need training in interview skills
  • Fewer responses than a survey
52
Q

Pros of focus group

A
  • The feelings and views of people can be observed
  • Points can be clarified
  • Body language can be viewed
53
Q

Cons of focus group

A
  • Time consuming and expensive
  • Information can be difficult to analyse
  • The sample of people used may not reflect the sentiments of the whole population
54
Q

Pros of postal survey

A
  • Cheap to send the survey to large amounts of people and globally
  • People can complete the survey at their own pace at a time that suits them
55
Q

Cons of postal survey

A
  • People need to open the mail to send it back; may not do this
  • Can take time to get the information back
  • No opportunity for the respondant to clarify info
  • Survey has to be designed carefully so info is not misinterpreted
56
Q

Pros of telephone survey

A
  • Large amounts of people all over the country can be contacted
  • Less expensive to carry out than a personal interview
  • INformation is obtained instantly
  • Points can be clarified
57
Q

Cons of telephone survey

A
  • People might not want to participate in a telephone survey
  • unstuitable for large surveys as people are often only willing to answer a short survey
58
Q

Pros of online survey

A
  • A link to the survey website can be sent to large numbers of people
  • Do not need to spend money of printing surveys
  • People from all over the world can participate
59
Q

Cons of online survey

A
  • Relies on people having a connection to the internet
  • No personal contact
60
Q

Pros of hall test

A
  • product is tried by the participant, how can report back their actual experience
  • inexpensive to carry out
61
Q

cons of hall test

A
  • Opinons and views can be difficult to analyse
  • The participent may not say how they really feel as to not appear as rude
62
Q

pros of observation

A
  • Facts and figures are gathered, which are easier to analyse than opinons
  • People being observed might not be aware so they should act naturally
63
Q

Cons of observation

A
  • Those being observed are not usually asked for their opinon or to give an explanation as to why they did or did not do something
  • There are privacy and ethical issues to consider when observing people
64
Q

Pros of Electronic point of sale

(EPOS)

A
  • Large quantities of information can be gathered
  • the information gathered is factual and not just opinons
65
Q

cons of electronic point of sale

A
  • It can be expensive to purcahse and EPOS system - especcial for a small business
  • No opportunity to gain the opinon of the customer
66
Q

Cost of raw materials

A

The price charged by a supplier to purchase raw materials

Costs need to be kept as low as possible to make a profit

Low Costs will improve the cash flow of a business

67
Q

Quality of raw materials

A

How good the raw materials are

Without high quality raw materialsm the finished product will not be of a high quality

Low quality raw materials will probably result in higher wastage

68
Q

Lead time

A

How long it will take to recieve the raw materials from when an order is placed

Some raw materials need to be used quickly or they might go off

Without raw materials being delivered on time, production might have to stop, which is costly

69
Q

Quantity of raw materials

A

How many raw materials are required

THere need to be enough raw materials avaliable to allow production to continue, however, not too much otherwise this can be expensive for storage

Correct quantites of raw materials are required to satisfy customer demand

70
Q

location of supplier

A

Where the supplier is located

The further away the supplier is, the longer the raw materials will take to be delivered

The cost of transporting products has to be considered

71
Q

Reliability and reputation of supplier

A

reliability - Will the supplier deliver when they say they will?

Reputation - What people think of the supplier

IF the supplier does not deliver on time, thism ihgt cause production to stop and cusotmers might not het their order on time.

Suppliers with a good reputation are likely to bet more business compared to one that has a reputation

72
Q

Storage space avalible

A

How much space the business has in a warehouse to hold the raw materials until they are needed

Raw materials might be wated if they cannot be stored in the correct place

Storage costs can be expensive

73
Q

Inventory management

A

Stock includes:

Raw materials from suppliers
Prodcuts that are currently being made
Products that are finished being made

74
Q

Consequences of having too little stock

A
  • Production might stop if there are not enough materials
  • customers mihgt not receive theri orders on time
  • Unexpected orders cannot be met
75
Q

Consequences of having too much stock

A
  • It costs money to store stock
  • Stock has a higher risk of being stolen
  • Stock has a higher risk of going out of date
  • Money is tied up in stock that could be used for other purposes
  • If social factors change the stock might be wasted
76
Q

Deciding factors in what method of production to use

A
  • The actual product being made
  • THe quantity of the prduct that needs to be made
  • the way the business will make sure the product is of a high quality
  • the way stock is managed
  • the resources avaliable
77
Q

Job production

A

When one product is made from start to finish before another one is made. Usually results in a one off product being made

78
Q

Pros of job production

A
  • The customer gets exactly what they want and this can increase their satisfaciron
  • High prices can ften be charges because a unique product is being made
  • Designs can be changed to suit each customers own requirements
79
Q

