Business Exam Term 1 Grade 10 PDF

Business Exam TERM 1 Grade 10 Unit 1: Understanding Business Activity (Introduction to Business Management) Need and Want Need: A need is a good or service that is essential for living. Water, clothes, food, and shelter. Want: A want is a good or service which peo...

Business Exam TERM 1 Grade 10 Unit 1: Understanding Business Activity (Introduction to Business Management) Need and Want Need: A need is a good or service that is essential for living. Water, clothes, food, and shelter. Want: A want is a good or service which people would like to have, but it is not essential for living. Our wants are our interests and our specific tastes. People’s wants are unlimited. Economic Problem: There exists unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity. Scarcity Scarcity is the lack of sufficient products to fulfil the total wants of the population. The real cause of scarcity of goods and services is that there are not enough factors of production to make all of the goods and services that the population needs and wants. Factor of production: Land: This term is used to cover all of the natural resources provided by nature and this includes fields, forests, oil, gas, metals and other minerals. Labour: This is the number of people available to make products. Capital: This is the fiance, machinery and equipment needed to manufacture goods. Enterprise: This is the skills and ability of the person who brings the other resources or factors of production together to produce a good or service. For example the owner of a business. These people are called entrepreneurs. In any one country, these factors of production are limited in supply. As there is never enough land, capital or enterprise to produce all of the needs and unlimited wants of a whole population, that's why there is an economic problem; scarcity. Opportunity Cost Opportunity cost is the next best alternative given up by choosing another item. All choices involve giving something up, this leads to opportunity cost. For example should I take a bus to school or use the money for a new pen to write clear business notes. Do I buy a new pair of trainers or spend the money on a new smartphone? We do not have the resources to satisfy all our wants, so the next best alternative that we give up becomes our opportunity cost. This problem of ‘what to give up’ is not only for consumers but also for governments and businesses too. For example the government has to make choices like making a school for better education or making hospitals for better healthcare. Specialisation Specialisation occurs when people and businesses concentrate on what they are best at. In all societies the factors of production are limited, meaning we should use these resources in the most efficient ways possible. Very few products are now made just by the efforts and skills of one worker. Nearly all workers specialise in particular skills and many businesses specialise in one type of product. -​ Specialised machinery and technologies are now widely available. -​ Increasing competition means that businesses have to keep costs low. -​ Most people recognise that higher living standards can result from being specialised. Advantages: -​ Efficiency and Output -​ Less Time Wasted -​ Expertise Disadvantages: -​ Burn out -​ Flexibility limitation (Limitation of diversity and adapting to changing in the market). Classification of Businesses Primary, Secondary and Tertiary. Primary Sector: The primary sector of an industry extracts and uses the natural resources of Earth to produce raw materials used by other businesses. The industries in this sector include, farming, fishing, forestry and the extraction of natural materials (Oils, and minerals) Secondary Sector: The secondary sector of an industry manufactures goods using the raw materials provided by the primary sector. (Converting the raw materials from primary into manufactured or processed goods) The industries in this sector are, building and construction, aircraft and car manufacturing, computer assembly and also food making. Tertiary Sector: The tertiary sector of industry provides services to consumers and other sectors of industries. The activities in this industry include, transport, banking, retail, insurance, hotels and hairdressing. Types of Organizations Sole trader, Partnerships, Private limited companies, public limited companies, joint venture, franchises, private and public sectors. Sole Trader: Ownership: Owned and operated by one individual who has complete control. Profit: The owner receives all the profits, and bears all the risks and losses. Liability: The owner has unlimited liability, meaning personal assets can be used to cover debts. Advantages: 1.​ Full Control over business decisions. 2.​ Retains all profits. Disadvantages: 1.​ Unlimited Liability, risking personal assets. 2.​ Limited capital and resources. Partnerships: Ownership: Owned by two or more individuals who share decisions and profits. Collaboration: Partners can bring diverse skills and resources to the business. Liability: Partners share unlimited liability, meaning each partner is responsible for the debts of the business. Advantages: 1.​ Shared responsibility and power/control. 2.​ More capital and resources compared to sole traders. 3.​ Diverse skills set. Disadvantages: 1.​ Unlimited liability, risking personal assets. 2.​ Potential conflict between partners. Private Limited Companies Ownership: Owned by private shareholders, often friends and family. Limited Liability: Shareholders are protected from losing assets; their liability is limited to their investment in the company. Shares: Not publicly traded, which allows for more control. Advantages: 1.