Business definitions Unit 1 Flashcards
lolazo (221 cards)
1
Q
What is a brand?
A
A symbol, logo or design that is recognisable and distinguishes a product from competitors.
A unique design/sign/symbol/words/logo which makes it recognisable/distinguishes/differentiates it from its competitors.
2
Q
Define competition in a market context.
A
The rivalry among sellers trying to achieve goals such as increasing profits, market share, and sales volume.
3
Q
What is a competitive market?
A
When there are many rivals selling similar products.
4
Q
Who is considered a competitor?
A
A rival business operating in the same market offering similar goods or services.
5
Q
What is direct competition?
A
Businesses produce similar products that appeal to the same group of customers.
6
Q
Define a dynamic market.
A
A market that is subject to rapid/continuous change.
7
Q
What is indirect competition?
A
Different businesses make or sell products that are not in direct competition but compete for the same customer experience.
8
Q
What does innovation refer to?
A
The creation, development and implementation of a new product, process or service.
9
Q
What is a market?
A
Where buyers and sellers interact.
10
Q
Define market growth.
A
An increase in demand/sales for a particular product/service.
11
Q
What is market share?
A
The % of the total market a business has in terms of volume or value.
12
Q
Define market size.
A
The total amount of sales/customers in a market measured by value/volume.
13
Q
What is a mass market?
A
A large unsegmented market where mass appeal products are on sale.
14
Q
Define a niche market.
A
A specialist area of the market where consumers have specific needs and wants.
15
Q
What is online retailing?
A
Selling goods and services on the internet.
16
Q
What does product innovation entail?
A
The development/creation of products not previously available.
17
Q
How is sales volume calculated?
A
Sales revenue/selling price.
18
Q
What is uncertainty in a business context?
A
The inability to predict/a lack of knowledge about future events and outcomes.
19
Q
What are biased questions?
A
Questions that do not produce findings that give a true reflection of the views of the target audience.
20
Q
Define consumer behaviour.
A
How consumers make decisions about how they choose and use products or services.
21
Q
What are databases?
A
An organised collection of data stored electronically with instant access, searching and sorting facilities.
22
Q
What is a face-to-face survey?
A
A research method where the interviewer communicates directly with the respondent using a questionnaire.
23
Q
What is a focus group?
A
A group of people who participate in a discussion as part of market research to give feedback about a product or service.
24
Q
What is government data?
A
Government publications that a business can use such as the census of the population.
25
Define interview bias.
Where the opinion of the interviewer interferes with the judgments of the interviewee.
26
What is market orientation?
When a business’s products/services are based around the needs and wants of the customer.
27
What are market reports?
Documents that contain information, stats, research and facts on a chosen field.
28
Define market research.
Gathering, presenting and analysing information about products/customers.
29
What is market segmentation?
Dividing a whole market into particular customer groups that have similar characteristics.
30
What are market segments?
Identifiable groups of individuals/parts of the market where consumers share one or more characteristic or need.
31
What are observations in market research?
Where market researchers watch the behaviour of customers.
32
What is primary market research?
Obtaining data first hand by the business to match the specific needs of the business.
33
What is product orientation?
When a business prioritises a product’s design quality or performance rather than meeting customer preferences.
34
Define qualitative research.
Market research collected relating to the opinions and beliefs of consumers, not presented numerically.
35
What is quantitative research data?
Numerical information gathered that can be presented and analysed using graphs, charts, etc.
36
What is respondent bias?
When respondents respond inaccurately to a question for some reason.
37
What is a sample in market research?
A small group of people who must represent a proportion of a total market.
38
What is secondary market research?
Data collected by another business or organisation but used by the business in question.
39
Define segmentation.
Dividing the market into groups of people with similar attributes or common characteristics.
40
What is social networking in a business context?
Platforms such as Facebook, X and YouTube, which can be used to market a business's products/services.
41
What is a survey in market research?
A method of (primary) research used to collect information.
42
What is test marketing?
Trialling the product in a small area or to a limited number of users to assess its suitability.
43
What are trade publications?
Specialist magazines that look at current trends in the business world.
44
Define added value.
