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Business Year 12 > business paper 1 > Flashcards

business paper 1 Flashcards

1
Q

what is a market ?

A

any place that buyers and sellers come together to exchange goods or services

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2
Q

what is a mass market ?

A

business sells into the largest part of the market, where there are many similar products by competitors

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3
Q

what is a niche market?

A

smaller market where customers have more specific and demanding needs and wants

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4
Q

what is revenue

A

units sold x selling price

income received deom products sold

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5
Q

what is profit

A

total revenue - total costs ( fixed costs + variable costs)

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6
Q

what is market size

A

indicates the potential sales for a firm measured in terms of both volume and value
number of units sold x price

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7
Q

market growth

A

a key indicator for exisiting and potential entrant

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8
Q

what is market share

A

this means the proportion of a marjet that is taken by a business , product or brand

( sales of one firm / totalmarket sales ) x 100

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9
Q

what is a market map

A

a visual tool used by a business to identify the different brands selling similar products in one market based on 2 variables to compare against

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10
Q

pros of a market map ?

A
  • helps find gaps in the market
  • can use this as research
  • easy to create
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11
Q

cons of a market map

A
  • can be biased
  • less reliable
  • limited variables
  • time consuming
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12
Q

what is a dynamic market ?

A

one that is subject to rapid or continuous changes

e.g. taxi , film

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13
Q

key sources of change in a dynamic market?

A

customer tastes amd prefrences
impact of technology
new market entrances

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14
Q

factors affecting chnage ?

A 
demographic 
economic
social
etics 
enviroment 
competition
technology
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15
Q

what is ecomerce

A

electronic retailing

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16
Q

what is m comerce

A

mobile retailing

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17
Q

pros of online retailing

A 
reduced fixed costs 
more people to sell to 
24 h access 
make chnages quicker 
easy to set up 
more flexibility
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18
Q

cons of online retailing

A

no try before you buy
may need to train workers
risk of fraud
more maintance

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19
Q

what is degree of competition

A

number of firms that exist within a market selling the same or similar products or services

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20
Q

competition will affect the markets ?

A 
prices 
buying power 
selling power 
availablity 
willingness
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21
Q

what are the 4 Ps

A

product
price
place
promotion

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22
Q

what is invention

A

formulation of new ideas for products or processes

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23
Q

what is inovation

A

practical application of new ineventions into marketable products or services

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24
Q

what are the two types of inovation

A

product inovation = launching new or improved products

process inovation = better or more effective ways of producing existing products

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25
Q

capital intensive

A

machinery , automation

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26
Q

colour intensive

A

human

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27
Q

what is risk

A

possibilty that things will go wrong , can be assessed and managed

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28
Q

what is uncertainty

A

the unpredictable and unctrolable events that affect the business

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29
Q

what is product orientation

A

product capabilities are the most important factor when designing and creating product

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30
Q

what is market orientation

A

consumer is the most important factor when providing products fpr the market

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31
Q

what is primary research

A

involves collection of first hand data that did not exist before

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32
Q

examples of primary research

A 
questionaires 
observations
loyalty cards 
focus groups 
consumer panels 
test marketing
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33
Q

what is secondary

A

research that has been already been undertaken by another orginisation and therefore already exist

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34
Q

what is a sample

A

a group of subjects that has been chosen from a larger popultion for investigation

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35
Q

3 types of samping

A

random
quota
stratified

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36
Q

what will the value of sampling depend on ?

A

rechnique used
how was the sample was carried out
size of the sample

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37
Q

what will the size of the sample depend on

A

budget available
importance of accuracy
degree of confidence in results

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38
Q

what is market segmentation ?

A

dividing the population into groups of individuals where consumers share one characteristcs or needs

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39
Q

main categories of market segmentation

A

demographic
geographic
income
behavioural

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40
Q

competitive advantag

A

a feature of a business that allows it to perform more successfully than others in the market

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41
Q

what is a USP

A

unique selling point is a feature that distingushishes a firms product from those of its competitors

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42
Q

what does product differentiation allow

A

charge premium prices
gains brand loyalty
add value

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43
Q

what is added value

A

the difference between the price that is charged to the customer and the cost of inputs required to create product

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44
Q

how do businesses add value

A

design
technology
production
marketing

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45
Q

formula for added value

A

reveneu - costs = added value

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46
Q

what is demand

A

the quantity that consumers are willing and able to buy at a given price at a given time

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47
Q

what is contraction

A

decrease in demand

48
Q

what is extension

A

increase in demand

49
Q

price of a product = movement on the demand curve

A
50
Q

factors affecting shift of demand

A 
advertising 
price of subsititute 
price of complimentry goods 
income levels 
trends 
seasonality 
demographics 
external shocks
51
Q

what is supply

A

quantity of a good that producers are able to offer to the market at a given price at a given time

52
Q

an increase in supply will shift the curve right

A
53
Q

a decrease in supply will shift keft

A
54
Q

causes of changes in market supply

A 
future expantions
external shocks 
technology
taxes and subsidies 
production costs 
price of other goods
55
Q

what is elasticity

A

measures the responsiveness of demand to a change in a relevant variable

56
Q

what is price or demand elasticity

A

measures the extent to which the quantity of a product demanded changes in response to a change in price

57
Q

PED formula

A

% change in quantity demand
_________________________
% change in price

58
Q

PRICE ELASTIC

PED = MORE THAN 1

A
59
Q

PRICE INELASTIC

PED = LESS THAN 1

A
60
Q

UNITAY PRICE

PED = 1

A
61
Q

if PED > 1 then a change in price will cause a larger change in demand

A
62
Q

factors influencing PED

A 
availability of substitutes 
income 
frequency of purchase 
branding 
time
nature of the good
63
Q

what is an inferior good

A

as incomes consumers rise demand falls

64
Q

what is a normal / luxury good

A

as income rise - demand rises

65
Q

what is a necessity good

A

not affected by income goods with addictive nature, not affected by income changes but maybe buy cheaper options

