Spec coverage
Every spec point, and what actually teaches it
The real numbered content list from the official Pearson specification, each point matched to the lesson that covers it. Click through to a lesson from its spec point below, or rate how confident you feel — saved in this browser so it’s there next time you come back. Any point with no matching lesson is flagged, not hidden.
22 spec points · 22 covered
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1.3.1 — Meeting customer needs
- 1.3.1.1
The market
- a) Mass markets and niche markets: characteristics; market size and market share; brands.
- b) Dynamic markets: online retailing; how markets change; innovation and market growth; adapting to change.
- c) How competition affects the market.
- d) The difference between risk and uncertainty.
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- 1.3.1.2
Market research
- a) Primary and secondary market research data (quantitative and qualitative) used to: identify and anticipate customer needs and wants; quantify likely demand; gain insight into consumer behaviour.
- b) Methods of primary market research: surveys/questionnaires; focus groups/consumer panels; face-to-face/telephone interviews; product trials/test marketing.
- c) Methods of secondary market research market research: websites/social media; newspapers/magazines/TV/radio; reports; databases.
- d) Sampling methods: random; quota; stratified.
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- 1.3.1.3
Market positioning
- a) Product and market orientation.
- b) Market mapping.
- c) Market segmentation.
- d) Competitive advantage of a product or service.
- e) The purpose of product differentiation.
- f) Adding value to products/services.
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1.3.2 — The market
- 1.3.2.1
Demand
- a) Factors leading to a change in demand: changes in the prices of substitutes and complementary goods; changes in consumer incomes; fashions, tastes and preferences; marketing, advertising and branding; demographics; external shocks; seasonality.
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- 1.3.2.2
Supply
- a) Factors leading to a change in supply: changes in the costs of production; introduction of new technology; indirect taxes; government subsidies; external shocks.
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- 1.3.2.3
Markets
- a) The interaction of demand and supply.
- b) The drawing and interpretation of demand and supply diagrams to show the causes and consequences of changes in demand and supply.
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- 1.3.2.4
Price elasticity of demand (PED)
- a) Calculation of price elasticity of demand.
- b) Interpretation of numerical values of price elasticity of demand.
- c) The factors influencing price elasticity of demand.
- d) The significance of price elasticity of demand to businesses in terms of implications for pricing.
- e) Calculation and interpretation of the relationship between price elasticity of demand and total revenue.
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- 1.3.2.5
Income elasticity of demand (YED)
- a) Calculation of income elasticity of demand.
- b) Normal and inferior goods.
- c) Interpretation of numerical values of income elasticity of demand.
- d) The factors influencing income elasticity of demand.
- e) The significance of income elasticity of demand to businesses.
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1.3.3 — Marketing mix and strategy
- 1.3.3.1
Marketing objectives and strategy
- a) Marketing objectives: increase market share; increase revenue; building a brand.
- b) The product life cycle and extension strategies.
- c) The Boston Matrix and the product portfolio.
- d) The concept of 'marketing mix'.
- e) Marketing strategies appropriate for different types of market: mass markets; niche markets; business to business (B2B); business to consumer (B2C).
- f) Consumer behaviour – how businesses develop customer loyalty.
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- 1.3.3.2
Product/service design
- a) Design mix: function; aesthetics; cost/economic manufacture.
- b) Changes in the elements of the design mix to reflect social trends: concern over resource depletion: designing for waste minimisation, re-use and recycling; ethical sourcing.
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- 1.3.3.3
Promotion and branding
- a) Types of promotion.
- b) Types of branding.
- c) The benefits of strong branding: added value; ability to charge premium prices; reduced price elasticity of demand.
- d) Ways to build a brand: unique selling points (USPs)/differentiation; advertising; sponsorship; the use of social media.
- e) Changes in branding and promotion to reflect social trends: viral marketing; social media; emotional branding.
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- 1.3.3.4
Pricing strategies
- a) Types of pricing strategy: cost plus (mark-up on unit cost); price skimming; penetration; predatory; competitive; psychological.
- b) Factors that determine the most appropriate pricing strategy for a particular situation: number of USPs/amount of differentiation; price elasticity of demand; level of competition in the business environment; strength of brand; stage in the product life cycle; costs and the need to make a profit.
- c) Changes in pricing to reflect social trends: online sales; price comparison sites.
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- 1.3.3.5
Distribution
- a) Distribution channels: four stage: producer to wholesaler to retailer to consumer; three stage: producer to retailer to consumer; two stage: producer to consumer.
- b) Changes in distribution methods.
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1.3.4 — Managing people
- 1.3.4.1
Approaches to staffing
- a) Staff as an asset; staff as a cost.
- b) Flexible workforce: multi-skilling; part-time and temporary; zero-hour contracts; flexible hours and home working; outsourcing.
- c) Distinction between dismissal and redundancy.
- d) Employer/employee relationships: individual approach; collective bargaining.
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- 1.3.4.2
Recruitment, selection and training
- a) Recruitment and selection process: internal versus external recruitment.
- b) Costs of recruitment, selection and training
- c) Types of training: induction; on-the-job; off-the-job.
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- 1.3.4.3
Organisational design
- a) Structure: hierarchy; chain of command; span of control; centralised and decentralised.
- b) Types of structure: tall; flat; matrix.
- c) Impact of different organisational structures on business efficiency and employee motivation.
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- 1.3.4.4
Motivation in theory and practice
- a) The importance of employee motivation to a business
- b) Motivation theories: Taylor (scientific management); Mayo (human relations theory); Maslow (hierarchy of needs); Herzberg (two-factor theory).
- c) Financial methods to improve employee performance: piecework; commission; bonus; profit share; performance-related pay.
- d) Non-financial methods to improve employee performance: delegation; consultation; empowerment; team working; flexible working; job enrichment; job rotation; job enlargement.
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- 1.3.4.5
Leadership
- a) Leadership: the distinction between management and leadership.
- b) Types of leadership style: autocratic; paternalistic; democratic; laissez-faire.
- c) The difficulty of moving from entrepreneur to leader.
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1.3.5 — Entrepreneurs and leaders
- 1.3.5.1
Role of an entrepreneur
- a) Creating and setting up a business.
- b) Running and expanding/developing a business.
- c) Innovation within a business (intrapreneurship).
- d) Barriers to entrepreneurship.
- e) Anticipating risk and uncertainty in the business environment.
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- 1.3.5.2
Entrepreneurial motives and characteristics
- a) Characteristics and skills required.
- b) Reasons why people set up businesses: financial motives: profit maximisation and profit satisficing; non-financial motives: ethical stance, social entrepreneurship, independence and home working.
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- 1.3.5.3
Business objectives
- a) Survival.
- b) Profit maximisation.
- c) Other objectives: sales maximisation; market share; cost efficiency; employee welfare; customer satisfaction; social objectives.
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- 1.3.5.4
Business choices
- a) Opportunity cost.
- b) Trade-offs.
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