Marketing & People Quiz

An entrepreneur is an individual who sets up a business, taking on financial risks in the hope of profit. They are often responsible for innovating, organising resources, and making key business decisions.

Market segmentation is the process of dividing a market into distinct groups of consumers with similar needs or characteristics, such as age, income, or lifestyle, to target them more effectively.

1. It can be quicker and cheaper than external recruitment.
2. The candidate is already familiar with the business culture and processes.

Advantage: It can quickly attract customers and gain market share.
Disadvantage: It may reduce profit margins and can lead to price wars.

1. Products are standardised and aimed at a large audience.
2. Marketing focuses on high sales volume and wide distribution.

Entrepreneurs can use primary and secondary market research to gather information about customer needs, competitor behaviour, and market trends. This helps in making informed decisions about product development, pricing, and marketing strategies, reducing the likelihood of launching a product that fails. Research helps identify demand and potential challenges, allowing for better planning and resource allocation.

Autocratic leadership involves centralised decision-making with little input from employees. While it may lead to quick decision-making and clear direction, it can negatively affect motivation as employees may feel undervalued and disempowered. Lack of autonomy can reduce job satisfaction, potentially increasing staff turnover. However, in crisis situations, this style can be effective in maintaining control and discipline.

Benefits:

• Builds customer loyalty and brand recognition.
• Can justify premium pricing.
• Differentiates from competitors.

Drawbacks:

• High costs associated with creating and maintaining a brand.
• If the brand is damaged (e.g., bad publicity), the impact can be widespread.
• Difficult to reposition once established.

Overall, while branding adds value and can drive long-term success, it requires consistent investment and strong management.

Flexible working, such as remote work or flexitime, can boost employee morale, reduce absenteeism, and improve retention, thereby enhancing productivity. It also allows businesses to attract a wider talent pool. However, it may reduce team cohesion and make communication more difficult. Managing performance remotely can be challenging. If implemented effectively, it can support a motivated and efficient workforce.

The Boston Matrix categorises products into four types: stars, cash cows, question marks, and dogs. It helps businesses allocate resources and make strategic decisions about product portfolios.
Usefulness:

• Identifies products to invest in or withdraw.
• Encourages balanced portfolio management.

Limitations:

• Oversimplifies complex market dynamics.
• Relies on market share and growth, which may not reflect profitability.

It is a helpful visual tool, but should be used alongside other data and qualitative analysis.

Product differentiation involves making a product stand out from competitors through unique features, design, branding, or customer service. This strategy can allow a business to charge premium prices, build brand loyalty, and reduce price elasticity of demand. However, it requires investment in R&D and marketing. If the differentiation is meaningful to customers, it can provide a strong competitive advantage.

If demand is price elastic, a small change in price leads to a larger change in quantity demanded. Firms with elastic demand may avoid raising prices to prevent losing customers. In contrast, inelastic demand allows for greater price flexibility, as changes in price have less impact on demand. Understanding PED helps firms predict the likely impact of pricing decisions on revenue, making it vital for setting optimal prices.

Meeting customer needs is central to product success. A business that understands its target market can develop features, pricing, and promotional strategies that align with consumer expectations, leading to higher satisfaction and loyalty. Poor understanding can result in products that fail to gain traction. While market research helps, preferences may change, and not all needs are articulated, so businesses must remain agile.

Training enhances employee skills, boosting productivity, quality, and innovation. It can improve motivation and reduce errors or accidents, leading to lower costs. However, training can be expensive and time-consuming. There’s also a risk employees may leave after receiving training. If well-planned, it can significantly improve long-term business performance and competitiveness.

Niche Market Strategy:

• Allows focus on specific customer needs.
• Can build strong brand loyalty and charge premium prices.
• Lower competition.

Mass Market Strategy:

• Higher potential for sales volume and economies of scale.
• Greater brand exposure.

Niche markets offer depth and specialisation, but with limited growth. Mass markets offer scale and profit potential but face intense competition. The better approach depends on the firm’s resources, objectives, and product type.