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2.3 - Coggle Diagram

- - - - Promotion e.g advertising- attractive promotion suited to the target market will increase interest and brand exposure thus enticing customers towards the business.
      - Product knowledge- via employees having good understanding of the products they can best tailor/find a product to interest the customer e.g a washing machine which has a silent spin etc.
        
        Can be cost intensive (training) yet a method of adding value)
    - - Soft selling- letting customers make their own decisions- employees will offer knowledge and/or guidance when asked yet will let the customer explore the items themselves
      - Hard selling- (typically for higher value/infrequent purchasing products e.g Car)- an employee will actively try to persuade/direct a purchase so that the customer is linked to the business and chooses to purchase their product(s).
  - - - Technology- a business can advertise towards the customers to keep interaction and interest e.g via email merge/social media updates
      - Letters sent to consumers who prefer
      - Updates on delivery/the production of their item
  - - - Increases market share
      - Increases revenue from sales as their is a larger customer base
      - Increases publcity as loyal customers can spread good reviews via word of mouth/social media etc.
  - - - Good knowledge of products
      - Friendly nature
      - Abiding to consumer laws
      - Quick to rectify issues
      - Effecient delivery of products
      - Good post-sales care
- - - - High price can be charged as a high quality is expected
      - Allows for a business to make products to order (fulfills customer need of choice)
      - Business is more able to differentiate and adapt to a changing market as unique products can be made in relation to e.g raw materials
    - - Time consuming as each product is made with hand-finished quality by one highly skilled worker
      - Products can only be made in small quantities which reduces ability to expand
      - Cannot beneift from economies of scale
  - - - A decent level of quality can be maintained e.g bakery
      - Products have the ability to be made in large quantities
      - A business can make products suited to demand and thus are less likely to run out of stock
      - Can be partially automated
    - - Cannot (really) benefit from economies of scale
      - Machinery needs to be changed to create a new product which (if in a factory is difficult) and can add time constraints
      - If demand is equal for more than one products then (since stock levels will fluctuate with changes in production of each item) the business cannot maintain stock levels and thus might increase waiting times for stock to arrive etc.
  - - - Allows the business to make large quantities of products to suit demand
      - Business can benefit from economies of scale (a business makes a high investment in machinery yet then by increasing production are able to reduce the cost per unit of production)
      - A regular quality can be maintained e.g low or high- all products are equal therefore customers know what to expect.
      - Able to be automated
    - - Requires a large amount of workers/expensive machinery to operate efficiently.
      - If a problem occurs with production then many products might be affected (thus wasted- large amount of lost revenue)
  - - - Automation (available for flow and batch)- helps increase production speeds- yet requires a large set up cost
      - Incentives (available for all methods [especially job])- helps to increase the workforce's desire to produce products with money or rewards- helps increase/maintain quality as well
      - Improving training- helps to keep staff working efficiently and in the most efficient manner possible.
- - - - Pros
        
        Not as much storage space is required (products are sold soon after)- reducing costs
        
        Business is more competitively priced (lower)
        
        Business do not have capital left with unsold stock therefore have more to reinvest
        
        Products are more likely to remain fresh as they are delivered just in time for sales- thus less time in storage.
      - Cons
        
        Business is likely to adapt in times of high demand (more likley to run out of stock
        
        Customers receive poor customer service (cannot buy products)
        
        Brand prestige is reduced and customers would be deterred and choose competitors (market share reduced)
        
        The business will typically purchase products in smaller amounts thus cannot save money via bulk buying
    - - Pros
        
        The business is able to accommodate times of high demand (less likely to run out of stock)- greater customer satisfaction
        
        Business can benefit from bulk buying
      - Cons
        
        The business will need a larger storage space for products and will have capital tied up in unsold stock (which could become wasted e.g out of fashion items)
  - - - Good repore can lead to trade credit which allows a business to delay payments to suppliers so that it can suit them (and help cash flow)
      - Deliveries- a business can expect and understand the delivery timings of suppliers so that they can manage stock (see above) effectively.
      - Business can "strike" deals with suppliers to lower costs when bulk buying
      - Trust- the suppliers and support the business in times of demand
      - Quality- the business can gain products of equal and known quality (maintained not matter high or low).
    - - Opposite of above is true -->
      - A business can be disrupted loose brand prestige from disorganised suppliers (e.g KFC)- the business takes the brunt of the negatively from customers
- - - - Allows the business to confirm quality of product to consumers- so can charge a higher price
      - Cheaper than quality assurance (less comprehensive) as less employees are required to inspect.
      - Allows consumers to have their say and suggest common faults with goods- allows business to focus upon them to better customer experience.
    - - No guarantee of quality (less comprehensive than assurance)
      - Can lead to greater risk of lesser quality products leaving factory as checks are less frequent
    - - Hotline- allows for customers to report faults quickly to the business
      - Factory inspections (at the end of the production line)
      - 100% inspection system in restaurants- a product is inspected by a head chef before it is given to a customer (if not satisfactory it is remade)
  - - - Reduces likelihood of unsatisfactory goods leaving the factor etc
      - Increases customer satisfaction/belief in business/product as quality is maintained
      - offers greater confirmation of quality (of whole process rather than just product) to customer
    - - Higher costs as more highly skilled inspection staff are required OR expensive training to existing staff
  - - - More able to compete with competitors (increasing market share)
      - Business becomes more desirable and thus increases revenue (can also charge higher prices)