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Flashcards in Some topic 1 mostly topic 2 Deck (23)
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1

Internal growth:

Is achieved from growing within the business. E.G.
- selling more stock.
- new shops, products.
- getting more customers
- making existing customers buy more.

2

External growth:

Growing buy taking over other businesses.

3

An acquisition:

A business buying another business.

4

Merge/join:

Agreeing to come together in business.

5

Examples of external growth;

- horizontal growth.
- backwards vertical growth.
- forwards vertical growth.
- diversification.

6

Horizontal 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.

7

Backwards vertical growth:

Merge with someone who supplies the original business.E.G:
- a shoe makers merging with a leather makers.

8

Forward vertical growth:

Merging with a company you supply, E.G:
- a shoe makes merging with shoe shops.

9

Diversification:

A business merging with a company where they have little to nothing in common.E.G:
- a shoe makers merging with a green grocers.

10

Advantages of external growth:

- new brand name.
- more market share.
- more sales.
- could lead to organic growth.
- publicity.

11

Disadvantages of external growth:

- costs money.
- could be unsuccessful.
- risk
- lose money and time.
- need to employ more staff.

12

Marketing definition:

Finding what customers want and matching it.

13

Role of marketing:

- helps identify customers.
- helps a business inform customers of there business.
- helps the business increase there sales revenue.

14

Primary market research:

(First hand information, found from source.)
- questionnaire.
- focus group.
- observations.
- interviews.

15

Secondary market research.

(Information you can discover from your desk)
- internet
- old research
- the government information.
- books/lose papers.

16

Questionnaire advantages and disadvantages.

- can target a specific audience.
- you can have many responses and a clear average.
However,
- some people will leave gaps or may miss-understand the question.
- other people may lie tom impress (salary.)

17

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.

18

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.

19

Advantages and disadvantages of trials:

- cheaper than doing it on a big scale.
- can be improved with suggestions or feedback.
However,
- it can be expensive.
- competitors can see your new products.

20

Secondary research definition:

- it is existing research that you can view.

21

Census data:

It is collected by the government every ten years. Questioning the entire population about salary and occupation.

22

Market segmentation:

Splitting the market for different products. E.G:
- age
- gender
- income
- occupation
- location
- lifestyle

23

Why you need market segmentation:

- more profit.
- more growth opportunities.
- retain more customers.
- target marketing of customers.
- bigger market share.