1.3.1 Meeting customer needs
Difference between niche and mass market
A mass market targets a broad, generalized audience with universal products (e.g., standard smartphones or fast food) to maximize sales volume. Conversely, a niche market targets a smaller, highly specific subset of consumers with specialized needs (subset of a large market)
State 4 demand factors
4 of:
changes in price of substitutes and complementary goods
changes in consumer income
fashion tastes and preferences
marketing, advertising, branding
demographics
external shocks
seasonality
Increase market share
Increase revenue
Building a brand
What does it mean "staff as an asset, staff as a cost"
Staff - expensive
Staff - valuable
3 methods of internal finance
Personal savings, retained profit, sale of assets
Three methods of primary research and three methods of secondary research:
Primary:
Surveys
Focus Groups/ consumer panels
Interviews
Product trials
Test marketing
Secondary:
Websites
Newspapers
Reports
Databases
Factors leading to a change of supply
Changes of cost of production
Technology
Indirect taxes
Government subsidies
External shocks
What is the design mix?
Function, aesthetics, cost
Difference between dismissal and redundancy:
Dismissal - when an employee has done something wrong
Redundancy - when an employee's role does no longer exist
Define partnership
Between 2-20 owners
Draw a market map for Smart watches:
Low price, high price
Health and fitness, Connectivity (e.g. making calls, sending texts)
Accurate market map
Draw a supply and demand model. Draw an increase in demand. Fully label your model.
Fully labelled model.
3 benefits of strong branding
added value, ability to charge premium prices, reduced PED
Types of training and pros and cons of each
induction, on the job, off the job
6/7 of the external methods of finance
loans, share capital, venture capital, overdrafts, leasing, trade credit, grants
Explain the 4 types of Market segmentation:
Geographic segmentation
Demographic segmentation
Behavioral segmentation
Psychographic segmentation
Draw a supply and demand model. Draw an indirect tax. Fully label your model.
Fully labelled model.
Explain 5/6 pricing strategies
cost plus, price skimming, penetration, predatory, competitive, psychological
Draw a tall, flat, matrix
Correct model of each
Formula for revenue, TFC, TVC, AC, BE points
TR = price x quantity
TFC = FC + FC + FC.....
TVC = vc per unit x Q
AC = TC/ Q
BE = FC / selling price - vc per unit
Explain 6 ways to add value to products
E.g. bundling, customer service, speed of response, packaging, frequent buyer offers, customisation
Draw the market for chocolate. Draw an increase is cost of cocoa and increase in advertising of chocolate.
Double curves shifted correctly.
Explain distribution channels and the pros and cons of each:
Four stage, three stage, two stage
Difference between Taylor, Mayo, Maslow, Herzberg
Correct explanation
Draw a BE chart
Model correctly labelled