bus man booklet 2

Question 1

What is the definition of marketing mix?

Answer 1

The elements of a firm’s approach to marketing that enable it to satisfy and delight its customers.

Question 2

What is the marketing mix commonly described as?

Answer 2

The 4 P’s

Question 3

What are the 4 P’s?

Answer 3

Price, place, product and promotion

Question 4

Why are the 4 P’s manipulated?

Answer 4

To maximize sales and profit, create a brand, develop customer loyalty and to create a unique selling point/proposition

Question 5

Define product

Answer 5

This includes the physical features and specifications of the product, (i.e. what it looks like, how reliable it is, quality of product, etc.)

Question 6

What do businesses have to ensure when making a product?

Answer 6

Have to ensure that it considers its intended customer when designing/developing products to ensure that it meets their needs.

Question 7

What are the key features a product should posses?
(ensure it appeals to the needs of target market)

Answer 7

Functionality, Reliability, Durability, Suitable packaging, fashionable and keeping in with social trends

Question 8

Define price

Answer 8

This refers to the way the product is priced and the rationale behind it.

Question 9

What factors must be taken into account when deciding how to price products?

Answer 9

Cost of production, Needs and wants of customers, Supply and demand, Competitor prices, profit

Question 10

What are the 2 pricing strategies?

Answer 10

Price skimming and Penetration pricing

Question 11

What is price skimming?

Answer 11

A firm charges the highest initial price that customers will pay then lowers it over time.

As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment of the population

Question 12

What is penetration pricing?

Answer 12

A pricing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.

The lower price helps a new product or service penetrate into the market and attract new customers away from competitors.

Question 13

Define place

Answer 13

This refers to where the product will be sold and how it will be distributed.

Question 14

What are some conditions when it comes to place?

Answer 14

Where will people be looking for your product?
Will they need to hold it in their hands/try it on?
Will you use third party sellers or not?

Question 15

Why is it important to consider your target audience when deciding where to retail your product?

Answer 15

To create easier access to business for customers

Question 16

Define promotion

Answer 16

This refers to how the product will be advertised.

Its part of the marketing mix that public notices the most, this is therefore essential that the business selects the most appropriate of promotion for its target audiences.

Question 17

What is the aim of promotion?

Answer 17

1. Inform the customer e.g. prices, location, product features
2. Build a brand image
3. Create customer loyalty, encourage customer to buy again
4. Persuade the customer to purchase the product for the first time or more regularly

Question 18

What are methods of promotion?

Answer 18

Advertising, Sponsorship, Sales promotions

Question 19

Define advertising

Answer 19

Paying for a message to be shown through various media, such as television, radio, magazines, newspapers, social media etc. it can be expensive

Question 20

Define Sponsorship

Answer 20

Providing financial assistance to an individual, event or organization in return for exposure and advertising

Question 21

Define Sales Promotion

Answer 21

Short-term sales initiatives to boost sales, for example, various offers such as ‘buy one, get one free’ (BPGPF), competitions, collect the tokens, loyalty cards, credit terms and coupons

Question 22

Examples of Promotion

Answer 22

Television and print advertising.
content marketing, coupons
scheduled discounts
social media advertising
email marketing
display ads

Question 23

What is SWOT Analysis?

Answer 23

SWOT is a study/ analysis/ planning tool undertaken by an organization to identify its natural strengths and weaknesses, as well as its external opportunities and threats.

Question 24

Examples of SWOT

Answer 24

Internal strengths e.g. innovative staff, products unique selling point
Internal weakness e.g. high wastage, high staff turnover
External opportunities e.g. move into foreign markets
External threats e.g. increased competition, the need to keep up with changing technology

Question 25

What does SWOT stand for?

Answer 25

Strengths, Weaknesses, Opportunities, Threats

Question 26

What are the benefits of SWOT?

Answer 26

It analysis of the effectiveness of the company's operation and internal factors that influence its success Shows current and potential future position highlights strengths and weaknesses against competitors used to help the company meet customer needs and keep up with competition

Question 27

What are the drawbacks of SWOT?

