‭Recruitment Process‬ ‭○‬ ‭The first stage is to decide how the post will be filled.

‭1.‬ ‭Analyse the exact nature of the job and duties to be undertaken.‬
‭○‬ J
‭ ob analysis‬‭: it identifies and records the responsibilities and tasks relating‬
‭to a job‬
‭2.‬ J
‭ ob description‬‭: a document that outlines the tasks and responsibilities that will‬
‭need to be carried out as part of the specific job – so that applicants know what the‬
‭job involves and so they know if they are suitable to apply for the job‬
‭Usual Requirements:‬
‭○‬ ‭The level of educational qualification‬
‭○‬ ‭Special skills, knowledge, or a particular attitude‬
‭○‬ ‭Personal Characteristics‬
‭3.‬ ‭Design a job specification‬‭:‬
‭○‬ J
‭ ob Specification:‬‭outlines the responsibilities and duties to be carried out‬
‭by someone employed to do a specific job. Several functions of a job‬
‭specification:‬
‭Internal Recruitment‬‭: is when a vacancy is filled by someone who is an existing employee‬
‭■‬ T
‭ his information should be given to applicants so they know exactly‬
‭what the job entails.‬ ‭of the business‬
‭■‬ ‭Allows a job specification to be drawn up to see if they are skilled.‬
‭■‬ ‭It shows if an employee is working effectively once they are employed.‬
‭○‬ ‭The contents of a Job specification:‬ ‭Advantages‬ ‭Disadvantages‬
‭■‬ ‭Condition of employment salary, hours, permission, etc.‬
‭■‬ ‭Training that will be offered‬
‭■‬ ‭Opportunities for promotion‬ ‭Quicker and cheaper than external recruitment.‬ ‭ o new ideas or experiences come‬
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‭into the business.‬
‭■‬ ‭Purpose of the job‬
‭■‬ ‭Main duties/addition or occasional duties‬
‭4.‬ P
‭ erson Specification‬‭: outlines the required skills, qualifications, personal qualities,‬
‭etc., for a specific job – to ensure a suitably qualified person is appointed and that‬ ‭ he reliability, ability, and potential of the person‬
T ‭Rivalry and jealousy may arise.‬
‭they have the skills, etc., to do the job required.‬ ‭are known.‬

‭5.‬ ‭Advertise the vacancy‬‭:‬

‭ he person is already familiar with the‬

T ‭ he quality of internal candidates‬
T
‭organisation's structure and expectations.‬ ‭might be low.‬

I‭t can be motivating for other employees to see‬

‭their fellow workers promoted.‬

‭External Recruitment‬‭: when any suitable applicant outside the business fills a vacancy‬

‭Advantages‬ ‭Disadvantages‬
 ‭■‬ ‭Aptitude test (candidate’s potential of learning a new skill).‬
‭ more comprehensive selection of‬
A ‭Increased costs due to advertising.‬ ‭■‬ ‭Personality test (used if a particular type of person is required).‬
‭candidates.‬ ‭■‬ ‭Group situation test (to show how well they work with a team).‬
‭7.‬ ‭Hold interviews and select tasks‬‭.‬
‭8.‬ S
‭ elect suitable applicants and offer them the job. Reply to unsuccessful‬
‭Adding fresh perspective and ideas.‬ ‭Additional training‬ ‭applicants‬‭.‬
‭○‬ ‭The final decision can depend on several factors:‬
‭■‬ ‭Work experience‬
‭Enhancing diversity in the organisation.‬ ‭ dds a transitional period for all employees‬
A ‭■‬ ‭Education and other qualifications‬
‭to adjust to the new business‬
‭■‬ ‭Age‬
‭■‬ ‭Internal‬
‭■‬ ‭External‬
‭ inding a specialised candidate who fits‬
F ‭Effects on employee morale.‬
‭■‬ ‭Circumstance‬
‭the requirements perfectly.‬
‭Types of Workers‬

