Business Key Terms - Page 108 Flashcards Preview

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Flashcards in Business Key Terms - Page 108 Deck (77):
1

What is the marketing mix?

The ways businesses target different customer genres, such as price, product, promotion and place

2

What is a franchise?

When a business sells the right for someone to sell their product

3

What is an entrepreneur?

A person who takes calculated risks to start a new business venture

4

What is an intrapreneur?

A person who thinks creatively to improve conditions inside a business

5

What is blue skies thinking?

Deliberately creative thinking to help businesses improve

6

What is a supplier?

A business which sells (or supplies) products to another business

7

What is a customer?

Any person or organisation which buys or is supplied with a product by a business

8

What is a consumer?

The person who ultimately consumes the product

9

What are markets?

Where buyers and sellers meet to exchange goods and services

10

What is a survey?

Research involving asking questions of people or organisations

11

What are respondents?

Thos who provide data for a survey usually by answering questions or a questionnaire or a interview

12

What is a focus group?

In market research, a group of people brought together to discuss a product, brand or issue and to answer questions

13

What is qualitative data?

Information about opinions, judgements and attitudes

14

What is quantitive data?

Data that can be expressed as numbers and statistically analysed

15

What is secondary research?

The process of gathering data that has already been composed (eg. government stats, sales records etc.)

16

What is a market segment?

A part of a market that contains a group of buyers with similar buying habits, such as age or income

17

What does price sensitive mean?

When the price is very important in the decision of the buyer whether or not togged the product

18

What is market map?

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality

19

What is a gap in the market?

Occurs when no business is currently serving the needs of customers for a particular product

20

Brand

A named product which customers see as being different from other products and which they can associate or identify with

21

Brand image

The idea/impression that customers have in their minds about the brand

22

Added value

The increased worth that a business creates for a product; it is the difference between what a business pays its suppliers and the price that it is able to charge for the product/service

23

Unique Selling Point (USP)

A characteristic of a product that makes it different from other similar products being sold in the market such as design, quality or image

24

Franchisee

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor

25

Franchisor

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment

26

Enterprise

A willingness by an individual or a business to take risks, show initiative and undertake new ventures

27

Enterprises

Another word for businesses

28

Risk

The chance of damage or loss occurring as a result of making a decision

29

Goods

Physical, tangible products like a car, a pair of scissors or a television set

30

Services

Non-physical, intangible products like a taxi journey, haircut or a TV programme

31

Thinking creatively

Coming up with new and unique ideas

32

Competitive advantage

An advantage a business has that enables it to perform better than its rivals in the market and which is both distinctive and defensible

33

Deliberate creativity

The intentional creation of new ideas through recognised and accepted techniques

34

Lateral thinking

Thinking differently to try and find new and unexpected ideas

35

Blue skies thinking

A technique of creative thinking where participants are encouraged to think of as many ideas as possible about an issue or problem

36

Invention

The discovery of new processes and potential new products, typically after a period of research

37

Innovation

The process of bringing a new product to market (transforming an invention into a product that can be sold to customers)

38

Patent

The right of ownership of an invention or process when it is registered with the government

39

Copyright

Legal ownership of material such as books, music and films which prevents these being copied by others

40

Trademarks

The symbol, sign, or other features of a product or business that can be protected in law

41

Calculated risk

The probability of a negative event occurring

42

Mindmap

A diagram that is used to record words and ideas connected to aa central word or idea

43

Financial objectives

Targets expressed in money terms such as making a profit, earning income or building wealth

44

Revenues / Sales revenue / Turnover / Sales turnover

The amount of income received from selling dos or services over a period of time

45

Sales volume

The number of items or products or services sold by a business over a period of time

46

Insolvency

When a business can no longer pay its debts

47

Net cash flow

The receipts of a business minus its payments

48

Cumulative cash flow

The sum of cash that flows into a business over time

49

Business plan

A plan for the development of a business giving forecasts of items such as sales, costs and cash flow

50

Share

A part ownership of a business

51

Personal savings

Money that has been set aside and not spent by individuals and households

52

Venture capitalist

An individual or company that buy shares in what they hope will be a fast growing company, with the long term view of selling the shares at a profit

53

Loan

Borrowing a sum of money which has to be repaid with interest over a period of time

54

Security / Collateral

Assets owned used to guarantee repayments of a loan: if the loaner cannot pay off the loan, they just sell what they used as collateral to pay it off

55

Mortgage

A loan where property is used as collateral

56

Dividend

A share of the profits of a company received by shareholders

57

Retained profit

Profit that is kept back in the business and used to pay for investments within it

58

Leasing

Renting equipment or premises

59

Overdraft facility

Borrowing money from a bank by drawing more money than is actually in the current account. Interest is charged on the amount overdrawn

60

Marketing mix

The combination of factors which help the business to take into account customer needs when selling a product - usually summarised as the 4 Ps (Price, product, promotion, place

61

Price

The amount of money customers have to pay for a product

62

Product

A good or service produced by a business or organisation and made available to customers for consumption

63

Promotion

Communication between the business and the customer, making the customer aware that the product is for sale, telling them or explaining to them what the product is, and persuading them why they need it and therefore why they should buy it

64

Place

The way in which a product is distributed - how it gets from the producer to the consumer

65

Companies

Businesses whose shareholders have limited liability

66

Limited liability

What shareholders of a company are not personally liable for the debts of the company: the most they lose is their investment in the company

67

Unlimited liability

A legal obligation on the owner of a business to settle all debts of the business. In law, there is no distinction between what the business owner owes and owns and what they company owes and owns

68

Soe trader / Sole proprietor

The only owner of the business who has unlimited liability

69

Records

Evidence of what has happened in the past; records could be kept in paper form or in computer files for example

70

HMRC

Her Majesty's Revenue and Customs: The government authorities in the UK responsible for collecting tax

71

VAT

Value Added Tax: A tax on the value of sales: it is paid by businesses to the government

72

Income Tax

A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings

73

National Insurance Contributions

A tax on the earnings of workers; Employers' National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay NICs on their earnings

74

Corporation Tax

A tax on the profits of limited companies

75

Customer service

The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations

76

Customer satisfaction

A measure of how much products meet customers' expectations

77

Repeat purchases / Repeat business

Orders or sales that occur from customers that have bought the product or service in the past