Short questions Flashcards
1
Q
P60
A
employer gives to employee at end of every tax year
details gross pay,PAYE,PRSI and USC
claim a tax refund/evidence
2
Q
P45
A
when employer leaves job
gross pay,PAYE,PRSI and USC
claim social welfare
give to new employer
3
Q
Form 12A
A
must fill in when they start working for the very first time
send to revenue to work out tax and tax credits
4
Q
P21
A
revenue to employee
difference between how much tax he paid that year and how much he actually owes
refund/pay revenue
5
Q
accrued expenses
A
bills for services that are used now and paid later
e.g. electricity
6
Q
advertising
A
the paid,non-personal communication of information about a product/service through various media
7
Q
agenda
A
document listing items to be discussed at a meeting
8
Q
agri-business
A
converts farm produce into food
9
Q
APR
A
shows the cost of a loan,including interest and any other charges
10
Q
asset stripping
A
offensive reason for business expansion
business takes over a company in order to sell their assets at a profit
11
Q
backward vertical integration
A
defensive
business takes over supplier
12
Q
bad debts
A
debts that have to be written off because the customer cannot pay them
13
Q
balance sheets
A
financial statement-what the business owns and all the money it owes
14
Q
benefit in kind
A
non cash payment to an employee
15
Q
brand name
A
a name,symbol,design or logo used by a business to distinguish its products from others
16
Q
capital
A
money used to set up a business
17
Q
cartel
A
an illegal secret agreement between businesses to restrict competition
18
Q
caveat emptor
A
buyer beware
19
Q
certificate of incorporation
A
document sent by the registrar of companies to the shareholders of a private limited company
enables the company to start trading
20
Q
certificate of trading
A
sent by registrar of companies to the shareholders of a PLC-start trading
21
Q
constructive dismissal
A
employee forced to resign because of unfair treatment by employer
22
Q
consumer price index
A
measure of the level of rices in the economy.(family shop)
23
Q
contract-condition
A
fundamental part
break-contract terminated
24
Q
contract-warranty
A
not fundamental
25
credit control
aims to eliminate bad debts and encourages customers to settle their debts promptly
26
credit rating
reputation for paying back loans
27
customs duty
tax paid on imports from a non-EU country
28
debenture
long term loan that has to be paid in one lump sum in the future
29
debt capital
money an investor lends to an entrepeneur for a business
| expects to be paid back with interest
30
differentiation strategy
products so different,they stand out from competitors
31
direct debit
account holder instructs bank to regularly pay money from her account into someone else's
e.g. rent
32
DIRT
tax paid on the interest earned on savings
33
dividend
share of business profits,paid to shareholders
34
e-commerce
the use of internet and technology to conduct business
35
economies of scale
the more products a business produces,the less it costs to produce each individual product
36
EDI
electronic date interchange
system that links two computers of different companies so that they can exchange standard documents without human intervention
37
embargo
ban on all foreign imports/from a specific country
38
emergency tax
tax on employees until they fill out form 12A
39
endowment policy
life assurance policy where the insurance company pays out when the insured person reaches a specific age/dies whichever occurs first
40
equity capital
money the owners and shareholders have invested in a business
41
equity finance
money an investor gives to an entrepeneur for a business,in return the investor receives a share in the business and gets an annual dividend
42
ethics auditor
independent outsider who examines every aspect of a business to see whether the business is behaving ethically
43
factoring
short term source
| business sells its debtors to the bank for cash
44
factoring with recourse
business must reimburse bank if debtors fail to pay
45
factors of production
essential items needed to make a product
| land,labour,capital,enterprise
46
form A1
form completed by owners of a private limited company
47
forward vertical integration
defensive
| takes over firm it distributes its products to
48
free trade
ability of a country to buy and sell products with other countries without any restrictions
49
Low gearing
owners have invested more than they borrowed
50
high gearing
owners have borrowed more than they invested
51
iliquid
lack of available cash to pay bills
52
indigenous firm
irish business set up by irish people that makes its products here
53
inflation
% increase in general level of prices in ireland in a year
54
inorganic growth
quick expansion of a business using a merger,strategic alliance and takeover
55
invoice
bill for goods sold on credit
56
just in time
stock control strategy where the business aims to have exactly the right amount of stock needed at any time
57
Interest group
an organisation of people who come together and campaign for a common goal by pressuring those who make decisions.
