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A-Level Business Studies Theme 1 (Paper 1 23rd May) > 1.3 > Flashcards

1.3 Flashcards

(89 cards)

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1
Q

What are 3 factors needed when designing a product?

A
  1. )Aesthetics
  2. )Function
  3. )Cost
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2
Q

What are aesthetics?

A

How the product looks, tastes and feels.

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3
Q

What are functions?

A
  • Will the product be fit for purpose?
  • What does the product do?
  • How well does it perform?
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4
Q

What is the importance of cost?

A
  • What is the minimum cost we can make this product for whilst remaining quality?
  • Can it be made efficiently?
  • Can it be produced for a lower costs than competitors.
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5
Q

What is a ‘Bespoke design?’

A

Bespoke design means; custom made, custom built, tailor made to the consumer.

E.g. a product (wedding cake) or a service (custom party)

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6
Q

What is a ‘standard design?’

A

Standard design are products or services that are sold as standard, the customer cannot add any extra features or benefits.

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7
Q

Define the term Efficiencies?

A

Efficiencies in production can be achieved by changing the types of materials used or by updating the technology used in production.

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8
Q

What is ‘Ethical sourcing?’

A

Ethical sourcing also means ‘ensuring that the products being sourced are created in safe facilities by workers who are treated well and paid fair wages to work legal hours’, and it also implies ‘that the supplier is respecting the environment during the production and manufacture of the products.’

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9
Q

Why is recycling important for a product?

A

Some products are made using recycled materials, this appeals to the green consumer and is good for the environment.

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10
Q

Why is ‘Re-use’ important?

A

Some products can be re-used, this gives consumers good value for money as they can use the product more than once.

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11
Q

How do designers impact on waste minimisation?

A

Deciding what and how to build, whether to demolish or renovate and what materials to use all impact on the waste created.

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12
Q

Define ‘Promotion’

A

The use of marketing tools to bring a product or service to the attention of potential buyers.

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13
Q

What are the 6 types of promotion?

A
  1. ) Personal selling
  2. ) Direct marketing
  3. ) Above-the-line marketing
  4. ) Below-the-line marketing
  5. ) Public Relations (PR)
  6. ) Sponsorship
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14
Q

What is personal selling?

A

Personal selling is an effective way to manage business to customer relationships, where a salesman acts on behalf of the organisation.

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15
Q

What is direct marketing?

A

Highly focussed targeted mail based on what customers have bought before. Can be email or by post (special offers)

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16
Q

What is above-the-line advertising (ATL)?

A

Mass media methods for targeting larger and more general customers. E.g. radio, cinema, tv, billboard and magazine/newspaper adverts.

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17
Q

What are 3 advantages of Above-the-line marketing?

A
  • ATL is tailored to reach a mass audience.
  • Advert communication is repeated so the message is clear e.g. “simples” and “go compare”.
  • Great for building brand awareness.
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18
Q

What are 2 disadvantages of Above-the-line marketing?

A
  • It is a very expensive method.

- It can be hard to measure clear results from campaigns.

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19
Q

What is Below-the-line marketing?

A

Below-the-line marketing is the same as direct marketing for reaching smaller but more targeted audiences. E.g. Public relations, search engines, events and social media marketing.

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20
Q

What are 3 advantages of Below-the-line marketing?

A
  • Easy to measure if the campaign has reached an audience.
  • Easy and inexpensive to use social media to increase brand awareness.
  • BTL is more targeted to specific niche segments rather than aiming at the whole mass market.
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21
Q

What are 3 disadvantages of Below-the-line marketing?

A
  • Extensive training on working social media and IT may be needed for marketing staff.
  • Deeper understanding of customer or buyer behaviour is required e.g. what do they read, what websites do they visit.
  • Targeting diverse cultures with the same theme is difficult.
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22
Q

What are Public Relations (PR)?

A

PR is unpaid communication about an organisation which appears in mass media to build a relationship between the business and the public e.g. publicity stunts.

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23
Q

What is sponsorship?

A

Positive association of the product with a celebrity or a sport.

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24
Q

What are 2 disadvantages of sponsorship?

