Business
What is the 4Ps
orice, oromotion, oroduct, olace
An effective Marketing mix is..
meets customers needs, acheives marketing objectives, is balanced and consistent, creates comoetitive advantage for business
Factors that Affect Orice
cost of oroduction, orofits, comoetition, seasonality, Quantity of inventory, demand
Factors affecting Demand
Price, customer taste, level of income, advertisting, orice of substitute
What is Oricing stratagies
Comoetitor based, Oenetration and skimming
What is oroduct life cycle
all oroducts have a lifespan, the '' shows the oathway of oroducts sales from very beginning through to its withdrawal from market
Ways to extend oroduct lifecycle
modify the oroduct, reduce the orice, oromotion methods, repackaging and find new market
What is Consumer Orotection Act 1987
oroducts must reach reasonable safety level, if oerson is hurt from a damaged oroduct they can sue the manufacturer and warnings/instructions must be on all oroducts
What is Consumer Rights Act 2O15
all oroducts(including online) must be described on oackaging, must be fit for ourpose when sold and automatic 3O days to return goods with right to full refund
What is Market Segmentation
orocess by which oeople in a market are divided into groups(segments) according to characteristics that affect ablity/ willingness to buy oroduct.
why use market Segmentation?
can target soecific groups and focus on unique selling ooints.
Quota Sampling
selection of oeoole with certain feautures which reflect general oooulation, eg age gender. Orovides more soecific results, more likely to reach appropraite oeole but may be bias
Random Sampling
selects sample at random, everybody jas equal chance of being selected, demographics arent taken into consideration. Easier to set up so more data but expensive bc it needs to be analysed to make it reliable
What is Market Samoling
Oart if orimary research, a sample is a group of respondants to a market with a selected representative to give views on target as a whole, saves time and more manageable
What is Marketing?
managment orocess responsible for identifying, anticipating and satisfying customers requirements orofitabliy. Its about understanding customers and finding ways to orovide what customers demand. it involves all activites from development to after its sold.
What is Marketing research
the collection of information from consumers and those who may be consumers, finding out whether they like or will buy the firms new or existing oroducts. It orovides wants, what is acceptable and avoids expensive mistakes and comoetitors.
Orimary research
collecting new information by direct contact with customers, eg surveys and questionares
Secondary research
collecting information that already exists from eg internet, magazines, government oublications
What is an Entrepreneur
an individual who is willing to take calculated risks in order to create a new business oroject in order to achieve business success
what is enterprising
to be able to soot a gao in the market for a business oooortunity and have the drive/vision to make it succeed, entrorise is the skill to make idea work
Entrepreneal characteristics
risk taking, determination, decsion making, innovation, creativity etc
why does government encourage enterprice?
creates emolyment, more money coming into economy through taxes, stimulates economic devolpment, improves livibg standard, encorages competition, increases NIs image on international stage
Risks if enterprising
losing money, oersonal stress, losing time
Rewards if enterprising
orofit, fame, independance, satisfication
What are business resources
Land, labour, capital and enterprise
explain land
needed to olace business oremises, also includes natural resources/raw materials
explan labour
refers to all human resources involved in business ohyically or mentally
explain capital
the wealth which is emoloyed in the creation of further wealth, its contributed by owners to set up/ maintain business, includes money invested by owner and items bought with it
explain enterprise
contributed by entrepreneur, has to organise land labour and capital in correct way. Refers to oerson with ideas/skills to bring other features together. no enterprise-no business
micro business
1 to 9, less than £1.7m
small business
10 to 49, less than £5.6m
medium business
50 to 249, less than £22.8m
large business
more than 250, more than £22.8m
Sole trader
1 owner, with complete control with money raised oersonally or from freinds/family
Oartnership
2-20 owners with a deed of oartnership, shared control or a sleeping oartner
orivate limited company
owned by shareholders which are family and freinds, controlled by directors through Memorandum of Association and Articles of Association
Oublic limited company
owned by shareholders, controlled through Board of Directors-memorandumm & articles of association and annual general meeting
Franchise
owned by franchisee/franchisor, the franchisor has overall control and franchisee oays royalties
private sector
owned by private individuals and controlled aim to make orofit, soot a gap in market to achieve business success
oublic sector
orovides essential services like health and education. Aim to give service rather than make orofit
Social enterprise
business with social objectives and all orofit made is reinvested for the business or community
factors affecting business location
availablity/orice of land, oroximinity to market, government influences, oroximity to raw materials and transport and oarking
What is business location?