more power, more money and talents so are more likely to be listened to
58
Lobbying
putting pressure on decision makers by contacting them and meeting with them to persuade them to make the decision that the interest group wants
59
Entrepeneur
person who spots an opportunity (gap in the market) and takes the initiative to set up a business to make a profit.
financial+personal risk
60
Investor
gives money (capital) to the Entrepreneur that she needs to set up and run her business in exchange for a return on investment.
61
Producer
makes finished products to sell to consumers. Producers are manufacturers who take raw materials and use manufacturing process to turn them into a finished
62
Co operative relationship
same objective so they work together to achieve their goals. This is a win-win situation as working together produces better results than working alone
e.g.employee and employer
63
Competitive relationship
one party in business wants to be more successful than another. This is a win-lose situation as only one can win so they fight against each other and become rivals e.g. Tayto and walkers
64
Dependent relationship
parties need each other in order to be successful. They cannot achieve their goals on their own. They rely on the other party to provide what they need to be a success e.g. producer and consumer
65
Dynamic relationship
constantly changing.
| e.g. competitive business hold town festival Rose of Tralee
66
Offer
one person asks another to enter into a deal with her
67
Invitation to treat
indication that the seller would like to receive offers for its products
68
Acceptance
the other person agrees to all the terms of the offer without any conditions. They can accept the offer by speaking, writing or by conduct.
69
Intention to contract
both parties to the agreement must mean it to be a legally binding contract. Both parties must understand that it is a legally binding contract and that they will end up in court if they break the promise
70
Capacity to contract
person has the legal right to make a legally binding contract.
under 18
mentally incapacitated
diplomats with immunity
71
consent to contract
both parties must give their real, voluntary and genuine permission to enter into it.
72
contract-performance
contract ends when each person carries out their side of it exactly as they agreed.
73
Contract-agreement
voluntarily agree to end it
74
contract-frustration
event happens that was not reasonably foreseeable when the contract was made and was not under direct control of either party
75
contract-damages
pay
financial compensation to the innocent party to compensate
him for what he has lost as a result of the breach
76
contract-specific performance
carry out exactly as she promised she would under
| the terms of the original contract.
77
Rescind the contract
contract be set aside and the two people be returned to exactly the position they were in before the contract was agreed.
78
Negotiating
process of bargaining to try and reach a mutually acceptable solution to the conflict
79
Commercial practice
means any conduct (action) or description offered by a business to a consumer before, during or after the consumer transaction.
80
types of unfair consumer practices
misleading
aggressive
prohibited
81
misleading consumer information
false info,deceives
82
It is an offence to make a false or misleading claim about the following:
nature of the product
results of the product-e.g. wrinkle cream photoshop
main characteristics e.g. sports channels
geographical origin e.g. harps on chinese products
price/previous price
prior usage/history
83
aggressive commercial practice
harrasses,unfair pressure
threatening/abusive language
taking advantage of misfortune e.g. funeral home
84
prohibited practices
unsupported claims a product can cure an illness
'closing down sale'-no intention
direct appeal to children
'free gift'-costs to claim
competition offering top prize that is not available
demanding payment for unsolicited goods
85
pyramid scheme
doesn't actually sell products
scam-people deliberately set out to make money at expense of others
getting a consumer to pay money to join the scheme with promise that the more people he can get to join,the more money he will earn
86
Penalties under the Consumer Protection Act 2007
```
Gives CCPC a range of powers
compliance notice-orders it to stop and obey the law
prohibition order-forcing them to stop
fines
name and shame
```
87
Consumer Act 2007-redress
exemplary damages-extra sum of money from the business as punishment
Compensation Order-forces a business to pay financial compensation
88
Functions of the CCPC
Informs consumers of their rights-phone service,website
Adive to businesses
Investigates breaches-power to enter premises,take evidence,apply to courts
Make sure businesses obey consumer legislation-fines,name and shame,prohibition order,Consumer protection list
Advise the government
89
Small claims court
easily, quickly and cheaply without involving a solicitor.
max €2000.
application form +fee of €25 to the local district court.
online using Small Claims online.
