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AS2 Flashcards

1
Q

Market Share

A

Represents the proportion of sales a business has achieved expressed as a percentage of the total sales in the market during a specific time period

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2
Q

Market Growth

A

This represents an increase in demand for the industry’s product/service over a period of time.

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3
Q

Market Size

A

Represents the total quantity of products sold by companies in the market

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4
Q

Monopoly

A

A market structure in which only one firm supplies the entire output, there is no competition and there are barriers to entry.

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5
Q

Oligopoly

A

a market structure dominated by a small number of large firms, where each firm has a significant influence on the market. Firms in an oligopoly may engage in collusion or competition, and there are high barriers to entry that restrict new competitors.

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6
Q

Perfect competition

A

A market structure where there is perfect knowledge, many buyers and sellers, freedom of entry and exit and a homogeneous product.

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7
Q

Office of fair trading

A

A Government body that has responsibility for overseeing all policy relating to competition and consumer protection. It can refer specific cases to the Competition Commission for investigation.

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8
Q

Competition commissions

A

It will investigate and report on any monopoly, proposed merger or anti-competitive practices that are referred to it by the Office of Fair Trading or Regulators of privatised industries that are deemed not to be in consumer’s interests.

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9
Q

Regulators of private utilities

A

Agencies set up to regulate prices in the provision
of water, gas, electricity etc. to the general public.

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10
Q

Marketing research

A

The collection, collation and analysis of data relating to the marketing and consumption of goods and services.

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11
Q

Primary research

A

Information collected by a business through field research e.g. survey. It involves the collection of data that does not already exist.

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12
Q

Secondary research

A

Using existing sources of information to research the market e.g. past sales data.

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13
Q

Focus groups

A

A range of individuals who are deemed to be representative of the customers in a particular segment who are brought together to answer and discuss questions prepared by market researchers.

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14
Q

Consumer Panels

A

A group of consumers who are consulted about their views on a particular product over a period of time.

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15
Q

Test Marketing

A

Selling a product in a restricted section of the market in order to assess consumer’s reaction to it.

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16
Q

Surveys

A

These are used to obtain views about a firm’s product/service from existing or potential customers. The data can be collected via telephone, online and postal questionnaires.

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17
Q

Observation

A

Watching and recording how people react to the firm’s product/service displays and interact with staff without their knowledge.

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18
Q

Questionnaire

A

A range of questions designed by the business to collect both quantitative and qualitative from consumers about their products/services.

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19
Q

Store loyalty cards

A

Given to customers as a reward for shopping in a particular store. The data collected provides the business with an opportunity to identify the spending patterns of consumers leading to targeted promotions that will increase sales.

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20
Q

Sample

A

A group of consumers selected from the population

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21
Q

Random sample

A

Everyone is given an equal chance of being chosen.

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22
Q

Cluster sample

A

The population is divided into ‘clusters’ usually geographic areas and then a random sample is chosen.

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23
Q

Quota sample

A

The population is segmented into a number of groups who share specific characteristics e.g. age, gender. Interviewers are given targets for the number out of each segment.

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24
Q

Stratified Sample

A

The population is divided into mutually exclusively strata or layers with random sampling taking place within each stratum.

