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What is a service in business?

An intangible offering that aims to improve others' well-being, such as education or therapy. Services don't produce physical goods but provide value through experience and expertise.

What are goods in business?

Tangible products that can be sold. Goods can be touched, used, and consumed, and are typically produced to meet market demand.

What characterizes companies like Marianopolis?

They engage in both services and goods, primarily focusing on services such as education. This focus on services creates a unique business model that differentiates them from traditional goods-centric companies.

What defines a Not-for-Profit Organization (NFP)?

Charities that focus on helping causes, where profits are reinvested into their mission. NFPs do not distribute profits to owners and aim to fulfill social, cultural, or environmental goals.

How is profit managed in Not-for-Profit Organizations?

Profits must be used to further their causes rather than distributed to owners. This means that every dollar earned is redirected back into the organization's programs and initiatives.

What does profit signify in a business context?

Effective management and the ability to reinvest for future growth. Profit indicates that a business is generating more revenue than it is spending, allowing for expansion and investment.

How is profit calculated?

Profit is defined as Revenues minus Expenses. This calculation helps businesses determine their financial health and operational efficiency.

What is a capital-intensive business?

A business that requires significant financial resources, especially for investments. This type of business often involves heavy machinery or technology, resulting in high startup costs.

What is a labour-intensive business?

A business that relies heavily on a larger workforce rather than capital. These businesses depend on the skills and manpower of employees to operate effectively.

What drives the growth of the service sector?

Increased disposable income, changing demographics, and a demand for more services. As people's lifestyles evolve, they often seek out more specialized and personalized services.

What is an entrepreneur?

Someone who starts a business and creates jobs, driving up living standards. Entrepreneurs identify opportunities, take risks, and innovate to bring their ideas to fruition.

What is the hard sell era?

The production era, focusing on mass production and sales. During this time, businesses concentrated on manufacturing output and aggressive sales tactics to move products.

What are the five forces of business?

Economy, Competition, New Technology, Global Forces, and Trends. These forces shape the environment in which businesses operate and influence strategic decision-making.

What defines entrepreneurship?

Taking risks to start and manage a business. Entrepreneurship involves not only financial investment but also commitment to bringing ideas and solutions to market.

What are the traits of successful entrepreneurs?

Resilient, visionary, energetic, passionate, tolerant of failure, and effective decision-makers. These traits help entrepreneurs navigate challenges and seize opportunities.

What are common funding sources for entrepreneurs?

Personal resources, bank loans, angel investors, venture capital, and love money. Each source has different implications for control and repayment.

What are opportunities for small businesses?

Targeting niche markets, personalized service, lower overhead costs, and leveraging technology. Small businesses can often adapt quickly to changing market conditions.

What are threats faced by small businesses?

High failure rates, lack of experience, insufficient funds, and increased regulatory burdens. These factors can create significant barriers to success.

What is the benefit of buying a franchise?

Operate under an established brand with support and training. Franchising allows new business owners to minimize risk and access a proven business model.

What is the difference between a merger and an acquisition?

A merger is when two firms become one; an acquisition is when one firm buys another. Each process has implications for company structure and culture.

What are the three types of mergers?

Horizontal, Vertical, and Conglomerate mergers. Each type serves different strategic goals, such as increasing market share, supply chain efficiency, or diversification.

What is a unique selling proposition (USP)?

What makes a company or product stand out from its competitors. The USP highlights a distinct benefit that attracts consumers.

What is the importance of honesty in marketing?

To maintain trust by avoiding overpromising and underpromising. Honesty fosters brand loyalty and minimizes the risk of customer dissatisfaction.

What is a marketing plan?

A structured approach outlining how a business will promote its products or services. This plan typically includes target audience research, budget considerations, and marketing strategies.

What is demographic segmentation in marketing?

Dividing the market based on characteristics like age, gender, income, and social class. This approach helps businesses tailor their marketing efforts to specific target groups.

What is geographic segmentation in marketing?

Targeting consumers based on their location. Geographic segmentation considers factors like climate, region, and urban versus rural settings.

What is psychographic segmentation?

Segmentation based on consumers' attitudes, interests, and beliefs. This method provides deeper insights into consumer motivations and behaviors.

What is behavioral segmentation?

Segmenting based on consumer behavior such as usage rates and brand loyalty. This helps businesses target customers more effectively by understanding their habits.

What does the marketing mix consist of?

Product, Price, Place, and Promotion. The marketing mix encompasses all aspects of marketing strategy to reach consumers effectively.

What is the product component of the marketing mix?

Anything a company offers, including tangible goods and services. This component focuses on the features, design, quality, and benefits of the product.

What is pricing strategy in the context of the marketing mix?

The approach a company takes to set the prices of its products. Pricing strategies can vary based on market conditions, competition, and target demographics.