Answer 27

Weaknesses and strengths are often a matter of perception rather than fact May be advised to employ outside company to carry out regular audit of the business Open to interpretation (no 2 opinions are the same) Information is never perfect and future is always changing

Question 28

Which of the SWOT are internal (can be controlled) to the business?

Answer 28

Strengths and weaknesses

Question 29

Which of the SWOT are external (cannot be controlled) to the business?

Answer 29

Opportunities and threats

Question 30

What are strengths in SWOT?

Answer 30

Factors that are positive relative to competitors. (currently achieving and can be controlled by the business) It provides an analysis of a firm's advantage over its competitors

Question 31

What are weaknesses in SWOT?

Answer 31

Factors which are negative relative to competitors. (these can be controlled) Identifies areas where the firm is at a competitive disadvantage

Question 32

What are the uses of SWOT Analysis?

Answer 32

To set objectives and highlight areas that require special questions.

Question 33

What are opportunities in SWOT?

Answer 33

Factors in the external environment (cannot be controlled) that can be beneficial to the organization. (future)

Question 34

What are threats in SWOT?

Answer 34

Factors in the external environment that can be detrimental to the organization.

Question 35

What is management style?

Answer 35

behavior and attitude of the manager

Question 36

What are the 4 factors that influence the management style?

Answer 36

Nature of the task- is the task dangerous, creative, straighforward Time- is there any time pressure? what time frame is involved? Experienced of employees- experts? high or low skilled? new? motivated? Manger preference- personality align with?

Question 37

What are the 3 management styles?

Answer 37

Autocratic (tells) Consultative (asks) Laissez Faire (lets do)

Question 38

What are the characteristics of Autocratic?

Answer 38

"do it the way I tell you" - central decision making by manager with no staff input - communication from the top down. Employees told what to do -importance on completing task efficiently and effectively (degree of uniformity) -high level of contol

Question 39

When is an autocratic style appropriate?

Answer 39

-High risk or crisis situation, large groups of employees working on simple task -Time is limited -employees lack skills/knowledge -prefers to maintain control/lack faith in staff

Question 40

Advantages of autocaratic style?

Answer 40

High levels of clarity= clearly defined procedures=consistency in outcome Employees' roles and expectations set out plainly= performance can be monitored and staff held accountable Decisions made quickly= highly responsive in time of crisis

Question 41

Disadvantages of autocratic style?

Answer 41

Doesn't allow the manager to access staff knowledge/ideas= potential that best decision is not made Employees= no power= no chance to develop skills + feel undervalued= decreased morale= low job satisfaction = higher staff turnover an 'us and them' mentality = lack of employee pride= meet expectations but not improve= lower overall business performance

Question 42

What are the characterisitcs of Consultative style?

Answer 42

Decisions made by management (centralized) after discussion with employees to obtain their opinion two way communication obtaining information from staff to improve decision making but management still responsible for final decision= accountability manager maintains ultimate control, however importance is on employee involvement and some control over info. flower passed over during decision making

Question 43

When is a Consultative style appropriate?

Answer 43

more complex/ creative tasks, when elements of tasks employees have more knowledge over/ wider variety of considerations to be taken into account limited time pressure higher levels of experience and skills likes to include employees and values input however still makes final decision

Question 44

Advantages of consultative style?

Answer 44

Greater variety of ideas= improved decisions= improved bus performance employees have some ownership= increased motivatin and commitment employee development/ learning= allows management to identify high pot staff= increased employee development

Question 45

Disadvantages of Consultative style?

Answer 45

slow due to time constrants Some employees may not want to be consulted or some may not have knowledge to be able to communicate meaningfully conflict or resentment b/c some ideas ignored sensitive can become common knowledge b4 decision= oncreased fear amongst employees

Question 46

What are the characteristics of Laissez Faire?

Answer 46

Decentralised- authority to make decisions is handed to employees two way communication- management sets objectives and time constraints but employees report back to management on process automomy= main importance= allow staff to select their own way to get outcome manager hands control over to employees and monitors progress towards objectives

Question 47

When is Laissez Faire style appropriate?

