business unit 3
- Created by: sophiee456
- Created on: 04-04-16 14:12
what is marketing?
marketing involves identifying, satisfying and understanding customers need at a profit.
WHAT IS MARKET SEGEMENTATION?
group of customers in market which have similar characteristics and needs
MARKET SEGEMENTATION BENEFITS?
-carry out market research
- target specific groups
WHAT ARE EXAMPLES OF PRODUCT TRIAL?
- advertising -low trial prices -free samples - marketing by facebook
What is the product life cycle?
introducion
growth
maturity
decline
EXTENSION STRATEGIES- can be done so a product continues, such as changing the product in some way or traget another market segement e.g by changing packaging or ingredients within the product
WHAT IS CASH FLOW
-cash flow is the movement of money in and out of a business
The boston matrix
STAR- very successful product with high growth by has to constantly be funded to keep up with demand
CASH COW- little growth but an established and profitable product
PROBLEM CHILD- is an issue as doesnt generate much sales or demand so should the business invest in it to increase sales
DOG- a product which a business should think about discontinuing
How does the boston matrix benefit a business?
-tells business which to with draw and which to keep continuing to manufacture
branding and differentitation
A BRAND is a named product which customers trust and can see as being different from other products and can associate with a line of products
BENEFITS OF A BRAND
-consumers are more willing to trial products
- encourage customer loyalty
- consumers trust brands and lead to repeat purchase
- brands can charge higher prices
- consumers have greater awareness of brands
What is product differentiation?
-making a product different from others in some way
e.g by packaging, quality, customer service, design
branding and differentitation
A BRAND is a named product which customers trust and can see as being different from other products and can associate with a line of products
BENEFITS OF A BRAND
-consumers are more willing to trial products
- encourage customer loyalty
- consumers trust brands and lead to repeat purchase
- brands can charge higher prices
- consumers have greater awareness of brands
What is product differentiation?
-making a product different from others in some way
e.g by packaging, quality, customer service, design
managing stock
JUST IN TIME STOCK- when stock is only delievered when needed by productuon system. This means the business does not have to pay to hold stock, however must have a good relationship with supplier and well organised production system
BENEFITS OF HOLDING STOCK?
-business can meet unexpected surges in demand -can replace damaged goods -recieve discount for bulk buying -limited problems
DISADS
-stock can be damaged or stolen
Benefits of holding little or no stock
-cost saving as your not haing to store any stock
-less chance of dmagae or stolen goods
-employes can focus on tasks rather than on stock
-reduce cost of production
managing quality
QUALITY CONTROL-is one part of chain of production, a quality controller usually checks the product at end of production, so if the product is no good, it will be thrown
QUALITY ASSURANCE- focusing on quality at every stage of the production, this means there are less defects
BENEFITS OF GOOD QUALITY
-allows for a premium price to be charged
-builds a strong brand image
-meets customers needs
-way of differentitating a product
Prouductivity
-its the output per worker. Show how much a worker has produced over time
HOW CAN YOU INCREASE A WORKERS OUTPUT?
-train employees
-invest in better equiptment
-motivate employees
METHODS OF REDUCING COST
-use cheaper suppliers
-cheaper labour costs
-relocate
consumer protection laws
SALES OF GOODS ACT
all products must have quality, match their description and be fit for purpose
THE TRADE DESCRIPTION ACT
business must not give false info
fail to give important info
act agressively by forcing sale
BENEFITS OF CONSUMER PROTECTION LAWS
-business following these laws wont be seud or fined
- improve businesses image
-good publicity
DRAW BACKS
-laws can restrict a business
-bad publicity and image if not followed
improving cashflow and profit
improving cash outflows?
-reduce stock orders
-use cheaper suppliers
-delay paying invoices
IMPROVING CASH INFLOW
-increase sales revenue
-de stock
-reduce credit terms with customers
INCREASE REVENUE
-improved marketing - better products -increase sale price
motivation theory
WHAT CAN A MOTIVATED WORK FORCE MEAN?
-less time off ill
-improved customer service
-improved communication in the business
- greater commitment
MASLOWS HIERARCHY OF NEEDS
self actualisation
self esteem
love and belonging
safety
phsyiological
communication
WHAT CAN COMMUNICATION IMPACT ON (excessive)
-motivation - customer service -mistakes -understanding -speed of decisions -image and brand
Barriers to effective communication
-cultral difference e.g language -tired or angry -use of jargon
Informal- gossip
formal-approved by organisation and lays down the rules
ETHICS
remuneration- payment system adopted by a business to pay and reward employee
e.g fringe benefits piece rate, bonus, commision
PRESSURE GROUPS- try and get a business to change what its doing e.g not paying minimum wage, they cause bad publicity. DO this by protest, boycotting products,lobbying
organisation structure
A business can delayer too
-reduce costs
-improve efficency
-improve communication
CENTRALISED
-decisions made by managers
-decisions are slow but controlled
DECENTRALISED -loss of control -delegated to employees at local stores and branches
eco
how can a business be environmentally friendly?
-use renewable energy
-bio degradible packaging
-reduction in food packaging
international trade
tariffs- make imports expensive
-quotas put limits on num of imports
-VAT
=NI
-income tax
corporation tax
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