​ Limited Liability protects personal assets 2.​ Easier to raise capital in comparison to sole trader or partnership. Disadvantages: 1.​ More regulatory requirements and paperwork. 2.​ Shares cannot be sold to the public, limiting capital. Public Limited Companies: Ownership: Owned by shareholders who can buy or sell shares on the stock market. Capital: Easier to raise large amounts of capital. Limited Liability: Shareholders liability is limited to their investment. Advantages: 1.​ Ability to raise large amounts of capital through public share offerings. 2.​ Limited liability protects personal assets. Disadvantages: 1.​ Subject to strict regulatory requirements and public scrutiny. 2.​ Potential loss of control due to wide spread of shares. Joint Ventures: Ownership: Formed by two or more businesses that agree to work together on a specific project. Collaboration: Each party contributes resources such as capital, technology, expertise, and shares in risks and rewards. Duration: Often created for a finite period or specific project, after which the venture may be dissolved. Advantages: 1.​ Shared Resources. Leading to more resources and expertise, meaning effective and more efficient operations. 2.​ Risk sharing. Risks and costs are spread among the partners. Disadvantages: 1.​ Conflict Potential. Differences in management style, objectives, or cultures can lead to conflicts. 2.​ Profit Sharing. Profits must be shared among the partners which may reduce individual returns compared to operating alone. Franchises Franchisor: The original business that grants the rights to use its brand and its business model. Franchisee: The individual entity that buys the license to operate a bunch of franchises. Support: The franchisor provides training, marketing and support to ensure consistency across locations. Private Sector Ownership: Businesses owned by individuals or private companies. Profit Motive: Operate to make profit for their owner or shareholders. Examples: Include small businesses, companies and partnerships. Public Sector Ownership: Organizations owned and operated by the government. Public Services: Provide essential services that may not be profitable but are necessary for societal well-being. Examples: Includes public schools, hospitals and infrastructure projects. Unit 2: People in Business (Human Resource Management) Human Resource Management is the strategic approach to effectively managing a company’s workers, so that they can help the company achieve its goals and gain an advantage over its competitors. HR Department Roles The HR department handles hiring and recruiting employees, managing redundancies and layoffs (firing employees), and they help aid in employee training and development. HR Planning HR planning is ensuring that the right amount of employees with the right skills are available when needed. Organizational Structure The organizational structure defines and states roles, responsibilities, and hierarchy within an organization. This includes many types, such as flat, hierarchical, and matrix structures. Maslow’s Hierarchy of Needs: 1. Physiological Needs: Basic survival needs (food, water, shelter). 2. Safety Needs: Security and stability. 3. Love and Belonging: Social relationships. 4. Esteem: Respect and recognition. 5. Self-Actualization: Achieving one’s potential. Hezberg’s Theory of Motivation: The theory is broken down into 2 parts they include: Motivating Factors: Achievement, recognition, job satisfaction, advancement (opportunities for promotion).​ Hygiene Factors: Company policies, salary, work conditions, security of job. Leadership and Management Autocratic leadership​ Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed. They keep themselves separate from the rest of the employees. They make virtually all the decisions and keep information to themselves. They tell employees only what they need to know. Communication in the business is mainly one way, that is, downward or top-down, and the workers have little or no opportunity to comment on anything. Democratic leadership​ Democratic leadership will get other employees involved in the decision-making process. Information about future plans will be openly discussed before the final decision will be made, often by the leader. Communication will be both downward or top-down and upward or bottom-up. Laissez-faire leadership​ Laissez-faire is French for ‘leave to do’. Laissez-faire leadership tends to make the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work. Communication can be difficult in this type of organisation as clear direction will not be given. The leader has only a very limited role to play. The style of leadership used by a manager can vary depending on the employees being dealt with and the problem to be solved. Managers may not be autocratic leaders all of the time – it may be appropriate for them to be democratic over some issues, whereas other issues will need a decision imposing on the workforce. Efficiency and Effectiveness of Employees:​ Efficiency and effectiveness of employees is critical for their performance. This efficiency consists of finishing tasks with ideal time management and resource allocation, maximizing their productivity and cost saving. Effectiveness is different, it mainly focuses on achieving desired goals and outcomes and business objectives, ensuring that employees are doing the right tasks. To have a well working workforce there should be a balance, while efficiency optimized resource and time use, effectiveness