A
  • Can be very expensive

- Difficult to tell what impact this has on brand loyalty or sales.

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25
What are the 6 types of sale promotions?
1. ) BOGOF 2. ) Price discounts 3. ) Money off coupons 4. ) Samples/giveaways 5. ) Special events 6. ) Point of sale
26
What is BOGOF?
Buy one get one free. Used to encourage customers to go into the shop or buy the item.
27
What are price discounts?
Price discounts means that the normal RRP of the product or service has been reduced.
28
What are money off coupons?
Coupons that can be used to capture new customers or encourage existing customers to impulse spend.
29
What are samples/giveaways?
This is where a business may send out or give customers free samples in order to persuade them to try the product for the first time.
30
What are special events?
Special events are activities that the business does to encourage consumers to try the product, such as fairs.
31
What is ‘Point of sale’?
Point of sale display is usually a cardboard display stand located close to the till within a shop. This is used to trigger an “impulse” purchase.
32
What are the 6 types of digital communications?
1. ) Online adverts 2. ) Mobile communications 3. ) “Advergaming” 4. ) Social media 5. ) Consumer generated content 6. ) Viral strategies
33
What do online adverts include?
Banners, adverts within emails, pop-up adverts, search listings and listings on comparison sites.
34
What are mobile communications?
Adverts may appear as text messages or in apps.
35
What is “Advergaming?”
An advergame is a video game which contains an advert
36
How can a brand promote using social media?
A brand can use a web presence to promote their brand, as it is very effective.
37
What is consumer generated content?
This means any form of content such as video, blogs, discussion from posts, digital images, audio files and other forms of media that was created by consumers.
38
What are viral strategies?
Viral marketing describes any strategy that encourages customers to pass on a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence.
39
Define branding.
A brand is a characteristic name or symbol that distinguishes one product from another supplier.
40
What is a brands introduction?
A brands introduction is the first impression of a business e.g. a logo. It should be attractive and memorable.
41
What is corporate branding?
Corporate branding aims to build communications and relationships between the main business name and the customers.
42
What is product branding?
A product branding strategy will aim to show the customer the features and benefits of a product which will differentiate it from other similar products in the marketplace.
43
What are own brand products?
Own brand products are made by a manufacturer on behalf of a supermarket.
44
What is rebranding?
Rebranding is a marketing strategy in which a new name, symbol, term, design or a combination of the above, will be developed for a brand with the intention of differentiating their identity in the mind of the consumers, investors and competitors.
45
What are the 3 benefits of strong branding?
- Added value - Ability to charge premium prices - Reduced PED
46
What are the 4 ways to build a brand?
- USP’s/Differentiation - Advertising - Sponsorship - Social media
47
What is emotional branding?
Emotional branding seeks to create a bond between the consumer and the product by provoking and emotional response to the advertising (John Lewis).
48
Define pricing.
The process of pricing is the choice of pricing strategy that a business makes when setting prices for their products or services.
49
What is a pricing strategy
A strategy is a medium to long term plan of the business and the pricing will need to fit with the business objectives.
50
What are the 6 types of pricing strategies?
1. ) Cost plus 2. ) Price skimming 3. ) Penetration 4. ) Predatory 5. ) Competitive 6. ) Psychological
51
What is cost plus pricing?
A cost plus pricing strategy seeks to set a price for a product or service which covers the cost and provides a good profit margin.
52
What is skimming pricing?
Used when launching a new product. The price is set high to start, this will create high profits and may be send to pay back high Research and Development costs.
53
What is competitive pricing?
Some products or services are priced in line with competitors, therefore customers will have to make their decision on “non-price” methods such as quality, service or speed.
54
What is penetration pricing?
This means setting prices really low on a new product to encourage sales and to persuade customers to try the product. Then when they like the product and have to keep buying it the business raises prices.
55
What are oligopolies?
Markets with just a few large businesses (budget airlines).
56
What is predatory pricing?
In oligopolies existing businesses may hold off the threat of a new entrant to the market by lowering their prices so that any competitor cannot make profit, therefore putting the entrant out of business.
57