The increase in value that a business creates when producing a product/service.
45
What is competitive advantage?
A feature of a business and/or its products that enables it to compete effectively with rivals.
46
What does differentiation mean?
Making products or services different or distinct from competing products.
47
What is market mapping?
A form of market positioning using a 2-dimensional diagram to plot products/services in a market.
48
Define market positioning.
An effort to influence consumer perception of a brand or product relative to competing brands.
49
What is product differentiation?
The act of distinguishing a product/service from competitors to make it more attractive to a target market.
50
What are complementary goods?
Products consumed/used together, so they are purchased together.
51
Define consumer income.
The money earned/received from work/investments.
52
What is demand?
The quantity of goods/services that a consumer is willing to buy at a given price and time.
53
What are demographics?
The structure of the population such as age, gender and geographical distribution.
54
What are external shocks?
Factors beyond the control of a business.
55
What is seasonality?
When demand rises or falls at particular times of the year according to seasonal factors.
56
What are substitutes?
Goods that can be bought as an alternative to others but perform the same function.
57
What are government subsidies?
Payments given to producers to encourage production of certain goods.
58
Define indirect taxes.
Taxes imposed by the government on spending, where responsibility for payment lies with the business.
59
What is supply?
The amount that producers are willing/able to produce at a given price/over a given period of time.
60
What is equilibrium price?
The price where supply and demand are equal.
61
What are non-price factors?
Factors other than price that can affect supply and demand.
62
What is a shortage in markets?
Where demand exceeds supply.
63
What is a surplus in markets?
Where supply exceeds demand.
64
What are luxury goods?
Goods that consumers like to buy if they can afford them.
65
Define necessity.
Basic goods that consumers need to buy.
66
What does price elastic mean?
Quantity demand is responsive to a change in price.
67
What is price elasticity of demand (PED)?
Measures the responsiveness of quantity demanded to a change in price.
68
What does price inelastic mean?
Quantity demanded for the product is less responsive proportionately to a change in price.
69
Define income elasticity of demand (YED).
Measures the responsiveness of changes in quantity demanded to changes in consumer income.
70
What is the marketing mix?
A plan for using the right blend of product, price, promotion, and place in order to maximise sales.
71
What are social trends?
Changing patterns in consumer behaviour reflected in changing demands.
72
What does aesthetics refer to in product design?
Relates to the appearance of a product.
73
What is cost (design mix)?
When the business focuses on being economically viable, aiming to minimise costs.
74
What does design for recycling mean?
Producing products using materials that have been discarded as waste and recycled.
75
Define design for reuse.
When a product is designed to allow for disassembly at the end of its life and the re-use of the materials.
76
What is design for waste minimisation?
Reducing the quantity of resources that are discarded in the production process.
77
What is the design mix?
The combination of factors needed in designing a product including Aesthetics, Function, Economic Manufacture.
78
What is ethical sourcing?
When a business buys materials produced with fair working conditions/pay and minimum impact on the environment.
79
What does function refer to in product design?
Relates to the quality and reliability of a product.
80
What is rebranding?
A marketing strategy in which a new name, term, symbol, design, or combination is created for an established brand.
81
What is resource depletion?
The using up of natural resources.
82
Define advertising.
A paid form of communication used by a business to raise customer awareness of its products.
83
What is customer loyalty?
Customers favouring a business over competitors when making a purchase.
84
What are digital communications?
The electronic transfer of data.
85
What is direct marketing?
When a business mails out leaflets or letters to households.
86
What is emotional branding?
The creation of brands that appeal to customers’ emotional nature.
87
What is manufacture/corporate branding?
Brands created by the producers of goods and services.
88
What are own brand products?
Products manufactured for wholesalers or retailers by other businesses.
89
What is personal selling?
Direct communication between a salesperson and the customer.
90
What is a premium price?
Charging a higher price than competitors because of customer loyalty built over time.
91
Define product branding.
Products that only contain the name of the product category rather than the company or product name.
92
What is promotion in a business context?
The way a business creates demand/awareness for its product/service.
93
What is public relations?
An organization’s attempt to communicate with interested parties through unpaid media.