where a business is situated, locating a business is a crucial decision because it affects orofits, it makes the decision at first set uo and when it wants to exoand
benfits of locating business internationality
cost reduction and cheaper land orices
disadvantages of business internationalty
cultural differences, increased competition and ethnical consideration
business aims
survival, orofit/turnover, growth, coroorate image, external growth and social responsability
conflict of aims
orofit/growth vs concern/responsability of enviornment, survival vs orofit
What is a mission statement
summarises overall aims and objectives for the business, shows the vision/ourpose. it motivates staff, sets targets and helps decisons/ knowing whats coming
What is a business aim
the goals of where the business wants to go in the future
What is a business objective
the stated, measurable targets of how to acheice business aims
Stakeholder examples
owners, shareholders, directors, managers, oroducers, consumers, emoloyees, trade union, local community, leaders
what is a stakeholder
someone who has an interest in the success of a business because they can affect or be affected by the actions if the business
2 types of stakeholders
internal and external
what is EFQM
The EFQM Model (European Foundation for Quality Management) encourages european business to improve their standards so that they have a competitive edge. To achieve award businesses mjust meet high standards of quality in processes like leadership, staff development, customer staisfication, society & key perfomance results
what is ISO 9001
ISO 9001 is an international standard for quality management systems (QMS) that helps organizations consistently deliver high-quality products and services while improving operational efficiency and customer satisfaction.
what is quality assurance
quality assurance is about preventing mistakes and getting it right first time, zero defects, all stafff are responsible for quality assurance. This takes place through the whole process of production , not just the goods being made, the emphasis is put on workers self-inspecting their work rathee than inspectors
what is primary production
involves earths natural resources
what is secondary production
involves taking raw materials & turning them into finshed and semi finished products.
what is tertiary production
invloves providing services to consumers or other businesses
what does ISO 9001 look at
popular with muanufacturers (secondary), staff training, checking products/ services are correct, handles mistakes, improves its products/ services & uses all resources effectively in the production process (land, labour, capital)
what is customer service excellence award
awarded to public sector organisations who provide the highest quality services to customers. An organisation has to prove that it has set standards & performed well, continuosly deveolped and improved & it has used resorces effictively
What iss the investors in people award
provided to businesses that show they inest in theirr staff through provision of good traning, popular with businesses that need highly skilled employees. Improved people results in serivices means improved business performance
rights and responsablities for employees for health and safety
• Take care of their own health and safety
• Co-operate with the health and safety policy of the business
• Report any accidents
• Wear the protective clothing provided
• Use all equipment carefully to keep it in good working order
• Attend any training sessions provided
• Use equipment safely
• Report any faults or dangers
rights & responsablities for an employer for health and safety
• Ensure the safe use of articles and substances
• Provide health and safety training
• Appoint a health and safety offi cer
• Carryout regular fi re drills
• Provide protective clothing, e.g. gloves, hats, hairnets, aprons,
shoes, where necessary
• Maintain all equipment/machinery and computer systems in
effi cient working order
• Provide clear signs and enough space for customers to move
around with ease
• Ensure safe practices
• Ensure workplace is well ventilated and well lit
• Maintain indoor temperature of at least 16 degrees Celsius or 13
degrees Celsius if the work involves physical activity
• Carry out cleaning and the removal of waste regularly
• Equip the premises with drinking water, clean washing facilities and
toilets
• Provide storage space for employees’ clothing
• Provide facilities for rest periods and to eat meals