ensures the goals and objectives of the business are met. Improving these aspects involves clear objective setting, proper training, advanced technology, performance feedback, and employee engagement. Together, they contribute to overall business success and competitiveness, creating a productive and goal-oriented workforce. Unit 3: Financial Information and Decisions (Finance and Accounts) Need for Finance We all need money to purchase goods and services. Businesses also require finance, and this is often called capital. Without finance, businesses could not pay wages, buy materials or pay for assets. Here is why fiance is needed: -​ Starting up a business When you start a business you should think about the buildings, land and equipment which you will need to buy before starting your business. This is usually called non current (fixed) assets. The finance needed to launch a business is often called a start-up business. -​ Expanding an existing business The owners of a successful business will often take a decision to expand it in order to increase profits. That’s why additional non-current (fixed) assets could be purchased (such as larger buildings and more machinery) Another business could also be purchased through a takeover. -​ Additional Working Capital Fines which will be needed to pay day-to-day activities. Such as paying wages, paying for raw materials, paying bills, and so on. The money available to them to do this is known at the firm’s working capital. Working Capital Working capital is often described as the lifeblood of a business. It is the finance that is constantly needed by firms to pay for their day-to-day expenses. Sources of Finance (Internal and External) Internal: The internal finance is obtained from within the business itself. External: The external finance is obtained from sources of and separate from the business. Internal Fiance Retained Profit: This is the profit kept in the business after the owners have taken their share of the profits. Advantages 1.​ Retained profit does not have to be repaid unlike for example loans. 2.​ There is no interest to pay either. (Capital is raised from within the business). Disadvantages 1.​ A new business will not have any retained profits. 2.​ Many small firms' profits might be too low to finance the expansion needed. 3.​ Keeping more profits in the business reduces payments to owners. Sale of existing assets Existing assets that could be sold are those items of value which are no longer required by the business. For example, equipment. Advantages 1.​ This makes better use of the capital tied up in the business. 2.​ It does not increase the debts of the business. Disadvantages 1.​ It may take some time to sell these assets and the amount raised is never certain until it is sold. 2.​ This source of finance is not available for new businesses as they have no surplus assets to sell. Sale of inventories to reduce inventory level Advantages 1.​ This reduces the opportunity cost and storage cost of high inventory levels. Disadvantages 1.​ It must be done carefully to avoid disappointing customers if not enough goods are kept as inventory to reuse. Owner’s savings A sole trader or member of a partnership can put more of their savings into their unincorporated businesses. Advantages 1.​ It should be available to the firm quickly. 2.​ No interest is paid. Disadvantages 1.​ Savings may be too low. 2.​ It increases the risk taken by the owners as they have unlimited liability. External Finance Issues of Shares This source of finance is only possible for limited companies. Advantages 1.​ This is a permanent source of capital which would not have to be repaid by the shareholders. 2.​ No interest has to be paid. Disadvantages 1.​ Dividends are paid after tax, whereas interest on loans is paid before tax is deducted. 2.​ Dividends will be expected by the shareholders. 3.​ The ownerships of the company could change hands if many shares are sold, which the original owners might object to. Bank Loans A bank loan is a sum of money obtained from a bank which must be repaid and on which interest is payable. Advantages 1.​ These are usually quick to arrange. 2.​ They can be for varying lengths of time. 3.​ Large companies are often offered low rates of interest by banks if they borrow large sums. Disadvantages 1.​ A bank loan will have to be repaid eventually (and a deadline will be given) and an interest will also be charged. 2.​ Security or collateral is usually required as well. The bank can sell some of the businesses property if they fail to repay the loan. A sole trader may have to put their own house up as security on a bank loan. Selling Debentures These are long-term loan certificates issued by limited companies. Advantages 1.​ Debentures can be used to raise very long-term finance, for example, 25 years. Disadvantages 1.​ As with loans, they must be repaid after a deadline and interest will be charged. Factoring of Debts A debtor is a customer who owes a business money for goods bought. Debt factors are specialist agencies that buy the claims on debtors of businesses for immediate cash. For example, a debt factor may offer 90% of an existing debt. The debtor will then pay the factor and the 10% represents the factor’s profit. Advantages 1.​ Immediate cash is made available to the business. 2.​ The risk of collecting the debt becomes the factor’s and not the business’s. Disadvantages 1.​ The business does not receive 100% of the value of its debts. Grants and Subsidies from outside agencies (Subsidies are current payments aiming to influence levels of production or prices, grants are direct financial contributions for specific activities that support the policy objectives of the EU or the general government.) Outside agencies include for example the government. Advantages 1.