Theme 1

Mass Market

Tergeted to the general population

Niche Market

Targeted to a subset of the population for a specialist need

Primary research

Research done by the researcher themselves

Secondary research

Research that already exists

Market orientation

When the product is made depending on what the market wants

Product orientation

When the product is based on the manufacturing of the product and quality

Supply

The amount producers are willing to sell at a given price

Demand

The amount consumers will buy at a given price

Factors the shift demand

Price, Income, Trends, Demographics, Substitutes, Complementary, Advertising, External shocks

Factors that shift supply

Cost of production, Technology, External shocks, Taxes, Subsidies

PED formula

% change in quantity demanded/ % change in price

YED formula

% change in quantity demanded / % change in income

PES

% change in quantity supplied / % change in price

Design mix

Function, Aesthetics, Economic manufacturer (cost)

Pricing strategies

Cost plus, Price skimming, Predatory, Competitive, Penetration, Price cap, Price leadership

Promotion strategies

Above-the-line, Below-the-line, Direct selling, PR, advertising, sales promotions

4 Tier Distribution

Manufacturer, Wholesaler, Retailer, Consumer

3 Tier Distribution

Manufacturer, Retailer, Consumer

2 Tier Distribution

Manufacturer, Consumer

Product Life Cycle

Development, Introduction, Growth, Maturity, Decline

What does a extension strategy do?

Stop a product going into decline

Star (Boston matrix)

High market share, High market growth

Question Mark (Boston Matrix)

Low market share, High market growth

Cash Cow (Boston Matrix)

High market share, Low market growth

Dog (Boston Matrix)

Low market share, Low market growth

Cash Cow

A business, investment or product that provides a steady income or profit

Outsourcing

Using a third party that specialises in the role and can be hired on contact

Full- time work

workers who work 35 hours or more a week

Dismissal (fired)

workers who are terminated from their job for misconduct, absenteeism, or theft

Centralised organisation

When a business has its management at one central office

Decentralised organisation

When a business divides up the organisation into areas (north division)

Chain of command

The flow of information and authority through the organisation

Span of Control

The number of subordinates that one can delegate to

Tall structure

Organised structure with many different departments with small spans of control and long chain of command

Flat structure

Having a large span of control and short chain of command

Matrix structure

When there is more than one product or project running at once so job roles are shared between the projects

Leadership styles

Autocratic, Democratic, Paternalistic, Laissez-Faire

Entrepreneurial traits

Creativity, Hard work, Resilience, Initiative, Self-confidence, Risk-taking

Entrepreneurial skills

Communication, Team-working, Problem solving, Organisation, Numeracy, IT

Financial motives

Profit Maximisation, Profit satisficing

Non-Financial motives

Ethical stance, Social entrepreneurship, Independence, Home working, Flexibility

SMART stands for

Specific

Measurable

Achievable

Realistic

Time bound

Business Objectives

Survival, Profit maximisation, Market share, Cost efficiency, Employee welfare, Sales maximisation

Limited liability

The owner of the business has no persona liability for business debts

Unlimited liability

If the business goes into debt, the liability of the sole trader is at risk as their personal assets can be used to pay off their debts

Sole Trader

A business owned by one owner

Partnerships

2-20 people sharing the risk, costs and responsibilities of being in a business

Private limited company

Limited company that expands by selling shares privately to friends and family

Franchising

When an entrepreneur chooses to set up with an established business name

Social entreprise

A business that trades for social and/or environmental purposes

Lifestyle business

the aim is tho grow big enough to provide a return of investment for investors

Online business

Business set up online

Opportunity cost

The cost of foregoing the next best alternative

What is the economic problem?

CELL are limited resources

unlimited resources = limited resources (scarcity)

Trade-offs

when less of one is exchanged for more of another

What does a entrepreneur need to learn to become a leader

Learning to delegate, Trusting others, Listening to others, Be less reactive, Emotional intelligence

Different extension strategies

modify the product, rebrand or relaunch products

B2B

business to business branding. selling to industrial buyers not the public

B2C

business to consumer branding. building emotional connection but not long term relationships

Customer loyalty

creating a product or service that ensures repeat purchases and that customers continue purchasing with the same business

How can customer loyalty be acheived

effective customer service throughout, loyalty cards, savers scheme

polycentric marketing

when businesses adapt their product to tailor their product to the local market (mcdonald doing different varients of burger for india instead of beef)

ethnocentric marketing

where a country believes their domestic culture is the best for the market ( blockbuster thats why they went bust)

Advantages of above the line marketing

can reach wider market, increases brand awareness

Disadvantages of above the line marketing

expensive, not tailored to customer groups, difficult to track success

Advantages of below the line marketing

easy to measure, more targeted to niche markets

Disadvantages of below the line marketing

Advantages of BOGOF

populart with shoppers, encourages trial and use, encourages switches to a different brand, boost sales

Disadvantages of BOGOF

loss of profit, only useful in short term

Advantages of price discounts

good way to clear out stock

disadvantages of price discounts

business can be regarded as cheap, too many discounts can cause suspicion to the customer

advantages of money off coupons

can help the customer to feel they are getting better value for the money they pay, it encourages repeat purchases

disadvantages of money off coupons

reduced profit from the cost, some customers wait for the coupons to purchase, customers may have bought it without the coupon (a waste of coupon)

advantages of samples

ideal for new product launches, works well with foods, encourages word of mouth promotion

disadvantages of samples

can be complicated to send in the post, can be expensive giving away free products

advatages of speical events

encourages customers to attend, rewars loyal customers, ideal for small businesses

Disadvantages of special events

can be expensive, hard to mesaurre how valuable this marketing is

advantages of point of scale

ideal way to promote new products, works best with seasonal products

Disadvantages of point of scale

only successful if the product meets the need of the customer, needs to be designed to stand out, display may be put in a poor location

point of scales promotion

displays usually put near tills to encourage impulse buying

special events promotion

activities to encourage consumers to buy a product

Sale promotion strategies

BOGOF, price discounts, money off coupons, samples, special events, point of scale

Digital communication strategies

Online ads, mobile communications, advergaming, social media, consumer generated content, viral strategies

Advantages of online ads

powerful ad tolls deliever accurate data, potential to reach large markets for online shopping

Disadvantages of online ads

can be ignored, may get lost with other content, click-thorugh ads can be expensive

Advantages of mobile communications

customers can interact with the brand whilst on the move, does not require any waiting time and is very efficient

Disadvantages of mobile communications

small screen may distort the ad, security issues conducting transactions online, websites need to be updated to be mobile friendly (expensive tech)

Advantages of advergaming

customers will concentrate on the game so they will most likely listen to the brand message, multi-player games reach huge audiences, consumers accept the game has adverts

Disadvantages of advergaming

if the game and brand dont correlate the message could get lost, game players may be too young to make purchasing decisions

Advantages of social media

free or low costs, customers can stay informed with up to date news, increases customer engagement with a brand, shows customers service quickly

Disadvantages of social media

needs regular updating which mena shaving its own staff, one bad post can cause bad reputation for the business (digital footprint)

Advantages of consumer generated content

opportunities ofr consumers to read review before purchasing, positive responses to compllaints is valuable marketing

Disadvantages of consumer generated content

consumers have lots of ways to publicly complain, it’s not just about the brand but their online reputation aswell

Advantages of viral strategies

consumers spread the message themselves to lower promotional cost

Disadvantages of viral strategies

can be complex so message gets lost