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Social enterprise are organisations such as
Charities, voluntary organisations and co-operatives
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Charities
Organisations that drink to raise money in orderto support a cause, such as cancer research or wiping out poverty in the third world countries, they focus on minimising costs and organising fund raising activities to maximum donations
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Voluntary organisations
Provide a survive to society(e.g.animal welfare) they don't aim to make a profit but to cover costs of running activities. All surplus funds are reinvested into the organisation
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Co-operative
Oranisation that is owned+controlled by a group of people who have an equal say in running of the business,+ recieve a profit(dividends). Owners known as members, there is no overal boss, all members run businesses in an independent way
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Two main types of co-operatives
Consumer co-operatives (owned by its customers), Worker co-operative (owned and controlled by the whole workforce)
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Consumer co-operatives
Usually pay a subscription and recieve a share of any profits made in return, based on the value of the goods they brought
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Worker co-operatives
People who work within the business are in control rather than outside shareholders - everyone plays a part in the decision making process
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Producer co-operatives
Usually established by small producers(e.g.suppliers) is farmers. A number of farmers get together so they can sell their milk to daries as though they are 1 business. rather than working independently,they may get more money for milk
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Advantages of co-operatives
Members feel like they have a real impact of the running of the business, profits are distributed fairly among members, often less focus on profit, commited to training and education of employees, members are more aware of responsibilities
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Disadvantages of co-operatives
Their focus may limit opportunities for growth, may find internal promotion career moves difficult, decision making may be difficult, difficult to recruit top quality management as they demand a very high salary
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How can a business find out about customer needs
Focus groups, samples, ask other businesses, ask friends, statistics, research on the internet, send out questionaires, suveys - online, telephone, paper, verbal
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what would businesses want to know about customers
How much they are willing to pay for things, age, lifestyle, expectations, location, if they would buy the product they are selling, preffered environment
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Primary/ field research, advantages and disadvantages and methods
Gathering new data for the research that has not already been found/used. Advantage - suited to your business, get opinions. Disadvantages - it taskes time and costs. Methods - using your own ideas, pay someone to do it for you
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Secondary/desk research
Gathering existing data for your business. Advantages - use other business ideas, quick and easy. Disadvantage - May not be suited to your business, could be using another businesses idea. Methods - internet or newspapers
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Trade descriptions act
Prohibit the giving of false description or the supplying of goods or services with false descriptions, this covers all information given on the goods about their quantity or size, their method of manufacture or testing the place
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Consumer protection act
lays down rules to govern the use of such terms as 'sales price' 'reduced price' 'bargain offer'. The point of the act is to ensure that prices advertised in any of these ways are genuin reductions
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Advertising standards authority
An independent authority body set up to monitor all advortisements with are broadcast, make sure all advertisements are legal, decent, honest, truthful, prepared with a sense of responsibility, in line with the principles of fair competition
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Ofcom
An independent organisation which regulates communication inductries in UK, principles - supports growth, adheres to rules on taste, its impartial, doesn't give offence or harm, sets a high technical standard
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Office of fair trading (OFT)
Independent body with basic function of promoting + protecting interests of consumers, main activites are to: give advice to members of the public on consumer affairs, enforce customer protection laws
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What do businesses need to consider when setting a price
The price people are willing to pay, how much competition there is, the cost of production, luxury or average
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Pricing strategies and what the strategy does
Premium pricing(product is luxury/unique), penetration pricing(low price to start), skimming(start with high price), cost based pricing(based on manufacture+profit), destruction pricing(destroy competition then raise price), competitor based
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Pricing tactics
Psychlogical pricing (£1.99 instead of £2), loss leaders (one or two items to sell at a very low price)
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Factors that will affect prices
Cost of production, need for profit, what competitiors are changing, what the market can bear, what people are willing to pay, the season, quantity of stock in hand
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Marketing mix - place
Where you sell goods to consumers is important such as over the internet, in shops or markets. There are also various ways to transport and store goods to the customer
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Direct supply
To the consumer from the manufacturer e.g. farm shop or through the internet
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Types of promotional offers
Buy one get one free, 3 for the price of 2, half price/50% off, samples, free gifts, boldsigns(eye catching), loss leaders, money off coupons, competitions, customer loyalty, price guarantees, after sales service
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A successful marketing mix will...
