BUSINESS: Management Approaches & Marketing Mix

year 11

what does discuss (NESA verb) refer to?

explain positives and negatives with reference to theory and suggest alternative

how many pages should a discuss question be?

1.5 - 2 pages in length

what are the two management approaches?

classical & behavioural

how does the classical approach view management? (key roles)

planning, organising & controlling

what does the classical approach stress?

stresses how best to manage and organise workers so as to improve productivity (output per unit input).

what is planning (key role of classical approach)?

The process of setting goals and deciding on the methods to achieve them.

what are the three types of planning and their time frames?

• strategic planning (3-5 years)

• tactical planning (1-2 years)

• operational planning (daily, weekly)

what is organising (key role of classical approach)?

The process of coordinating resources to translate plans and goals into action.

what is controlling (key role of classical approach)?

The process of comparing actual performance to planned goals, and taking corrective action when needed.

what organisational structure does the classical approach feature?

a hierachial organisational structure

what are the characteristics of a hierachial organisational structure?

Multiple levels of management, Clear chain of command, Top-down communication & Defined roles and specialised tasks

what is the span of control in a hierachial organisational structure?

narrow span of control- each manager supervises a smaller number of employees directly

what management style does the classical approach use?

autocratic leadership style

what is the autocratic leadership style? (classical approach)

A management style where the manager makes decisions without significant input from subordinates. The manager controls all decisions (centralised control), dictates work methods, and closely monitors employee performance.

what are four advantages of the autocratic leadership style?

less time to make decisions, reduce errors, lead to improved productivity/efficiency & can make it easier to assess employee performance

what are three disadvantages of the autocratic leadership style?

reduce employee motivation, reduce innovation/flexibility & can result in higher levels of conflict

how does the behavioural approach view management? (key roles)

leading, motivating & communicating

what does the behavioural approach stress?

stresses that people (employees) should be the main focus of the way in which the business is organised

what is leading? (key role of behavioural approach)

The process of influencing or motivating people to work towards the achievement of the business’s objectives

what is motivating? (key role of behavioural approach)

Energising and encouraging employees to achieve the business goals.

what is communicating? (key role of behavioural approach)

Exchanging information with others

what organisational structure does the behavioural approach feature?

teams

what are the characteristics of teams as an organisational structure?

sense of trust and common purpose between team members, negotiation of consensus decisions, implement a flatter organisational structure (less levels, wider span of control)

what is the span of control of teams as as organisational structure?

wider span of control- responsibility is passed down from management to teams, resulting in autonomy (freedom)

what management style does the behavioural approach use?

democratic leadership style

what is the democratic leadership style? (behavioural approach)

management style where the manager asks subordinates for their suggestions and then seriously considers those suggestions when making decisions.

what are advantages of the democratic leadership style?

improved employee motivation & performance, more innovation, better decision-making, improved business culture and can be less conflict

what are four disadvantages of the democratic leadership style?

longer to make decisions, result in internal conflict, reduce management control, may confuse some employees

what is the strategic role of Marketing?

develop an appropriate marketing mix that maximises sales in one or more target markets, contributing to profit maximisation.

what is the marketing mix?

Refers to the combination of the four P’s - product, price, promotion and place - that make up the marketing strategy.

what are the 4 P’s ?

Product, Price, Promotion & Place

what is a target market?

a group of customers with similar characteristics who presently, or who may in the future, purchase the product.

how many steps are in the marketing process and their names?

3 steps-

1. situational analysis

2. identification of target market

3. developing marketing strategies

what are the Product (marketing mix) strategies?

branding & packaging

what are the Price (marketing mix) strategies?

skimming, penetration, loss leader, price points

what are the Promotion (marketing mix) strategies?

advertising, personal selling, relationship marketing, sales promotions, publicity

what are the Place (marketing mix) strategies?

distribution channels

what does a situational analysis provide? (step 1 of marketing process)

a precise understanding of the business’s current position and where it is heading. 

what does a situational analysis involve? (step 1 of marketing process)

SWOT analysis- identification and analysis of internal strengths and weaknesses of the business, and the external opportunities and threats from the environment.

what is each element of SWOT?