90
Small claims court procedure
business contests-both sides meeting by the Small Claims Registrar to try solve the dispute. (private+informal)
Small Claims Registrar cannot resolve the dispute-District Court for a hearing. (public+formal)
Evidence provided under oath and witnesses present
Solution: judge listens to both sides and makes her ruling.
If the judge rules in the consumer’s favour, the business has 4 weeks to pay compensation.
91
Ombudsman
investigate complaints about consumers who have been unfairly treated by public bodies
92
Ombudsman procedure
Complaint-in writing,phone or email
Investigation-can go to public body,request to view documents and interview staff
Recommendation-consider evidence and make recommendation (not legally binding)
93
Skill
an ability or expertise that people get through practice, experience, training.
94
Characteristic
personality trait
95
Skill:Human Relations
good with people. They know how to get along with them. They bring out the best in them and persuade them to do what the business needs.
e.g. Mary Ann O'Brien loan from AIB
96
Decision Making
list all possible solutions to a problem or opportunity, go through the advantages and disadvantages of each solution and choose the best one for the business.
Example: Sir James Dyson
97
Skill:Time Management
getting all essential tasks that need to be done to achieve the business's goals completed in the time available.
This involves listing all the tasks that must be done and prioritising the most important tasks.
e.g. Mary Ann O Brien ensures products delivered on time
98
Skill:Risk Management
planned approach to minimising the risks a business is exposed to
identify all risks
calculate cost if risk occurs
cost of protecting risk
99
Examples of risk management techniques
Insurance
| Security measures
100
Skill:Reality Perception
Sees situations as they really are and not how they would like them to be
e.g. Aer Lingus 6 million order of chocolates
101
Skill:Planning
set goals and strategies to achieve those goals
| e.g. Mary Ann O'Brien cash flow forecast
102
Characteristics of an entrepeneur
```
Proactive
Independent
Self motivated
Decisive
Need for achievement
Ruthless
Creative
Confident
Risk taker
```
103
Proactive
do not sit around
take action
e.g. Mary Ann o brien approached superquinn to buy her products
104
Independent
Like to be in charge and give orders
Do not like being told what to do
e.g. Richard Branson
105
Self motivated
push themselves to achieve their goals
driven
e.g. bill gates
106
Decisive
good decisions quickly and firmly so they don't miss opportunities
e.g. Dyson set up his own factory
107
Risk taker
not afraid to take a chance even though they might fail
sensible risks
e.g. denis o brien
108
Intrapeneur
employee working within a business who uses his initiative and thinks of a new idea to help the business he works in without being asked to. They do not take such a high risk
109
Examples of intrapeneurship
XBOX
| 3M-post it notes
110
Importance of enterprise in business
idea generation
business success
wealth creation
corporation tax
111
Importance of enterprise in community
Job creation
More spending
Government budget
entrepeneurship encouraged
112
Benefits of intrapeneurship
new products
business growth
increased productivity
Innovative workplace
113
Define:management
working with people and using resources such as money and equipment to ensure that the business achieves its goals
114
Managing director
overall control of running the business to make sure it achieves its objectives.
