Video for paper 2

• What is internal growth in business?

  Entering new markets or launching new products
• Why is internal growth considered slower than external growth?

  It involves developing new markets or products
• How does becoming a public limited company (PLC) benefit a growing business?

  It raises significant finance through share sales
• What are economies of scale?

  Cost advantages due to increased output
• How do purchasing economies of scale affect average costs?

  They lower average cost per unit
• What is retained profit?

  Net profit not paid out as dividends
• What is loan capital?

  Money borrowed from lenders like banks
• What happens when interest rates increase for loan capital?

  It raises the cost of borrowing money
• What is share capital?

  Money raised by selling shares to investors
• Why do business aims and objectives change?

  Due to market conditions, technology, and laws
• How might a business's focus change as it evolves?

  From survival to growth or market exit
• What is globalization?

  The world becoming more interconnected
• How do imports affect UK businesses?

  They increase competition from overseas
• What advantage do exports provide for UK businesses?

  Access to larger overseas markets
• What is a tariff and how does it affect demand?

  It raises prices, reducing demand for goods
• What are trade blocks?

  Groups of countries with free trade agreements
• Why might a multinational company choose to locate in a trade block?

  To access free trade among member countries
• How do multinationals compete in the market?

  Through e-commerce and marketing mix adaptation
• What is the ethics versus profit trade-off?

  Higher ethics may lead to lower profits
• What is a pressure group?

  An organized group influencing businesses or governments
• How can pressure groups impact a business's marketing mix?

  By influencing product, price, place, or promotion
• What are the four Ps in the marketing mix?

  Product, Price, Place, Promotion
• What is the design mix in product development?

  • Aesthetics: How the product looks
  • Function: How well it performs
  • Economic: Cost-effectiveness of production
• What are the stages of the product life cycle?

  R&D, Introduction, Growth, Maturity, Decline
• What occurs during the research and development stage?

  Market research and product development occur
• What happens in the growth stage of the product life cycle?

  Sales increase rapidly, attracting competitors
• What are extension strategies in marketing?

  Methods to prolong a product's life cycle
• What are some extension strategies for products?

  • Improve packaging
  • Add new features
  • Change target market
  • Increase advertising
  • Reduce prices
• What is product differentiation?

  Making a product distinct from competitors
• What is price skimming?

  Starting with a high price, then lowering it
• What is price penetration?

  Starting with a low price, then increasing it
• What is competitive pricing?

  Setting prices similar to competitors' prices
• How does the product life cycle affect pricing strategies?

  Different stages require different pricing approaches
• What is promotion in marketing?

  Activities to increase product awareness and sales
• What are types of advertising?

  Billboards, magazines, internet, television
• What is the importance of branding?

  It reinforces product perception and loyalty
• What is online promotion?

  Marketing activities conducted on the internet
• What is the channel of distribution?

  How products reach customers from producers
• What is the integrated marketing mix?

  • All four Ps must work together
  • Align with target market segments
  • Ensure consistency across marketing efforts
• What are the two main ways to purchase products mentioned?

  Through e-commerce or m-commerce