November 3rd yr bus

Credit Note

A document sent by the seller to the buyer to explain a reduction in the amount owed

When is a credit note issued

When goods that have been purchased on credit are returned to the seller

the customer was overcharged the wrong goods were delivered or faulty or damaged goods were returned

Invoice

A document that gives details of the quantity and price of the goods being sent including terms of sale and details about carriage

Business Plan

A written description of a business's aims strategies target markets and financial forecasts

What is the purpose of a business plan

Assesses success potential secures funding sets goals guides growth and supports expansion

What are the main sections of a business plan

Background of the Business The Business Team Market and Marketing Production Costings and Finance Structure of the Business

What does the background of the business include

The aims and objectives of the business products or services provided and the name and address of the business

What does the business team section include

Lists team members and their relevant education and experience

What does the market and marketing section describe

The market size competition and the marketing mix product price place promotion

What does the production section outline

Premises equipment and the production process to be used job production batch production mass production

What does the costings and finance section include

Cost price selling price existing loans amount of finance required and repayment plans

What does the structure of the business section define

The legal structure such as sole trader partnership or limited company

What does SMART stand for

Specific Measurable Agreed Realistic Timed

SWOT Analysis

Identifies the current strengths and weaknesses of a business as well as the opportunities and threats facing it

What are internal factors in SWOT analysis

Strengths and weaknesses

What are external factors in SWOT analysis

Opportunities and threats

Sole Trader

Owned by one person responsible for all debts unlimited liability

Partnership

Owned by 2 to 20 people who share profits and risks

Private Limited Company

Owned by 1 to 149 shareholders with limited liability shareholders are not personally liable for debts

Franchise

When one firm the franchisor sells the right to use its products and its brand name to another business the franchisee in return for a fee and a share of the profits

What are the advantages of a franchise

Reduced risk and brand recognition

What are the disadvantages of a franchise

Reputation risk and loss of control

Marketing Mix

The process of identifying and satisfying customer needs and wants while making a profit

What is a market

The group of people to whom a business aims to sell its products or services

What is a niche market

A small specific part of a larger market focused on a particular product or service

What are the four elements of the marketing mix

Product Price Place Promotion

What is a product

An actual item physical good or a service provided to meet consumers' needs

What are the stages of the product life cycle

Introduction Growth Maturity Saturation Decline

What is branding

A name symbol design or other feature that makes a product easy to recognize and distinguishes it from competing products

What is a unique selling point USP

What makes a product or service different from competitors

Price

The amount of money a seller charges a customer for a product or service

What factors affect price

The cost to make the product target market's income desired profit product's life cycle stage prices of competing products

Cost-plus pricing

The business calculates the production cost and adds a profit percentage

Competitive pricing

The price is set similar to rival products

Premium pricing

A high price is charged to create an image of exclusivity or quality

Penetration pricing

A low price is set for a new product to attract customers

Peak load pricing

Higher prices are charged during busy times and lower prices during slow times

Psychological pricing

Prices are set just below round numbers to make the product seem cheaper

Place

Refers to where customers can buy the product and how it is distributed

What are channels of distribution

The process of moving the product from the manufacturer to the consumer

Promotion

Making customers aware of the product or brand in order to increase sales and create brand loyalty

Why use promotion

To launch a new product and increase sales

How do businesses use promotion

Advertising social media sponsorship

What is advertising

A way businesses communicate with the public to make people aware of a product or service

What are the 3 different types of advertising

Informative advertising

persuasive advertising

competitive advertising

Advertising Standards Authority for Ireland ASAI

A body set up by the advertising industry that ensures marketing communications are legal decent honest and truthful

Sales Promotion

Incentives to get customers to buy products such as free samples buy one get one free and gifts with purchase