lead,motivate and communicate successfully
115
Characteristics of a manager
```
decisive
hard worker
good with people
flexible
initiative
charismatic
```
116
Manager:decisive
analyse a situation and quickly come to a solution
| e.g. aer lingus london to belfast saving measure
117
Manager:hard worker
time and effort
work overtime
e.g. aer lingus-stayed all night to solve trade dispute
118
Manager:good with people
know how tog et them on their side
get along with people and get the best out of them
e.g. River island manager
119
Manager:flexible
adaptable and change their methods and approaches as business changes
e.g. controller to facilitator
120
manager:initiative
do not have to be told to do
drive to come up with ideas
e.g. Michael o learyy cost saving measures
121
manager:charismatic
persuasive,inspirational,motivate employees,charm
| e.g. steve jobs
122
Leadership
ability to direct people and positively influence them so that they follow and obey you.
123
Autocratic leadership
manager makes all decisions-does not ask employees opinions
orders+expects to be obeyed
uses authority to get his way]
fear+threats
124
Democratic leadership
```
involve employees in decisions
invite them to share their views
reason with them
delegate
e.g. Google
```
125
Laissez faire leadership
```
do not interfere with how employees do work
give them goal and time limit
delegate
reason with them
e.g. Steve Jobs
```
126
Delegation
manager assigns authorith to employee to carry out a task/project for him
gives employee power to do some of his management work for him
ultimate responsibilty lies with manager
e.g. HR manager asks assistant to screen job applications
127
Advantages of delegation
efficiency-focus on more important tasks
training-skills
staff morale-employees feel valued
productivity-faster
128
Advantages of leadership
change
efficiency
co-ordination
retention
129
Theory X Manager
```
Negative view
do not like work
lazy
no ambition
want to be told what to do
```
130
Theory Y Manager
positive view
employees enjoy work
hardworking
have ambitiona nd want responsibility
131
How do theory X managers motivate employees?
supervision/punishment
| financial reward
132
How do theory Y managers motivate employees?
Promotion and delegation
133
Needs in Maslows hierarchy
```
Physiological
Safety
Social
Esteem-respected and feel good
Self actualisation-personal growth
```
134
contingency plan
back up plan that takes account an unforeseeable event to prevent closure of business
135
Limitations of Maslow hierarchy
needs may not be satisfied in order
| needs of different values to each employee
136
minutes
summarised written record of what happened at the meeting
137
importance of agenda
clear communication
proritisation
preparation
138
Role of chairpeson
```
start,control and conclude
open
close
quorum
vote
maintain order
```
139
role of secretary
organise venue and equipment
prepare notice and agenda
record minutes
deal with paperwork
140
Report
written document where one person sets out their findings of an investigation of an issue
141
Factors to consider when choosing method of communication
```
cost
urgency
confidentiality
legal requirements
nature of message
```
142
Barriers to communication
Language
Prejudice
Info overload
Poor listening
143
Principles of good commmunication
```
Appropriate language
Read and write well
send message on time
listen carefully
honesty
```
144
Video conferencing
meeting held between people who are in different locations. People sit in front of computers and images and sound are sent to each other
145
Internet
collection of information on any topics that can be access using a computer with internet connection. Many businesses have a website
146
Advantages of internet for business
advertise
increased sales
decision making
147
advantage of email
reduced costs and fast
148
disadvantages of email
security and virus
149
rights of data subject
get a copy
have any errors corrected/deleted
remove details from direct marketing list
compensation
150
obligations of data controllers
obtain info fairly and openly
keep info safe and secure
delete info once no longer needed
give copy to anyone who asks for it-within 40 days,can charge but no more than 6.35
151
role of data protection commissioner
investigate complaints
force data controllers to give info-written information notice
force data controllers to correct/delete-enforcement notice
keep register of data controllers-allow public to see who has their personal info
152
3 strategies
low cost leadership
differentiation
niche
153
low cost leadership strategy
business keeps costs as low as possible
cheaper product
e.g. Ryanair
154
Differentiation strategy
make business stand out from competition
brand name
customers appreciate the difference and are willing to pay more
e.g. abercrombie
155
Niche strategy
spot group of consumers with specific need
| e.g. ferrari
156
Manpower planning
enough workers with the right skills to do the jobs
too few-not meeting demand and need to recruit
too many-idle,redundancies
estimate future demand+calculate existing supply
157
Benefits of manpower planning
minimise overstaffing
| minimise understaffing
158
Cashflow forecast
a written document-cash expects to receive and spend in the coming months.
aim-make sure the business has enough cash to pay bills.