‭●‬ ‭Part-time Employees‬‭work for less than 35 hours a week.‬

‭ an help the competitiveness of the‬
C ‭○‬ ‭Benefits:‬
‭business‬
‭■‬ ‭Work hours are flexible.‬
‭■‬ ‭Easier to ask employees to work at busy times‬
‭■‬ M
‭ ore accessible to extend business opening/operating hours by‬
‭Reduce tension between employees.‬ ‭working evenings or weekends.‬
‭■‬ I‭t fits in with looking after children or other circumstances such as‬
‭5.‬ S
‭ end out application forms to the applicants or read curriculum resumes and‬ ‭school, which means employees are willing to lower pay.‬
‭letters of application‬‭.‬ ‭■‬ ‭Reduces business cost‬
‭○‬ ‭Advertising job vacancies can be done in several ways:‬ ‭■‬ ‭In some countries, it’s easier to make part-time workers redundant.‬
‭■‬ ‭Local newspapers‬ ‭○‬ ‭Limitations:‬
‭■‬ ‭National newspapers‬ ‭■‬ ‭They are less likely to seek training, as they see the job as temporary.‬
‭■‬ ‭Specialist magazines‬ ‭■‬ ‭Takes longer to recruit.‬
‭■‬ ‭Online recruitment sites‬ ‭■‬ ‭Less commitment to business.‬
‭■‬ ‭Recruitment agencies‬ ‭■‬ ‭Less likely to be promoted due to lack of experience.‬
‭■‬ ‭Centres run by the government‬ ‭■‬ ‭It is more difficult to communicate outside of work.‬
‭6.‬ ‭Produce a shortlist from the applications for interviews and take up references‬‭.‬ ‭●‬ ‭Full-time Employees‬‭work for more than 35 hours a week‬
‭○‬ A
‭ pplicants must provide a referee (someone the potential employer can‬ ‭○‬ ‭Benefits:‬
‭contact, intending to get more information/references from).‬
‭■‬ ‭Consistency of schedules and reliability‬
‭○‬ I‭nterviews are the most used form of selection. Its primary purpose is to‬
‭■‬ ‭Loyalty - A permanent contract means the employee is more loyal‬
‭assess in the shortest time possible:‬
‭○‬ ‭Limitations:‬
‭■‬ ‭Applicant’s ability to do the job‬
‭■‬ ‭A permanent contract has to be made, a long-term commitment.‬
‭■‬ ‭Any personal qualities that could be beneficial or not.‬
‭■‬ F
‭ ull-time employees have fixed pay, regardless of the number of hours‬
‭■‬ ‭The general character and personality of the applicant.‬
‭committed to work (ex, sick leave, slow work day, emergency, etc).‬
‭○‬ ‭Some businesses include tasks in the selection process, such as:‬
‭ ote:‬‭full-time employee benefits are the limitations of part-time and vice versa‬
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‭■‬ ‭Skill test (ability to carry out specific tasks)‬
‭The Importance of Training and the Methods of Training‬
‭Ensures there is some production while training‬ ‭ he trainer might have bad habits and‬
T
‭●‬ ‭Importance of training:‬ ‭pass them on to the employee‬
‭○‬ ‭To introduce new processes or equipment‬
‭○‬ ‭Improve the efficiency of the workforce‬
‭○‬ ‭Provide training for unskilled workers‬ ‭Usually costs less than off-the-job training‬ ‭ ot recognized training qualifications‬
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‭○‬ ‭Decrease the supervision needed‬ ‭outside the business‬
‭○‬ ‭Improve opportunity for internal promotion‬
‭○‬ ‭Decrease chances of accidents‬
‭●‬ ‭Aims of training:‬ ‭ raining tailored to the specific needs of the‬
T
‭○‬ ‭Increase skills‬ ‭business.‬
‭○‬ ‭Increase knowledge‬
‭○‬ I‭mprove employee’s attitudes to encourage them to accept change and raise‬ ‭●‬ O
‭ ff-the-job training‬‭: Involves being trained away from the workplace, usually by‬
‭awareness.‬ ‭specialist trainers.‬
‭●‬ ‭There are three types of training:‬
‭●‬ I‭nduction Training‬‭: an introduction given to an employee, explaining the business’s‬ ‭Advantages‬ ‭Disadvantages‬
‭activities, customs, and procedures and introducing them to their fellow workers.‬

‭Advantages‬ ‭Disadvantages‬ ‭A broad range of skills can be taught‬ ‭Costs are high‬