​ These grants and subsidies usually do not have to be repaid. Disadvantages 1.​ They are often given with strings attached, for example the firm must locate in a particular area. Cash Flow The cash flow of a business is the cash inflows and outflows over a period of time. 1.​ Cash inflow: Money coming into the business (Received) Factors: -​ Sale of products. -​ Payment made by debtors -​ Borrowing money from external sources -​ The sale of assets -​ Investors 2.​ Cash outflow: Money going out of the business (Paid out) Factors: -​ Purchasing non-current (fixed) assets. -​ Repaying loans. -​ Paying creditors of the business -​ Paying wages and salaries -​ Paying bills -​ Purchasing goods or materials -​ Forecast: Forecast is an estimate of future cash inflows and outflows of a business, usually on a monthly basis. This then shows the expected cash balance at the end of the month. Holding cash: Money that a person or company keeps available to spend rather than invest. Cash Flow Calculations Net cash flow = Inflow - Outflow For example, if total inflow is 100 and outflow is 32 to calculate Net cash flow:​ 100-32= 68 Gross Profit = Revenue - cost of goods sold Example:  1.​ 1700-300= 1400 2.​ 1400 x 1 = 1400 dollars 3.​ Gross profit= sales revenue - cost of goods sold Which means the gross profit is:​ 1400 x 2($) = 2800($) sales revenue Gross profit= 2800($)- 1400($) = $1400 profit An income statement is a document that records the income of a business and all costs incurred to earn that income over a period of time. An income statement is used to compare profit margins with competitors. An income statement is made at the end of a financial year. What it consists of: -​ Document that records the income of a business year and the costs throughout it. -​ Cost profit, net profit, gross profit -​ The purpose is to show the shareholders, and it’s also used to analyze the company's growth. Balance Sheet A balance sheet is a document that shows the assets and liabilities of a business at a particular time at the end of the year. Similar to the income statement. What it consists of: -​ Assets Items of value, owned by the business. 1.​ Current assets: Assets a company has for less than a year. 2.​ Non-current assets: Assets a company has for more than a year. -​ Liabilities Debt owned by the business. 1.​ Short-term liability: Overdraft. 2.​ Long-term liability: Bank loan, leases and debentures. -​ Shareholders Equity The total sum of money invested into the business by shareholders. -​ Shared Capital Capital given to shareholders.  -​ Reserves Retained profits. Goods sold during the year = opening inventory + purchases - closing inventory Net profit : Profit given after calculating all expenses Ratio Analysis This is a way of comparing the improvements, losses, gains, and other statistics of the previous financial year to the current financial year. There 2 types of ratios: Profitability ratios: These ratios compare and contrast the profits and other statistics from last year to the present year. This ratio, known as the return on capital employed, is the ratio that includes the money invested in the business and the money made from it/ the shareholder's equity and the non-current liabilities. They compare and contrast business information and data through ratios: 1.​ Return On Capital Employed: Net Profit/Capital employed x 100 2.​ Gross Profit Margins: Gross profit/sales revenue x 100 3.​ Net Profit Margins: Net Profit/Sales revenue x 100 Liquidity Ratios: Liquidity ratios are a group of financial ratios that measure a company's ability to meet its short-term obligations. Current ratios: Current Assets/Current Liabilities. Acid test ratios: (Current Assets-Current Inventory)/Current Liabilities The current ratio shows us the current liabilities as compared to the current assets. The current ratio should be over 1 to be considered profit. 1.3 is a safe point. The higher the better. Profitability Ratio Example: Current Ratio Example:  Unit 4: External Influences on Business Activity Government Economic Objectives: - Low Inflation: Government aims to keep inflation low to ensure stability in prices, enabling businesses to plan effectively without the risk of rapid price fluctuations. - Low Unemployment: Governments seek to promote job creation and reduce unemployment rates to ensure economic prosperity and social stability. Economic Growth: Encouraging economic growth is a key objective to increase national income, improve living standards, and create employment opportunities. - Balance of Payments: Governments aim to maintain a balance in the country's international trade to ensure stability in the economy and avoid excessive reliance on imports or exports. Fiscal Policy and Monetary Policy: Fiscal Policy: Government choices about taxes, spending, and borrowing to manage the economy and meet economic goals. Monetary Policy: Central bank actions on interest rates and money supply to control inflation and manage the economy's money flow. Environmental Issues: - Businesses face increasing pressure to minimize their environmental impact and adopt sustainable practices to mitigate climate change and preserve natural resources. - Environmental regulations and consumer demand for eco-friendly products influence business strategies and operations. Sustainable Development: - Sustainable development involves meeting the needs of the present without compromising the