159
Benefits of a cashlfow forecast
identify shortfall
| identify surplus
160
Mission statement
overall objective of the business and its reason for existence e.g.argos 'we provide our customers with the best value for money through the most convenient shopping experience'
161
Strategic plan
long term
senior managers
divides mission into major plans
162
Tactical plan
short term
middle management
specific department
divides strategic plans into smaller plans
163
Advantages of planning
guide to success
motivates
eliminate weaknesses
help avoid future problems
164
Organising
arranging all resources of the business in order to achieve objectives
165
Organisation structure
splitting all the work to be done in the business into departments
appointing people to be in charge
making sure each department achieves it objectives.
166
Types of organisational structure
Functional
Product
Geographic
Matrix
167
Functional organisational structure
splitting into different jobs/departments
| someone in charge of each
168
Product organsiation structure
split up into departments based on products made
169
Geographical organisation structure
split up into departments based on geographical areas
170
Matrix organisation structure
combines two types;functional and project team
| for major temporary projects
171
advantages of a matrix organisation structure
motivation
| better coordination
172
disadvantages of matrix organisation structure
two bosses
| increased costs
173
Advantages of product organisation structure
focus on customer
competition
lower costs
174
disadvantages of product organisation structure
duplication
| brand cannibalisation
175
Chain of command
unbroken line of authority that links all individuals in an organisation and specifies who reports to who
176
Span of control
the number of employees who report directly to a manager
narrow
wide
177
What does the span of control depend on?
employees experience
managers experience
type of work
location
178
Controlling
manager makes sure business stays on target
| check regulary to see if on/off target
179
Types of control
Stock
Credit
Quality
Financial
180
Stock control
making sure the business has the right amount of stock in the business at all times
too much stock-money wasted,gone off,going out of date
too little stock-sales missed,unhappy customers
181
To prevent too much stock
re-order quantity
| max level
182
To prevent too little stock
minimum stock level
| re-order point
183
Advantages of stock control
Lower insurance premium
Customer satisfaction
Reduced costs
Satisfied customers
184
Quality control
make sure quality of business meets a very high standard to ensure products surpass expectations
185
Quality control strategies
Inspections
Quality Circles
ISO 9000
186
Inspections
trained inspector physically examines the products before they leave
pass-shipped out
Sampling
187
Quality circle
uses the employees to spot quality problems in the factory and come up with suggestions to solve these problems.