‭Helps new employees settle into their jobs quickly‬ ‭Time-consuming‬ I‭f taught in the evening, employees can‬ ‭ orkers are being paid but not doing any‬
W
‭work during the day‬ ‭work.‬

‭ aybe a legal requirement to give health and‬

M ‭ orkers are being paid while no work‬
W
‭safety training at the start‬ ‭is being done‬ ‭ ften uses expert trainers who have‬
O ‭ dditional qualifications mean an employee's‬
A
‭up-to-date business practices and‬ ‭chances of leaving for another job are high.‬
‭knowledge.‬

‭Workers are less likely to make mistakes‬ ‭ elays the start of work for the‬
D
‭Why Reducing the Size of the Workforce Might Be Necessary‬
‭employee‬

‭●‬ W
‭ orkforce Planning‬‭: establishing the workforce the business needs for the‬
‭●‬ ‭On-the-job Training‬‭: Occurs by watching a more experienced worker doing their job.‬ ‭foreseeable future regarding the number and skills required.‬
‭●‬ ‭Reasons to reduce workforce:‬
‭Advantages‬ ‭Disadvantages‬ ‭○‬ ‭Automation (robots replacing human jobs)‬
‭○‬ ‭Falling demand for their goods or services‬
‭○‬ ‭Factory/shop/office closure‬
‭ he individual is given training in the workplace,‬ T
T ‭ rainers won’t be as productive‬ ‭○‬ ‭The business might have relocated abroad‬
‭so there is no need to send them away.‬ ‭because they are teaching employee‬
‭○‬ B
‭ usinesses are being‬‭taken over/merged,‬‭and now there are too many‬
‭workers doing the same job‬
‭●‬ ‭Two ways a business can reduce the number of employees:‬
 ‭○‬ D
‭ ismissal‬‭: employment ends against the employee's will, usually for not‬ ‭■‬ ‭It makes businesses less likely to mistreat employees.‬
‭following an employment contract.‬ ‭●‬ P
‭ rotection against discrimination‬‭(due to unfair reasons such as gender, race,‬
‭○‬ R
‭ edundancy‬‭: when an employee is no longer needed and loses their job. It’s‬ ‭colour, etc.).‬
‭not due to any aspect of their work being unsatisfactory.‬ ‭○‬ ‭Impact on Employers and Employees:‬
‭●‬ ‭Factors that decide in redundancy:‬ ‭■‬ ‭Employees have to be careful when wording advertisements for a job.‬
‭○‬ W
‭ orkers may volunteer and are happy to be made redundant due to finding‬ ‭■‬ A
‭ pplicants must be treated equally, or the business will be prosecuted‬
‭another job.‬ ‭and fined.‬
‭○‬ L
‭ ength of time employed by the business - employees might have worked‬ ‭■‬ E
‭ mployees must all be treated equally, regardless of gender, disability,‬
‭long hours and expect high payments.‬ ‭colour, etc.‬
‭○‬ W
‭ orkers who have skills that could be used in multiple departments are‬ ‭■‬ W
‭ hen businesses recruit and promote staff on merit alone, it helps to‬
‭retained.‬ ‭increase motivation.‬
‭○‬ T
‭ he worker's employment history- whether they are punctual, good at their‬ ‭●‬ ‭Laws of health and safety at work‬‭, such as:‬
‭job, etc.‬
‭○‬ ‭Protect workers against dangerous machinery.‬
‭ ‬ ‭Which departments need to lose, and which need to retain workers‬
○
‭○‬ ‭Provide safety equipment and clothing.‬
‭ xtra information:‬‭workers can retire (get old and want to stop working) and resign (find‬
E
‭○‬ ‭Maintain reasonable workplace temperatures.‬
‭another job), but it’s through the employee’s will in those two cases.‬ ‭○‬ ‭Provide hygienic conditions and washing facilities.‬
‭○‬ ‭Do not insist on excessively long shifts, and provide breaks.‬
‭Legal Controls Over Employment issues‬
‭○‬ ‭Impact on employers and employees:‬
‭The most important employment issues affected by legal controls are:‬ ‭■‬ ‭Cost to the employer of meeting the health and safety regulations.‬
‭■‬ ‭Time needs to be found to train workers in health/safety precautions.‬
‭●‬ T
‭ he Contract of Employment‬‭: A legal agreement between an employer and‬ ‭■‬ ‭Workers feel ‘safer‘ and more motivated at work.‬
‭employee, listing the rights and responsibilities of workers.‬ ‭■‬ R