94
What are sales promotions?
Methods of promoting products in the short term to boost sales.
95
What is social media used for in business?
Websites that can be used to market a business's products/services.
96
What is a way of making customers aware of the brand/business and persuading them to buy products?
Advertising/discounts
## Footnote
This process creates awareness and interest in its product/service.
97
What is public relations?
An organisation’s attempt to communicate with interested parties through unpaid media
## Footnote
Examples include press conferences.
98
What are sales promotions?
Methods of promoting products in the short term to boost sales
99
Define social media.
Websites and applications that enable users to participate in social networking
100
What is sponsorship?
A company giving a product or money to support another business or person
## Footnote
This includes funding for events in return for brand display.
101
What does USP stand for?
Unique Selling Point
102
What is viral marketing?
Encouraging customers to share information/adverts through existing social media platforms
103
What is competitive pricing?
When a business sets a price similar to competitors selling similar/rival products
104
What is cost plus pricing?
A cost-based method for setting prices calculated by adding a mark-up percentage to the cost of the product
105
Define penetration pricing.
Setting a low price initially to build market share before switching to a higher price
106
What is predatory pricing?
Setting a low price to force rivals out of the market, which is illegal in the UK
107
What are price comparison websites?
Websites that compare the price of a particular product or service from different businesses
108
What is price skimming?
Setting a high price at the launch of a product to recover R&D costs and target early adopters
109
What is a pricing strategy?
A method used by a business to determine the price at which a product is sold
## Footnote
Examples include penetration, price skimming, and competitive pricing.
110
What is psychological pricing?
Tactics designed to appeal to a customer’s emotional response to prices
111
Define channels of distribution.
Methods used by businesses to get their products from manufacture to consumer
112
What is distribution?
Getting products to the right place for customers and at the right time
113
What are distribution channels?
The methods by which a product gets from the manufacturer to the consumer
114
What is a distribution strategy?
A plan to get a product or service to the customer
115
What is a four stage distribution channel?
Manufacturer to wholesaler to retailer, then consumer
## Footnote
Examples include groceries and confectionery.
116
Define online distribution.
The use of electronic systems to sell goods and services
117
What does 'place' refer to in marketing?
Where the product can be purchased and the process of making it available to the consumer
118
What is a product?
A tangible item offered for sale
119
What is a service?
The non-physical, intangible parts of our economy
120
What is a three stage distribution channel?
Manufacturer to retailer, then consumer
## Footnote
Examples include electrical goods and cars.
121
What is a two stage distribution channel?
A direct marketing approach with no intermediary levels
122
What is the Boston matrix?
A method used to analyse the product portfolio of a business
123
Define business to business (B2B).
When a business promotes the sale of products/services to other businesses
124
What does business to customer (B2C) mean?
Where a company targets to sell its products to individual customers
125
What is consumer loyalty?
A preference for a product or brand based on experience and/or emotional attachment
126
What is an extension strategy?
A plan aimed at preventing the decline stage of a product’s sales
127
Define marketing objective.
A goal the business aims to achieve through its marketing activities
128
What is a marketing strategy?
The methods used to achieve marketing objectives
129
What is portfolio analysis?
When a business considers each of its products in the context of its market position
130
What is the product life cycle?
The stages that a product goes through from introduction to decline
131
What is a product portfolio?
The collection of items/products produced/sold by a business
132
What is collective bargaining?
Negotiation of wages/conditions of employment between employee representatives and the employer
133
What is dismissal?
The termination of employment by an employer against the will of the employee
134
Define employer/employee relations.
The way in which a company’s management and its employees behave towards each other
135
What is the individual approach in employer/employee relations?
When employers develop relationships with employees at an individual level
136
What is multiskilling?
The process of increasing the skills of employees
137
Define part-time employees.
Workers that generally work fewer hours than a full-time employee
138
What is redundancy?
When a business needs to reduce the size of its workforce
139
What does 'staff as a cost' mean?
A cost to businesses in terms of recruitment, training, and remuneration
140
What does 'staff as an asset' imply?
Employers recognise the input of employees as an important business resource
141
What is temporary work?