188
ISO 9000 award
internationally recognised award
given to businesses
that consistently prove to independent inspectors that their products are of high quality
189
Steps to credit control
Discount for early payments
conduct a credit check
maximum credit limit
collection procedure
190
Advantages of credit control
reduces bankruptcy
| reduces bad debts
191
Financial control
make sure the business is profitable and has enough money to pay bills
192
advantages of controlling
increases sales
improves cash flow
reduces costs
makes sure business achieves objectives
193
Human resource management
managing employees in the business to ensure they find,keep and make the best possible use of employees
194
functions of HRM
```
Manpower Planning
Recruitment and Selection
Training and Development
Performance and Appraisal
Pay and Rewards
Employer and Employee Relationships
```
195
Recruitment
finding suitable people for a job vacancy and encouraging them to apply for it
196
Selection
choosing the best applicant from those that applied
197
Steps to recruitment and selection
```
job description
person description
encourage suitable candidates
screening
selection tests
interview
check references
offer the job
```
198
Job description
duties and responsibilities of job
199
Person specification
qualifications and characteristics of the ideal candidates
200
External recruitment
finding someone who does not work for the business
headhunting,advertising,recruitment agency
fresh ideas,wider selection,less jealousy
201
Internal recruitment
promotion
demotion
transfer
inside knowledge,motivation and cost savings
202
CV
document prepared by applicant in which she summarises her qualifications and work experience
203
application form
document prepared by employer asking personal questions
204
cover letter
more info about why you want job and would be a good fit
205
Interview
face to face conversation with the candidate
can be bias-do panel interview
good interview does not mean good job performance-include a practical element
206
Induction training
first training given to an employee
| key people and aims
207
On the job training
teaches employees skills of the job through practical experience and observing colleagues
208
Off the job training
teaches them skills of the job outside the office by attending courses away from the place of work
209
development
teaches skills they can use in any job in the future e.g. communicating
210
benefits of training and development
higher sales and profits
flexibility
less supervision
211
Performance appraisal
set targets
monitor performance
evaluate
discuss results
212
Benefits of performance appraisal
improved industrial relations
identify employees suitable for promotion
motivates
213
Basic wage
fixed amount per week
easy to operate
no incentive to work harder
214
Hourly rate
paid per hour
easy to operate
may drag out work to make more money
215
Piece rate
paid per item
encourages hard work
may rush
216
commission
employees receive a percentage of sales
encourages hard work
may be too pushy
217
Bonus
additional payment when target reached
218
Non financial rewards
Job enlargement
Job enrichment
Improved conditions e.g. flexitime
219
Job enlargement
given extra responsibilities to relieve boredom
| no extra responsibility
220
Job enrichment
given extra responsibility
| extra tasks to develop them
221
How can a HR manager improve industrial relations?
grievance procedures
regular open communication
careful selection
training
222
Benefits of good employer/employee relations
```
motivation
intrapeneurship
retention
delegate
goodwill
```
223
Empowerment
manager gives employee power to make her own decisions about how she does her job,without having to ask permission
use skills and knowledge
224
advantages of empowerment
increased motivation
more responsive
trained for promotion
efficient use of time
225
disadvantages of empowerment
errors made
lack of supervision
conflict
stress
226
Economic benefit of community development
job creation
income spent locally
entrepeneurship
taxes
227
social benefit of community development
community spirit
| less migration
228
Area partnership company
help local people set up businesses
| train,grants,premisies,mentor
229
Local Enterprise Office
help small local businesses with aim of developing a strong local economy
advice,grants,workshop,mentor
230
RDP (leader)
funded by EU
help rural communities develop
aim to reduce poverty,promote social inclusion,broadband tourism etc.
advice to rural entrepeneurs and grants
231
SOLAS (FÁS)
employment and training programme that helps unemployed people re-enter the world of work
Helps them develop personal+technical skills
help+advice
employers advertise jobs in their offices
work with local colleges to provide courses
training in practical industries
232
Controller manager
Decisions:told employees what to do,expected to be followed (autocratic)
Errors:caught employees,told them where they went wrong,made sure it never happened again
Supervision:close,made sure rules obeyed,threaten and punish
233
Facilitator manager
Decision:train+develop employees to give them decision making skills
Errors:help,train and equipment to avoid mistake again
Motivation:rewards
234
Employee participation
more of a say,allowed input into decisions
| work councils,work directors and share options
235
Stages in forming a team
Forming
storming
norming
performing
236
Forming
members meet for the first time
polite
discuss job
237
Storming
get to know each other,conflict
| strong personalities
238
Norming
resolve conflicts
work together
norms-acceptable behaviour
239
performing
pull together as one and focus on getting the job done
| cooperate to achieve objectives
240
Advantages of teamwork for a business
increased motivation-social (Maslow)
better decisions
better quality
improved coordination
241
Advantages of teamwork for employees
employee recognition
develops the employees
social needs
protects the employee
242
Total Quality Management
business management strategy that aims to ensure the business makes 100% perfect products 100% of the time so customers are 100% satisfied
243
Principles of TQM
Focus on customer
employee empowerment
teamwork-business and supplier
continuous improvement
244
Benefits of TQM
Increased sales
lower costs
improved motivation
meet legal obligations
245
How does technology change the role of managers?
