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Explain the difference between primary and secondary market research
Primary gathers new data, secondary uses data that already exists.
State 3 benefits of market research
- More focused marketing
- Can target customers better
- helps a business be more competitive.
How much should a firm spend on market research?
Depends on how much it has, what it is trying to find out and the expected returns.
Would you use primary or secondary research to test a new product? Why?
Primary - the idea is new so there is no previous data.
What are the 4 elements of the marketing mix?
Price, Product, Place, Promotion
State 3 factors that might influence how much is spent by a firm on advertising
- the firms financial resources
- its marketing objectives
- which media is used in the advertising activity
How might a firm react to a fall in sales?
increase promotional activitives, cut prices, modify the product.
What is a retailer?
a business selling a final product
State 2 types of retail outlets
Department Store, Independent retailer, Supermarket, Chain store
Identify 2 problems of selling via retailers?
- no control over final price
- no control over the way products are sold and promoted in the shops
Distribution is one element of the marketing mix. Name 3 others
Price, Product, Promotion
State 1 problem of borrowing money
State one disadvantage of selling more shares to raise finance
Have to bring in new owners, lose control
What is the difference between a plc and an ltd?
a plc can advertise and selling shares on the stock exchange whereas an ltd can only sell shares to people they invite.
Who owns a business in the public sector?
One firms sales as a percentage of the whole market is know as what?
How might the size of a market be measured?
By the number of items sold (sales), by the value of items sold (revenue)
The 4ps of marketing is known as what?
The Marketing Mix
State 3 situations when a firm might charge a high price
- If the product is heavily branded
- If the product is unique and new
- It there is little competition
State 3 reasons why a firm might increase its advertising
- to prevent sales falling
- to make customers aware of a new product
- to match a competitors campaign.
State 2 ways of promoting a product
advertising, sales promotion, sales force
State 2 ways of advertising a small local food shop
local newspaper, internet, yellow pages
Is rent a fixed cost or variable cost? Why?
fixed, it does not change with output
State 2 ways in which the government might influence a firms location
- offering subsidies or tax cuts
- controlling planning permission
What factors might influence the location of a business apart from the government?
costs, where the customers are, availability of labour
State 2 benefits of improving quality
- fewer rejects and less wastage
- greater customer satisfaction
State 2 ways of improving quality
- Better supplies
- Making employees more responsible for their own worrk
Why is better quality more important nowadays?
because of more competition and greater demands from customers.
What is quality control?
inspections of items to check that they are not faulty
What is batch production?
groups of items that move from one stage of production to the next
Give 1 advantage and 1 disadvantage of batch production
- Advantages - flexible production, high volume, product items in given quantities
- Disadvantages - inflexible, may produce to much, expensive
What is flow production?
Items move continuously along the production process, with the item been produced in stages.
Give 1 advantage and 1 disadvantage of flow production
- Advantages - specialise is each stage of the production, items move continuously along the product stage, high volume, low unit costs.
- Disadvantages - inflexible, problems in the production line may bring production to a stop
What is job production?
Production of items to a specialised or personalised request
Give 1 advantage and 1 disadvantage of job production
- Advantages - items can be produced to specific requirements, flexible production,
- Disadvantages - expensive, time consuming,
State 2 benefits of training
- increases skills of staff
- may motivate staff
State 2 problems of training
- Staff may leave once they have been trained
State 3 types of training
- On the Job Training
- Off the Job Training
What is on the job training?
Employees are trained as they do the work
State 1 advantage of internal recruitment
Managers know the people already and are aware of strengths and past performance
Distinguish between a job description and a job (or person) specification
A job description sets out what the job entails, a job specification sets out the requirements needed by someone to do the job
What is the difference between internal and external recruitment?
Internal recruitment means recruiting from within the business, external recruitment means recruiting from outside the business
State 2 ways in which a firm might recruit a new receptionist
- Local Job Centre
- Advertisement in local newspapers
The organisation responsible for implementing health and safety at work is known as what?
The Health and Safety Executive
What is the name given to an organisation that protects employees interests?
State 3 actions that might be taken if the Health and Safety at Work Act is broken?
