THEME 1 Flashcards
1.1, 1.2, 1.3, 1.4, 1.5 (97 cards)
1
Q
What is a brand?
A
A name, design, symbol, or any other feature that allows consumers to identify a business’s good or service.
2
Q
What is a dynamic market?
A
A market that is subject to rapid or continuous changes.
3
Q
What are the advantages and disadvantages of a dynamic market?
A
- Advantages: Higher demand, higher prices
- Disadvantages: Need to research about trends constantly- time consuming, difficult for a business to forecast sales of its products due to rapid change and/or rapid growth
4
Q
What is market volume?
A
The total number of products sold.
5
Q
What is market value?
A
The total amount spent by customers buying products.
6
Q
What is market share?
A
The portion of a market controlled by a particular company or product.
7
Q
What is the formula for market share?
A
(Sales of one business or company/total sales in the market) x 100 {%}
8
Q
What is uncertainty in business?
A
Business being impacted by external influences (things they cannot control).
9
Q
What is product orientation?
A
When a business focuses on making high-quality products rather than customer needs or market demand.
10
Q
What is market orientation?
A
When a business focuses on customer needs and market demand when developing products.
11
Q
What are the advantages and disadvantages of market orientation?
A
- Advantages:
- Products match customer needs
- Response to market demand increases sales
- Greater responsiveness to changes in customer needs - keep up with trends
Disadvantages: - Regular changes in the appearance of function of a product (to meet changing tastes) may leave customers confused about what the brand really stands for
- Businesses may struggle to keep up with product-orientated businesses that invest heavily in new product features and advanced technologies.
- With customers who care mostly about cutting edge products, a marketing orientation may not work as well
12
Q
What is demographic segmentation?
A
Dividing the market into segments based on factors such as age, gender, income, occupation, education, religion.
13
Q
What is psychographic segmentation?
A
Dividing a market into different segments based on social class, lifestyle, or personality characteristics.
14
Q
What is geographical segmentation?
A
Dividing a market into different segments based on location.
15
Q
What is behavioral segmentation?
A
Dividing the market according to consumers’ relation to the product, why they buy, how often, and how they plan to use the products or services. - basically divided according to consumer habits
16
Q
What is market positioning?
A
How customers perceive the product/service in terms of image and quality compared to the competition.
17
Q
What is product differentiation?
A
An attempt by businesses to make their product stand out from the competition.
18
Q
What is demand?
A
The amount of products that consumers are willing and able to purchase at a given price.
19
Q
What causes the demand curve to move?
A
Change in selling price.
20
Q
What can increase the demand for a product?
A
- Population
- Advertising and branding
- Substitute goods
- Change in consumer income
- Fashion and trends
- External shocks.
21
Q
When does the demand curve shift?
A
A change in any factor apart from price changing.
22
Q
What is supply?
A
The amount of a good or service that producers are willing and able to offer to the market.
23
Q
What factors influence supply?
A
- Price
- Cost of inputs/resources
- Technology
- Supply shocks
- Price expectations.
24
Q
What is price elasticity of demand?
A
The responsiveness of demand to a change in price.
25
What is price inelastic demand?
A change in price results in a smaller change in demand.
26
What is price elastic demand?
A change in price results in a greater change in demand.
27
What is the formula for price elasticity of demand?
% change in quantity demanded / % change in price.
28
What factors affect price elasticity of demand?
* Number of close substitutes for a good
* Brand loyalty
* Necessity or whether the good is a luxury
* % of a consumer's income
* Addictive.
29
What is income elasticity of demand?
The responsiveness of demand to a change in income.
30
What is income elastic demand?
When a change in income causes a greater change in demand.
31
What is income inelastic demand?
When a change in income causes a smaller change in demand.
32
What is the formula for income elasticity of demand?
% change in quantity demanded / % change in income.
33
If the product is more than 1, what is it?
Income elastic.
34
If the product is less than 1, what is it?
Income inelastic.
35
What is a normal good?
Goods that consumers demand more of when their incomes rise.
36
What is an inferior good?
Goods that consumers demand less of when their incomes rise.
37
What is the design mix?
The key factors considered when a product is designed: Function, Aesthetics, Cost.
38
What is promotion?
An attempt to obtain new and retain existing customers by drawing their attention to a business or its products.
39
What is above the line promotion?
Placing adverts using the media.
40
What are examples of above-the-line promotion?
* Internet
* Social media
* Radio
* Cinema
* Newspapers
* Magazines
* TV adverts
* Posters and billboards.
41
What is below the line promotion?
Any promotion that does not involve using the media.
42
What are examples of below-the-line promotion?
* Sales promotions
* Public relations
* Merchandising and packaging.
43
What are manufacturer brands?
Brands owned and controlled by producers, responsible for marketing, pricing, and product quality.
44
What are own-label brands?
Products produced for wholesalers and retailers by other businesses, sold under the retailer's name.
45
What are generic brands?
Everyday use products named after the actual product rather than the company.
46
What are the benefits of strong branding?
* Added value
* Ability to charge premium prices
* Reduced elasticity of demand.
47
What is cost-plus pricing?
Adding a standard markup to the cost of each product.
48
What is price skimming?
Setting a high price for a new product to skim maximum revenues.
49
What is penetration pricing?
Setting a low initial price on a new product for a limited amount of time.
50
What is competitive pricing?
When prices are based on what competitors are charging.
