Business Unit 1.4

MARKETING MIX/ THE FOUR P's
1. PRICE
  1. Importance of knowing the market - how much are people prepared to pay?
  2. Importance of PRICE SENSITIVITY - How much demand will change depending on the price
  3. Importance of keeping an eye on rivals - how much do they charge?
2. PRODUCT
  1. Methods used to improve/differentiate the product and increase the sales/target sales more effectively to gain a competitive advantage, such as:
    1. Extension strategies
    2. Specialised versions
    3. New editions
    4. Improvements - real or otherwise
    5. Changing packaging
    6. Technology etc.
3. PROMOTION
  1. STRATEGIES To make the consumer aware of the existence of a product/service
    1. NOT just advertising
    2. So the customers can buy the product and eventually come back
4. PLACE
  1. Means by which products and services get from producer to consumer and where they can reaccessed by the consumer
  2. The more places to buy the product and the easier it is made to buy, the better for the business (and the consumer)
CUSTOMER SATISFACTION
1. GOOD CUSTOMER SERVICE
  1. Examples
    1. Sales
    2. Assisting the customer
    3. Sampling
    4. Truthful
    5. Good quality workers
    6. Easily accessible
    7. A reasonable price
    8. A prompt delivery service
    9. Respectful workers
    10. Listening to feedback
2. BAD CUSTOMER SERVCE
  1. EXAMPLES
    1. No improvement of products
    2. Disrespectful workers
    3. Not taking consideration of what the customer needs
  2. DISADVANTAGES to the business of POOR customer service
    1. 1. Poor customer service e.g. disrespectful workers
    2. 2. Poor reviews written by customers which then spread to the public
    3. 3. Complaints etc. Loss of previous customers
    4. 4. Complaints are spread to family and friends - then spreads to their family friends and goes on
    5. 5. People who are not customers get put off from the reviews written by previous customers
    6. 6. Rumours(?) Gives the business a bad reputation
    7. 7. No new customers or staff as they are turned away from complaints
      1. GOES BACK TO 1
IMPORTANCE OF LIMITED LIABILITY
1. LIMITED LIABILITY - Owners of the business are only partly responsible for repaying any debts of the business, this all means that the finances of a business and the finances of the business owners are separated LEGALLY
RECRUITMENT, TRAINING AND MOTIVATING STAFF
1. APPLICATION - Businesses started the recruiting process by drawing up a number of documents
2. JOB ADVERT - Should give a brief description of what the job is and list the experience/skills needed for said job. Could also involve the rate of pay
3. JOB PARTICULARS - Information about the business and the job is usually given by the job particulars (more detailed than the job advert)
4. JOB DESCRIPTION
5. PERSON SPECIFICATION - A description of the sort of person suitable for the job
6. CVs AND APPLICATION FORMS - Businesses should have produced an application form which would be filled in by all applicants who would be giving details about themselves and why they want the job
7. SELECTION - Those who meets the criteria of what a business wants would be accepted to fill the job
8. TRAINING STAFF - Its important that employees receive regular training in the modern work environment
9. SKILL VS ATTITUDE IN RECRUITMENT AND TRAINING - Skills are not the only thing that employers need to look for - Attitude towards staff is as important
10. MOTIVATION
  1. Pay its workers a fair wage
  2. Keep workers informed about what is going on with the business
  3. Provide decent working conditions
  4. Give workers as much power as possible to organise the way in which they do their work
  5. Be sympathetic about requests for time off
  6. Be consistent in how staff are death with

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Business Unit 1.4

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	Created by Danie Lee over 6 years ago