Business Theme 1 Flashcards
(189 cards)
1
Q
Brand name
A
A name, term, sign, symbol that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.
2
Q
E-commerce
A
Conducting business transactions online
3
Q
Online retailing
A
The retailing of goods online
4
Q
Market
A
A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of good and services
5
Q
Marketing
A
A management process involved in identifying anticipating and satisfying consumer requirements profitability
6
Q
Market share
A
The proportion of total sales in a particular market for which one of more business or brands responsible. It is expressed as a percentage and can be calculated by value or volume.
7
Q
Mass market
A
A very large market in which products with mass appeal are targeted
8
Q
Niche market
A
A smaller market usually within a large market or industry
9
Q
Consumer panels
A
Groups of customers are asked for feedback about products over a period of time
10
Q
Database
A
An organised collection of data stored electronically within instant access searching and sorting facilities
11
Q
Focus groups
A
Where a number of customers are invited to attend a discussion about a product led by market researchers
12
Q
Market orientation
A
An approach to businesses which places the needs of consumers at the centre of the decision making process
13
Q
Market research
A
The collection presentation and analysis of information relating to the marketing and consumption of goods and services
14
Q
Market segmentation
A
Part of a while market where a particular customer group has similar characteristics
15
Q
Primary research
A
Gathering of new information
16
Q
Product orientation
A
An approach to business which places the emphasis upon the production process and the product itself
17
Q
Qualitative research
A
The collection of data about attitudes beliefs and intentions
18
Q
Quantitative research
A
The collection of data that can be quantified
19
Q
Respondent
A
A person or organisation that answers questions in a survey
20
Q
Sample
A
A small group of people who must represent a proportion of a total market when carrying out market research
21
Q
Secondary research
A
The collection of data that is already in existence
22
Q
Socio-economic groups
A
Division of people according to social class
23
Q
Added value
A
The extra features that may be offered by a business when selling a product such as high quality customer service which helps to exceed customer expectations
24
Q
Competitive advantage
A
An advantage that enables a business to perform better than its rivals in the market
25
Market maps or perceptual maps
Typically a two dimensional diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market
26
Marketing positioning
The view consumers have about the quality, value, for money and image of a product in relation to those of competitors
27
Product differentiation
An attempt by a business to distinguish its products from those of competitors
28
Reposition
Change the view consumers have about a product by altering some of its characteristics.
29
Unique selling point(or proposition)
The aspect or feature of a product that clearly distinguishes it from its rivals.
30
Complementary good
Goods that are purchased together because they are consumed together
31
Demand
The quantity of a product brought at a given price over a given time period.
32
Demand curve
A line drawn on a graph that shows how much of a good will be brought at different prices
33
Inferior goods
Goods for which demand will fall if income rises or rise if income falls
34
Normal goods
Goods for which demand will rise if income rises or falls if income falls
35
Substitute goods
Good that can be brought as an alternative to others but perform the same function
36
Subsidy
A grant given to producers usually to encourage production of a certain good
37
Supply
The amount of a product that suppliers make available to the market at any given price in a given period of time
38
Supply curve
A line drawn on a graph that shows how much of a good sellers are willing to supply at different prices
39
Equilibrium price/market clearing price
The price where supply and demand are equal
40
Excess demand
The position where demand is greater than supply at a given price and there are shortages in the market
41
Excess supply
The position where supply is greater than demand at a given price and there are unsold goods in the market
42
Total revenue/total expenditure
The amount of revenue generated from the sale of goods calculated by multiplying price by quantity in a given period of time
43
Price elastic demand
A change in price results in a greater change in demand
44
Price elasticity of demand
The responsiveness of demand to the change of price
45
Price inelastic demand
A change in price results in a proportionately smaller change in demand
46
Discretionary expenditure
Nom-essential spending or spending that is not automatic
47
Income elastic demand
The percentage change in demand for a product is proportionately greater than the percentage change in income
48
Income elasticity of demand
The responsiveness of demand to a change in income
49
Income inelastic demand
Where the percentage change in demand is proportionately less than the percentage change in income
50
Consumer durables
Goods that can be used repeatedly over a period of time, such as cars and household appliances
51
Design mix
The range of features that are important when designing a product
52
Ergonomics
The study of how people interact with their environment and the equipment they use, often in the workplace
53
Ethical sourcing
Using materials components and services from suppliers that respect the environment treat the workforce well and generally trade with integrity
54
Product design
The process of creating a new product or service
55
Recycling
Making use of materials that have been discarded as waste
56
Resource depletion
The using up of natural resources
57
Waste minimisation
Reducing the quantity of resources that are discarded in the production process
58
Above the line promotion
Placing adverts adverts using the media
59
Advertising
Communication between a business and its customers where images are placed in the media to encourage the purchase of products
60
Below the line promotion
Any promotion the does not involve using the media
61
Emotional branding
The practice of using the emotions of a consumer to build a brand
62
Generic brands
Products that only contains the name of the product category rather than the company or product name
63
Manufacturer brands
Brands created by the producers of goods or services
64
Marketing mix
The elements of a business’s marketing that are designed to meet the needs of customers. The four elements are often called the 4p’s- product, price, promotion, and place.