‭ educe accident rates and the cost of compensation for workers‬
‭○‬ ‭Impact on Employers and Employees:‬ ‭injured at work.‬
‭■‬ ‭Both know what is expected from them.‬ ‭●‬ ‭Legal minimum wage and its impact on employer and employee:‬
‭■‬ ‭Provides security of employment for employee‬ ‭○‬ ‭It should prevent strong employers from exploiting unskilled workers.‬
‭■‬ I‭f the employee does not meet the condition of the contract, then legal‬ ‭○‬ A
‭ s many unskilled workers receive higher wages, it will encourage them to be‬
‭dismissal is allowed.‬ ‭more productive.‬
‭■‬ I‭f an employee fails to meet the conditions of the contract, then the‬ ‭○‬ ‭It will encourage people to seek work.‬
‭employee can seek legally binding compensation.‬ ‭○‬ L
‭ ow-paid workers will earn more and have higher living standards, making‬
‭●‬ U
‭ nfair Dismissal‬‭: when an employer ends a worker’s employment contract for a‬ ‭them afford to buy more.‬
‭reason not covered by the contract.‬ ‭○‬ ‭Increase business costs‬
‭●‬ I‭ndustrial Tribunal‬‭: a law court (legal meeting) judges disagreements between‬ ‭○‬ ‭Some employers will not be able to afford these wage rates.‬
‭companies and their employees.‬
‭○‬ H
‭ igher-receiving workers may ask for higher pay to keep the exact difference‬
‭○‬ ‭Impact on Employer and Employee:‬ ‭between them, increasing business costs.‬
‭■‬ T
‭ he Employer must have an accurate record of a worker’s‬ ‭Internal and External Communication‬
‭performance if they want to claim that the employee has broken the‬
‭contract before dismissing them.‬ ‭●‬ E
‭ ffective Communication is important so that the information sent in the message is‬
‭■‬ E
‭ mployees have employment security — as long as they fulfill their‬ ‭received, understood, and acted upon as it should be. Otherwise, lack of‬
‭contract or are not made redundant.‬ ‭communication can lead to severe consequences.‬
‭■‬ A
‭ llowed employees to take their employer to an industrial tribunal if‬ ‭●‬ ‭There are two types of communication in businesses:‬
‭they felt like they weren’t being treated fairly, and they could get‬ ‭○‬ I‭nternal Communication‬‭: communication between employees of the same‬
‭compensation if it were found to be true.‬ ‭business.‬
 ‭○‬ E
‭ xternal Communication‬‭: communication between the business and other‬
‭businesses and individuals.‬ ‭ essage can be referred to in the future as‬
M I‭t might lead to too many e-mails and‬
‭●‬ E
‭ xternal communication has to be especially efficient because it establishes the‬ ‭“hard evidence.”‬ ‭‘information overload.’‬
‭image and the efficiency of a business‬
‭○‬ i‭.e. if a company communicates inefficiently with their suppliers, they might‬
‭receive the incorrect materials‬ ‭Easy to explain complicated messages‬ ‭Two-way communication is difficult‬
‭●‬ ‭Effective communication involves:‬
‭○‬ ‭The‬‭transmitter‬‭/sender sending a message to pass on information‬
‭○‬ A
‭ ‬‭medium of communication‬‭– the method for sending a message (i.e.‬ I‭t can be copied and re-sent to many‬ I‭t is hard to check if the message has been‬
‭e-mail, phone, etc.)‬ ‭people‬ ‭received‬
‭○‬ ‭The message being sent to the‬‭receiver‬
‭○‬ T
‭ he receiver confirms that the message has been received and responds to it‬ ‭●‬ ‭Visual Methods‬‭: The sender uses diagrams, charts, videos, PowerPoints‬
‭(‭f‬ eedback‬‭)‬
‭●‬ ‭There are two types of communication:‬ ‭Advantages‬ ‭Disadvantages‬
‭○‬ O
‭ ne-way communication‬‭– where the receiver cannot reply to the message‬
‭(i.e. posters)‬
‭○‬ T
‭ wo-way communication‬‭– where the receiver can respond to the message‬
I‭f information is presented more‬ ‭ o feedback and needs other methods of‬
N
‭could be just confirmation that the message was received (e-mail)‬
‭appealingly, people will be more‬ ‭communication to go with it‬
‭ he methods of communication include:‬
T
‭interested in it.‬