ability of future generations to meet their own needs. - Businesses are expected to integrate economic, environmental, and social considerations into their decision-making processes to ensure long-term viability. Ethical Issues: - Ethical considerations encompass fair treatment of employees, responsible sourcing of materials, and transparency in business practices. - Businesses are expected to adhere to ethical standards and corporate social responsibility principles to build trust and reputation among stakeholders. Globalization: - Globalization refers to the increasing interconnectedness of economies and societies through trade, investment, and technological advancements. - Businesses operate in a global marketplace, facing opportunities and challenges arising from international competition, supply chains, and cultural diversity. Multinational Businesses: - Multinational corporations operate in multiple countries, leveraging economies of scale, market access, and diverse talent pools. - They face regulatory complexities, cultural differences, and reputational risks while contributing to global economic growth and development. Exchange Rate: - Exchange rates determine the value of one currency relative to another and influence international trade, investment, and business operations. - Fluctuations in exchange rates can impact export competitiveness, import costs, and profitability for businesses operating in global markets. Unit 5: Marketing Marketing Department The marketing department plays a pivotal role in promoting and selling products or services. Its primary responsibilities include understanding customer needs, conducting market research, designing advertising campaigns, and ensuring effective communication between the business and its target audience. The department also oversees the implementation of the marketing mix, which encompasses the 4 P’s: Product, Price, Place, and Promotion, while continuously monitoring the success of marketing strategies to adapt and improve them as needed. Role of Marketing​ Marketing is essential for identifying and satisfying customer needs and wants, ensuring the success and longevity of a business. By understanding consumer behavior through research, businesses can build customer loyalty, sustain a steady flow of revenue, and strengthen their brand identity. For example, if a loyal customer consistently purchases eggs from Subhani, they are unlikely to switch to a competitor like Ahmad if their expectations are consistently met and exceeded through effective marketing practices. Mass Market and Niche Market​ The concept of mass markets and niche markets represents two distinct approaches to marketing. A mass market targets a broad audience with products aimed at a wide range of consumers. While this strategy allows for large sales volumes and economies of scale, it also involves high competition and significant marketing expenses. Niche marketing: On the other hand, a niche market focuses on a smaller, specialized segment of the market, catering to specific consumer needs. Although niche markets foster stronger customer loyalty and face less competition, they are limited in growth opportunities and rely heavily on a smaller customer base. Advantages of a Niche Market:​ Niche markets face less competition, foster strong customer loyalty, and allow for premium pricing due to specialized offerings. Marketing is more targeted and cost-effective, and businesses can establish themselves as industry experts. Disadvantages of a Niche Market:​ Niche markets have limited growth potential and are heavily reliant on a small customer base. They also face higher risks from changes in market trends or customer preferences, making sustainability challenging. Mass Market Advantages 1.​ A company is going to make sales to a larger market/consumer base. 2.​ A company can benefit from economies of scale (economies of scale is when a big company gets supplied more leading to lesser delivery cost and lesser wastage as they will be producing more.) 3.​ Risk is spread out meaning if one product loses sales, it is compensated by another variation of the product you produce. Mass Market Disadvantages 1.​ There’s high competition. 2.​ High Marketing rates. Market Segmentation (Segments: An Identifiable subgroup of a whole market.) ​ Market segmentation divides a broad market into smaller subgroups based on shared characteristics, enabling businesses to effectively target specific customer groups. Segments can be categorized by socio-economic groups, age, region or location, gender, product use, and lifestyle. For example, luxury beauty soaps like Dove and Pears target customers who prioritize indulgence, while medicated soaps such as Cetaphil and Cerave cater to health-conscious consumers. Similarly, baby-specific soaps like Johnson’s and Mothercare address the needs of a younger demographic. By identifying such segments, businesses can tailor their products and marketing strategies to resonate with their target audience. Socio Economic Group: Refers to a person’s position in society. Formation of a socio-economic group for a person is based on data on the person’s main type of occupation, activity, occupational status and industry. By Age: You differentiate your product according to the customer's ages. By Region/Location: You diversify your products according to the region, making your business more accessible globally. For example in Muslim countries you get halal food only, and in other places you don’t. By Gender: Differentiating your product by gender. By the use of the product: Catering to how the customer is going to use the product according to their needs. For example a person with acne will use medicated soap. By Lifestyle: Seeing the customer’s lifestyle and catering the product to it. Market Research​ Market research is the process of gathering, analyzing and interpreting information about a market to better understand it. Product and Market Oriented Product Oriented: Focus on the product itself. For example, Dyson. So it focuses on the product itself, instead of focusing on what the customer’s wants and needs are. Market Oriented: Focus on market research before releasing a product. THe importance of market oriented is to see what customers are wanting and demanding at the time. How Businesses conduct their research: 1.