51
What is direct selling?
Selling directly to consumers online or in their homes.
52
What is retailing?
A business that buys goods from manufacturers and sells to consumers.
53
What is a wholesaler?
A business that sells goods in large quantities to a manufacturer who sells them in smaller quantities to retailers.
54
What are agents?
Individuals or companies that bring together buyers and sellers.
55
What is a flexible workforce?
A workforce that allows a business to adapt to changes more easily.
56
How can a business create a flexible workforce?
* Multi-skilling
* Part-time/temporary staff
* Flexible hours
* Home working
* Outsourcing.
57
What is multi-skilling?
The process of increasing the skills of employees.
58
What are the advantages and disadvantages of multi-skilling?
* Advantages:
* Employees may find their work more enjoyable
* Staff absences can be covered without loss of production
* Disadvantages:
* Requires time and investment.
59
What are zero contract hours?
Workers are only employed when employers need them.
60
What are the advantages and disadvantages of zero contract hours?
* Advantages:
* Lower costs as not regular wages
* Doesn't have to account for sick days/paternity
* Disadvantages:
* Not the best quality of work
* Workers can refuse the work.
61
What is home working?
When employees work from home.
62
What are the advantages and disadvantages of home working?
* Advantages:
* Helps firms reduce costs
* Minimizes stress for employees
* Disadvantages:
* Loss of control
* Less ideas due to lack of face-to-face communication.
63
What is outsourcing?
A business pays another business to carry out work on its behalf.
64
What are the advantages and disadvantages of outsourcing?
* Advantages:
* Allows focus on core competencies
* Higher quality
* Disadvantages:
* Risk of losing control
* Can be expensive.
65
What is dismissal?
Where a worker is asked to leave due to misconduct or being incapable of doing a job.
66
What is redundancy?
When workers lose their jobs because there isn't enough work.
67
How can conflicts be resolved?
* Individual approach
* Collective bargaining.
68
What are trade unions?
An organization of workers who come together to achieve a common goal, acting as employee representatives.
69
What is recruitment?
When a business hires a new employee.
70
What is a job description?
A written description of information about the job and duties/responsibilities.
71
What is a job specification?
A list of the qualifications needed to perform a job.
72
What is internal recruitment?
Recruitment from within the business.
73
What are the advantages and disadvantages of internal recruitment?
* Advantages:
* Cheaper
* Less risky
* Workers have experience
* Can motivate workers
* Disadvantages:
* Less innovation
* Opens a vacancy.
74
What is external recruitment?
Recruiting workers from outside the business.
75
What are the advantages and disadvantages of external recruitment?
* Advantages:
* Introduces new skills
* Higher choice of candidates
* Increased innovation
* Disadvantages:
* More expensive
* May demotivate internal workers.
76
What is on-the-job training?
Training given in the workplace by observing and repeating tasks.
77
What are the advantages and disadvantages of on-the-job training?
* Advantages:
* Cost-effective
* Relevant to the business
* Disadvantages:
* May disrupt production
* Can be stressful.
78
What is off-the-job training?
Training that takes place away from the workplace.
79
What are the advantages and disadvantages of off-the-job training?
* Advantages:
* Wider range of skills
* Output not affected
* Disadvantages:
* Expensive
* Some aspects cannot be taught off the job.
80
What is organization structure?
The way that positions and roles within a business are arranged.
81
What is the chain of command?
The way authority and power is organized in an organization.
82
What are subordinates?
People in the hierarchy who work under the control of a senior worker.
83
Why are organization structures used?
* Shows employees roles and titles
* Who is responsible for what activities
* Route decision-making tasks
* Path of communication.
84
What is decentralization?
Decision-making authority is given to lower levels in an organization hierarchy.
85
What is centralization?
Decision-making is done by senior members at the top of the organization.
86
What are the advantages and disadvantages of tall structures?
* Advantages:
* Less workload for managers
* Easier control
* Disadvantages:
* Less delegation
* Slower decision-making.
87
What are the advantages and disadvantages of flat structures?
* Advantages:
* Cost-effective
* Motivated workers
* Disadvantages:
* More workload for managers
* Harder for employees to get promotions.
88
What is a matrix structure?
An organization where employees report to multiple managers, combining functions and projects.
89
What are the advantages and disadvantages of delayering?
* Advantages:
* Reduce costs
* Quicker communication
* Disadvantages:
* Can lose skilled workers
* Remaining employees may feel stressed.
90
What is Maslow's hierarchy of needs?
* Physiological - Basic needs (food, water, shelter)
* Safety - Security and stability
* Social - Love, relationships, belonging
* Esteem - Respect, status, self-worth
* Self-actualization - Personal growth, fulfillment.
91
What is Taylor's Scientific Management?
Managers closely observe workers doing a task, then break it down to determine the most efficient way to perform it.
92
What is Elton Mayo's theory?
Employee motivation improves with social interactions, teamwork, and feeling valued at work.
93
What is Herzberg's two-factor theory?
A two-step approach where workers can be motivated by motivators, but hygiene factors must be met first.
94
What is autocratic leadership?
A leadership style where the manager makes all the decisions.
95
What is democratic leadership?
Managers make a decision but allow input from employees.
96
What is paternalistic leadership?
A leadership style where the leader makes decisions in the best interest of workers after consulting them.
97
What is laissez-faire leadership?
Employees have freedom and control over decision-making.
