Business 1.4

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why is understanding customers and focusing on their needs vital for a business
if they intend to attract people to buy their product
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what are the 3 stages of becoming customer focused
identifying needs, anticipating needs, and meeting customer needs
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how does a business identify needs
by using techniques such as market research, e.g. asking customers to complete a questionnare as they leave the store
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how does a business anticipate needs
by identifying needs in advance to get a business a competitive advantage, e.g. by a fashion brand changes styles in its stores to match styles at a national fashion show
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how does a business meet customer needs
by providing what customers want and need, whether that is quality, low prices, or excellent service
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what is one way of meeting customer needs
by a business adapting elements of marketing mix, e.g. by using recycled packing for environmentally conscious customers
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what are the 4 p's of the marketing mix
product, place, promotion, and price
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what is the product in the marketing mix
the product itself has to meet the needs of customers, and have correct attributes and features that customers want
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what will a successful business usually do their product in the marketing mix
try to differentiate it
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what is the place in the marketing mix
the place is the way in which a product is distributed-how it gets from product to consumer
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what do businesses have to consider in the place of the marketing mix
they have to consider the channel, e.g. online or in store
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what is promotion in the marketing mix
promotion is communication between the business and the customer that makes the customer aware of its products
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what are 4 main examples of promotion
advertising, sales promotions, sponsorship, public relations
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what is the price in the marketing mix
the price is the amount charged to customers for the product or service. high quality product or service have a high price
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what must price reflect
the value customers place on the product or brand, and whether the product has special features that they may be willing to pay more for
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why is price subjective
because it depends many factors, such as commodity prices, and prices set by competitors
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what is liability
the legal responsibility business towards its debts
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what is unlimited liability
when the owner of the business is legally responsible for any debts of the business
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what types of businesses have unlimited liability
sole traders (sole owners)-businesses owned by one person
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why is it risky for a businesses to be a sole trader
because there is potential for the owner lose his or her personal belongings, to pay off any debts
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what is limited liability
when the owners and the business are separate legal entities; when any debts incurred by the business belong to the business
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what can the owners only lose from limited liability
the amount they have invested
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what are there personal belongings
they are not liable
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give examples of the types of businesses with limited liability
private limited companies (ltd) and public limited companies (plc)
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what is the difference between sole traders and limited companies in risk
sole traders have unlimited liability which means more risk, and private liked companies have limited liability which reduces risk
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what is the difference between sole traders and limited companies in control
owners have 100% control , so make all decisions, whereas in private limited companies control of owner depends on proportion of shares sold to shareholders
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what is the difference in profits of sole traders and limited companies
sole traders keep 100% of the profit, whereas in limited companies profits are shared proportionally between shareholders
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what is the difference in privacy of sole traders and limited ocmpanies
sole traders have more privacy, whereas in limited companies the accounts have to be filed to companies house which can be viewed by anyone
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why must all businesses do when they start up
register and trade under a unique name that promotes the business; private limited companies must have ltd. on the end
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what must all business keep records of
sales, purchases, and names of the people or businesses they have worked for or with
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what must all business register with in the uk
they must register with her majesties revenue and customs (HMRC)- which is the government authority responsible for collecting tax
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my must a business register with the HMRC
so they can be taxed the appropriate level
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why must a business follow legal requirements
so that the government can keep track of business activity, so taxes can be collected, to protect the business from illegal activity, and protect customers from illegal businesses practises
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what are the 4 min taxes on businesses
value added tax (VAT), corporation tax, income tax, and national contributions tax (NIC)
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what is VAT
a tax on the value of sales of the business. businesses that sell a certain amount will register to pay VAT
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what is corporation tax
a tax paid by limited companies on the profits of the company
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what is NIC
a tax on earning of workers and sole traders (linked to state benefits)
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what is income tax
a tax on the income earned by workers and sole traders
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what is customer satisfaction
a measure of how much a business its products meet customer expectations
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what must a business do to provide effective customer service
meet the needs and wants of customers
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what are ways of providing effective customer service
dispatching order quickly, being 100% accurate in orders, offering excellent after sales service, providing a personal/tailored service,being convenient, being polite and friendly, responding immediately to any complaints, and going the 'extra mile'
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what are the benefits of good customer service
repeat purchase, customer loyaltly, businesses can charge a premium price, improves business reputation, businesses can differentiate themselves, and improve or produce a USP
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how can a business keep customers coming back (customer loyalty)
repeat purchases help achieve long term sales and therefore success of a business
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how can repeat purchasing be achieved
cheaper prices than competitors, easy and convenient service, effective customer service, promotions and special offers, by building good relationships with customers (good communication)
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why should a business want a motivated workforce
a motivated workforce will be more committed and productive
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how can a business motivate staff
paying fair and competitive wages, proving good working conditions, proving perks to the job e.g. company car, delegating power and responsibility,good training and nurturing staff development, encouraging team work and good relationships
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how can a business allocate the right employee for the right job
by the recruitment process
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what are the 5 stages of the recruitment process
drawing up recruitment documents, receiving applications, shortlisting, selection, and then finally training
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what recruitment documents
job adverts, job descriptions, job specifications, job particulars
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what documents are involved in receiving applications
cvs, application forms, letters etc.
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what happens in shortlisting
from all applicants the list is shortened, and as a result a list of suitable candidates is drawn up
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what happens in the selection process
interviews and assessments, and reference may be required
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what happens in the training section
the business put training in place to develop skills that will be used/required for the job for all staff, especially new staff
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what is employment legislation
the laws that employees must abide by in number of areas
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what laws are there in place in recruitment
employers cannot discriminate on basis of gender, age, race, or disability
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what laws are there in place in pay
employees must be paid equally for doing the same job
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what laws are there in place for discipline
employees ar protected by laws from unfair discrimination and punishment in the workplace
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what laws are there in place for working hours
employees cannot be expected to work over certain number of hours
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Card 2

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what are the 3 stages of becoming customer focused

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identifying needs, anticipating needs, and meeting customer needs

Card 3

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how does a business identify needs

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Card 4

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how does a business anticipate needs

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how does a business meet customer needs

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