Cons of job production

A
  • Specialist tools and equipment mihgt be needed, which can be expensive to buy
  • Can’t always buy raw materials in bulk and might miss out on cost savings from bulk buying
  • Can take a long time to make a unique product and this might mean the employee loses motivaotin
80
Q

Batch production

A

When a gourp of identical proucts are made at any one time. All products in the batch move onto the next stage of production at the same time. Machienery is used

81
Q

Pros of batch production

A
  • Batches can be changed to suit the requierements of the cusomter, which results in higher customer satisfaction
  • Raw materical can be bought in bulk, therefore saving money
  • no need for highly skilled workers, so cotsts are kept down
82
Q

Cons of batch production

A
  • Equipment and employees might nt have anything to do between batches, which costs money
  • Many mistakes in one tiem can result in the whole batch being wasted, which costs money and wastes time
  • The cost of wach item might be high if the batch size is small so the price charges to the customer might be higher
83
Q

Flow production

A

Parts are added to the product as it goes along the production line - Uses machinery

Every product is the same

84
Q

Pros of flow production

A
  • Large amounts of identical products are made
  • Raw materials can be bought in bulk, saving money
  • Machinery can work 24/7
85
Q

Cons of flow production

A
  • The individual customer’s requirements cannot be met because each product is indentical
  • If a fault occurs during production this can cause the whole production line to stop
  • Large demand for products is needed because hey are made in large quantities
86
Q

Pros of labour intensive

A
  • Employees can be creative and use their own initiative
  • Labour is usually readily avaliable
  • No need to purchase expensive equipment
  • One-off and unique products can be made easily
87
Q

Cons of labour intentive

A
  • It is expensive and takes time to recruit, selcet and train new employees
  • Employees require specialist skills, which can take time to learn and ay have to undertake training
  • The quality of the work can be inconsistant
88
Q

Pros of capital intensive

A
  • Machinery can work 24/7
  • The product being made is of a standerised quality
  • Employees require fewer skills to work machinery compared to labour intensive production
89
Q

Cons of labour intensive

A
  • Expensive to buy machines and equipment
  • Individual customer requirements cannot be met
  • Breakdowns can e expensive and cause production to stop
90
Q

Advantages of supplying a high quality product

A
  • Customers are more likely to make repeat purchases
  • A good reputationo is gained, which will encourage new customers
  • Customers are less likely to buy from a competitor
  • Profit and sales can be maximised
  • The market share of the business will grow
  • Wastage will be minimised, which elps protect the environment
  • Easier to recruit staff to work in a business with a good reputation
91
Q

Methods of ensuring quality

A
  • Use high quality raw materials
  • Make sure employees have the required skills and recruiting the best employees
  • Maintaining machinery/technology
  • Use quality control
  • use quality assurance
  • Use quality management
92
Q

Pros and cons of using high quality raw materials

A

Pro:
Ensures only the best possible inputs are used
Cons:
Might cost more for quality raw materials
Requires a reliable and reputable supplier

93
Q

Pros and Cons of proper staffing

A

Pros:
Fewer errors will be made as employees will knnow what theyre doing
Accidents are less likely to happen
Cons:
Time ocnsuming to train emplyees - might involve time away from their job
Can be expensive to provide training

94
Q

Pros and cons of maintainng equipment

A

Pros:
Any faults can be discovered before they become a bigger problem
Cons:
Checking equipment can be expensive
Production might have to stop as its being checked
Might involve the use of a specialist company

95
Q

Pros and cons of quality control

A

Pros:
Less time consuming than quality management
Cons:
Erros are only discovered at the end of the produciton process - wasteage could be high

96
Q

Pros and cons of quality assurance

A

Pros:
Errors in production can be spotted quickly
Cons:
More expensive to check for errors during produciton compared to just the end

97
Q

Pros and Cons of quality management

A

Pros:
Product constantly checked to minimise wastage
More thorough than quality control
employees work together on ensuring quality - good for teamwork and motivaiton
Cons:
requires commitment from everyone in the business
Quality policies and procedures need to be implemented and strictly followed

98
Q

Ways to be socially responsible

A
  • Minimise wastage
  • Recycle as much as possible
  • Try to minimise packaging
  • Prevent pollution
99
Q

Benefits of being ethical

A
  • They can gain a good reputation and possible recongnition
  • wastage costs can be produced
  • Products that are seen as ‘ethically produced’ can be charged as a higher price
  • They can have a competitive advantage over other businesses
100
Q

Cons of being ethical

A
  • It can be expensive to purchase environmentally friendly materials and fuel
  • Suppliers of ethically produced raw materials may charge more
  • Training on appropriate waste disposal methods might be expensive

Business Nat 5 (3 decks)

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