​ What is the purpose of primary research? 2.​ How we’re going to use primary research. (Methods, interviews, surveys etc.) 3.​ Decide what sample size we need. (How much research you need.) 4.​ Carry out the research. 5.​ Analyze the data you have collected. 6.​ You produce a report of the collected data. Primary: Focus Group: You select a group of people who represent a target market. Advantage: They provide detailed information. Disadvantage: Time-consuming Secondary: -​ Past Data (Internal source of secondary data). -​ Internet. Marketing Mix 4 P’s​ Marketing mix are key decisions made for effective marketing. The marketing mix, commonly referred to as the 4 P’s of Marketing, forms the foundation of effective marketing strategies. The product represents the goods or services offered to meet customer needs, with success dependent on factors like reliability, innovation, and design. (What type of product you’re going to market.) First thing you do is come up with the idea for a product. After that you make a prototype and during that stage, you sell the prototypes in the test market to see how well they do. If it does well then you publish it, and if it doesn’t, then you get work on it using feedback. Maturity means your growth of the product is slow now, meaning getting a new audience will be harder. Saturation is when no one will buy your product anymore but it will be more stable. The price reflects what customers are willing to pay, with strategies including cost-based pricing, competitive pricing, psychological pricing (e.g., $9.99), price skimming, and promotional pricing. (Price at which your product will be sold.) -​ Cost-Plus Pricing - Businesses calculate the cost of producing the product and add a markup for profit. -​ Penetration Pricing - You set your price lower than your competitors when entering a new market. -​ Premium Pricing - Setting a higher price for a product to indicate luxury or quality. -​ Competitive Pricing - Pricing based on what competitors are charging, either matching or undercutting them. -​ Psychological Pricing - An approach which focuses on grabbing the customer’s attention. -​ Price-Skimming - You set a high price on purpose for a new product in a market, which sets a standard for a quality product. -​ Promotional pricing - When you set the price low, for a short period of time. -​ Price Elasticity - It’s a measure of demand, in the change of price. The place encompasses the distribution channels that deliver products to consumers, ranging from direct sales to multi-level channels involving wholesalers and retailers. (Where will you sell it, the channel of distribution) Distribution channels is the route through which the product is passed from the place of production to the customer. First distribution channel is from producer to consumer. (Wood to forestry) Second distribution channel is from producer to retailer to consumer. (Furniture) Third distribution channel is producer to wholesaler to retailer to consumer. The more complex the distribution channel, the greater the profit. Methods of Distribution: -​ Department Stores -​ Supermarkets -​ Super stores Lastly, promotion includes activities aimed at boosting awareness and sales, such as advertising through television or social media, offering discounts, or running sponsorships. (How you will promote your product) 1.​ Above the line: Advertisement, paying for communication with the consumer. Informative and persuasive. -​ TV -​ Radio -​ Newspaper -​ Magazines -​ Posters/Billboards -​ DVDs -​ Movie placement 2.​ Below the line: Sales promotion. -​ Discount pricing. (Buy one get one free) -​ Gifts -​ Gift cards -​ Vouchers -​ Competitions (Scratch tickets) -​ Free samples International Marketing​ International marketing focuses on expanding a business’s reach into foreign markets. Companies entering international markets can use methods like exporting, international franchising, joint ventures, or establishing subsidiaries. Additionally, e-commerce and social media have emerged as cost-effective tools for reaching global audiences. International strategies often involve either pan-global marketing, where consistent branding is maintained worldwide (e.g., Coca-Cola’s campaigns), or global localization, where products and marketing are tailored to local preferences, such as McDonald’s offering halal menus in Muslim-majority countries. E-Commerce​ E-commerce has transformed traditional marketing by enabling businesses to buy and sell products online, offering unparalleled convenience and accessibility. It allows businesses to operate 24/7, expand their customer reach, reduce operational costs, and leverage data analytics for insights. Examples include global e-commerce giants like Amazon and local enterprises using platforms like Shopify to grow their presence and enhance customer engagement. Pan-Global Marketing and Global Localisation