Theme 1

Mass Market

Large, general market with many customers (e.g., Coca-Cola).

Niche Market

Small, specialized segment (e.g., luxury watches).

Dynamic Markets

Markets that constantly change (e.g., technology).

Market Growth

Increase in total sales over time.

Market Share

A business's percentage of total market sales.

Market Share Formula

Market Share = (Business Sales / Total Market Sales) × 100

Risk

Measurable chance of loss (e.g., launching a new product).

Uncertainty

Unpredictable external factors (e.g., economic downturn).

Primary Research

First-hand data (e.g., surveys, focus groups).

Secondary Research

Existing data (e.g., reports, government stats).

Qualitative Research

In-depth opinions and motivations.

Quantitative Research

Numerical data and statistics.

Market Mapping

Identifying gaps by comparing competitors based on factors like price and quality.

Competitive Advantage

A factor that makes a business superior (e.g., unique branding).

Adding Value

Enhancing a product to make it more desirable (e.g., packaging, branding).

Differentiation

Making a product stand out through USP (e.g., Apple's design).

Demand Factors

Factors affecting demand: Price, Income levels, Trends & tastes, Advertising, Competitor actions, Seasonal factors.

Supply Factors

Factors affecting supply: Production costs, External shocks (e.g., war, pandemics), Government policies (e.g., taxes, subsidies).

Price Elasticity of Demand (PED)

Measures how demand changes when price changes.

PED Formula

PED = % Change in Quantity Demanded / % Change in Price

Elastic Demand

PED > 1 - Price-sensitive (e.g., luxury goods).

Inelastic Demand

PED < 1 - Price has little impact on demand (e.g., necessities).

Income Elasticity of Demand (YED)

Measures how demand changes when income changes.

YED Formula

YED = % Change in Quantity Demanded / % Change in Income

Normal Goods

YED > 0 - Demand increases as income rises.

Luxury Goods

YED > 1 - Demand rises significantly with income.

Inferior Goods

YED < 0 - Demand falls as income rises (e.g., supermarket own brands).

Function (Product Design)

How well it works.

Aesthetics (Product Design)

How it looks/feels.

Cost (Product Design)

Efficiency in production.

Branding

Name/logo/image that differentiates a product.

Advertising

TV, digital, print

PR

Sponsorships, press releases

Sales promotions

Discounts, BOGOF

Cost-Plus Pricing

Adding a markup to costs.

Penetration Pricing

Low prices initially to attract customers.

Skimming Pricing

High initial price, then lowering over time.

Competitive Pricing

Pricing in line with rivals.

Psychological Pricing

Prices ending in .99 or .95 to seem cheaper.

Direct Channels

Manufacturer → Customer

Retail Channels

Manufacturer → Retailer → Customer

E-commerce & Multi-channel Distribution

Selling through multiple platforms.

Product Life Cycle

Stages: Introduction, Growth, Maturity, Decline.

Boston Matrix

Stars - High growth, high market share. Cash Cows - Low growth, high market share. Question Marks - High growth, low market share. Dogs - Low growth, low market share.

Mass vs. Niche Marketing

Different approaches to target markets.

B2B vs. B2C Marketing

Business-to-Business vs. Business-to-Consumer marketing.

Digital Marketing

SEO, PPC, influencer marketing.

Flexible Workforces

Part-time, remote work, gig economy.

Dismissal vs. Redundancy

Different forms of employee termination.

Employee-Employer Relations

Trade unions, HR policies.

Recruitment Process

Job description → Advert → Applications → Interviews

Selection Methods

CVs, aptitude tests, assessment centers.

Training

On-the-job - Learning at work. Off-the-job - External training courses.

Organisational Design

Tall vs. Flat Structures, Centralised vs. Decentralised Structures.

Taylor (Scientific Management)

Money motivates workers.

Maslow's Hierarchy of Needs

Employees seek self-actualization.

Herzberg's Two-Factor Theory

Hygiene & motivator factors.

Mayo (Human Relations Theory)

Social interaction improves motivation.

Role of an Entrepreneur

Identifying business opportunities, taking risks and making decisions, organising resources effectively.

Business Objectives

Profit Maximisation, Survival, Growth, Social & Ethical Objectives.

Forms of Business Ownership

Sole Trader - One person, unlimited liability. Partnership - Two or more people share responsibility. Private Limited Company (Ltd) - Shares sold privately. Public Limited Company (Plc) - Shares traded on stock exchange. Franchising - Using an established brand to start a business.

Business Growth

Organic Growth - Expanding from within (e.g., new stores). Inorganic Growth - Mergers & takeovers.

Leadership Styles

Autocratic - Leader makes all decisions. Democratic - Employees involved in decision-making. Laissez-Faire - Employees have full control.