- Impose a fine
- Demand that behaviour is changed
- Shut down the firm until it takes appropriate actions
State 3 benefits of a motivated workforce
- Better productivity
- Better attendance
- Greater willingness to cooperate
State 3 possible forms of industrial action
- Go Slow
- Work to Rule
State 2 factors that influence the level of stocks that a firm holds
- Expected demand
- Opportunity costs
State 4 costs of holding stock
- Opportunity costs
Give examples of types of stock
raw materials, components, work in progress, finished goods, general supplies
What is induction training?
Introduces employees to the job, the organisation and their colleagues.
State 4 items that may be on a persons application form for a job.
- Previous experience
State 2 factors which are important in conducting an effective interview
- giving the interviewee the opportunity to talk
- ensuring that there are no unwanted interruptions
State 2 benefits of training
- May lead to higher productivity
- Employees may be more highly motivated and more willing to stay at the business
State 3 reasons why a firm might not train staff
- May not need to
- Fear staff may be recruited by others
State 3 factors that influence how much should be spent on training
- Funds available
- Skills available compared to skills required
- Need to change attitudes and skills
State 3 benefits of good communication in a business
- May motivate staff,
- Better decisions
- Keep in touch with customers
State 3 barriers of communication in a large business
- Too many layers of hierarchy
- Cultural differences
- Conflicting Objectives
State 3 consequences of poor communication in a firm
- Poor decision making
- Demotivated employees
- Lack of direction
What is a salary?
A fixed sum per year, paid monthly to employees
What is a Pension?
A payment made to employees once they have retired
What is piece rate pay?
Payment by output, where someone is paid based on the amount they produce or sell of an item
What is a Bonus?
Additional payment on top of normal pay
Who works in the tertiary sector: a miner or an accountant?
Is the tertiary sector the largest or smallest sector in the UK?
Tertiary business produce s_______ rather than goods.
Who works in the secondary sector: a working in a factory or in a restaurant?
A worker in a factory
Ther service sector of the economy is called what?
The tertiary sector
Secondary businesses produce g_____ rather than services
If the revenue from sales is greater that its costs, the firm is said to have made what?
Which of the following is a primary sector business: farm, school or car manufacturer?
Name 2 other sectors in the economy apart from primary
Secondary and Tertiary
Is the primary sector in the UK relatively large or small?
A firm makes a loss if the costs are greater than its r______
What is meant by the National Minimum Wage?
determines the least someone can be paid in a job
What is the role of the Advertising Standards Authority?
To ensure that advertisements are legal, decent, honest and truthful
State 3 elements of a contract of employment
- Terms and conditions of work and pay
- Holiday entitlement
- Notice Period for Dismissal
How can technology help marketing?
- To gather and keep information on customers
- Use of websites and email
- Electronic Point of Sale (EPOS)
How could a firm raise finance for new technology?
How can technology help production?
- Computer Aided Design (CAD)
- Computer Aided Manufacturer (CAM)
- Computer Integrated manufacturing (CIM)
- Automatic Stock recording
Why might employees resist new technology?
- May lose jobs
- May lack necessary skills
State 3 stakeholder groups
Employees, Managers, Local community, Owners, Shareholders, Investors, Customers, Government
Are all stakeholders shareholders?
No, someone does not have to have invested in the business to be a stakeholder
What is the Internet?
Worldwide network accessed through an online connection
How can the internet help businesses?
Can market and sell their products online, can use the internet to find information
What factors might a manufacturer consider before selling directly via the internet?
Reaction of existing retailers, impact on price, security for payment, intial design costs
What are the advantages and disadvantages of e-commerce?
- Advantages - relatively cheap to set up, do not need expensive locations, access to global markets
- Disadvantages - customers cannot see the products directly, they may worry about security when they pay, they may be encouraged to shop around
If a customer owes the business money, are they a debtor or a creditor?
In a market, firms supply goods while customers d______ them
Why might demand increase for a product?
Better marketing, competitors leave the market, product becomes fashionable, firm enters new markets, change in the economy, prices are lowered.
State 4 ways of making customers aware of a new product
Advertising, Public Relations, Sales force, Sales promotions