Evaluation
WJEC A-Level Business 601-5238-2
Enterprise and Starting a Business
Markets and Market Research
Topic overviewTypes of marketMarket size, market share and market trendsMarket segmentationThe degree of competition in a marketPerfect competition and monopolistic competitionOligopoly and monopolyConsumer protectionDemand and the demand curveSupply and the supply curveMarket equilibrium and changes in price and quantityPrice and income elasticity of demandInferior, normal and luxury goodsThe value of market researchPrimary market researchSecondary market researchQualitative and quantitative dataSampling and avoiding bias
Marketing
Topic overviewMarket orientation, product orientation and asset-led marketingThe marketing mixProduct and the product portfolioBranding, USP and differentiationThe product life cycleExtension strategiesThe product life cycle and cash flowThe Boston matrixPricing strategiesChoosing the right pricing strategyPromotion: above the line and below the linePlace and distribution channelsThe marketing mix in different contexts and global marketingNew technology in marketing
People in Business
Topic overviewThe flexible workforceNew technology and changing working practicesWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selectionTrainingAppraisalLabour productivity, absenteeism and labour turnoverOrganisational design and structuresDelegation, empowerment and delayeringMotivation theoriesFinancial and non-financial methods of motivationManagement and management by objectivesLeadership styles and theoriesEmployment rights, duties and equal opportunitiesTrade unions, conflict and dispute resolution
Operations Management
Topic overviewAdded valueJob, batch and flow productionChoosing the right method of productionProductivityCapacity utilisationNew technology in operationsLean production and kaizenJust-in-time and cell productionQuality control and quality assuranceTotal quality managementStock control and stock control diagramsPurchasing and working with suppliersInnovation, research and developmentInternal economies of scaleExternal economies of scaleDiseconomies of scale and the survival of small firms
Business Finance and Accounts
Topic overviewInternal sources of financeLoans, overdrafts and trade creditShare capital and venture capitalLeasing and debt factoringChoosing an appropriate source of financeFinance for entrepreneurs and SMEs in WalesRevenue, costs and profitTypes of costContribution and break-evenBreak-even charts and the margin of safetyBudgets and budgetingCash flow forecastingImproving cash flowThe income statementGross and net profit margins
Business Analysis and Decision-Making
Topic overviewPrice and income elasticity of demandSales forecasting and its reliabilityMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationPresenting and interpreting data: pie charts, histograms and index numbersQualitative forecasting techniquesBudgets and budget variancesThe balance sheetWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingInterpreting and comparing company accountsNon-financial measures and vision statementsDecision treesCritical path analysisCost benefit analysis and scientific decision-makingPayback period and average rate of returnNet present value and discounted cash flowSpecial orders and contribution
Strategy and Implementation
Topic overviewAims and objectivesSMART objectivesMission and vision statementsCorporate, divisional and functional strategyStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthMergers and takeoversHorizontal and vertical integrationFranchising as a method of growthLocation and relocation decisionsRationalisation and outsourcing production
Managing Change and Risk
Topic overviewInternal and external causes of changePlanned and unplanned changeThe effects of change on a businessManaging change effectivelyStorey's four approaches to managing changeResistance to changeLewin's three step processOrganisational culture and leadership in changeEvaluating the management of changeThe risks a business facesRisk assessment and preventative actionInsurable and uninsurable risksContingency planning and crisis management
The External Environment
Marketing
- 14 subtopics
- 42 things to know
- AS Unit 2
What Marketing covers
Marketing is examined in Unit 2, Business Functions, and again in Unit 4, which assesses the whole A level content. It covers market orientation, product orientation and asset-led marketing, the marketing mix, product and the product portfolio, branding, USP and differentiation, the product life cycle, extension strategies, the product life cycle and cash flow, the Boston matrix, pricing strategies, choosing the right pricing strategy, promotion: above the line and below the line, place and distribution channels, the marketing mix in different contexts and global marketing and new technology in marketing.
The 14 subtopics
Each one has its own page.
- Market orientation, product orientation and asset-led marketingMarket orientation, product orientation and asset-led marketing.Open →
- The marketing mixThe elements of the marketing mix, including the extra elements for services such as people, process and physical evidence, and why they must fit together.Open →
- Product and the product portfolioProduct portfolio, product range and product cannibalisation.Open →
- Branding, USP and differentiationUnique selling point, product differentiation and effect of strong brand loyalty on price elasticity of demand.Open →
- The product life cycleProduct life cycle, what happens to sales during the introduction stage and maturity stage.Open →
- Extension strategiesExtension strategy, four extension strategies a business can use and extension by finding a new market.Open →
- The product life cycle and cash flowProduct's cash flow during the development stage, cash flow at the introduction stage and cash flow during the growth stage.Open →
- The Boston matrixBoston matrix and cash cow.Open →
- Pricing strategiesPricing strategy, penetration pricing and price skimming.Open →
- Choosing the right pricing strategyRecall questions on matching price to the stage of the life cycle, to the strength of competition and to what the customer will bear, and on when a low price signals poor quality.Open →
- Promotion: above the line and below the lineAbove the line promotion, below the line promotion and difference between informative and persuasive advertising.Open →
- Place and distribution channelsParties that can appear in a distribution channel, direct distribution channel and one-level distribution channel.Open →
- The marketing mix in different contexts and global marketingHow the marketing mix changes for different businesses and markets, global brands and standardised or adapted strategies, and Welsh food products whose names carry legal protection.Open →
- New technology in marketingDigital marketing, viral marketing and search engine optimisation.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
Give two drawbacks of a market orientated approach.