66
Q

what is YED

A

income elasticity of demand

is a way to measure the extent to which the quantity of a product demanded is affected by a change in income

67
Q

formula for YED

A

% change in quantity demanded
__________________________
% change in income

68
Q

what are the three elements of the design mix

A

function
aesthetic
costs

69
Q

what is the design mix

A

three aspects of design that companies need to consider when developing a product

70
Q

what is promotion

A

an element of the marketing mix which is used by businesses to communicate and generate awareness to its current and potential customers about their products

71
Q

what are the 4 Ps

A

product
price
placement
prmotion

72
Q

what are promotions designed to do

A

to create awareness , interest, desire and action

73
Q

what are all of the types of pormotion

A 
advertising 
public relations
sponsorship / endorsement
sales offers 
direct selling 
digital
74
Q

factors affecting promotion

A 
size of business 
stage of life cycle 
type of product 
economic climate 
age of target market
external factors
75
Q

what is a brand

A

a product that is easily distinguished from other products so that it can be easily communicated and effectively marketed

76
Q

benefits of having a strong brand

A 
added value 
ability to charge premium prices 
customer loyalty 
repeat purchases 
higher market share
77
Q

ways to build a strong brand

A

USP
advertising
sponsorship

78
Q

types of brands

A 
product brands 
service brands 
umbrellas brands 
own label brands 
global brands
79
Q

what is price

A

the amount of money that the consumer has to pay to receive he good or service

80
Q

what are the 8 pricing strategies

A 
cost plus 
competitive 
price skimming 
penetration
predatory
phycological
premium 
promotional
81
Q

what is the product life cycle

A

a theoretical model which describes the stages of a product does through over its life. measured on time v sales

82
Q

what are the 4 stages of a product life cycle

A

r and d
growth
introduction
maturity

83
Q

what happens during r and d

A

cost very high
no sales
high investment
high levels of innovation

84
Q

what happens in the growth stage

A

high sales
high costs for promotion
lots of cash inflow
still at a slight lost

85
Q

what happens during the introduction stage

A 
high sales 
high costs for promotion 
lots of cash inflow 
still not at break even 
high demand
86
Q

what happens during the maturity stage

A 
less sales than growth 
strong reputation
good innovation 
high output levels
high profit
87
Q

what happens during the decline stage

A

falling sales
high market saturation
more competitors leave the market
decline in

88
Q

reasons why porducts enter decline stage

A 
tech advancements 
chnages in consumer tastes and behaviour 
increased competition 
failure to innovate 
economic factors
89
Q

ways to ectend product life cycle

A 
lower prices 
promotion 
re breanding product 
innovation 
target into new markets 
expansion
90
Q

what is a marketing portfolio

A

analysis toool that illustartates the performance of a companies products based on level of market share and market growth

91
Q

what are the 4 sections of the boston matrix

A

question marks / probelm child
stars
dogs
cash cows

92
Q

what are the features of a star

A

productions remains consistent
customer loyalty
econmies of scale
high market share and market growth

93
Q

what are the features of a qm / pc

A

just launched
high market growth but has a low market share
products should be invested as market share grows

94
Q

what are the features of a cash cow

A

high market share low market growth
recahing maturity stage
still have customer loyalty
products should still be produced

95
Q

what are the features of a dog

A

competitors to leave the market

low market share and low market growth

96
Q

what is a marketing startergy

A

plan / method / way of acheiving the medium to long term actions required to reach the companys goals or targets

97
Q

what is b2b

A

businesses selling to other businesses

98
Q

what is b2c

A

businesses selling to the public / consumer

99
Q

3 ways to gain customer loyalty

A

loyalty schemes
customer service
physcial enviroment

100
Q

what is approaches to staffing

A

the overall way in which a business treats its staff

101
Q

what is hard hrm

A

treats their staff as a cost , treated as a ersource that needs to be managed

102
Q

what is soft hrm

A

staff treated as an asset

can contribute an help the business acheive its objectives

103
Q

what is flexible working

A

working arrangements where there are a variety of options offered to employees in terms of working time , location and the pattern of working

104
Q

what is home / remote working

A

this is when the employee deceids that they want to work away from the business and work at home or a differnet location

105
Q

what is flexible hours

A

this is when the employee decieds how they would like to spread their hours of working over a given time period

106
Q

what is outsourcing

A

a third party company that specializes in the role and can be hired on a contract

107
Q

what is redundacy

A

workers job no longer exists possibly due to lack of business or restructing

108
Q

why could workers be dissmissed from their job

A

absenteesim
gross misconduct
theft of company moeny or property

109
Q

what is volunatry redundancy

A

some staff retire and take voluntary redundancy to gain a pay out

110
Q

what is compulasry redundancy

A

member of staff must / is required to leave the job

111
Q

what are the stages of the requirement process

A

cv / qualifications
interveiws
on site
phone calls

112
Q

what is recruitment

A

the steps undertaken by a business to identify a vacancy and attract suitable candidates

113
Q

what is selection

A

making decision on choosing the right candidate for the position available

114
Q

what is contained in a job description

A

job title

department

115
Q

what is contained in a person specification

A

qualifications
skills
experience
knowledge

116
Q

what is orginisational structure

A

the way in which the workforce within a firm is organised

117
Q

what is heirarchy

A

the layers/ levels of management within an orginisation

Business Year 12 (2 decks)

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