Studied by 9 people
marketing strategy
a plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve a particular marketing objective
weights and measures
retailers commit an offense if they sell underweight goods
trade descriptions
it is illegal to give the consumer a deliberately misleading impression about a product
sales of goods
it is illegal to sell products which have flaws or problems
supply of goods and services act
a service has to be provided with reasonable skills and care
the distance selling regulation
allow customers a cooling off period of seven working days, this means they can change their mind about purchasing goods or services
import quotas
a physical limit on the quantity of a good that can be imported into a country in a given time period
import duties
taxes charged by customs on the importation of goods into the country
opportunities of entering new foreign markets
potential growth of new markets in other countries to gain higher income
home markets might be saturated
businesses can sell and produce in other countries
trade barriers have been lower
threats of entering new foreign markets
lack of knowledge in new foreign markets
some products will not sell in another market
exchange rate changes can cause an uncertainty in purchase
increasing transport costs
joint venture in a foreign market
this helps business to gain local knowledge so culture and customs can be adapted to enable a more successful entry into new markets
licensing
the business gives permission for another firm in the new market being entered to produce the branded products
international franchising
foreigner franchises are used to operate a business’s franchise abroad
localising existing brands
there is still a common brand image for the business but it has adapted to local tastes and culture therefore increased in sales revenue
division of labour
production is divided into separate tasks and each employee does just one of those tasks
de-industrialisation
decline in the importance of secondary, manufacturing industry
horizontal integration
the business integrates with another in the same industry and same stage of production
vertical integration
the business integrates with another in the same industry but different stage of production
conglomerate integration
the business integrates with another in a different industry and different stage of production
business plan
a document containing the business objectives and important details about the operations, finance and owners
hierarchy
refers to the management levels within an organisation
delegation
giving subordinates the authority to perform particular tasks
span of control
measures the number of subordinates reporting directly to a manager
autocratic
manager has total control and there is no delegation. communication is one way. this style is used when employees are unskilled or not trusted
democratic
manager is good at communicating and willing to delegate. employees are skilled and experienced. final decision made by manager after discussion
laissez-faire
managers have little influence in the actions of employees and only involved to resolve disagreements. good for small, highly motivated teams
motivation
the factor that makes people want to do something for job satisfaction
salary
employees are paid a fixed amount per year, which is usually paid monthly
time rate
employees are paid a set amount for each hour worked
piece rate
employees are paid by the amount of output they produce
fringe benefits
non-financial rewards/incentives given in addition to wages
bonus
employees receive extra money above basic pay if they reach certain performance targets
commission
salesperson are given an incentive to sell more as they receive a percentage of any sales made
profit sharing
additional payments are given based on the level of business profits
share ownership
in limited companies, employees have a chance to buy shares to become part owners in the business, they receive dividends
job enrichment
the employees are given more responsibility or more difficult tasks to do
job satisfaction
enjoyment employees can derive from work if they feel that they have done a good job
job enlargement
tasks of a similar level of difficulty/responsibility are added to a workers job description
dividends
payments made to shareholders from the profits of a company
franchise
a business that uses, under licence, the brand name, logo and trading methods of an existing business. the franchisor sells the licence; the franchisee buys the licence
joint venture
two or more businesses start a new project together sharing capital, risks and profits
business objectives
the aims or targets that a business works towards
profit
total income of a business minus total costs
market share
the proportion of total market sales held by one brand or business
market share formula
sales of business/total market sales × 100
social enterprise
an organisation with profit, environmental and social objectives
stakeholders
any person or group with a direct interest in the performance and activities of business
organisational structure
the levels of management and divisions of responsibility in an organisation
chain of command
the route taken by instructions passed down from senior management
level of hierarchy
a level of management where people have the same level of responsibility
line managers
have direct responsibility over people below them in the hierarchy of an organisation
trade union
a group of workers who join together to protect their interests
recruitment
identifying need for new employees and encouraging people to apply for a vacancy
job description
responsibilities and duties to be carried out by job holder
on the job training
training at the place of work, watching and being instructed by experienced workers
off the job training
training away from the place of work. e.g at college, being instructed by specialists or trainers
induction training
training for new employees explaining the business structure, activities and procedures
redundancy
employees are no longer required
dismissal
an employee’s employment contract is terminated and they must leave the business
formal communication
messages sent through established channels
marketing
anticipating the needs and wants of targeted customers and managing the process through which these needs and wants are satisfied
role of marketing
identifying and satisfying customer needs
maintaining customer loyalty
building customer relationships
gain information on customers
anticipate changes in customer needs
market
a place where buyers and sellers come together to buy and sell goods and services
niche market
a small and specific part of a larger market
mass market
a market for products that are often standardised and sold in large quantities
geographic segmentation
segmentation based on countries, states, regions, cities or areas to understand cultural differences
demographic segmentation
segmentation based on age, gender or income
psychographic segmentation
segmentation based on psychological characteristics like personality, lifestyle and social status
distribution channels
the means by which a product is passed from the place of production to the customer or retailer
agent
an independent person or business that is appointed to deal with the sales and distribution of a product
e-commerce
the buying and selling of goods and services using computer systems linked to the internet
informative advertising
where the emphasis of advertising is to give full information about the product
persuasive advertising
advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it
target audience
people who are potential buyers of a product or service
sales promotion
incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales
personal selling
sales staff communicate directly with consumer to achieve a sale
direct mail
involves posting leaflets or printed materials directly to the business or homes of potential customers
sponsorship
is where a business will pay to have its name linked to an event
market research
the process of gathering, analysing and interpreting information about a market
product-oriented business
a business whose main focus of activity is on the product itself
market-oriented business
a business which carries out market research to find out customer wants before a product is developed and produced
marketing budget
a financial plan for the marketing of a product or product range for some specified period of time. it specifies how much money is available to market the product or range, so that the marketing department knows how much it may spend
primary research
the collection and collation of original data via direct contact with potential and existing customers
secondary research
the use of information that has already been collected and is available for use by others
questionnaire
a set of questions to be answered as a means of collecting data for market research
online survey
it requires the target sample to answer a series of questions over the internet
interviews
it involves asking individuals a series of questions, often face to face or over the phone
focus group
a group of people who are representative of the target market
sample
the group of people who are selected to respond to a market research exercise, such as a questionnaire
random sample
when people are selected at random as a source of information for market research
quota sample
when people are selected on the basis of certain characteristics as a source of information for market research
uses of market research information
identify consumer needs / discover current and future market / decide on how to price the market
quantitative information
answers the questions about the quantity of something
qualitative information
answers questions where an opinion or judgement is necessary
methods of secondary research
government statistics
newspaper
market research agencies
online sources
marketing mix
a term that describes all the activities which go into marketing a product or service
revenue
the amount earned by the business from the sale of its products
brand loyalty
when consumers keep buying the same brand again and again instead of choosing a competitors brand
brand image
an image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors brands
packaging
the physical container or wrapping for a product
Note
Flashcard