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Business A Level > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

Advantages of Mass Markets

A

Larger Volume of sales, Non-Specific Products - easier to sell.

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2
Q

Disadvantages of Mass Markets

A

High Competition, Inflexible to Changes in Demand.

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3
Q

Advantages of Niche Markets

A

High Profit Margins, Less Competition, Small Scale Production - Flexible.

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4
Q

Disadvantages of Niche Markets

A

High Risk - Inconsistent Demand, High Unit Costs - No EOS

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5
Q

Market Share Equation

A

SALES OF A BUSINESS/TOTAL SALES X 100

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6
Q

How To Adapt To A Dynamic market

A

Be Flexible With The Market, Investment in new Technology and Products.

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7
Q

Advantages of Primary Research

A

Reliable, Tailored to the Business, Qualitative Data

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8
Q

Disadvantages of Primary Research

A

Time Consuming, Expensive, Biased Questions/Responses

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9
Q

Advantages of Secondary Research

A

Easily Accessible, Quick and Efficient.

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10
Q

Disadvantages of Secondary Research

A

Can Be Expensive, May not be up-to-date.

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11
Q

Product Orientation

A

Product is developed with quality/function in mind but not necessarily in line with customer requirements.

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12
Q

Market Orientation

A

The consumer is the most important factor when providing products for the market in other words, the business has a sensitivity to customer requirements.

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13
Q

Market Mapping

A

Technique used to understand how products/businesses are viewed relative to competitors, based on two relevant characteristics.

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14
Q

Advantages of Market Mapping

A

Helps Decision Making, Gain Better Understanding of Customers + Competitors.

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15
Q

Disadvantages of Market Mapping

A

Often perceptions of businesses may not fit into the model, New Entrants may change the market.

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16
Q

Competitive Advantage

A

A sustainable way that a business can keep its products/services ahead of competition.

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17
Q

How Can A Competitive Advantage Be Achieved?

A

By using resources to achieve a cost advantage or differentiation advantage.

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18
Q

Factors Affecting Demand?

A

SIDS CAFE

19
Q

Demand Increase?

A

Outward Shift Right

20
Q

Demand Decrease?

A

Inward Shift Left

21
Q

Factors Affecting Supply?

A

SPITE - Subsidies, Production Cost, Indirect Tax, Technology, External Shocks.

22
Q

Increase In Supply?

A

Outward Shift Right

23
Q

Decrease In Supply?

A

Inward Shift Left

24
Q

PED Formula?

A

% Change in QD/% Change in Price

25
Q

Elastic Products

A

Between - 1 and - Infinity

26
Q

Inelastic Products

A

Between 0 and - 1

27
Q

Factors Influencing PED

A

Degree Of Differentiation, Number Of Substitutes, Luxury or Necessity?, Cost, Value of Brand.

28
Q

Significance of PED

A

Helps understand consumers responsiveness to price change, Pricing Strategy, Sales Forecasting.

29
Q

YED Formula?

A

% Change in QD/ % Change in Income (Y)

30
Q

Normal Good

A

Demand Increase as Income Increases,
Inelastic,
Between 0 and 1,
Examples; Milk and Bread.

31
Q

Luxury Good

A

Demand Rises as Income Rises,
Elastic,
Positive Number Greater Than 1,
Examples; Business Class Travel, Luxury Cars.

32
Q

Inferior Good

A

Demand Falls as Income Rises,
Negative Number,
Examples, Supermarket Own Brands + Bus Transport.

33
Q

Factors Influencing YED

A

Inelastic or Elastic?
Brand Power,
Consumer Spending,
Expectations.

34
Q

Design Mix

A

Aesthetics, Function, Cost.

35
Q

Why Is Design Mix Important

A

Gives a business competitive advantage over rivals.

36
Q

Above The Line Advertisement

A

Advertising to a mass audience - TV, Cinema, Newspaper.

37
Q

Advantages of ATL Advertisement

A

Reach Large Audiences Very Quickly

38
Q

Disadvantages of ATL Advertisement

A

Very Expensive, Could Target Wrong Audience.

39
Q

Below The Line Advertisement

A

Personal Advertising to Small Niche Markets - Posters, Leaflets, Social Media.

40
Q

Advantages of BTL Advertisement

A

Increased Customer Loyalty, Ability To Target Promotion.

41
Q

Disadvantages of BTL Advertisement

A

Targeting Different Cultures Can Be Difficult, Smaller Audiences.

42
Q

Branding Definition

A

A name or symbol that distinguishes one product from another supplier.

43
Q

Factors To Determine Pricing Strategy

A

Brand Strength, Level of Competition, PED, Stage of Product Life Cycle.

Business A Level (2 decks)

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