‭●‬ V
‭ erbal Methods‬‭: The sender speaks to the receiver (i.e., through meetings,‬
‭telephone, or video conference)‬
I‭t can be used to make written‬ ‭ raphs and charts may be difficult for people to‬
G
‭messages clearer, to illustrate the‬ ‭understand, and the message may be‬
‭Advantages‬ ‭Disadvantages‬
‭point‬ ‭misunderstood‬

‭Methods of Communication‬
I‭nformation is given out quickly & an efficient‬ I‭f talking to many people, it’s hard to tell‬
‭way to communicate with many people.‬ ‭whether everyone got the message.‬ ‭●‬ F
‭ ormal Communication‬‭: when messages are sent through established channels‬
‭using professional language.‬
‭●‬ I‭nformal Communication‬‭: when information is sent and received casually using‬
‭Opportunity for immediate feedback‬ I‭t is unsuitable for accurate messages and‬ ‭everyday language.‬
‭requires a permanent record.‬ ‭ he Direction of Communication‬
T

‭ he speaker’s body language reinforces the‬

T
‭message.‬

‭●‬ W
‭ ritten Methods‬‭: the sender creates e-mails, memos or letters, including the use of‬
‭Information Technology‬

‭Advantages‬ ‭Disadvantages‬
 ‭●‬ A
‭ rrow A‬‭shows‬‭downward communication‬‭: messages from managers to‬ ‭●‬ ‭Overcome by‬‭:‬
‭subordinates. Used for instructions or statements, no feedback.‬ ‭○‬ T
‭ he message should be emphasised, and receivers should be asked for‬
‭●‬ A
‭ rrow B‬‭shows‬‭upward communication‬‭: messages or feedback can be passed‬ ‭feedback to ensure understanding.‬
‭from subordinates to managers.‬ ‭○‬ I‭f trust is not between sender and receiver, then the sender should try to build‬
‭●‬ A
‭ rrow C‬‭shows‬‭horizontal communication‬‭: when people at the same level in an‬ ‭that trust, or perhaps another sender who is respected by the receiver could‬
‭organisation communicate. Ideas and info can be shared. Conflict can happen.‬ ‭be used.‬
‭ emonstrate an Awareness of Communication Barriers‬
D