strengths- positive, weaknesses- negative, opportunities- positive, threats- negative

how can a business identify their target market?

market segmentation

what is market segmentation?

dividing the total market into smaller groups based on consumer characteristics

what are the four main characteristics a market can be segmented by?

demographic, geographic, psychographic, behavioural

what is demographic segmentation & examples? (step 2 of marketing process)

Dividing the total market according to objective features of the population, such as age, sex, income, cultural background and family size.

what is geographic segmentation & examples? (step 2 of marketing process)

Dividing the total market according to geographic locations, such as region, suburban/urban/rural, city size, climate

what is psychographic segmentation & examples? (step 2 of marketing process)

Dividing the total market according to personality characteristics and attitudes that are not specific to the product(s) being sold, such as socioeconomic group, lifestyles, personality

what is behavioural segmentation & examples? (step 2 of marketing process)

Dividing the total market according to the customers’ behaviour and attitudes in relation to the specific product(s) being sold, such as loyalty and usage rates

why should a business develop marketing strategies (step 3)?

to achieve the business’s marketing objectives. 

what is a Product?

goods or services that can be offered in an exchange for the purpose of satisfying a need or want.

what is the difference between Marketing’s role in products and Operation’s role in products?

Marketing is responsible for developing the products VS Operations produces them through the transformation process.

what is branding? (Product)

creating a unique identity for a product or business that people can recognise and trust. This involves the visual aspects (like brand logos and names) and the value it holds in customers' minds (brand equity).

what is brand equity?

the intangible value a brand holds in the minds of consumers.

what are some benefits of branding?

customer loyalty, increased sales, increased market share, increased pricing power and easier to introduce new products

what is packaging? (Product)

The development of the container or wrapping for a product, including its visual design, including labelling which is the presentation of information

what is Price?

The amount of money a customer is prepared to offer in exchange for a product

what is price skimming?

charging the highest possible price for a product during the introduction stage of its life cycle

what is the purpose of price skimming?

maximise short-term profits from a new product, position it as exclusive, luxury or high-end

what is price penetration?

setting a low initial price for a new product to quickly gain market share and attract a large number of customers

what is the purpose of price penetration?

effective for products entering a highly competitive market to build customer loyalty

what is a loss leader?

selling a product at or below cost price, with the hope that customers will make additional purchases that allow the business to recoup the loss and make a profit

what is price points?

the sale of a related range of products at different prices, with each price representing a distinct level of quality

what is Promotion?

the methods used by a business to inform, persuade and remind a target market about its products

what is the purpose of Promotion?

attract new customers, encourage existing customers, increase brand equity and provide information

what is the promotion mix?

the various promotion methods a business uses in its promotional campaign

what is the difference between the marketing mix and the promotion mix?

marketing mix = 4 P’s (Product, Price, Promotion, Place)

promotion mix = combination of promotion methods (advertising, publicity……

what is advertising?

a paid, non-personal message communicated through a mass medium

what are examples of advertising?

television, newspapers, social media, radio, billboards

what is personal selling?

involves the activities of a sales representative directed to a customer in an attempt to make a sale.

what is an example of personal selling?

cross-selling → “would you like fries with your burger?”

up-selling → “would you like to upgrade the size of your meal for $2?”

what is relationship marketing?

strategies that create a long-term relationship with individual customers, mainly demonstrated through loyalty programs

what is sales promotion?

strategies used by a business to encourage short-term purchase

what are examples of sales promotions?

discounts, free gifts, future coupons, bonus loyalty points & free shipping

what is publicity?

free coverage of a business in the media, can be negative or positive

what is Place?

activities that make products available to customers when and where they want to purchase them

what is a distribution channel?

routes taken to get the product from the business to the customer

what is the simplest distribution channel?

producer to customer

what are the characteristics of producer to consumer distribution channels?

allow a business to maintain full control, eliminate the need to share profits with intermediaries

what are the the four distribution channels?

• producer to customer

• producer to retailer to customer

• producer to wholesaler to retailer to customer

• producer to agent to wholesaler to retailer to customer

why would a business use a retailer within a distribution channel?

to reach a wider audience and provide valuable customer service

what does recommend (NESA verb) refer to?

explaining reasons in favour