Flashcards in Some topic 1 mostly topic 2 Deck (23)
Is achieved from growing within the business. E.G.
- selling more stock.
- new shops, products.
- getting more customers
- making existing customers buy more.
Growing buy taking over other businesses.
A business buying another business.
Agreeing to come together in business.
Examples of external growth;
- horizontal growth.
- backwards vertical growth.
- forwards vertical growth.
Buying or merging with a company who are at the same stage of production of a product. E.G:
- two shoe makers coming together.
Backwards vertical growth:
Merge with someone who supplies the original business.E.G:
- a shoe makers merging with a leather makers.
Forward vertical growth:
Merging with a company you supply, E.G:
- a shoe makes merging with shoe shops.
A business merging with a company where they have little to nothing in common.E.G:
- a shoe makers merging with a green grocers.
Advantages of external growth:
- new brand name.
- more market share.
- more sales.
- could lead to organic growth.
Disadvantages of external growth:
- costs money.
- could be unsuccessful.
- lose money and time.
- need to employ more staff.
Finding what customers want and matching it.
Role of marketing:
- helps identify customers.
- helps a business inform customers of there business.
- helps the business increase there sales revenue.
Primary market research:
(First hand information, found from source.)
- focus group.
Secondary market research.
(Information you can discover from your desk)
- old research
- the government information.
- books/lose papers.
Questionnaire advantages and disadvantages.
- can target a specific audience.
- you can have many responses and a clear average.
- some people will leave gaps or may miss-understand the question.
- other people may lie tom impress (salary.)
Focus group advantages:
- qualitative data.
- you get a feel of best products.
- choose who you want to be in te group.
- ask further questions.
- good feedback if improvements need to be made.
Disadvantages of focus groups:
- its expensive.
- only a small number of people.
- one or two people can take over.
- hard to come to a conclusion.
- some people may not collaborate and the talk may not get anywhere.
Advantages and disadvantages of trials:
- cheaper than doing it on a big scale.
- can be improved with suggestions or feedback.
- it can be expensive.
- competitors can see your new products.
Secondary research definition:
- it is existing research that you can view.
It is collected by the government every ten years. Questioning the entire population about salary and occupation.
Splitting the market for different products. E.G: