1
Q
what is quota sampling?
A
creating a sample with individuals who represent a population
2
Q
what is market orientation?
A
the decisions surrounding a product are based off of market research
3
Q
what is product orientation?
A
decisions surrounding a product are based off what the business is good at
4
Q
what is the acronym for changes in demand?
A
population
advertising
substitute price
income
fashion/taste
interest rates
complimentary price
5
Q
what is a shock?
A
an event outside of an economy which impacts the economy
6
Q
what is the acronym for changes in supply?
A
policies
indirect tax
nnumber of firms
tech
subsidies
weather
c.o.p
7
Q
what is predatory pricing?
A
lowering the price of goods so far that competitors cannot put goods out as they cannot cover their costs
8
Q
what does PED measure?
A
the responsiveness of quanitity demanded to a changed of price
9
Q
what does YED measure?
A
how demand changes following a change in income
10
Q
what are the 3 components of the design mix?
A
aesthetic
function
cost
11
Q
what is cost plus pricing?
A
pricing a product to cover costs and provide a good profit margin
12
Q
what is price skimming?
A
prices are set high then decreased once a business is stable
covers intro costs
13
Q
what is price penetration?
A
setting prices low, then increasing them once a customer base is established
14
Q
what is predatory pricing?
A
using aggressive price cutting so that competitors are detered
15
Q
what is psychological pricing?
A
pricing an item to make it appear cheaper or to display its quality
16
Q
what is a buffer stock?
A
stocks held incase of a sudden rise in demand or issue in supply
17
Q
what is a stock out cost?
A
costs of not having stock when its needed
18
Q
what is the JIT method?
A
not holding stock in storage, instead getting them delivered when they are required
19
Q
what is a distribution channel?
A
the chain of firms a good or service passes through until it reaches the consumer
20
Q
what is a wholesaler?
A
a business that sells goods to retailers
21
Q
what is a retailer?
A
a business that sells goods to customers
22
Q
what are the stages of the product life cycle?
A
- development
- intro
- growth
- maturity
- decline
23
Q
give 2 ways how the product life cycle can be extended
A
- promoting the product differently
- changing the product itself
24
Q
what are the 4 components of the Boston Matrix?
A
- cashcow
- dog
- question mark
- star
25
give 4 features of a cash cow product
1. saturated product
2. extending life cycle to maximise profit
3. high market share
4. low market growth
26
give 3 features of a dog product
1. low market growth
2. low market share
3. declining product
27
give 3 features of a question mark product
1. high market growth
2. low market shere
3. intro phase of life cycle
28
give 3 features of a star product
1. high market growth
2. high market share
3. growth
29
what is the chain of command?
the flow of information, authority and power through the business
29
what is decentralisation?
where a business divides up the organisation into different areas
30
what is centralisation?
where a whole business is based at one office/ area.
31
what is span of control?
the number of of subordinates an employee can delegate to
32
what is a tall structure?
a business with a long chain of command and narrow span of control
33
what are some advantages of a tall structure?
1. motivation through the promotion opportunities
2. work is shared more
34
what is a disadvantage of a tall structure?
information takes a while to travel, reducing speed of decision making
35
what is a flat structure?
a business with a wide span of control and a short chain of command
36
what is an advantage of a flat structure?
information travles fast, increasing speed of decision making
37
what is a disadvantage of a flat structure?
lack of promotion opportunities reduces motivation
38
what is a matrix structure?
where members of each sector of the production team meet to discuss their ability to produce
39
give 3 features of operating in a mass market
1. low ac due to large scale production
2. higher sales volume
3. lower profit margins
40
give 3 features of operating in a niche market
1. high ac due to smaller scale production
2. lower sales volume
3. high profit margin
41
give 3 pros of e-commerce
1. access international markets
2. lower fixed costs
3. longer trading hours
42
give 2 cons of e-commerce
1. highly competitve
2. lack of desired customer service
43
give 3 reasons why markets may change
| dynamic
1. changing demographic
2. change in competition
3. change in legislation
44
what might happen if a firm becomes too product orientated?
it may struggle to find a market, increasing chances of business failiure
45
give 3 reasons why a firm may choose market orientation over product orientation
1. increased demand
2. increased profit
3. improved brand image
| as they directly meet consumer demand
46
give 3 uses of market research
| can be qualitative or quantitative
1. reduces risk when launching a product
2. increasing understanding of consumer behaviour
3. identifys competitors strengths/weaknesses
47
give 2 advantages of primary market research
1. focuses on the needs of the business
2. more up to date and relevant
48
give 2 disadvantages of primary research
1. may be expensive and time consuming
2. may be bias - inaccurate
49
give 2 pros of secondary market research
1. faster
2. often free
50
give 2 cons of secondary market research
1. may lack relevance to the business
2. may be outdated
51
what is market segmentation?
the division of the market into segments (often based on demographic)
52
give 3 advantages of market segmentation
1. marketing can be targeted more precisely
2. less expensive than marketing to larger segments
3. may increase loyalty by meeting customer needs
53
give 2 disadvantages of market segmenting
1. not everyone in a segment behaves the same
2. required detailed, time consuming research
54
what is market mapping?
positioning a product on a 2 dimensioned market map in comparison to rivals
| e.g high/low quality and high/low price
55
how can you use market mapping to see if a market is saturated?
identify if there are any gaps left, if not it is saturated
56
give 3 methods of adding value to a product
1. marketing and branding
2. functions
3. design
57
what are the 4 p's?
