Marketing
process of buying and selling of products using computers over the Internet
E-commerce
the blend of price, promotion, product and place, designed to attract customers
marketing mix
when a job position is no longer available and hence an employee is no longer required
redundancy
an organisation with profit, environmental and social objectives
social enterprise
two or more businesses start a new project together sharing capital and profits
joint venture
a subsection of a larger market with specific needs and characteristics
niche market
a financial plan or forecast for the marketing of a product for a specified period of time
marketing budget
List the functions of management
- Planning
- Organising
- Commanding
- Coordinating
- Controlling
(decision making, motivating employees, etc.)
List the factors of product
- land
- labour
- capital
- enterprise
List three possible communication methods that a business may use to inform all employees about a slight change in the organisational structure
- letter
- meeting
- notice on office board/website
- phone call (small business)
List three possible extension strategies
- introduce new variations/versions
- sell into new markets
- sell through additional retail outlets
- make small changes to product design, colour and packaging
- use new advertising campaign
List two reasons why a market may become more competitive
- globalisation
- developments in technology (internet, social media)
- more business enter the market, so more products and choice available for consumers
- improvements in transportation links
- lower barriers to entry (legal control changes, free trade)
List and describe two ways a business could improve motivation of its employees in a toy manufacturing company
- job rotation by swapping employees between making different toys so employees are not bored doing the same thing
- offer training on new technology used to make toys so employees feel more valued
- improve communication with management so workers feel important, which could improve efficiency of building toys
- introduce piece rate to increase productivity by encouraging workers to make more toys
- improve the working conditions and environment, perhaps setting up a break room where workers can relax in between making toys
Give an example of a job in the primary sector, a job in the secondary sector and a job in the tertiary sector
- primary: fisherman
- secondary: toy manufacturer
- tertiary: hair stylist
If you were asked to analyse an organisational chart, describe three things you would look at/comment on?
- chain of command
- span of control
- potential for delegation
- communication channels
list and describe two disadvantages of e-commerce to a business
- potential increased costs, as setting up, running and maintaining online shop may require specific expertise
- loss of personal contact with customers could cause loss of customer loyalty and business may not know what customers are actually wanting/needing
List and describe two advantages of e-commerce for a business
- widen the number of potential customers, as you can sell internationally
- could lower fixed costs, as you do not need to pay rent at a shop
- convenience for customers may encourage them to purchase from the business, increasing sales (purchase at any time or any location)
- strategy to remain competitive, as there is an 'online trend', especially when there are falling sales
List and describe three different training methods
- induction training -->introduction given to new employees explaining the businesses activities, customs and procedures and introducing them to other workers
- on-the-job training --> provided by colleagues inside the workplace
- off-the-job training --> provided by professionals outside of the workplace
List and describe two advantages to a business deciding on being a franchise
- less chance of business failure, if the franchise already has a good reputation
- training is provided, so the owner doesn't need to be a trained manager already
- lower advertising costs, as a franchise is already an established brand
- banks are more likely to lend to a franchise because there is less risk involved
- supplies typically come from a central source, so no need to arrange suppliers (saves time to do other things)
List and describe two disadvantages to a business deciding on being a franchise
- lack of control from the owner, as a franchise has set rules and terms in place already
- if there is a problem at one franchise, it can affect your franchise, resulting in reduces sales
- less profits received by owner as only a percentage are received by the owner (cannot maximise profits)
List and describe three reasons why sales for a product may fall
- poor management in the business that doesn't blend the marketing mix appropriately or doesn't respond well to change
- fall in demand for the product
- increased competition for the product encourages customers to buy elsewhere
- changes in purchasing habits of consumers
List and describe three methods of promotion that may be appropriate to a new business selling sports balls in a shop
- leaflets to raise awareness of business
- BOGOF to encourage more customers to try to products
- promotional pricing short term to entice customers to try products
- sponsorship to increase the image of the business
- gifts to attract customers into the store
List and describe three possible reasons a business may want to change their organisational structure
- could improve communication if there are customer complaints arising from communication problems, which could lead to a better reputation
- reducing the chain of command could reduce labour costs, as less middle management would be needed
- reducing the chain of command could encourage delegation which could lead to increased employee motivation if they feel trusted with responsibility
- reducing the chain of command could lead to quicker decision making
- reducing the chain of command may mean that senior management is less remote and more aware of issues, which is important for a competitive market
- create jobs
- increase competition
- increase output
- benefit society
- help then expand quicker
Taylor - workers are only motivated by money
Herzberg - hygiene/maintenance factors motivate people
Maslow - physical; security; social; esteem; self-actualisation (fulfilled in that order)
- All focus on motivating workers