A job position generally for a limited period of time
142
What are trade unions?
Workforce representatives that protect and improve working conditions for their members
143
What is external recruitment?
When the business looks to fill the vacancy from outside
144
Define induction training.
Introductory training covering background, policies, and health and safety procedures
145
What is internal recruitment?
Selecting employees who already work within the business to fill job vacancies
146
What is off the job training?
Training given away from the normal job environment
147
What is on-the-job training?
Learning/developing skills whilst at work
148
What is recruitment?
The process of finding and selecting workers
149
What is training?
The developing of a person to enhance skills and knowledge
150
What is a centralised structure?
An organisational structure where decisions are made at the top of the hierarchy
151
What is the chain of command?
The way authority and power is organised in an organisation
152
Define decentralised structure.
When a business allows branches to take more control/make their own decisions
153
What is a flat organisational structure?
A structure with few layers and a wider span of control for each manager
154
What is hierarchy?
The order or levels of responsibility in an organisation
155
What is a matrix organisational structure?
Organises employees from different divisions into projects/teams
156
What is organisation structure?
A diagram showing who is answerable to whom in an organisation
157
What is span of control?
The number of employees that a manager is responsible for
158
What is a tall organisational structure?
One with many layers and a narrow span of control for each manager
159
What is a bonus?
A sum of money added to an employee’s wages as a reward for performance
160
What is commission?
A payment to a worker based on a percentage of the value of sales
161
What is consultation in a business context?
Employee opinions/feedback are sought when making decisions
162
What does delegation mean?
Authority passed down from superior to subordinate
163
What is empowerment?
Giving official authority to employees to make decisions
164
What are financial incentives?
Monetary rewards to improve staff motivation and achievement
165
What is a flexible workforce?
Employees have choice over how/when they work by agreement with the company
166
What does flexible working refer to?
Offering different working hours/location/patterns to improve work-life balance
167
What is job enlargement?
Giving an employee more work to do of a similar nature
168
What is job enrichment?
Giving employees greater responsibility and recognition
169
What is job rotation?
The changing of jobs or tasks
170
What is Maslow's hierarchy of needs?
The order of people’s needs, starting with basic human needs
171
What is Mayo's human relations theory?
Emphasises the importance of how people interact and are treated
172
What is motivation?
The reason for people's actions and goals
173
What are non-financial methods of motivation?
Ways of encouraging employees without monetary rewards
## Footnote
Examples include consultation and empowerment.
174
What are non-financial techniques?
Ways of encouraging employees without monetary rewards
175
What is performance-related pay?
A financial reward to employees whose work meets a required standard
176
What is piece rate?
A payment system where employees are paid an agreed rate for every item produced
177
What is profit sharing?
A financial incentive where part of the profit is shared among employees
178
What is Taylor’s scientific management?
Suggested a job could be broken down to find the most efficient way of working
179
What is team working?
Organising people into working groups with a common aim
180
What are working conditions?
The physical surroundings and atmosphere of the workplace
181
What is autocratic leadership?
A leadership style where decision-making is kept with managers
182
What is democratic leadership?
A leadership style where group members participate in decision-making
183
What is laissez-faire leadership?
A leadership style where employees are encouraged to make their own decisions
184
What is leadership?
Having a vision and providing direction
185
What is management?
The day-to-day organisation of the business, including staffing
186
What are paternalistic leaders?
Leaders that consider the welfare of employees when making decisions
187
What is an entrepreneur?
Someone who organises a business venture and takes risks for profit
188
Define entrepreneurship.
The activity of setting up a business and taking on risks
189
What is resilience?
The ability to recover from difficulties and try again
190
What is risk in the context of entrepreneurship?
Probabilities of outcomes are known or understood
191
What are entrepreneurial characteristics?
Qualities or traits demonstrated by an individual starting a business
192
What are entrepreneurial motives?
Factors that drive a person to start a business
193
What is resilience?
The ability to recover from difficulties and try again
## Footnote
Resilience is crucial for entrepreneurs facing challenges.
194
What does risk refer to in entrepreneurship?