```
Marketing
E-commerce
Decision making
Production-CAD and CAM
Redundancies
```
246
Impact of technology on personnel
Changing nature of jobs
new types of jobs
redundancies
teleworking
247
CAM
software used to control machines and tell them what to make
248
CAD
designs new products by quickly building prototypes etc
249
Impact of technology on costs
Increased:capital investment and training
Decreased:redundanies and CAM
250
Impact of technology on opportunities
Design-respond rapidly to changes in the market
International Trade e.g. Dell
Direct marketing-data base to store consumer info e.g. amazon
new products e.g. apps
251
Reasons to resist change
Fear of losing job and power
fear of failure
laziness
252
Strategies for managing change
Lead by example
allow employees to participate in change
train employees
lead by example
253
Example of a TQM:Guinness
Raw materials:best quality barley
Manufacturing:trained testers,modern technology
Pubs:specialised guinness taps,guinness quality team,training
254
Social responsibility
business' duty to treat all those it comes into contact with honestly and fairly
obligation to make positive contribution to people and local economy
255
Stakeholders:social responsibility
```
Investors e.g. worldcom
Employees e.g. ALDI 11.70
Suppliers e.g. Body shop
Customers e.g. Nurofen
Government e.g. National Irish Bank
Local Community e.g. IKEA
```
256
Business ethics
set of moral principles that guide businesspeople regarding how they should act in business situations
tells people the right thing to do
257
Ethical business practice
conducting business according to a set of moral principles
| fair,honest and legal manner
258
How to improve business ethics
lead by example e.g. Sky Sports
encourage employees to report e.g.vodafone
draw up a code of ethics e.g. employees
ethical audits e.g. IKEA
259
Sustainable development
meet needs of present without compromising ability of future generations to meet their needs e.g. Velvet
260
Characteristics of environmentally conscious business
Sensitive:reduce,reuse,recycle
Open to new ideas e.g. SPAR
Sustainable development e.g. Velvet
Consult others e.g. tesco
261
Code of ethics
formal written document that sets out rules for employees +managers to follow when making decisions
tells them the right thing to do
262
Marketing
identifying needs of consumers
| producing and selling products to satisfy those needs
263
Market research
systematic collection,analysis and reporting of info about marketing issues to enable the manager to make effective marketing decisions
264
Field research
going out into marketplace and collecting new info directly from consumers
expensive+time consuming
265
Focus Group
group of consumers discuss business and product to give opinions
266
Benefits of market research
identify threats
identify new markets
saves business money in long run
reduces risk of failure
267
Market segmentation
dividing up market into clearly identifiable groups of consumers who have common characteristics
Geographic and Demographic
268
Geographical segmentation
divided into geographical areas
| satisfy local needs e.g. eastcoast fm
269
demographic segmentation
market divided based on characteristics e.g. nivea for me
270
Target market
precise description of consumers to whom a product will be aimed at
e.g. penneys budget-conscious
271
Niche market
small group of potential customers with a specialised need
usually willing to pay a higher price
e.g. rock music radio station
272
Marketing concept
Most important person-customer
| identify needs and make product to satisfy
273
Advantages of marketing concept
Good rep
Increased profits
Fewer returns
274
Advantages of a brand name
higher price
brand loyalty
easier to launch new product
power
275
Own brand names
products that carry the name of the shop that sells them
| e.g. tesco value
276
Advantages of own brand name
retailer discount
power
low price products
competitive advantage
277
Product design
attractive product
| aesthetics,functions,costs
278
Stages of the product life cycle
introduction-launch,sales slow
growth-sales increase rapidly,product better known
maturity-sales slow,reach highest level,large profits attract competition
saturation-sales at peak+growth stops
decline-sales fall off
279
Factors to determine price set by a business
cost
competitor price
consumer
legal regulations
280
Pricing strategies
```
price skimming
penetration pricing
price discrimination
