business paper 1 Flashcards
(117 cards)
1
Q
what is a market ?
A
any place that buyers and sellers come together to exchange goods or services
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
3
Q
what is a niche market?
A
smaller market where customers have more specific and demanding needs and wants
4
Q
what is revenue
A
units sold x selling price
income received deom products sold
5
Q
what is profit
A
total revenue - total costs ( fixed costs + variable costs)
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
7
Q
market growth
A
a key indicator for exisiting and potential entrant
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
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
10
Q
pros of a market map ?
A
- helps find gaps in the market
- can use this as research
- easy to create
11
Q
cons of a market map
A
- can be biased
- less reliable
- limited variables
- time consuming
12
Q
what is a dynamic market ?
A
one that is subject to rapid or continuous changes
e.g. taxi , film
13
Q
key sources of change in a dynamic market?
A
customer tastes amd prefrences
impact of technology
new market entrances
14
Q
factors affecting chnage ?
A
demographic economic social etics enviroment competition technology
15
Q
what is ecomerce
A
electronic retailing
16
Q
what is m comerce
A
mobile retailing
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
18
Q
cons of online retailing
A
no try before you buy
may need to train workers
risk of fraud
more maintance
19
Q
what is degree of competition
A
number of firms that exist within a market selling the same or similar products or services
20
Q
competition will affect the markets ?
A
prices buying power selling power availablity willingness
21
Q
what are the 4 Ps
A
product
price
place
promotion
22
Q
what is invention
A
formulation of new ideas for products or processes
23
Q
what is inovation
A
practical application of new ineventions into marketable products or services
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
25
capital intensive
machinery , automation
26
colour intensive
human
27
what is risk
possibilty that things will go wrong , can be assessed and managed
28
what is uncertainty
the unpredictable and unctrolable events that affect the business
29
what is product orientation
product capabilities are the most important factor when designing and creating product
30
what is market orientation
consumer is the most important factor when providing products fpr the market
31
what is primary research
involves collection of first hand data that did not exist before
32
examples of primary research
```
questionaires
observations
loyalty cards
focus groups
consumer panels
test marketing
```
33
what is secondary
research that has been already been undertaken by another orginisation and therefore already exist
34
what is a sample
a group of subjects that has been chosen from a larger popultion for investigation
35
3 types of samping
random
quota
stratified
36
what will the value of sampling depend on ?
rechnique used
how was the sample was carried out
size of the sample
37
what will the size of the sample depend on
budget available
importance of accuracy
degree of confidence in results
38
what is market segmentation ?
dividing the population into groups of individuals where consumers share one characteristcs or needs
39
main categories of market segmentation
demographic
geographic
income
behavioural
40
competitive advantag
a feature of a business that allows it to perform more successfully than others in the market
41
what is a USP
unique selling point is a feature that distingushishes a firms product from those of its competitors
42
what does product differentiation allow
charge premium prices
gains brand loyalty
add value
43
what is added value
the difference between the price that is charged to the customer and the cost of inputs required to create product
44
how do businesses add value
design
technology
production
marketing
45
formula for added value
reveneu - costs = added value
46
what is demand
the quantity that consumers are willing and able to buy at a given price at a given time
47
what is contraction
decrease in demand
48
what is extension
increase in demand
49
price of a product = movement on the demand curve
50
factors affecting shift of demand
```
advertising
price of subsititute
price of complimentry goods
income levels
trends
seasonality
demographics
external shocks
```
51
what is supply
quantity of a good that producers are able to offer to the market at a given price at a given time
52
an increase in supply will shift the curve right
53
a decrease in supply will shift keft
54
causes of changes in market supply
```
future expantions
external shocks
technology
taxes and subsidies
production costs
price of other goods
```
55
what is elasticity
measures the responsiveness of demand to a change in a relevant variable
56
what is price or demand elasticity
measures the extent to which the quantity of a product demanded changes in response to a change in price
57
PED formula
% change in quantity demand
_________________________
% change in price
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PRICE ELASTIC
| PED = MORE THAN 1
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PRICE INELASTIC
| PED = LESS THAN 1
60
UNITAY PRICE
| PED = 1
61
if PED > 1 then a change in price will cause a larger change in demand
62
factors influencing PED
```
availability of substitutes
income
frequency of purchase
branding
time
nature of the good
```
63
what is an inferior good
as incomes consumers rise demand falls
64
what is a normal / luxury good
as income rise - demand rises
65
what is a necessity good
not affected by income goods with addictive nature, not affected by income changes but maybe buy cheaper options