What are the types of retailer categories?

Store retailers, non-store retailers, and various types based on customer access and product type. Each category represents different ways consumers can purchase goods.

What role does integrated marketing communication play?

Ensures consistency across marketing messages and creates a unified brand image. This approach helps eliminate confusion and strengthens brand recognition.

What is product life cycle (PLC)?

The cycle through which every product goes from introduction to decline. Understanding PLC helps businesses strategize marketing efforts at different stages.

What are the types of promotions in marketing?

Advertising, sales promotions, direct marketing, and personal selling. Each type serves different objectives, such as generating leads or increasing sales immediately.

What is primary data in marketing research?

New information collected directly by the researcher. This data is often more relevant and specific to the research question but can be costly to obtain.

What is secondary data in marketing research?

Existing data that has already been collected, often cheaper but possibly outdated. This data can provide valuable insights without the need for new research.

Define the term ‘business buyer behavior’.

More rational and structured purchasing decision-making criteria compared to consumer behavior. Business buyers consider factors like price, quality, and supplier reliability.

What are the key components of a business plan?

Executive summary, description, industry research, marketing strategies, operating procedures, personnel, and financial projections. Each component is vital for securing funding and guiding operations.

What differentiates consumer products from business products?

Consumer products are aimed at individuals; business products are aimed at organizations. This distinction affects marketing strategies and sales approaches.

What are convenience products?

Easily accessible items that consumers purchase frequently with minimal effort. These include everyday goods like snacks and toiletries.

What are specialty products?

High-end luxury items for which consumers make a special effort to purchase. Consumers are willing to invest time and resources to acquire these products.

What are unsought products?

Goods that consumers do not actively seek out unless a need arises. Examples include funeral services or emergency repair services.

What defines a sole proprietorship?

A business owned by one individual with complete control and profit. This structure is easy to set up but carries personal liability for debts.

What are the advantages of partnerships in business?

Shared responsibilities, pooled resources, and ease of starting. Partnerships can offer diverse skills and increased capital for growth.

What are the disadvantages of corporations?

Extensive paperwork, potential for double taxation, and conflicts of interest. These factors can complicate management and reduce flexibility.

What is a general partnership?

All partners share unlimited liability and responsibilities. This structure offers shared management but exposes each partner to potential financial risk.

What is a limited partnership?

Involves one or more general partners with unlimited liability and one or more limited partners. Limited partners are only liable to the extent of their investment.

What is branding?

The identity of a product that distinguishes it from others. A strong brand creates recognition and loyalty among consumers.

What is co-branding?

Two established brands collaborating to market a product. This strategy leverages the strengths of both brands to attract consumers.

What are the characteristics of services compared to goods?

Services are intangible, inseparable, variable, and perishable. These characteristics present unique challenges in marketing and delivery.

What is promotion mix?

The combination of different promotional tools used by a business. An effective promotion mix integrates various methods to reach target customers.

What are the transport modes for goods?

Rail, ship, truck, plane, and pipeline. Each mode has its advantages and is chosen based on factors like cost, speed, and distance.

Define the term ‘market research’.

The process of gathering, interpreting, and applying information about markets. Market research guides businesses in decision-making and strategic planning.

What is the role of natural resources in production?

Raw materials used to produce goods and services. Access to these resources can significantly impact production capabilities.

What is capital in the context of production?

The tools and facilities used in the production of goods and services. Capital investments are crucial for enhancing productivity and efficiency.

What is meant by human resources?

The labor force providing skills and expertise in production. A strong human resources strategy is vital for attracting and retaining talent.

What does entrepreneurial activity contribute to the economy?

It harnesses factors of production to kick-start economic growth. Entrepreneurs drive innovation, job creation, and wealth distribution.

What does the marketing strategy focus on?

Reaching target audiences and enhancing brand visibility. A well-defined strategy aligns marketing efforts with business goals.

What is the purpose of packaging in marketing?

To protect products, provide information, facilitate storage, and attract attention. Effective packaging plays a crucial role in the marketing mix.

How does the evolution of marketing reflect consumer needs?

It has shifted focus from production and selling to building relationships with customers. Today's marketing strategies prioritize consumer engagement and satisfaction.

What is the significance of customer feedback in business?

It helps businesses integrate consumer experiences into their strategies. Feedback informs product development and enhances customer service.

What is the role of technology in modern marketing?

It enhances customer targeting, personalization, and engagement. Technology enables businesses to gather and analyze data to improve marketing efforts.

What is a mission statement?

A formal summary of the aims and values of a company. A strong mission statement guides decision-making and conveys the company's purpose.

What are the challenges of starting a business from scratch?

High pressure, credit challenges, logistical difficulties, and time investment. New entrepreneurs often face significant uncertainty and competition.