Units1,2andmarketing Flashcards by Murron Bland

What’s an entrepreneur

An individual who develops a business idea and takes on the associated risks and responsibilities

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Qualities of an entrepreneur

Competitive, creative, confident

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Factors of production and meanings

Capital - money invested
Enterprise - the business idea
Land - place they’re working
Labour - the workers

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Sectors of industry

Primary secondary tertiary

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Who owns controls and finances a sole trader

Sole traders own and control the business, financed by the capital they invest

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Advantages of sole trader

Make your own decisions
Profits aren’t shared
No special paperwork

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Describe the primary sector and examples

Organisations involved in the extraction of the earths natural resources (farming,fishing)

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Disadvantages of sole trader

Long hours
Hard to raise finance
Unlimited liability

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Describe tertiary sector and examples

Selling of goods and providing services (bank,hairdressing)

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What is the sectors of economy

Public private and third

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What is secondary sector + example

Manufacturing raw materials to be turned into finished goods (cars)

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Examples of sole trader

Plumber, electrician, hairdresser

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Describe third sector + example

Owned and run by individuals with the purpose of helping a group or raising awareness for a cause (charities)

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Describe public sector + examples

Owned by taxpayer and run by government (NHS,police)

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Describe private sector + examples

Owned and run by private individuals (sole trader, partnerships)

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What can customer satisfaction lead to

Customer loyalty
Repeat purchases
Increased reputation

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Customer satisfaction can be improved by

Highly trained employees
Customer care strategy
Customer complaints procedure

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Pros and cons of bank overdraft

Simple to arrange but not long term

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Pros and cons of a grant

Doesn’t need to be repaid but only available once

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Who owns, controls and finances a partnership

Owned by between 2 and 20 people, they control it as they make all the decisions and financed by capital they invest

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Advantages of partnership

Can raise more capital

Risks and responsibilities are shared

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Disadvantages of partnership

,profits are shared

,unlimited liability

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Who owns, controls and finances a PLC

Owned by shareholders, controlled by a board of directors and financed through selling shares

Examples of PLC

Baxters Ltd

Advantages of PLC

- raise more capital through selling shares | - shareholders have limited liability

Disadvantages of PLC

- accounts are not private | - more complex and expensive to set up

What's a shareholder

Group of individuals with an interest in and an influence on an organisation

Examples of shareholders

Management, employees, owners, suppliers

Competing aims of shareholders

Senior management wanting to maximise profits and customers wanting low prices

Internal factors

Employees, finance, and management

Employees internal factor

- quality of production - skill/ability level - work rate - resistance to change

Management internal factor

Quality of decision making

Finance internal factors

Is there capital available for changes to be implemented

What is external factors

``` PESTEC - Political Economic Social Technological Environmental Competition ```

External factors - political

New/changing legislation

External factors - economic

Changes to interest rate (may have to pay more)

External factor - social

Trends and fashions (keeping up to date)

External factor - technological

Improving technology may give a business a competitive advantage

External factor - environmental

Impact on environment (floods, hippies)

External factor - competition

Innovative ideas from other companies

SWOT analysis

Strengths, weaknesses, opportunities, threats

What are the two types of market research

Field research and desk research

What is field research and examples

Primary info first hand (surveys, interviews)

What is desk research and examples

Gathering secondary info (newspaper,Internet)

Product lifecycle

Introduction, growth, maturity, decline

Distribution methods

Road, sea, air

What should price depend on

- competitors prices | - time of year

What types of promotion are there

Advertising, sales promotion, public relations

What is sales promotion

Either direct mail or personal selling

What are the 4 P's

Product, price, promotion and place

What are loyalty cards

Gather info on what we buy, when we buy, how much we spend

What's E-commerce

Online shopping, can compare and buy 24/7

What 3 ICT things do businesses use

Loyalty cards, E-commerce and social media

What will PR department do

Deal with press and government and take part in customer care

Benefits of branding

- can charge a higher price as product is perceived as high quality - company is better known so sales increase - customer loyalty, increased sales - makes easier to launch new products as brand already exists