Answer 47

simple no requirements for uniformity- employees not need supervision// complex- highly dependent on employee skill- where solution may not be known extended time period to make decisions high level of expertise- employees may have more exp than management or certain tasks managers prefer to delegate to employees, comfortable with hands off approach, sometimes lack sense of personal responsibility

Question 48

Advantages of Laissez Faire

Answer 48

employees feels a sense of ownership= promote outstanding results continual encouragement for creativity management able to focus on other elements or organisation employees able to respond quickly to issues that arise= empowered to make decisions= no need to run pass management

Question 49

Disadvantages of Laissez Faire

Answer 49

complete loss of control by management= can lead to management being disconnected t4 lack ability to intervene when required potential for misuse of organization resources can breed personal conflicts whereby individuals do not cooperate and management is not there to direct or negotiate can lead to sense of lack of direction for staff- not clear what is wanted or expected of them= lowers motivation

Question 50

Define Quality

Answer 50

the degree of excellence in a good or service and its ability to satisfy the customer

Question 51

What do quality management strategies aim to do?

Answer 51

Aim to minimize waste and defect rates in production, obtain consistently high standards of product and service, achieve set benchmarks

Question 52

What are the 2 types of management strategies?

Answer 52

Proactive quality management- Prevents defects therefore decrease waste, decrease costs, and increase efficiency Reactive strategies try to fix errors after they have already occurred.

Question 53

State the 3 control...

Answer 53

Quality control Quality assurance Total Quality Management

Question 54

Define Quality control

Answer 54

the process of checking the quality standards of work done or quality of raw materials or component parts -done at different stages, checks against designated standards-eliminates post-production errors=prevents low quality products being sold to customers A reactive strategy bc it detects and eliminates defects after the occur

Question 55

Quality control process

Answer 55

1.Benchmarks set e/g/ 2% variance in measurements is acceptable 2. inspections conducted 3. comparisons between product and benchmark made 4. corrective action in the event quality is deemed to be below benchmark

Question 56

Examples of quality control

Answer 56

Batch testing- random sample from batch checked rather than every input/output Secret shopper- used in service organizations (retail, restaurants, banks)- pretend customer assess quality of customer service + wait times, sales, cleanliness Safety checks- where every output is checked- e.g. cars every car will undergo some tests before being delivered to customers

Question 57

Pros of quality control

Answer 57

customers do not receive faulty goods or services=improved reputation reduces need for refunds relatively inexpensive strategy to implement

Question 58

Cons of quality control

Answer 58

Creates waste=cost+enviromental impact unless every product is inspected, inferior goods may still reach the customer= impact on reputation time consuming

Question 59

Define quality assurance

Answer 59

organization achieve certification of quality in its products from an independent body after being assessed need to meet set standards for industry Proactive because it seeks to use best practice to prevent errors from occurring but still includes checking mechanisms in case these do not work

Question 60

Pros of quality assurance

Answer 60

reduces waste from errors=lowers cost + enviromental impact external certification= improves competitiveness as increase customer confidence reduced errors increases productivity

Question 61

Disadvantages of quality assurance

Answer 61

Employees may need to be trained documentations can be time consuming expensive to organize external body to assess operations systems

Question 62

Define total quality management

Answer 62

whole organization approach to achieving quality based on continuous improvement. part of culture with all employees having a role to play= internal customers able to give feedback to others within the organization TQM=proactive- seeks to prevent defects from occurring

Question 63

3 principles of TQM

Answer 63

continuous improvement- standards keep getting raised bc quality can always be improved= incremental improvement Employee empowerment- employees are given direct responsibility through quality circles- small groups meet tougher to discuss ways of improving the quality process= proposals put to management Customer focus- review through lens of customer needs and expectations but there are internal customers- those who use what your work group provides as well as external customer- the person who purchases your product. PPL, t4 view their work as one step in a continuous process rather than in isolation

Question 64

Pros of TQM

Answer 64

highly adaptable to specific business requirements reduces errors t/4 waste= cost and environmental impacts reduced increases motivation- employees empowered + establishes a culture of quality

Question 65

Cons of TQM

Answer 65

time consuming requires a shift in culture Employees require training to be able to identify methods to improve quality