Unit 1: Marketing and People
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1.3.1 - Meeting customer needs
1.3.1.1aMass and niche markets
Compare mass and niche markets, including characteristics, market size, market share and brands.
1.3.1.1bDynamic markets
Explain dynamic markets, including online retailing, market change, innovation, market growth and adapting to change.
1.3.1.1cCompetition and markets
Explain how competition affects markets.
1.3.1.1dRisk and uncertainty
Distinguish risk from uncertainty in business decisions.
1.3.1.2aMarket research data
Use primary and secondary market research data, both quantitative and qualitative, to identify needs, estimate demand and understand consumer behaviour.
1.3.1.2bPrimary market research methods
Evaluate surveys, questionnaires, focus groups, consumer panels, interviews, product trials and test marketing.
1.3.1.2cSecondary market research methods
Use secondary sources such as websites, social media, newspapers, magazines, TV, radio, reports and databases.
1.3.1.2dSampling methods
Apply random, quota and stratified sampling methods.
1.3.1.3aProduct and market orientation
Distinguish product orientation from market orientation.
1.3.1.3bMarket mapping
Use market mapping to position businesses, brands or products.
1.3.1.3cMarket segmentation
Explain market segmentation and its use in targeting customers.
1.3.1.3dCompetitive advantage
Explain competitive advantage for a product or service.
1.3.1.3eProduct differentiation
Explain the purpose of product differentiation.
1.3.1.3fAdding value
Explain how businesses add value to products or services.
1.3.2 - The market
1.3.2.1aChanges in demand
Analyse demand changes caused by substitute and complementary prices, incomes, tastes, marketing, demographics, shocks and seasonality.
1.3.2.2aChanges in supply
Analyse supply changes caused by production costs, technology, indirect taxes, subsidies and external shocks.
1.3.2.3aDemand and supply interaction
Explain how demand and supply interact in a market.
1.3.2.3bDemand and supply diagrams
Draw and interpret demand and supply diagrams to show causes and consequences of shifts.
1.3.2.4aPED calculation
Calculate price elasticity of demand.
1.3.2.4bPED values
Interpret numerical values of price elasticity of demand.
1.3.2.4cFactors affecting PED
Explain factors that influence price elasticity of demand.
1.3.2.4dPED and pricing
Evaluate the significance of price elasticity of demand for business pricing decisions.
1.3.2.4ePED and total revenue
Calculate and interpret the relationship between price elasticity of demand and total revenue.
1.3.2.5aYED calculation
Calculate income elasticity of demand.
1.3.2.5bNormal and inferior goods
Distinguish normal goods from inferior goods.
1.3.2.5cYED values
Interpret numerical values of income elasticity of demand.
1.3.2.5dFactors affecting YED
Explain factors that influence income elasticity of demand.
1.3.2.5eYED and business decisions
Evaluate the significance of income elasticity of demand to businesses.
1.3.3 - Marketing mix and strategy
1.3.3.1aMarketing objectives
Analyse marketing objectives such as increasing market share, increasing revenue and building a brand.
1.3.3.1bProduct life cycle
Use the product life cycle and extension strategies.
1.3.3.1cBoston Matrix
Apply the Boston Matrix to a product portfolio.
1.3.3.1dMarketing mix concept
Explain the concept of the marketing mix.
1.3.3.1eMarketing strategy by market type
Evaluate marketing strategies for mass markets, niche markets, B2B and B2C contexts.
1.3.3.1fConsumer behaviour and loyalty
Explain how businesses use consumer behaviour to develop customer loyalty.
1.3.3.2aDesign mix
Analyse function, aesthetics and cost or economic manufacture in the design mix.
1.3.3.2bDesign mix and social trends
Evaluate changes to the design mix in response to resource depletion, waste minimisation, reuse, recycling and ethical sourcing.
1.3.3.3aTypes of promotion
Explain types of promotion.
1.3.3.3bTypes of branding
Explain types of branding.
