business unit 3

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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eco

how can a business be environmentally friendly?

-use renewable energy

-bio degradible packaging

-reduction in food packaging

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international trade

tariffs- make imports expensive

-quotas put limits on num of imports

-VAT

=NI

-income tax

corporation tax

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