Something an entrepreneur can essentially plan for, where probabilities of outcomes are known or understood
## Footnote
Understanding risk helps entrepreneurs make informed decisions.
195
Define entrepreneurial characteristics.
Qualities or traits demonstrated by an individual starting up and running a business
## Footnote
These traits can include creativity, determination, and adaptability.
196
What are entrepreneurial motives?
Factors that drive a person to start a business
## Footnote
Motives can include financial gain, independence, and passion.
197
What does ethical stance mean?
In support of a moral belief
## Footnote
An ethical stance can influence business practices and decision-making.
198
What is home working?
Setting up a business from home
## Footnote
Home working has become more popular with advances in technology.
199
What does independence refer to in the context of entrepreneurship?
A desire to be one’s own boss
## Footnote
Many entrepreneurs value independence as a key motivator.
200
What does profit satisficing mean?
Making enough profit to satisfy the needs of the business owner
## Footnote
This concept contrasts with profit maximization.
201
Define social entrepreneurship.
Setting up a business and showing concern for social issues
## Footnote
Social entrepreneurs aim to create social value alongside profits.
202
What is a business objective?
A goal/target set by the business in the short/medium term to help achieve its aim/mission
## Footnote
Objectives can vary in nature, such as financial or operational.
203
What does cost efficiency refer to?
Minimising costs/expenses/waste when producing a product or service
## Footnote
Cost efficiency is essential for maintaining profitability.
204
How is customer satisfaction measured?
A measurement of how satisfied a customer is with their purchase
## Footnote
High customer satisfaction can lead to repeat business and referrals.
205
What does employee welfare entail?
Facilities and benefits provided by a business to meet the well-being of the employee
## Footnote
Employee welfare can improve morale and productivity.
206
What is profit maximisation?
When the difference between sales revenue and cost is at its greatest
## Footnote
This is a common goal for many businesses.
207
What is sales maximisation?
An attempt to sell as much as possible in a given time period or to generate as much sales revenue as possible
## Footnote
Sales maximization can be a strategy for growth.
208
Define social objectives.
A goal to benefit/improve the community
## Footnote
Social objectives can enhance a business's reputation.
209
What is survival in a business context?
A short-term business objective that aims to keep the business running
## Footnote
Survival is often a priority for new businesses.
210
What is a franchise?
A business buys the right to trade using the brand/logo/business model of an existing firm in return for a fee/royalty
## Footnote
Franchising provides a way to expand a brand with reduced risk.
211
What does franchising involve?
A type of business where a business operator (franchisor) allows others (franchisee) to trade under its name for a fee
## Footnote
This model allows for brand expansion through partnerships.
212
Define a lifestyle business.
A business set up with the aim of making no more than a set level of income from which to enjoy a particular lifestyle
## Footnote
Lifestyle businesses prioritize personal satisfaction over growth.
213
What is a partnership?
A type of business ownership/organisation owned by two or more people
## Footnote
Partnerships can leverage the strengths of multiple individuals.
214
Define a private limited company.
A small to medium sized business, usually run by the family that owns it, with limited liability
## Footnote
Shares are sold to friends, family, and associates.
215
What is a public limited company?
A business with limited liability whose shares are publicly traded on the stock market
## Footnote
Public limited companies can raise capital by offering shares to the public.
216
What is a social enterprise?
A business that has aims/objectives which benefit society and is not for profit, with profits reinvested into the business/community
## Footnote
Social enterprises focus on social impact alongside financial sustainability.
217
Define a sole trader.
A business that is owned by one person who has unlimited liability
## Footnote
Sole traders have full control but also bear all risks.
218
What is stock market flotation?
When a business sells shares publicly on the stock exchange for the first time
## Footnote
Flotation can significantly increase a company's capital.
219
What is opportunity cost?
The next best alternative forgone when making a decision
## Footnote
Understanding opportunity cost is crucial for effective decision-making.
220
Define trade-off.
A situation where having more of one thing leads to having less of something else
## Footnote
Trade-offs are common in business strategy.
221
What is a leader in a business context?
A person who inspires and motivates others to meet objectives
## Footnote
Effective leadership is vital for team success.