Key term
Distinguish between the core, the actual and the augmented product.
Key term
How does price elasticity of demand affect the choice of pricing strategy?
Key term
What functions does a wholesaler perform?
Key term
Give three reasons a product may have to be adapted for another country.
Key term
How does market structure affect the marketing mix?
Process
How does new technology change the pace at which marketing works?
Key term
What is meant by the marketing mix?
Key term
Define brand.
Key term
What is meant by the product life cycle?
Key term
Define extension strategy.
Process
Describe cash flow at the introduction stage.
Key term
What are the two axes of the Boston matrix?
Key term
Define price skimming.
Key term
What is meant by promotion?
Key term
Name the four elements of the marketing mix.
Key term
What is meant by 'product' in the marketing mix?
Key term
Explain the effect of strong brand loyalty on price elasticity of demand.
Process
Name the stages of the product life cycle in order.
Key term
Describe the shape of the life cycle curve after a successful extension strategy.
Process
Describe cash flow during the growth stage.
Key term
Name the four categories in the Boston matrix.
Key term
Give one drawback of price skimming.
Key term
Name four factors that determine the price a business is able to charge.
Key term
Define above the line promotion.
Key term
What is meant by 'place' in the marketing mix?
Key term
What is meant by digital marketing?
Key term
Define asset-led marketing.
Key term
Which element of the marketing mix is the only one that earns revenue?
Key term
Define product portfolio.
Key term
What is meant by brand loyalty?
Process
Describe what happens to sales during the introduction stage.
Key term
Give an example of extension by finding a new market.
Key term
Describe cash flow at maturity.
Key term
Define a star in the Boston matrix.
Numbers
State the formula for cost-plus pricing.
Key term
What pricing freedom does a monopolist have, and why?
Key term
Give three examples of above the line promotion.
Key term
Name the parties that can appear in a distribution channel.
Key term
How does the marketing mix differ between a local and a global market?
Key term
What is e-tailing?
Take Marketing further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Market orientation vs Asset-led marketing
Market orientation: an approach in which a business bases its decisions on the needs and wants of customers, identified through research, rather than on what it would prefer to make. Asset-led marketing: An approach in which a business bases its decisions on the strengths it already possesses, such as its brand name, expertise or technology, matched to a need it can meet.
Penetration pricing vs Price skimming
Penetration pricing: launching deliberately cheaply in order to win market share quickly, intending to charge more once a customer base is established. Price skimming: Launching high to earn large margins from the customers who want the product first, followed by reductions as the market widens.
Above the line vs Below the line
Above the line: paid advertising placed in independent mass media such as television, radio, cinema, the press and billboards, which the business does not control. Below the line: Promotional activity the business runs and controls itself, such as sales promotions, direct mail, personal selling, sponsorship and merchandising.
Questions from this topic
Each one with the model answer underneath.
- 1
What is meant by market orientation?
Model answer
Market orientation is an approach in which a business bases its decisions on the needs and wants of customers, identified through market research, rather than on what it would prefer to make.
- 2
What is meant by product orientation?
Model answer
Product orientation is an approach in which a business concentrates on designing and making a product it believes in, and then looks for customers who will buy it.
- 3
Define asset-led marketing.
Model answer
Asset-led marketing bases marketing decisions on the strengths a business already possesses, such as its brand name, expertise or technology, matched to a need in the market.
- 4
Give two advantages of being market orientated.
Model answer
A market orientated business is more likely to sell what customers actually want, so sales and loyalty are higher, and the risk of a new product failing at launch is much lower.
- 5
Give two drawbacks of a market orientated approach.
Model answer
Continuous market research is expensive, and research reveals what customers want now rather than what they will want later, so genuinely original ideas can be missed.
- 6
Why might a pharmaceutical firm developing a new treatment be product orientated?
Model answer
The science leads the development, customers cannot describe a treatment that does not yet exist, and the product must be proved to work before any demand for it can be measured.
What is inside Levo
Six ways to work the same material.
Marketing revision questions
- What does Marketing cover in WJEC A-Level Business?
- 14 subtopics: market orientation, product orientation and asset-led marketing, the marketing mix, product and the product portfolio, branding, usp and differentiation, the product life cycle, extension strategies, the product life cycle and cash flow, the boston matrix, pricing strategies, choosing the right pricing strategy, promotion: above the line and below the line, place and distribution channels, the marketing mix in different contexts and global marketing and new technology in marketing. Each one has its own page with questions and model answers.
- How is Marketing organised?
- By the WJEC 601-5238-2 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Marketing, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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