Business A-level Notes

Theme 1: Marketing and People

Content Notes Further Notes

1.1.1 Mass markets and characteristics:

The market niche market
market size and market share:

brands:

Dynamic markets online retailing:

how markets change:

innovation and market growth:

adapting to change:

How competition
affects the market

The difference
between risk and
uncertainty

1.1.2 Product and

Market research market orientation

Primary and identify and anticipate customer needs and wants:

secondary market
research data quantify likely demand:
(quantitative and
qualitative) used to gain insight into consumer behaviour:

Limitations of
 market research,
sample size and
bias

Use of ICT to websites:

support market
research social networking:

databases:

Market
segmentation

1.1.3 Market mapping

Market
positioning Competitive
advantage of a
product or service

The purpose of
product
differentiation

Adding value to
products/services

1.2.1 Factors leading to changes in the prices of substitutes and complementary goods:
Demand a change in
demand changes in consumer incomes:

fashions, tastes and preferences:

advertising and branding:

demographics:

external shocks:
 seasonality:

1.2.2 Factors leading to changes in the costs of production:

Supply a change in supply
introduction of new technology:

indirect taxes:

government subsidies:

external shocks:

1.2.3 The interaction of

Markets supply and
demand

The drawing and

interpretation of
supply and
demand diagrams
to show the causes
and consequences
of price changes

1.2.4 Calculation of
Price elasticity of price elasticity of
demand demand

Interpretation of
numerical values
of price elasticity
of demand

The factors
influencing price
elasticity of
demand
 The significance of
price elasticity of
demand to
businesses in
terms of
implications for
pricing

Calculation and
interpretation of
the relationship
between price
elasticity of
demand and total
revenue

1.2.5 Calculation of
Income elasticity income elasticity
of demand of demand

Interpretation of
numerical values
of income
elasticity of
demand

The factors
influencing income
elasticity of
demand

The significance of
income elasticity
of demand to
businesses

1.3.1 Design mix function:

Product/service aesthetics:
design
cost:

Changes in the concern over resource depletion: designing for waste minimisation, re-use and recycling:
elements of the
design mix to ethical sourcing:
reflect social
trends

1.3.2 Types of
Branding and promotion
promotion
Types of branding

The benefits of added value:

strong branding
ability to charge premium prices:

reduced price elasticity of demand:

Ways to build a unique selling points (USPs)/differentiation:

brand
advertising:

sponsorship:

the use of social media:

Changes in viral marketing:

branding and
promotion to social media:
reflect social
trends emotional branding:

1.3.3 Types of pricing cost plus (calculating mark-up on unit cost):

Pricing strategies strategy
price skimming:
 penetration:

predatory:

competitive:

psychological:

Factors that number of USPs/amount of differentiation:

determine the
most appropriate price elasticity of demand:
pricing strategy for
a particular level of competition in the business environment:
situation
strength of brand:

stage in the product life cycle:

costs and the need to make a profit:

Changes in pricing online sales:

to reflect social
trends price comparison sites:

1.3.4 Distribution
Distribution channels

Changes in online distribution:

distribution to
reflect social changing from product to service:
trends

1.3.5 The product life

Marketing cycle
strategy
Extension product:
strategies
promotion:
 Boston Matrix and
the product
portfolio

Marketing niche markets:

strategies
appropriate for mass markets:
different types of
market business to business (B2B) and business to consumer (B2C) marketing:

Consumer how businesses develop customer loyalty:

behaviour

1.4.1 Staff as an asset;

Approaches to staff as a cost
staffing

Flexible workforce multi-skilling:

part-time and temporary:

flexible hours and home working:

outsourcing:

Distinction
between dismissal
and redundancy

Employer/ individual approach:

employee
relationships collective bargaining:

1.4.2 Recruitment and internal versus external recruitment:

Recruitment, selection process
selection and
training
Costs of
 recruitment,
selection and
training

Types of training induction:

on-the-job:

off-the-job:

1.4.3 Structure hierarchy:

Organisational
design chain of command:

span of control:

centralised and decentralised:

Types of structure tall:

flat:

matrix:

Impact of different
organisational
structures on
business efficiency
and motivation

1.4.4 The importance of

Motivation in employee
theory and motivation to a
practice business

Motivation Taylor (scientific management):

theories
Mayo (human relations theory):
 Maslow (hierarchy of needs):

Herzberg (two factor theory):

Financial piecework:
incentives to
improve employee commission:
performance
bonus:

profit share:

performance-related pay:

Non-financial delegation:
techniques to
improve employee consultation:
performance
empowerment:

team working:

flexible working:

job enrichment:

job rotation:

job enlargement:

1.4.5 Leadership the distinction between management and leadership:

Leadership

Types of autocratic:
leadership style
paternalistic:
 democratic:

laissez-faire:

1.5.1 Creating and

Role of an setting up a
entrepreneur business

Running and
expanding/develo
ping a business

Innovation within
a business
(intrapreneurship)

Barriers to
entrepreneurship

Anticipating risk
and uncertainty in
the business
environment

1.5.2 Characteristics and

Entrepreneurial skills required
motives and
characteristics Reasons why financial motives: profit maximisation and profit satisficing
people set up
businesses non-financial motives: ethical stance, social entrepreneurship, independence and home working

1.5.3 Survival
Business
objectives Profit
maximisation

Other objectives sales maximisation:

 market share:

cost efficiency:

employee welfare:

customer satisfaction:

social objectives:

1.5.4 Sole trader,

Forms of partnership and
Business private limited
company

Franchising, social
enterprise, lifestyle
businesses, online
businesses

Growth to PLC and

stock market
flotation

1.5.5 Opportunity cost

Business choices
Choices and
potential trade-
offs

1.5.6 The difficulties in

Moving from developing from
entrepreneur to an entrepreneur to
leader a leader