66
what is YED
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
formula for YED
% change in quantity demanded
__________________________
% change in income
68
what are the three elements of the design mix
function
aesthetic
costs
69
what is the design mix
three aspects of design that companies need to consider when developing a product
70
what is promotion
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
what are the 4 Ps
product
price
placement
prmotion
72
what are promotions designed to do
to create awareness , interest, desire and action
73
what are all of the types of pormotion
```
advertising
public relations
sponsorship / endorsement
sales offers
direct selling
digital
```
74
factors affecting promotion
```
size of business
stage of life cycle
type of product
economic climate
age of target market
external factors
```
75
what is a brand
a product that is easily distinguished from other products so that it can be easily communicated and effectively marketed
76
benefits of having a strong brand
```
added value
ability to charge premium prices
customer loyalty
repeat purchases
higher market share
```
77
ways to build a strong brand
USP
advertising
sponsorship
78
types of brands
```
product brands
service brands
umbrellas brands
own label brands
global brands
```
79
what is price
the amount of money that the consumer has to pay to receive he good or service
80
what are the 8 pricing strategies
```
cost plus
competitive
price skimming
penetration
predatory
phycological
premium
promotional
```
81
what is the product life cycle
a theoretical model which describes the stages of a product does through over its life. measured on time v sales
82
what are the 4 stages of a product life cycle
r and d
growth
introduction
maturity
83
what happens during r and d
cost very high
no sales
high investment
high levels of innovation
84
what happens in the growth stage
high sales
high costs for promotion
lots of cash inflow
still at a slight lost
85
what happens during the introduction stage
```
high sales
high costs for promotion
lots of cash inflow
still not at break even
high demand
```
86
what happens during the maturity stage
```
less sales than growth
strong reputation
good innovation
high output levels
high profit
```
87
what happens during the decline stage
falling sales
high market saturation
more competitors leave the market
decline in
88
reasons why porducts enter decline stage
```
tech advancements
chnages in consumer tastes and behaviour
increased competition
failure to innovate
economic factors
```
89
ways to ectend product life cycle
```
lower prices
promotion
re breanding product
innovation
target into new markets
expansion
```
90
what is a marketing portfolio
analysis toool that illustartates the performance of a companies products based on level of market share and market growth
91
what are the 4 sections of the boston matrix
question marks / probelm child
stars
dogs
cash cows
92
what are the features of a star
productions remains consistent
customer loyalty
econmies of scale
high market share and market growth
93
what are the features of a qm / pc
just launched
high market growth but has a low market share
products should be invested as market share grows
94
what are the features of a cash cow
high market share low market growth
recahing maturity stage
still have customer loyalty
products should still be produced
95
what are the features of a dog
competitors to leave the market
| low market share and low market growth
96
what is a marketing startergy
plan / method / way of acheiving the medium to long term actions required to reach the companys goals or targets
97
what is b2b
businesses selling to other businesses
98
what is b2c
businesses selling to the public / consumer
99
3 ways to gain customer loyalty
loyalty schemes
customer service
physcial enviroment
100
what is approaches to staffing
the overall way in which a business treats its staff
101
what is hard hrm
treats their staff as a cost , treated as a ersource that needs to be managed
102
what is soft hrm
staff treated as an asset
| can contribute an help the business acheive its objectives
103
what is flexible working
working arrangements where there are a variety of options offered to employees in terms of working time , location and the pattern of working
104
what is home / remote working
this is when the employee deceids that they want to work away from the business and work at home or a differnet location
105
what is flexible hours
this is when the employee decieds how they would like to spread their hours of working over a given time period
106
what is outsourcing
a third party company that specializes in the role and can be hired on a contract
107
what is redundacy
workers job no longer exists possibly due to lack of business or restructing
108
why could workers be dissmissed from their job
absenteesim
gross misconduct
theft of company moeny or property
109
what is volunatry redundancy
some staff retire and take voluntary redundancy to gain a pay out
110
what is compulasry redundancy
member of staff must / is required to leave the job
111
what are the stages of the requirement process
cv / qualifications
interveiws
on site
phone calls
112
what is recruitment
the steps undertaken by a business to identify a vacancy and attract suitable candidates
113
what is selection
making decision on choosing the right candidate for the position available
114
what is contained in a job description
job title
| department
115
what is contained in a person specification
qualifications
skills
experience
knowledge
116
what is orginisational structure
the way in which the workforce within a firm is organised
117
what is heirarchy
the layers/ levels of management within an orginisation
