BME

• When the economy is growing (expansion/peak):
• When the economy is slowing (recession/trough):
• Factors that impact the economy

  • - Inflation
  • Interest rates
  • Availability of skilled and unskilled labour
  • Unemployment rates
• Discretionary expenses


  Any costs that you don't need (wants)
• Non-discretionary spending


  Money spent on the things that you need
• Raising interest rates


  Reduces inflation
• Raising interest rates


  Consumers have less money to spend on wants and needs
• Raising interest rates


  Consumers will tend to save more and spend less on wanted items
• Raising interest rates


  Makes businesses more expensive to run, they will have less money to spend
• Business public image


  How the business is perceived and the reputation it has in the community, created by the opinions that the public has
• In markets where businesses compete with similar products and prices, their business image will influence their competitiveness
• Why should businesses strive for a positive public image?

  • - Customer loyalty
  • People will remember your brand
  • Attract and maintain a motivated staff
  • Sustainable profits
• Developing a positive public image


  • - Advertising
  • Public relations
  • Community engagement
  • Low staff turnover
  • Having ethical processes
• Strategies for boosting public image

  • - Donating to causes
  • "Green gifts" (using reusable bags, water bottles and stationery made from recycled materials)
  • Being ethical (treating customers and suppliers honestly, following through on promises, motivating and encouraging loyalty)
  • Corporate sponsorship
• Environmental issues that impact public image

  • - Climate change
  • Energy use
  • Animal testing
  • Greenwashing (businesses claiming to 'be green' without real commitment to sustainability)
• Marketing mix


  A planned mix of controllable interdependent elements of a product's marketing plan
• aquisition


  first stage of employment cycle

  understanding staffing needs

  involves selection and recruitment

  internal and external recruitment
• delegation


  manager assigns authority to an employee who becomes responsible for desision making

  helps grow skills
• span of control


  number of people reporting to a manager

  manager with a wide span of control has many subordinates
• chain of command 


  refers to a company’s heirachy of reporting relationships, who must answer to whom

  establishes accountability, lays out a company’s line of authority and decision making power
• Team Organisational Structure


  A way a team is organized and managed to achieve its goals and objectives
• Roles and Responsibilities


  Clearly defined roles and responsibilities for each team member
• Functional Structure


  Team members grouped by functional areas, such as marketing, sales, and IT
• Divisional Structure


  Team members grouped by product, geographic region, or customer segment
• organisational structure: product 


  grouped according to the product being sold

  allows for quick decisions

  little communication between departments
• frontline 


  resemble the department they are in

  work closely with the workforce and have a more personal role

  they ensure: employees meet performance goals, align with the organisational goals
• middle 


  reports to top managers and serves as the head of major units

  responsibilities: liaison between top level managers and rest of the rest of the organisation and develops, implements strategic actions plans that are needed to achieve organisational goals
• top


  made of senior level executives

  responsibilities: making sure organisational objectives are achieved, lead entire organisation or specific divisions
• People in Marketing Mix

  Human resources involved in delivering a product or service, including employees, skills, training, and motivation
• marketing mix: promotion 


  sales promotion- persuading a potential customer through short terms incentives

  pros- very effective in boosting sales (short term), help sell old stock

  cons- dosen’t build long term loyalty, cheapen brand image
• marketing mix: promotion 


  viral marketing- spreads info and opinions about product

  cheap, but may go viral for the wrong reasons, may irritate customers and create negative public image
• marketing mix: promotion 


  advertising- pays to promote prouduct

  pros- control overall message, timing

  cons- high cost
• marketing mix: promotion 


  Publicity- spread info by media about brand

  pros- low cost, credible, , creates awareness

  cons- out of marketers control, may backfire
• marketing mix: place 


  location

  online- cheaper overhead costs, no physical store, intense competition, consider an deal with returnes and delivery

  physical store- can enhance the image of the brand, try before buy, high costs
• marketing mix: place 


  direct distribution- producer sells product

  pros- more control over selling enviroment, higher profit, relationship can form with customer

  cons- more work for company, more expensive
• marketing mix: place 


  indirect distribution- producer to wholesaler to consumer

  pros- greater cost efficiency, rapid distribution

  cons- removes ability to interact with customers, loss of control, lower profit
• marketing mix: price 


  skim- setting a high price for a new product

  penetration- low price when entering market

  psychological- expressed a ‘odd prices’ eg. $9.99

  premium-keeping price artificially high
• marketing mix: positioning


  how customers view the businesses product in relation to similar products in the market
• marketing mix: product 


  the good or service

  vital to develop products in demand
• data analysis


  to organise raw data and extract meaningful information

  eg. stats or percentages