‭Communication Barriers‬ ‭●‬ ‭Problems with feedback‬‭:‬

‭○‬ ‭Not sent‬
‭ ‬ ‭Communication Barriers‬‭– Factors that stop effective communication of messages.‬
●
‭○‬ ‭Unclear‬
‭Communication Barriers and How Can They Be Reduced or Removed‬
‭○‬ ‭Not asked for‬
‭●‬ ‭Problems with the‬‭sender‬‭:‬ ‭●‬ ‭Overcome by:‬
‭○‬ ‭Poor attitude and body language‬ ‭○‬ P
‭ erhaps no feedback was asked, or the method of communication required‬
‭○‬ ‭Unclear message‬ ‭no feedback, so another technique that may allow feedback should be used.‬
‭○‬ ‭Message too long‬ ‭○‬ ‭Direct lines of communication should be available.‬
‭○‬ ‭Sent to the wrong person‬ ‭Marketing‬
‭●‬ ‭Overcome by‬‭:‬ ‭The Role of Marketing‬
‭○‬ T
‭ he sender should ensure that the message uses language which can be‬
‭Marketing Department:‬
‭understood.‬
‭○‬ ‭The sender should make the message as straightforward as possible.‬ ‭●‬ ‭Marketing‬‭: Identifying and satisfying customer needs and satisfying them profitably.‬
‭○‬ ‭The sender should ensure the message is delivered to the right person.‬ ‭●‬ C
‭ ustomer‬‭: a person, business or other organisation which buys goods or services‬
‭○‬ ‭The message should be brief, with the main points to be understood.‬ ‭from a business.‬
‭●‬ ‭The different marketing department sections:‬
‭○‬ S
‭ ales Team‬‭: responsible for the sales of products. If a product is exported, it‬
‭●‬ ‭Problems with the‬‭medium‬‭:‬
‭may be called the export team.‬
‭○‬ ‭Too many people pass on the message.‬
‭○‬ M
‭ arket Research‬‭: responsible for discovering customers’ needs, market‬
‭○‬ ‭The message may be lost.‬ ‭changes and the impact of competitors’ actions. This report will be used in‬
‭○‬ ‭Wrong channel used‬ ‭decision-making, research, developing new products, price levels, etc.‬
‭○‬ ‭Technical break down‬ ‭○‬ P
‭ romotion Section‬‭: deals with organising the advertising for products.‬
‭●‬ ‭Overcome by‬‭:‬ ‭Arrange for advertisements and have a market budget.‬
‭○‬ I‭nsist on feedback; if none is given, the sender can assume the message is‬ ‭○‬ ‭Distribution:‬‭transports the products to the market.‬
‭lost.‬
‭○‬ ‭The sender must select an appropriate channel to avoid problems.‬
‭●‬ ‭The Role of Marketing:‬
‭○‬ ‭Shortest possible channel to avoid problems‬
‭○‬ I‭dentify customer needs‬‭: this will be done via ‘Market Research’. It will‬
‭○‬ ‭Other forms of communication should be available.‬
‭influence the development of a product, its price, and the sales technique.‬
‭■‬ A
‭ good marketing department should also be able to anticipate‬
‭●‬ ‭Problems with the receiver‬‭:‬ ‭changes in customer needs (i.e. due to advancements in technology)‬
‭○‬ ‭Lack of trust‬ ‭■‬ ‭Find new trends or gaps in the market with potential.‬
‭○‬ ‭Poor attitude‬ ‭○‬ S
‭ atisfy Customer Needs‬‭: selling the exact product customers want for a‬
‭price they are willing to pay.‬
‭○‬ ‭Poor listener‬
 ‭○‬ M
‭ aintaining customer loyalty‬‭: maintaining close customer relationships to‬ ‭●‬ T
‭ ransportation‬‭: it is cheaper, quicker, and easier to send products around the world‬
‭discover the product's expectations and changes needed to be made. It’s‬ ‭now‬
‭cheaper for businesses to keep existing customers than to attract new ones.‬ ‭●‬ I‭nternet/e-commerce‬‭: customers can now search for products or services and buy‬
‭■‬ C
‭ ustomer Loyalty‬‭: existing customers continually buy products from‬ ‭from somewhere else around the world‬
‭the same business. It is achieved by always satisfying customer‬ ‭●‬ T
‭ he ways businesses respond to changing spending patterns and increased‬
‭needs.‬ ‭competition:‬
‭○‬ ‭Building customer relationships to gain information about customers‬ ‭○‬ ‭Keep improving its existing products‬
‭■‬ C
‭ ustomer Relationships‬‭: communicating with customers to‬ ‭○‬ ‭Bring out new products to keep customer’s interest‬
‭encourage them to become loyal to the business and its products.‬
‭○‬ ‭Keep costs low‬
‭■‬ T
‭ hrough customer relationships, changing needs can be understood.‬
‭○‬ ‭maintain good customer relationships‬
‭Research information can be applied to make effective marketing‬
‭Market Types‬
‭through these relationships.‬
‭○‬ ‭Anticipate changes in customer needs –‬ ‭●‬ M
‭ arket‬‭: the total number of customers, potential customers and other sellers of a‬
‭■‬ ‭Identify new trends in customer demands or gaps in the market.‬ ‭product/service.‬
‭●‬ ‭There are two types of markets:‬
‭○‬ ‭Mass Market‬‭: where there is a vast number of sales of a product type.‬
‭●‬ W
‭ hen the marketing department succeeds in identifying customer‬
‭requirements and future needs, it will enable the business to:‬
‭○‬ ‭Raise customer awareness of a product or service of the business‬ ‭Advantages‬ ‭Disadvantages‬
‭○‬ ‭Increase in revenue and profitability‬
‭○‬ ‭Increase or maintain market share‬
‭Total sales are very high‬ ‭Abundant competition‬
‭○‬ ‭Maintain or improve the image of the product or business‬
‭○‬ ‭Target a new market or market segment‬
‭○‬ ‭Enter a new market at home or abroad.‬
‭ an benefit from economies of‬
C ‭High costs of advertisement and promotion‬
‭ ‬ ‭Develop new products or improve existing products.‬
○
‭scale‬
‭ arket Changes‬
M

