Topic 1 business spec Flashcards
(29 cards)
Primary and secondary market research data
(quantitative and qualitative) used to:
o identify and anticipate customer needs and wants
o quantify likely demand
o gain insight into consumer behaviour
Use of ICT to support market research
o websites
o social networking
o databases
Factors leading to a change in demand:
o changes in the prices of substitutes and
complementary goods
o changes in consumer incomes
o fashions, tastes and preferences
o advertising and branding
o demographics
o external shocks
o seasonality
Factors leading to a change in supply:
o changes in the costs of production
o introduction of new technology
o indirect taxes
o government subsidies
o external shocks
Design mix
o function
o aesthetics
o cost
Changes in the elements of the design mix to reflect
social trends
o concern over resource depletion: designing for waste
minimisation, re-use and recycling
o ethical sourcing
The benefits of strong branding
o added value
o ability to charge premium prices
o reduced price elasticity of demand
Ways to build a brand
o unique selling points (USPs)/differentiation
o advertising
o sponsorship
o the use of social media
Changes in branding and promotion to reflect social
trends:
o viral marketing
o social media
o emotional branding
Types of pricing strategy
o cost plus (calculating mark-up on unit cost)
o price skimming
o penetration
o predatory
o competitive
o psychological
Factors that determine the most appropriate pricing
strategy for a particular situation
o number of USPs/amount of differentiation
o price elasticity of demand
o level of competition in the business environment
o strength of brand
o stage in the product life cycle
o costs and the need to make a profit
Changes in pricing to reflect social trends
o online sales
o price comparison sites
Changes in distribution to reflect social trends
o online distribution
o changing from product to service
The product life cycle
Introduction, growth, maturity, decline
Extension strategies
o product
o promotion
Marketing strategies appropriate for different types of
market
o mass markets
o niche markets
o business to business (B2B) and business to
consumer (B2C) marketing
Flexible workforce:
o multi-skilling
o part-time and temporary
o flexible hours and home working
o outsourcing
Employer/employee relationships
o individual approach
o collective bargaining
Types of training:
o induction
o on-the-job
o off-the-job
Organisational
design structure
o hierarchy
o chain of command
o span of control
o centralised and decentralised
Types of structure
o tall
o flat
o matrix
Motivation theories
o Taylor (scientific management)
o Mayo (human relations theory)
o Maslow (hierarchy of needs)
o Herzberg (two factor theory)
Financial incentives to improve employee performance
o piecework
o commission
o bonus
o profit share
o performance-related pay
Non-financial techniques to improve employee
performance
o delegation
o consultation
o empowerment
o team working
o flexible working
o job enrichment
o job rotation
o job enlargement