loss leader
premium pricing
```
281
price skimming
charge high price when product first launched as customers willing to pay any price e.g. FIFA
282
penetration pricing
charge lower price than competitor to convince consumer to switch to them e.g. bord gais and ESB
283
price discrimination
different consumers different prices
| e.g. Irish Times student paper
284
Loss leader
sell one product below cost price to attract customers
| e.g. dealz
285
premium pricing
set price at higher end of price range to attract status conscious consumers
luxury e.g. rolex
286
promotion
```
communicating with consumers to let them know about a product and persuade them to buy it
advertising
sales promotion
public relations
personal selling
```
287
types of advert
```
reminder
persuasive
informative
generic
comparative
```
288
reminder advertising
lets the consumer know a product is still around and keeps it in their mind e.g. coca cola
289
information advertising
information about a product e..g. sales start at 10am
290
persuasive advertising
convince consumers they must have a product e.g. lynx effect
291
generic advert
ad for entire industry e.g. buy irish
292
comparative
shows how much better the product is in comparison
| e.g. lidl and aldi
293
functions of advertising
```
information
remind
persuade
compete
sales
```
294
Factors when choosing an advertising medium
media habits e.g. toys during ads on kids shows
nature of the product e.g. washing up powder demonstration
message-technical then written is best eg. computer specs
cost
295
Sales promotion
incentives/short term offers a business gives to a consumer to encourage them to buy more of a product and sooner
e.g. free samples,free gifts,loyalty cards,merchandising
296
Merchandising
the business laying out store/products in an eye catching way
297
Public relations
refers to the efforts made by a business to create and maintain a positive image of the business in the minds of consumers and build a positive relationship with them by obtaining positive publicity
298
Benefits of PR
attract publicity when launching e.g. ryanair rome
target certain customers
build good image e.g. ronald mcdonald
defend product with bad publicity
299
PR techniques
events
sponsorship
news conference
public service activities e.g. tescos for schools
300
Personal selling
the business' salespeople meet face to face with consumers to give personalised advice specific to their needs and build a relationship with them to get them to buy the product
301
Evaluation of promotion methods
McDonalds
PR:Ronald Mcdonald
Advertising:'Im Lovin It'
Sales promotion:free gift
302
Choosing a channel of distribution
```
cost
nature of product
target market
location of customers
Ecommerce
Payment
```
303
Evaluate a marketing mix
```
red bull
Product-energy+improved concentration
Place:intensive distribution strategy:restauraunts,pubs etc.
Price:premium
Promotion:cliff diving,air race
```
304
Marketing plan
written plan that sets out business marketing objectives
| essential part of overall business plan
305
Steps in a marketing plan
investigate market-SWOT
select target market-
research target market
develop marketing mix
306
Benefits of a marketing plan
roadmap
useful to investors
helps control progress
307
Margin of safety
how much output or sales level can fall before a business reaches its break-even point.
308
Margin of safety
how much output or sales level can fall before a business reaches its break-even point.
309
Job production
individual and unique
exact specification of consumer
e.g. conor mcgregor Louis Copeland suits
310
features of job production
highly skilled workers
flexible machinery
expensive product
311
Batch production
large amounts of product all in one go
product is the same for all
e.g. irish times
312
Mass production
continuous,made 365 days 24/7
same product for all
continuous demand
e.g. velvet toilet tissue
313
features of mass production
unskilled workers
specialised machinery
economies of scale
cheaper products
314
Business plan
written document that sets out objectives of business
and strategies to achieve
map
315
importance of a business plan
guide to success
anticipate problems
secure finance
gain control
316
Titles in a business plan
Description of business-people,products,objectives
market analysis-viable market,target markets,trends etc.
Marketing plan-strategy
Production plan-job,batch mass etc
Finance plan-collateral-P&L etc.
