Summary
AS Edexcel business whole summary notes (theme 1 + 2)
- Institution
- PEARSON (PEARSON)
AS business whole summary notes for theme one and two. in order to the specification. Enjoy :)
[Show more]
Seller
Follow
Content preview
AS Edexcel BusinessTheme 1: Marketing and People
People (HR)
1.1.1 - THE MARKET
A market is where buyers + sellers meet.
Mass markets
Aimed at the general population.
➔ Product sold to everybody in same way - adverts etc
➔ Economies of scale - marketing, purchasing, technical
➔ Average cost per unit falls, profit margin increases
➔ Straightforward, everyone targeted
➔ Lots of competition
➔ Homogenous products need to be differentiated through marketing -
expensive
➔ High volume of production, inflexible to demand changes
Niche markets
Subset of main market, address specialist needs.
➔ Particular segment
➔ Charge premium price
➔ Easy to target customers
➔ Small scale production
➔ Less competition
➔ Risky- demand not constant, higher unit costs, no EoS
Dynamic markets
➔ Changing all of the time
➔ Online retailing is constantly changing, developing and expanding
➔ Experience shopping
➔ Pros of online shopping:
- 24/7
- Automatic, no staff
- International markets
- Low overheads as no shop
- Stock easily updated
- Easy to set up
- Flexible
- Fast growth
➔ Cons of online shopping:
- 71% prefer to browse online then [purchase from shop
- Issued on returns - put off
- Online security worries
- Competitive
- Need IT skills
- Fraud/ spam/ viruses
- Competitors easy access
Innovation + market growth
➔ Constantly changing tastes + preferences
➔ Technology
, ➔ Increase is migrants - kosher/ halal meats needed
How competition affects the market
➔ More efficient
➔ Listen to needs
➔ Less wasteful
➔ Good quality
➔ Homogeneous - non-price factors, promotion
Risk + uncertainty
Risk - potential unknown. Uncertainty - no outcomes known in advance,
opportunity for profit, innovation.
1.1.2 - MARKET RESEARCH
Product + market orientation
Product: product is most important factor when providing products for a
market
Market: consumer most important factor when providing products, has a
sensitivity to customer’s requirements
Market research
Why do businesses do research?
➔ Understand needs
➔ Estimate price that customers would pay
➔ Competition
➔ How to differentiate
➔ Market size - is it worth it
➔ Understand how the product will be received
➔ Prototype
Why would a business collect data?
➔ Potential demand
➔ Promotions suitable
➔ Competition
➔ Customer profit
Benefits to market research
➔ Reduces risk + cost
➔ Marketing plan
➔ Prepare for changes in market
➔ Market orientation
Primary research
➔ Original data created by researcher
➔ Information does not exist yet, so cannot be found on internet
➔ Brand new data business will gather about product/ service
➔ Use data to make specific decisions about business: new product launch
Questionnaire
➔ Survey of customers who use the business
➔ Measure customer satisfaction
Interview
➔ With owners, customers, suppliers
➔ Gauge reactions to new tastes/ ideas the business is having
➔ Very specific to company
Observation
➔ Gather data from watching buyer’s behaviour
➔ Do customers shop[ alone/ in groups?
➔ Notice of carefully placed promotion
➔ Route taken around store
, Loyalty cards
➔ Trach behaviour, micro market to customers specific offers
➔ Targeted offers more likely to use
➔ Marketing cost effective
➔ Incentive to return - stamp card, but do not get details
Focus groups
➔ Target market demographic
➔ Respondents chosen to take part in trial
➔ Use product over time, group to discuss
➔ Specific qualitative information on how feel about product
Consumer panel
➔ Experts selected by agency to answer series of questions about
product/ service
➔ Usually independent
➔ Panel carry out own research into needs of target consumer - through
eyes of customer
Test marketing
➔ Invent, produce, trial new product
➔ Staff may agree good, but public different view
➔ Carefully chosen sample based on reactions - launch/scrap
1.1.3 - MARKET POSITIONING
➔ Market mapping
◆ In order to identify a gap in the market, it may be useful for a
business to construct a diagram where competitors are on two
axis (quality + price)
➔ Competitive advantage
◆ Way the product is made superior to the competition to the
target market
◆ Achieve profits above average for that industry if have
competitive advantage
◆ Achieved using resources to achieve either:
● Cost adv - skilled workforce + efficient operations
● Differentiation advantage - resources used to create
superior value
➔ Purpose of differentiation
◆ Product is different from the competitors in some way
◆ Consumers must be able to perceive this difference + may be
willing to pay a premium price for the product
● Through reputation
● Through customer service + after sales
● Through value for money
● Through product features
➔ Adding value
1.2.1 - DEMAND
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller graceharriet. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.89. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now