Edexcel Business A Level Revision

Cultural/social factors - are the lifestyle, customs and values of a group of people. It is important for a business to recognise these factors when targeting markets. Without an insight and understanding it is likely that a business will fail to establish a significant presence in the market. It is essential that a business understand the requirements of the target market, whilst at the same time ensuring that it does not use inappropriate marketing, very likely innocently, to upset them. Cultural and social factors include the following; Cultural differences Different tastes Language Unintended meanings Inappropriate/inaccurate translations Innappropriate branding and promotion. Cultural differences occur because different types of people have different lifestyles, customs and values. For example, in India a handshake for a business meeting is considered critical, though Indian women are not supposed to shake hands with men. Any drink such as tea must be accepted as a ...

Niche market - A smaller segment of a larger market where customers have specific needs and wants. Marketing mix - The set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps - price, product, place and, promotion - make up a typical marketing mix. The marketing mix needs to be applied effectively to global niche markets in order to be of use to the business. A business will have to invest in each element of the marketing mix numerous times in order to meet the requirements of the variety of consumers that they are targeting. This will require expertise and insight into these specific markets. PRODUCT Product will be the most important factor. The quality must be extremely high in order to target wealthier individuals on a global basis. This means that businesses must undertake significant market research and R&D in order to meet customer requirements. PRICE Businesses will be able to charge high prices as they are tar...

Niche market - A smaller segment of a larger market where customers have specific needs and wants. Global market niches are subcultures in world society. These share common interests and can be identified as market segments on a global scale. Although a niche tagets a smaller market, on a global scale, this can be sizeable. This is particularly profitable when we recognise that these are likely to highly differentiated products rather than low costs. This means that the world's wealthiest consumers can be targeted, with the quality of the product being the most important factor. Other common features of a global niche market include; Requires high levels of customer service as demanding customers pay for quality not quantity Highly skilled employees with the expertise and, at times, the reputation required to create and sell the desired products Product innovation is essential in order to product the highly differentiated products that customers require A high level...

Niche market - A smaller segment of a larger market where customers have specific needs and wants. Cultural diversity - is the range of different people and their values within a society, which may be based on ethnicity, beliefs or other similar factors. Society attempts to take into account all people's values in order to create a just and fair world.  Global niche markers are similar to domestic niche markets in that they target a very specific range of people, though the key is to position a product so that it appeals to a wide range of customers across the global market. CULTURAL DIVERSITY Cultural diversity recognises that the ideas, customs and social behaviour of a particular people or society vary in different global markets. Those businesses that cater for this will thrive but will struggle to identify exactly what niches in the marker that they have to fill. Those who don't are likely to lose market share. Cultural diversity needs to take into account d...

Porter's Strategic mix -  describes how a company pursues competitive advantage across its chosen market segment by using four generic strategies: mass vs niche and lowest cost vs highest differentiation strategies. Competitive advantage - An advantage over the competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher price. Lost-cost positioning -  Where a business is able to operate at the lowest unit cost in the market, enabling it to charge lower prices than the competition or earn a higher profit margin Differentiation positioning - Where a business is able to distinguish its product or service in the minds of consumers as offering better value - perhaps through quality, branding or other attributes that consumers value Porter suggested two overall business strategies that could be followed in order to gain a competitive advantage: Low cost Differentiation I...

Pricing is often one of the most difficult things to get right in business. There are several factors a business needs to consider in setting a price: COMPETITORS – a huge impact on pricing decisions. The relative market shares (or market strength) of competitors influences whether a business can set prices independently, or whether it has to follow the lead shown by competitors COSTS – a business cannot ignore the cost of production or buying a product when it comes to setting a selling price. In the long-term, a business will fail if it sells for less than cost, or if its gross profit margin is too low to cover the fixed costs of the business. THE STATE OF THE MARKET FOR THE PRODUCT ( SUPPLY AND DEMAND) – if there is a high demand for the product, but a shortage of supply, then the business can put prices up. THE STATE OF THE ECONOMY (EXTERNAL SHOCKS) – some products are more sensitive to changes in unemployment and workers wages than others. Makers of luxury pr...

Market - a market is any place that buyers and sellers will come together to exchange goods or services. There will normally B an exchange of money at a set price. Niche marketing - A smaller part of a large market, with products tailored to specific customer needs. Mass marketing - A large market of customers which is undifferentiated and that sells products and services to suit a large number of consumers. Mass market features : Customers form the majority in the market large number of potential customers to attract Customers needs and wants are "general" and less "specific" Associated with higher production output (makes products in large numbers) and capacity and potential for economies of scale Success usually associated with low-cost (highly efficient) operation or market leading brands. Products appeal to a wide range of customers Products are widely available through a range of markets Mass media is used to advertise the product Exa...