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25
Quantitative research data
Data collected by the organisation which can be analysed and easily presented in tables and charts. This data can provide answers to questions such as ‘how many’, ‘who’ and ‘how often’.
26
Qualitative research data
Data collected by an organisation which helps them choose a particular strategy. This data provides answers to questions such as ‘why’ or ‘how’ potential consumers react to specific goods/services.
27
Marketing mix
Data collected by an organisation which helps them choose a particular strategy. This data provides answers to questions such as ‘why’ or ‘how’ potential consumers react to specific goods/services.
28
Price
The amount charged by the business for providing a product to the consumer
29
Product
This represents the nature of the item provided by the business to the consumer.
30
Promotion
The efforts made by the business to retain and attract consumers by drawing attention to its product.
31
Place
The means by which the product will be distributed at a time and location convenient to the consumer.
32
People
The behaviour and attitude of staff who determine the level of customer satisfaction in business transactions.
33
Processes
The systems employed by the firm to ensure their services are successfully delivered to customers.
34
Physical Environment
This applies to the store, office and company website where business transactions occur.
35
E-Commerce
The selling, marketing and servicing of products or services over electronic systems such as the internet.
36
Price Elasticity Of demand
A measure used to show the responsiveness, or elasticity, of the quantity demanded of a product/service to a change in its price
37
Income elasticity of demand
A measure used to show the responsiveness, or elasticity, of the quantity demanded of a product/service to a change in consumer income.
38
Product Life Cycle
This shows the different stages in the life of a product and the sales that can be expected at each stage.
39
Extension Strategies
The methods used by a business to extend the life of a product.
40
Product Portfolio
The particular mix of products which a firm is marketing.
41
Marketing positioning
The perception that consumers have of the quality, value for money and image of the product relative to those of competitors.
42
Market Segmentation
Breaking down a market into sub-groups which share similar characteristics e.g. age, gender, income.
43
SWOT
Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider.
44
E-Business
This refers to business activity conducted using online information systems and applications.
45
Digital Marketing
This is an umbrella term used to describe the marketing of products/services via mobile technology and the internet.
46
Social Media
This refers to a range of online communication channels that provides opportunities for individual and community interaction, collaboration and sharing of information.
47
Mobile Technology
This technology is portable and used by businesses to promote products/services via electronic channels.
48
Mobile Ticketing
A process that allows customers to order, pay for or validate tickets by using their mobile phones or other mobile handsets.
49
Mobile Marketing
This is a form of advertising/promotion delivered to consumers via mobile/smart phones and other handheld devices. It can be in the form of text, images and voice messages.
50
Internal Source Of finance
These are funds available from within the business e.g. retained profit and money gained from selling assets no longer used in the firm.
51
External Source of Finance
These are funds available from outside the business e.g. loan, overdraft, hire purchase, leasing, trade credit, mortgage.
52
Break-Even Point
This is the level of output where total revenue is equal to total cost. It can be calculated by dividing the organisations’ fixed costs by contribution (Selling price per unit less variable costs per unit).
53
Margin of Safety
The range of output between break even output and the current level of output, over which a profit is made.
54
Variable Costs
Costs that change directly as output levels change.
55
Semi-variable costs
A cost that has an element of both fixed and variable charges e.g. a telephone bill has a fixed line rental but the charges for calls are variable depending on the number made.
56
Total Costs
Fixed and variable costs added together.
57
Total Revenue
The number of units sold by the business multiplied by the selling price per unit.
58
Contribution
The amount of money left over after a sale when all variable costs have been covered i.e. selling price – variable costs. This amount will contribute towards paying off the fixed costs of the business.
59
Fixed Costs
Costs which do not change as output levels change.
60
Profit
This is the excess of revenue over costs within the business.
61
Cash
This is ‘ready money’ used in business and includes money-in-hand, money in the bank, petty cash, cheques and marketable securities.
62
Cash Flow Forecast
This is an estimate of a firm’s cash in-flows and out- flows at various times during a specific period (usually a year).
63
Budgetary Control
A business system which involves making future plans, comparing the actual results with planned results and then investigating the cause of any differences.
64
Budget
An agreed financial plan drawn up for a specific time frame setting out proposed revenue and costs.
65
Fixed Budget
A budget that is not changed even when the actual activity levels differ from those set.
66
Flexible Budget
A budget which is changed to allow for the behaviour of variable costs at different levels of activity.
67
Income Statement
Summarises income/expenses and details the profit/losses made by the business in the accounting period.
68
Sales Revenue
Income earned in the accounting period from trading activities
69
Opening Inventories
Inventories that the organisation has at the start of the trading period, carried over from the previous trading period.
70
Purchases
Additional inventories bought by the business for re-sale.
71
Closing Inventories
The amount of unsold inventories left at the end of the trading period.
72
Cost Of Sales
Opening Inventories + Purchases – Closing Inventories.
73
Gross Profit
Sales Revenue – Cost of Sales.
74
Net-Profit
Gross Profit – Expenses.
75
Statement Of financial Position
Details in summary format, the financial position of the business at a specific date
76
Assets
Items of value held by a business which are likely to generate future income.
77
Non-current Assets
Assets that the business expects to retain ownership of, for a period of at least one year e.g. plant and machinery. These assets are held to help with the day to day running of the organisation. They are not usually acquired for profitable resale purposes.
78
Current Assets
Assets that the business expects to turn into cash within one year e.g. inventories/trade receivables/cash/bank.
79
Trade Receivables
Money that is owed from customers to the business arising from goods sold on credit.
80
Non-current Liabilities
Debts that the business is required to meet in a future accounting period i.e. beyond one year e.g. bank loan.
81
Current Liabilities
Liabilities that the business expects to pay within a one-year accounting period e.g. trade payables, bank overdraft.
82
Trade Payables
Money that is owed from the business to a supplier who provided goods/services on credit.
83
ROCE- return on capital employed
This ratio measures the profitability of the business in relation to the amount of capital invested
84
Net profit margin
This ratio measures the net profit as a percentage of the sales revenue made by the business. It also indicates how cost efficient the business is.
85
Current Ratio
This measures the liquidity of the business and its ability to meet debts.
86
Gearing
This ratio measures the proportion of funds used within the business that is from a borrowed source.
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Business (3 decks)

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