1. place
2. price
3. product
4. promotion
58
what are the 4 p's used for?
creating successful marketing strategies
59
give 3 types of marketing
1. advertising - promotion through paid channels
2. sales promotions
3. sponsorship
4.
60
give 3 effects of strong branding
1. added value
2. ability to charge premium prices
3. reduced ped
61
give 5 factors which influence pricing strategy
1. level of differentiation
2. PED
3. level of competition
4. strength of brand
5. costs
62
what are the 3 types of distribution channel?
1. four stage - producer, wholesaler, retailer, consumer
2. three stage - eliminates wholesaler
3. two stage - p to c
63
what is a wholesaler?
a business which buys a large quantity of goods from producers, selling a small quantity to retailers
64
give 3 reasons why staff are an asset
1. skills
2. productivity
3. builds brand reputation
65
give 3 reasons why staff are a cost
1. hiring + training costs
2. salaries
3. wages
66
what is a flexible workforce?
a culture in which employees are equipped to do multiple job roles and patterns of employment
67
give 3 ways a flexible workforce can be developed
1. multi-skilling
2. homeworking
3. outsourcing
68
what is dismissal?
termination against the will of an employee
| poor performance or misconduct
## Footnote
no notice
69
what is redundancy?
when the job is no longer available due to a shrink in workforce size
| allowa for notice and compensation
70
give 3 pros of b2b
1. higher sales volume
2. increased repeat customers
3. higher conversion rate
71
give 2 cons of b2b
1. higher dependancy on key clients
2. high competition
72
give 3 pros of b2c
1. large and diverse market
2. easier expansion
3. direct customer engagement
73
give 2 cons of b2c
1. intense competition
2. lower average order value
74
what is a sole trader?
a single owner with unlimited liability
75
give 2 pros and 2 cons of being a sole trader
1. complete control
2. owns all profit
1. unlimited liability
2. limited access to capital
76
what is a partnership?
when 2+ people work together to form a business
77
give 2 pros and 2 cons of a partnership
1. more skills and knowledge
2. increased access to capital
1. unlimited liability
2. profits are shared
78
what is a private limited company?
a company in which shares can be given to friends and family
79
give 2 pros and 2 cons of an ltd
1. limited liability
2. access to greater capital
1. expensive to set up
2. complex legal requirements
80
what is a franchise?
when an individual buys the rights to a business model, branding and support in exchange for money or dividends
81
what is a social enterprise?
a business with a primary purpose of impacting society or the environment
82
what is a plc?
a business floated on the public stock exchange
83
give 2 pros and cons of a plc
1. rapid access to finance
2. risk is shared
1. slower decision making
2. separation of control and ownership
84
give 3 characteristics of an entrepreneur
1. high self-confidence
2. idea generator
3. risk taker
85
give 3 characteristics of a leader
1. good strategist
2. inspiring figure
3. ability to reassure large groups
86
give 3 difficulties in transitioning from an entrepreneur to a leader
1. resistent to loss of control
2. lack of trust in a team
3. leaders are often less reactive and more strategic
87
give 3 examples of financial incentives to motivate
1. piece rate pay
2. bonuses
3. commission
88
give 3 examples of non-financial incentives
1. job enrichment
2. consultation
3. job enlargement
89
what is the difference between job enrichment and job enlargement?
job enrichment includes more responsibilities with harder tasks, enlargement is same level of difficulty
90
what is branding?
the process of creating a unique name, design or feature to differentiate from competitors
91
what are the 3 types of branding?
1. product branding
2. own brand product
3. manufacture / corporate branding
92
what is manufacturer branding?
the use of a company logo to promote all g/s
93
give 2 pros and cons of manufacturer branding
1. creates strong brand recogniton and reputation
2. builds economies of scales by spreading promotional cost
but
1. one product can damage a whole companies reputation
2. competition in one market may affect all products
94
what is product branding?
creating a distinct identity for each product
95
give 2 pros and 2 cons of product branding?
1. allows for marketing of different products to different markets
2. builds brand loyalty by associating products with unique features
or
1. creating unique brands can be expensive
2. building a new brand for each product can be time consuming
96
what is own branding?
the use of the retailer to promote a product or service
97
give 2 pros and a con of own branding
1. allows for selling at a lower cost than branded products
2. build loyalty by offering exclusive products
but
1. have lower percieved quality reducing brand loyalty and trust
98
give 3 benefits of strong branding
1. added value (quality, trust)
2. reduced PED
3. ability to charge premium prices
99
give 3 ways to build a brand
1. USP
2. advertising
3. social media
100
what are 3 current social trends in branding?
1. viral marketing
2. social media
3. emotional branding
a level business
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