What is psychological pricing?
This means pricing a a product at £1.99 rather than £2.00 to appear cheaper.
58
What are the 6 factors that determine a pricing strategy?
1. ) number of USP’s/amount of differentiation 2. ) price elasticity of demand 3. ) level of competition in the business environment 4. ) strength of brand 5. ) stage in the product life cycle 6. ) costs and the need to make a profit
59
How has social media/technology led to changes in pricing?
Online stores can charge less due to not having to hire staff or pay rent. Comparison sites make cheaper companies more likely to be used.
60
What is distribution?
Distribution is the process of getting the right product or service to the customer in the right place.
61
List the stages of a 4 stage distribution channel.
1. )Manufacturer 2. )Wholesaler 3. )Retailer 4. )Consumer
62
What are the stages of a 3 stage distribution channel?
1. )Manufacturer 2. )Retailer 3. )Consumer
63
List the stages of a 2 stage distribution channel.
1. )Manufacturer | 2. )Consumer
64
Define marketing.
The management process of identifying, anticipating and satisfying consumer demands for profit.
65
Define marketing strategy.
The methods used by a business to achieve their marketing objectives.
66
What are the 5 stages of a product lifecycle?
1. )Development 2. )Introduction 3. )Growth 4. )Maturity 5. )Decline
67
What is product development?
This is the first stage of the product lifecycle where a product is designed and market research is analysed to produce a product which will satisfy customer needs.
68
What is the introduction phase?
The introduction phase will involve high costs in research and development and the product may have been test marketed before launching, so profits may be negative.
69
What is the growth phase?
Growth phase products are enjoying rapid growth in sales and profits.
70
What is the maturity phase?
Maturity phase products face intense competition now all the producers have joined the market.
71
What is the decline phase?
Decline phase products may be limited in production as profits and sales have fallen.
72
What are the 5 extension strategies?
1. ) Updating packaging 2. ) Adding more or different features 3. ) Changing target market 4. ) Advertising 5. ) Price reduction
73
What is a product portfolio?
A product portfolio is the collection of all the products and services offered by a company.
74
What is the Boston matrix?
The Boston matrix is a marketing planning tool which helps managers to plan for a balanced product portfolio.
75
What is a ‘star’ product
- High market share | - In a high growth market
76
What are ‘question mark’ products
- Low market share | - In a high growth market
77
What is a ‘cash cow’ product?
- High market share | - In a low growth market
78
What is a ‘dog’ product?
- Low market share | - In a low growth market
79
How has distribution changed due to social trends
- Online distribution: niche products can reach a wider audience - Increase amount of services: Netflix, Spotify
80
What are the 4 factors that influence the choice of distribution channel?
1. ) The nature of the product 2. ) The market 3. ) The nature of the business 4. ) The size of the business
81
What are the uses of the Boston matrix?
- The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets. - The conclusions drawn from such an analysis are to transfer the surplus cash from cash cows to the stars and the question marks, and to close down or sell off the dog. - In the end, question marks reveal themselves as either dogs or stars, and cash cows become so drained of finance that they turn into dogs.
82
What are the limitations of a Boston matrix?
-Products may not be low or high market share they could be medium. -High market share does not always lead to high profits, there are high costs also involved with high market share. -Many people argue this matrix is too simple.
83
What are some mass marketing strategies?
Media used will be; TV, radio, newspapers, mass media
84
What are some niche marketing strategies?
Media used will be; specialist magazines, trade fairs, websites, word of mouth, leaflets.
85
What is B2B marketing?
B2B stands for Business to Business marketing. Many businesses just deal with other businesses rather than consumers.
86
What is B2C marketing?
- B2C means business to consumer. | - They are not looking to build up long term relationships with the supplier, maybe a one off purchase like a sofa
87
What is customer loyalty and why is it beneficial?
- Customer loyalty is creating a product or service that ensures repeat purchases. - Businesses have discovered that it is much cheaper to keep a loyal customer than to gain new customers through marketing.
88
What is customer service?
The assistance and advice provided by a company to those people who buy or use its products or services, can be before during or after sales.
89
What are the benefits of loyalty cards?
- Improve customer retention | - Collect important data

A-Level Business Studies Theme 1 (Paper 1 23rd May) (20 decks)

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