Marketing Mix
What is a target market?
A target market is a specific group of consumers that a business aims to reach with its products or services. These consumers share common characteristics, such as age, interests, or location, making them the ideal audience for the business’s marketing efforts.
What is a partnership in business?
A partnership is a business structure with a minimum of 2 and a maximum of 20 owners.
Define the concept of competition in the business world.
Competition in business is the rivalry between companies that offer similar products or services, each aiming to attract customers, increase sales, and gain market share.
What is the purpose of staffing in a business?
To plan, recruit, select, train, and retain employees who help the business meet its objectives.
What does productivity mean in a business context?
Productivity refers to how efficiently a business uses its resources (inputs) such as labour, materials, and capital to produce goods and services (outputs). Higher productivity means more output is generated from the same amount of inputs.
Explain the concept of market segmentation and give two examples.
Market segmentation is the process of dividing a broad market into smaller groups of consumers who share similar characteristics or needs. This helps businesses target their products and marketing efforts more effectively.
1. Demographic segmentation: Dividing customers by age, gender, or income (e.g., targeting teenagers with trendy clothing).
2. Geographic segmentation: Dividing customers by location, such as city or country (e.g., selling winter clothes in colder regions).
What is a sole trader?
A business owned and operated by one person. The owner is responsible for all decisions, keeps all the profits, but also has unlimited liability, meaning they are personally responsible for any debts.
How does competition impact pricing strategies for businesses?
Competition forces businesses to set competitive prices to attract customers. If one company lowers prices or adds value, others may adjust their pricing or offer promotions to stay relevant and retain the market share.
What’s the difference between internal and external recruitment?
Internal recruitment hires from within the business; external recruitment hires new people from outside.
Why is it important for businesses to focus on enhancing productivity?
Improving productivity helps businesses reduce costs, increase profits, and stay competitive. It allows more output with the same or fewer resources.
Describe the ‘Product’ and ‘Place’ elements of the marketing mix and their importance.
Product refers to the goods or services a business offers to satisfy customer needs or wants. A successful product meets customer expectations and stands out from competitors.
Place refers to the locations or channels through which the product is sold and delivered to customers, such as retail stores, online platforms, or direct sales. It is important because it affects how easily customers can access the product.
Give two advantages and disadvantages of a sole trader business structure.
Advantages: simple to set up, cowner has complete control, less costly to operate, owner's right to keep profit and no tax on profits only personal income.
Disadvatages: personal unlimited liability for business debts, need to carry all losses, manages all business tasks and difficult to operate if owner is sick.
Discuss the role of healthy competition in driving innovation in industries.
Healthy competition encourages businesses to improve their products, services, and customer experience. It promotes innovation by pushing companies to find better, faster, and more efficient ways to meet customer needs and stay ahead of competitors.
What is the role of Human Resource (HR) management in achieving business objectives?
HR ensures the right people are hired, trained, and supported so they contribute to productivity and the business’s strategic goals.
How can effective time management contribute to improved productivity in a business?
Effective time management ensures that tasks are completed efficiently and deadlines are met. It helps avoid wasted time, keeps employees focused, and increases overall output.
How does ‘Promotion’ help a business reach its target market effectively? Give examples of promotional methods.
Promotion is the communication that a business uses to inform, persuade, and remind customers about its products or services. Effective promotion raises awareness, generates interest, and drives sales. Examples include advertising (TV, social media), sales promotions (discounts, coupons), public relations, and direct marketing (emails, flyers).
What is limited liability, and why is it important for company owners?
Limited liability means the owners (shareholders) are only responsible for business debts up to the amount they invested. It protects their personal assets if the company fails.
How does customer service play a crucial role in building a competitive advantage for businesses?
Excellent customer service can lead to higher customer satisfaction, repeat purchases, and positive word-of-mouth. Businesses that provide reliable, responsive, and personalised service which will build strong customer loyalty.
Outline two advantages and one disadvantage of external recruitment.
Advantages: Wider talent of pool, new ideas, experience from different fields, can attract qualified and trained people.
Disadvantage: Higher costs, time consuming and can lead to dissatisfaction among existing employees.
Discuss the impact of employee training and development on overall productivity within a company.
Training equips employees with the skills and knowledge to work more efficiently and confidently. Ongoing development can lead to better performance, innovation, and job satisfaction, all of which contribute to higher productivity.
How can businesses use the ‘People’ element of the marketing mix to help the business succeed and stand out?
Businesses can use the ‘People’ element of the marketing mix to gain a competitive advantage by ensuring that their staff provide excellent customer service, build strong relationships, and create positive experiences. Well-trained, friendly, and knowledgeable employees can make customers feel valued, encouraging repeat business and positive word-of-mouth.
Discuss the key characteristics of successful entrepreneurs and explain how these traits contribute to starting and growing a business. Provide real-life examples to support your answer.
Successful entrepreneurs often display traits such as innovation, resilience, risk-taking, leadership, and strong problem-solving skills. These characteristics help them identify gaps in the market, develop unique products or services, and persist through challenges.
Elon Musk - Tesla, Richard Branson - Virgin, Janine Allis - Boost Juice, Melanie Perkins - Canva
Give examples of companies that have successfully differentiated themselves and created a strong competitive advantage in their industry.
Apple – known for stylish, easy-to-use tech
Nike – famous for quality sports gear and strong brand
McDonald’s – fast service and global menu consistency
Tesla - innovation in electric vehicles and autonomous driving technology
Evaluate the benefits and challenges of using casual employees instead of full-time staff.
Benefits: Casual staff can be rostered according to demand, which is cost-effective during slower periods. No obligation to provide leave entitlements (e.g., annual or sick leave), reducing long-term employment costs.
Challenges: Casual employees may feel less connected to the business, impacting morale and performance. Frequent staff changes can disrupt team cohesion and increase training costs.
Provide examples of strategies that businesses can implement to optimise workflow processes and boost productivity.
Businesses can use automation to handle repetitive tasks quickly and accurately. They can also simplify work by removing unnecessary steps, train employees to improve their skills, use clear communication tools to share information faster, and set clear goals to keep everyone focused and productive.