my own cards

Created by

Bibi Villar

Cards (60)

why are some markets more competition?
government intervention ( legal controls, selling off public corporation to private sector)
growth of free trade between countries
development of E- Commerce and social networks (product development, improve efficiency, increased promotion ( advertising) , look for new markets)
whats mass marketing? 
selling the same product to the whole market
What is niche market? 
developing products for a small segment of the market
benefits of Niche market?
small firms are able to survive in markets dominated by larger firms
less competition
consumers will ususally pay more for a higher status, exclusive product (higher profits)
Limitations of Niche marketing?
higher profits may attract more competitors
small markets means les opportunities for economies of scale
small changes in consumer demandhave higher impacts
Mass marketing benefits?
higher production for larger companies means more economies of scale
a much larger marker has the potential for high sales and profits
changes in consumer spending have little effect (less risk)
Mass marketing limitation?
much more competition
not all markets are large enough to support this strategy
Consumers today are often looking for something slightly different
What is a market segment?
a part of the whole market which consumers have specific characteristics
Market segmentation? 
dividing the whole market into segments by consumer characteristics and then targeting deifferent products to each segment
How markets are segmented?
geographic segmentation (geographic area) demographic segmentation (age, gender, income, ethnic background and social class)
What are the three sectors of the industry?
Primary, secondary, tertiary
what is part of the primary sector?
Produce the raw materials out of which products are made (farming, fishing, forestry, mining, fuel extraction)
what is the seconday sector?
Using the raw materials to produce finished goods (manufacturing, including the refining and processing, engeneering, food and drink processing)
Tertiary sector? 
Provice services (insurance, banking, public services, distribution, education, health services)
chain of production
Farmer -» Flour -» Baker -» Baker's shop
private sector? 
business owned and run by private individuals
Public sector? 
Business owned and run by the government, to provide services to society, hospitals and schools.
Mixed economies? 
An economy where the resources are owned and contolled by both the private and public sectors
What is enterprise? 
the formation of a new business to deliver a new product or service to the market
What is a business plan?
A detailed written document outlining the purpose and aims of a business which is often user to persuade lenders or investor to finance a business proposal
business plan must have details about...
Business (idea...)
Business Oportunity (information about the product)
Market (current size, competitors, potential for growth)
Objectives
Financial forecast (projected sales, ...)
Why governments support businesses?
Job creation
new ideas
increase competition
Small businesses have customized goods
Large businesses were once small
how governments supprt business?
Grants and interest free loans
lower taxation
rent free premises
training to employees
information, advice or support from specialist
Measuring business size? 
Sales turnover - sales results (quantity x price)
Output - number of units produced
Market share - Sales / sales of the whole industry x 100
Number of emplyees - measuring the average number of employess
Capital Emplyed - money invested
why is it important to measure business size?
Banks - Banks want to know if business will pay the loan
shareholders and investors - want to know if their money will do well
competitors - Need to know size of competitors when compared
empolyees - Feel they are safer in a larger business and more prospects for promotion
Internal growth? 
increasing the number of products sold
developing new products
finding new markets
External growth? 
Integration- When one firm combines with another business
Can happen in 2 ways: Merger, or, takeover
Types of integration:
Horizontal: when firms in the same industry and at the same stage of production process combine to make a larger business
Vertical: this occurs when a firm expands by combining with and existing business in the same industry, but in different staged of production process
Conglomerate Integration: when a firm acquires another firm in an unrelated industry, icreasing the range of businesses its involved in.
why do some businesses want to remain small?
owner doesn't want the responsibility of managing a large business, wants to keep control, wants a close relationship to customers or doesn't want the risk
what is a sole trader?
Business owner and controlled by just one person who takes all the risks and recieved all the profits
What is unlimited liability? 
if the business fails, the owners might get their personal wealth taken away to finance the business debts
Partnerships? 
A group or association of 2 or more people who will usually share responsibility for the dat-to-day running of the business.
do partnerships have limited liability?
No
Private limited company- owned by shareholders who have limited liability. The company cannot sell its shares to the general public.
What kind of liability does a private limited company have?
limited
Public limited company? 
Owned by shareholders who have limited liability. The company can sell its shares to the general public
What is a franchise? 
a business where the entrepreneurs buy the right to use the name, logo and product of an existing business
what is a joint venture?
Two or more businesses agree to work together on a project and set up a sperate business for this purpose
what is a public corporation?
owned by the government, finance through taxation, normally with social objectives, the services are often provided to the population for free