Mrs Ingram

• Private enterprise is owned by an individual or group of individuals with the objective to make money
• Social enterprises are non profit making like charities
• public enterprises are owned by the government and provides goods and services
• A stakeholder is a group or individual that has an interest in the business in the business activities
• An entrepreneur is someone who takes risks investing their own money to their business idea
• An objective is a goal set by a business
• Financial objectives are survival, profit maximisation and increase in market share
• Non financial objectives are lifestyle, independence and control, personal satisfaction
• Profit maximisation is trying to make as much money as possible
• limited liability is when the owner is limited to the amount of share capital they have invested
• Privatisation can happen to generate income
• The 4 ps are price, place, product and promotion.
• In location proximity to market, labour, materials and competitors matter
• Marketing mix is elements of a businesses marketing that are designed to meet customers needs
• Marketing mix is important because customers are more likely to buy what they actually want
• The Boston matrix is a marketing tool to help businesses analyse products in their portfolio in terms of market growth and market share potential
• The Boston matrix is simple to use but it does not guarantee success
• A star has high market growth and market share, sales start to increase
• A question mark has low market share but high market growth
• A cash cow has high market share but low market growth
• A dog has low market share and low market growth
• Cost plus pricing is adding a percentage of the costs of production to the product to get the price
• Penetration pricing is starting with a low price to get established in the market
• Competition based pricing is when price is set based on the pricing of the rivals
• Skimming is setting a high price then lowering it later
• Promotional pricing is lowering the price of the product for a short period of time to attract customers
• Predator pricing is setting a low price till rivals have gone out of business
• A business could cut their prices to reward long term customers, attract price shoppers, discontinue products or make room for new products
• The three methods of pricing are discounts and sales, physiological pricing and loss leaders
• Loss leaders is setting prices lower than the production costs
• Above the line is promoting using the media like newspapers, tv, social media
• Below the line promotion does not use the media to advertise