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Unit 1 - Business Activity, Unit 2 - Marketing, Unit 3 - People
What is a digital distrubtion channel?
Is the distrubition of goods and services digitally though a website
What is primary research? 4 Examples:
Research conducted firsthand
e.g. Questionnaires, interviews, trialling, focus group
What is an entrepreneur?
A person who sets up their own business and is willing to take a risk
What is forward vertical growth?
Is when a business mergers/takeovers a business that it supplies goods and services to
What are the characteristics of an entrepreneur?
Creativity
Risk taking
Determination
Confidence
What is a business plan?
A document that outlines the businesses aim and objectives and how they will achieve them
What is the purpose of a business plan?
To obtain finance e.g. A bank loan
What is a sole trader?
A business set up by 1 person
Advantages of being an sole trader:
Can keep all the profits
Can make decisions quickly
Disadvantage of being an soul trader:
No one to develop ideas
Unlimited liability
What is a partnership?
A business set up between 2 to 20 people
Advantage of being a partnership:
More ideas
Can share the set-up costs
Disadvantage of being a partnership:
Have to spilt the profits
Unlimited liability
What is an LTD?
A private limited company that sells shares to friends and family
What is an PLC?
A public limited company that sells shares on the stock exchange
Advantage of being a limited company:
Can gain a high gain of capital
Limited liability
Disadvantage of being a limited liability:
Can lose control of your business
What is unlimited liability?
When the business bank account and the personal bank account are not separate
All the business debts rest with the owner
Your personal assets can be taken away
What is limited liability?
When the business bank account and the personal bank account are separate
The debts of the business is limited to the amount that was invested
Your personal assets can not be taken away
What 2 businesses have unlimited liability?
Sole trader
Partnership
What 2 businesses have limited liability?
LTD and PLC
What are the 5 business objective?
Survival
Profit
Provide a service
Growth
Increase market share
Who are internal stakeholders?
Owners
Employees
Who are external stakeholders?
Customers
Suppliers
Government
Local community
What is organic growth?
Growing inside the business
What are the methods of organic growth?
Increasing output
Gaining new customers
Developing new products
Increasing market share
Advantages of organic growth:
Cheaper method of growth
Can stay in control of business
Disadvantage of organic growth:
Slow method of growth
What is eternal growth?
Growing externally through mergers and takeovers
Advantage of external growth:
Quicker way to grow
Access more customers
Disadvantage of external growth:
Costly
Conflict between 2 businesses
What is horizontal growth?
A merger or take over where 2 businesses are involved in a similar operation
What is backwards vertical growth?
Is when a business mergers/takeovers a business that supplies it with its goods and services
What is diversification?
Is when a business mergers/takeovers a business that is completely different (have no connection)
Advantage of diversification:
Reduces risk due to having another market as a back up
Disadvantage of diversification:
Lack of knowledge and expertise of the market
What is the purpose of marketing within the business?
Identifying and understanding its customers
Informing customers and increasing sales
What is primary research? 4 Examples:
Reserach conducted first hand e.g questionnaries, inteviews, trialling, focus groups
Advantage of primary research:
Reliable
Disadvantage of primary research:
Higher costs
More time-consuming
What is secondary research? 5 examples:
Using secondhand research that already exist
e.g. newspapers, magazines, sensors, website, internal data
Advantage of secondary research:
Quick
Cheap
Disadvantage of secondary research:
Less reliable
What is qualitative data?
Collecting data about peoples thoughts and opinions
(open questions)
Advantage of using qualitative data:
More in-depth data collected
Disadvantage of using qualitative data:
Harder to analyse
Advantage of using quantitive data:
Easier to analyse
What is quantitative data?
Collecting is this statistical data
(close questions)
Disadvantage of using quantitive data:
Does not tell you why? Lacks depth
What does market segmentation mean?
Breaking down the market to identify a target market
How does a business segment the market?
Age
Income
Location
Lifestyle
What is the marketing mix?
Product
Price
Place
Promotion
What is innovation?
The improvement of an original idea
What are the stages of the life-cycle?
Introduction
Growth
Maturity
Decline
(extension plan)
Advantage of the product life-cycle:
Know when to do advertising
Can develop extension plan strategies
Note 
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