Sell a good product that satisfies customer needs, at the right place to allow a customer to access it, at the right price in which customers are willing to buy i it for, with effective promotion which informs and persuades the customer to buy it
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Features for an attractive product
Unique, practical, looks goodm modern (up to date), good quality, packaging - promotion and protection, flexibility of use, well known brand
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Types of advertising
Informative (factual+intention is to give information), persuasive (intention of persuading people to buy the product), generic (advertising for a whole industry or a particular type of good reguardless of where the product is sold)
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Trade mark
name or symbol that consumers use to connect with the product or service
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Channels of distribution
Channel 1 - Manufacturer->whole saler->retailer-> consumer. Channel 2 - Manufacturer->retailer->consumer. Channel 3 - Manufacturer->consumer
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E-commerence
Name given to marketing that brings buyer + seller together electronically using internet. There are a number of reasons why a business migh use e-commerence as part of its marketing activities, this can be due to competition or increased profit
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Advantages and disadvantages of e-commerence
Advantages - global market, economies of scale, new markets, new products, low promotion. Disadvantages - changes in skills, training, recruitment, website building, rise in demand, setting up costs
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Season of the year
The price depends on the time of the year
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Cost of production
The price the firm is charged to cover all the costs of production and selling the goods
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Quantity of stock in hand
The price is determined by how much of the goods the firm has to sell
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Promotion and advertising
Promotion - Type of communication used to inform the public about a product and persuade them to buy it. Advertising - a paid for form of communication used to provide information or persuade an audience using media
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Direct mail
A method of promotion which involves targeting particular customers through sending advertisments throught the post
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Sales promotion
A method of promotion which aims to give a short term boost to sales e.g.BOGOF
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Impact of choice of location
Population of an area, type of product, how much people are going to pay in that area, target market, other companies(competitors, businesses that compliment), transport, availability of the product in that area
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Impacts of choice of distribution
Company size, aims of the business, need of the product, type of product
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Market segmentation
The clasification of the cutomers or potential customers into groups or sub groups (market segments), each of which responds differently to different products or marketing approaches
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Types of segments
Income, culture, age, lifestyle, gender, location, scocio-economic group
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Benefits of market segmentation
To increase market share - identify markets that have not been reached, to assist new product development - gaps in market segments indicate scope for introducing new products, extending products to new markets, identify ways of marketing a product
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Niche market
Aimed at a smaller group of people, with products made very specialised (e.g. made to measure clothes)
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Mass market
A product or service aimed at lots of people (e.g. family cars)
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Test market
When a business is unsure of how a new product will sell, it will ask people to test it, it will sell it to a particular area or within a certain group of people
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Marketing constraints
Laws (laws to prevent false advertising), Consumers (may refuse to buy it, negative reviews, complaints), Code of practice, ASA, traiding standards, Consumer legistlation
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Code of practice
Rules which businesses voluntarily agree to keep but have no legal status, and example of an agency that enforces codes of practice is the ASA
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ASA
Advertising standards authorities. Monitors and controls advertising and judges what can be broadcasted, printed or displayed, they respond to complaints by consumers
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Traiding standards
Operated by local councils, they aim to protect customers and to encourage honest practices. Interested in marketing activities adhering to legistlation such as the trade descriptions act
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Consumers legistlation
Laws that protect consumers from being sold products that are poor quality, wrongly described, incorrect weight, advertising misleading, sold on misleading credit terms
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When should businesses listen to pressure groups
Strength of a pressure group, cost, if sales are going down, impact on stakeholders, if there will be a negative impact on the business
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How to businesses respond to pressure groups
Fight back - make public statements, use it to their advantage, ignore them and do nothing, comprimise with them, do what they wnat, change the way they promote their product
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Secondary sector
Where a business is manufacturing a product
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Tertiary sector
Where a business is selling a product
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Other cards in this set

Card 2

Front

Charities

Back

Organisations that drink to raise money in orderto support a cause, such as cancer research or wiping out poverty in the third world countries, they focus on minimising costs and organising fund raising activities to maximum donations

Card 3

Front

Voluntary organisations

Back

Preview of the front of card 3

Card 4

Front

Co-operative

Back

Preview of the front of card 4

Card 5

Front

Two main types of co-operatives

Back

Preview of the front of card 5
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