‭●‬ M
‭ arkets change because‬‭consumer spending patterns‬‭change‬‭; this might be due‬
‭to the following:‬ ‭ pportunities for growth (large‬
O ‭ tandardised products or services, so it may not‬
S
‭○‬ T
‭ rends and Fashions Change‬‭: for some time, it might be fashionable to‬ ‭sales)‬ ‭meet the specific needs of all customers‬
‭have a specific product (i.e., Fidget Spinner), but a month later, no one‬
‭bought them‬
‭○‬ A
‭ dvancement in Technology‬‭: new products provide the latest technology so‬ ‭ here are many variations of‬
T
‭older versions (i.e., iPads or computers) don’t have high sales‬ ‭products, so the risk is spread.‬
‭○‬ U
‭ nemployment/Wages‬‭: Economies with high unemployment rates/low‬
‭wages will not have increased sales of expensive products‬ ‭●‬ N
‭ iche Market‬‭: a SMALL (usually specialised) segment (part) of a mass market.‬
‭○‬ A
‭ geing Population‬‭: different ages are interested in other products (i.e.‬ ‭Specialised and sold by small businesses that would find it difficult to compete in a‬
‭anti-ageing creams)‬ ‭mass market (ex, a business specialised in scuba diving gear)‬
‭●‬ B
‭ usinesses have to keep up with customers' changing needs to stay relevant and‬
‭maintain their customer base/loyalty. The competitiveness of a business is majorly‬ ‭Advantages‬ ‭Disadvantages‬
‭affected by its ability to respond to any changes in the market.‬
‭ ome markets have become‬‭more competitive‬‭because:‬
S

‭●‬ ‭Globalisation‬‭: products are sold all over the world‬

 ‭ void competition with big‬
A ‭Small – limited sale potential‬
‭businesses‬

‭ ustomers' specific needs are‬

C ‭ sually, they specialise in just one product; if the‬
U
‭focused, leading to high levels of‬ ‭product has low demand, it will fail. It would‬
‭customer loyalty and good customer‬ ‭require businesses to have multiple products to‬
‭relations.‬ ‭spread risks.‬

‭Market Segmentation‬

‭●‬ M
‭ arket Segmentation‬‭: an identifiable subgroup of a whole market where consumers‬
‭have similar characteristics or preferences.‬
‭●‬ ‭A market can be segmented by:‬
‭○‬ ‭Demographic segmentation -‬‭age, gender, and income.‬
‭○‬ G
‭ eographic segmentation‬‭- region/location, where people live (ex, people‬
‭who live in wet areas will buy more waterproof clothing than those who live in‬
‭dry areas)‬
‭○‬ P
‭ sychographic segmentation‬‭- beliefs, values, lifestyle, social status,‬
‭activities, interests and opinions and other psychological criteria.‬
‭●‬ ‭Benefits of Market Segmentation‬‭:‬
‭○‬ Y
‭ ou can use it to sell more products, creating different variations for different‬
‭groups.‬
‭○‬ A
‭ more effective marketing strategy can be placed (as the characteristics of‬
‭consumers are known), resulting in an increase in sales.‬
‭○‬ I‭dentifying a market segment that is not having its needs fully met increases‬
‭the opportunity for increased sales.‬
‭○‬ M
‭ aking marketing expenditure cost-effective by producing a product that can‬
‭closely meet the needs of those customers and targeting its marketing efforts‬
‭to that group only.‬
‭●‬ ‭Which method of segmentation should be used depends on factors such as:‬
‭○‬ D
‭ etailed analysis of the market and the ‘size’ of each potential segment in‬
‭terms of consumers and likely sales.‬
‭○‬ C
‭ ompany image and brand image - ‘high-tech ' businesses may not want to‬
‭produce innovative, high-quality products for low-income consumers.‬
‭○‬ F
‭ or example, the cost of entering each segment is a specially designed‬
‭product and advertising campaign.‬