1.3.3.3cBenefits of strong branding
Analyse added value, premium pricing and reduced price elasticity from strong branding.
1.3.3.3dBuilding a brand
Evaluate brand building through USPs, differentiation, advertising, sponsorship and social media.
1.3.3.3eBranding, promotion and social trends
Analyse viral marketing, social media and emotional branding as responses to social trends.
1.3.3.4aPricing strategies
Evaluate cost-plus, skimming, penetration, predatory, competitive and psychological pricing.
1.3.3.4bChoosing a pricing strategy
Assess how differentiation, PED, competition, brand strength, product life cycle stage, costs and profit needs affect pricing strategy.
1.3.3.4cPricing and social trends
Analyse changes in pricing caused by online sales and price comparison sites.
1.3.3.5aDistribution channels
Compare four-stage, three-stage and two-stage distribution channels.
1.3.3.5bChanges in distribution
Analyse changes in distribution methods.
1.3.4 - Managing people
1.3.4.1aStaff as asset or cost
Compare treating staff as an asset with treating staff as a cost.
1.3.4.1bFlexible workforce
Evaluate multi-skilling, part-time and temporary work, zero-hour contracts, flexible hours, home working and outsourcing.
1.3.4.1cDismissal and redundancy
Distinguish dismissal from redundancy.
1.3.4.1dEmployer and employee relationships
Compare individual approaches with collective bargaining.
1.3.4.2aRecruitment and selection
Explain recruitment and selection, including internal and external recruitment.
1.3.4.2bRecruitment and training costs
Analyse the costs of recruitment, selection and training.
1.3.4.2cTypes of training
Compare induction, on-the-job and off-the-job training.
1.3.4.3aOrganisational structure
Analyse hierarchy, chain of command, span of control, centralisation and decentralisation.
1.3.4.3bTypes of structure
Compare tall, flat and matrix structures.
1.3.4.3cStructure, efficiency and motivation
Assess the impact of organisational structures on business efficiency and employee motivation.
1.3.4.4aImportance of motivation
Explain the importance of employee motivation to a business.
1.3.4.4bMotivation theories
Apply Taylor, Mayo, Maslow and Herzberg motivation theories.
1.3.4.4cFinancial motivation methods
Evaluate piecework, commission, bonus, profit share and performance-related pay.
1.3.4.4dNon-financial motivation methods
Evaluate delegation, consultation, empowerment, team working, flexible working, job enrichment, job rotation and job enlargement.
1.3.4.5aManagement and leadership
Distinguish management from leadership.
1.3.4.5bLeadership styles
Compare autocratic, paternalistic, democratic and laissez-faire leadership styles.
1.3.4.5cEntrepreneur to leader
Analyse the difficulty of moving from entrepreneur to leader.
1.3.5 - Entrepreneurs and leaders
1.3.5.1aCreating a business
Explain the entrepreneur role in creating and setting up a business.
1.3.5.1bRunning and developing a business
Explain the entrepreneur role in running, expanding and developing a business.
1.3.5.1cIntrapreneurship
Explain innovation within a business through intrapreneurship.
1.3.5.1dBarriers to entrepreneurship
Analyse barriers to entrepreneurship.
1.3.5.1eEntrepreneurial risk and uncertainty
Explain how entrepreneurs anticipate risk and uncertainty in the business environment.
1.3.5.2aEntrepreneurial characteristics and skills
Identify characteristics and skills required by entrepreneurs.
1.3.5.2bMotives for setting up businesses
Compare financial motives such as profit maximisation and satisficing with non-financial motives such as ethics, social entrepreneurship, independence and home working.
1.3.5.3aSurvival objective
Explain survival as a business objective.
1.3.5.3bProfit maximisation objective
Explain profit maximisation as a business objective.
1.3.5.3cOther business objectives
Analyse sales maximisation, market share, cost efficiency, employee welfare, customer satisfaction and social objectives.
1.3.5.4aOpportunity cost
Apply opportunity cost to business choices.
1.3.5.4bTrade-offs
Analyse trade-offs in business choices.