Business A level

Ansoffs Matrix

A tool used for businesses with a growth objective in order to asses and identify the appropriate cooperate strategy. Considers 4 elements witch are broken down into 2 categories. The Market and product.

Market Penetration

Selling more products to existing customers

Product Penetration

Selling existing Products to new customers

Market development

Involves finding and taking advantage of new market opportunities for existing products

Product Development

Involves selling new and improved products to existing customers

Diversification

Involves targeting new customers with new or redeveloped products

Portets strategic Matrix

A method of identifying a range of cooperate strategies a business might take on and helping the business choose a strategy based on Competitive edge and what type of market the business operates in.

Cost leadership

This is when a busienss aims to be the most cost competive business in a market.

Differentiation

This is when a business aims to stand out within a market in comparison to competitors

Portfolio Analysis

Involves a business carrying out a detailed evaluation of its full range of products in order for the Appropriate strategies to be identified and carried out

The Boston Matrix

A Portfolio analysis that considers the amount of market share a product has and the rate of growth a product experiences within the market.

Market research

the process of systematically gathering data from consumers to help businesses make informed decision.

Market

A place where buyers and sellers can meet

the aim of marketing

To identify, anticipate and satisfy customer needs in return for profit

Economies of scale

The fall in average costs as output of product rises.

Sales Volume

Is the number of product sold in a business.

Sales revenue

Price x quantity sold

Market share

the amount of total sales a product/service has compared to the total market

Adding Value

The process by which firms increase the price that the consumer is willing to pay

Brand

A name, image or logo which helps a businesses products/services stand out from its competitors.

Dynamic Market

A market that is experiencing rapid or continuous change

Elasticity of demand

The effect that price change will have on demand of a product

Inelastic Demand

Demand is still high even when raising prices

Elastic Demand

Demand is way lower if you increase prices

Variable Costs

Are costs for a company that are needed to run the business, they increase as the business increases in size.

Market Segments

Groups of consumers who share similar characteristics

Mass Markets

occurs when businesses sell the products to a broad market segment

Niche Market

Occurs when businesses sell there products to a narrow market segment

Monopoly Power

A large business witch dominates a market

Online Retailing

Involves selling products via the internet

Primary Market research

The process of gathering information directly from consumers

Changes witch cause a Market to be dynamic

Customer tastes and preferences, demographics, competition and legislation

How can online retailing help a business

Enables more customers ,longer trader hours, lowers fixed variable costs, helps with primary market research

Why is online retailing bad for a business

High costs, lack of customer service, high competition

Product Innovation

Involves the adaptation or improvement of existing products

Process Innovation

Involves the adaptation or improvement of existing processes within a business

Just in time stock control

Producing and ordering goods when needed reducing waste or extra inventory

Market Growth

The measurement of change within the entire market, expressed as a percentage

Factors that cause Market growth

Increasing population, Increasing Incomes, changing customer taste and preferences

Flexible Business structure

A business structure that allows a business to change and adapt when needed

Strategies to adapt to change in a dynamic market

Innovate, meet customer demand, create flexible business structures.

First mover advantage

A competitive edge gained by being the first business to introduce a product/service