65
Merchandising
A promotion specifically at the point of sale of a product
66
Own label, distributor or private brands
Products that are manufactured for wholesalers or retailers by other businesses
67
Point of sale
Any point where a consumer buys a product
68
Promotion
An attempt to obtain and retain consumer buys a product
69
Public relations
An organisations attempt to communicate with interested parties
70
Sales promotions
Methods of promoting products in the short term to boost sales
71
Sponsorships
Making a financial contribution to an event in return for publicity
72
Virtual marketing
Any strategy that encourages people to pass on messages to others about a product or a business electronically.
73
Competitive pricing
Pricing strategies based on the prices charged by rivals
74
Cost plus pricing
Adding a percentage to the costs of producing a product to get the price
75
Mark up
The percentage added to unit cost that makes a profit for a business when setting the price
76
Penetration pricing
Setting a low price when launching a new product in order to get established in the market
77
Predatory or destroyer pricing
Setting a low price forcing rivals out of businesses
78
Pricing strategy
The pricing policies or methods using by a business when deciding what to charge for its products
79
Product life cycle
Shows the different stages in the life of a product and the sales that can be expected at each stage
80
Psychological pricing
Setting the price slightly below a round figure
81
Skimming
Setting a high price initially and then lowering it later
82
Units costs
The same as average costs (total costs/output)
83
Agent or broker
An intermediary that brings together buyers and sellers
84
Breaking-bulk
Diving a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
85
Direct selling
Producers selling their products directly to consumers
86
Distribution
The delivery of goods from the producers to the consumers
87
Distribution channel
The route taken by a product from the producer to the customer
88
E-commerce
The use of electronic systems to sell goods and services
89
Intermediaries
Links between the producer and the consumer
90
Retailer
A business that buys goods from manufacturers and wholesalers and sells them in small quantities to consumers
91
Wholesaler
A business that buy goods from manufacturers and sells them in smaller quantities to retailers
92
Boston matrix
A 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market
93
Extension strategies
Methods used to prolong the life of a product
94
Marketing strategies
A set of plans that aim to achieve a specific marketing objective
95
Product lines
A group of products that are very similar
96
Product portfolio
the collection products a business is currently marketing
97
Collective bargaining
A method of determining conditions of work and terms of employment though negotiations between employers and employee representatives
98
Flexible workforce
A workforce that can respond in quantity and toe to changed in market demand
99
Home workers
People who undertake their regular work from home
100
Industrial action
Disruptive measures taken by workers to apply pressure on employers when disagreements cannot be resolved
101
Outsourcing
Getting other people or business to undertake work that was originally done in house
102
Multi skilling
The process of increasing the skills of employees
103
Trade unions
Organisations of workers that exist to exist to promote the interest of their members
104
Zero hours contract
A contract that does not guarantee any particular number of hours work
105
Curriculum vitae
A document that lists personal details qualifications work experience referees and other information about the jobseeker
106
External recruitment
Appointing workers from outside the business
107
Induction training
Training given to new employees when they first start a job
108
Internal recruitment
Appointing workers from inside the businesses
109
Job descriptions
A document that shows clearly the tasks duties and responsibilities expected of a worker for a particular job
110
Off the job training
Training that takes place away from the work area
111
On the job training
Training that takes place while doing the job
112
Person specification
A personal profile of the type of person needed to do a particular job
113
Training
A process that involves increasing the knowledge and skills of a worker to enable them to do their jobs more effectively
114
Authority
The right to command and make decisions.
115
Centralisation
A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command
116
Chain of command
The way authority and power is organised in an organisation
117
Decentralisation
A type of business organisation where design making is pushed down the chain of command and away from the centre of the organisation
118
Delayering
Removing layers of management from the hierarchy of an organisation
119
Delegation
Authority to pass down from superior to subordinate
120
Formal organisation
The internal structure of a business as shown by an organisational chart
121
Hierarchy
The order or levels of responsibility in an organisation from the lowest to the highest
122
Organisational chart
A diagram that shows the different job roles in a business and how they relate to each other
123
Responsibility
The duty to complete a task
124
Span of control
The number of people a person is directly responsible for in a business
125
Subordinates
People in the hierarchy who work under the control of a senior worker
126
Bonus
A payment in addition to the basic wage for readers hung targets or in recognition for service
127
Commission
Percentage payment on a sale made to the salesperson
128
Consultation
Listening to the views of employees before making key decisions that affect them
129
Delegation
The passing of authority further down the managerial heirarchy
130
Empowerment
Giving official authority to make the decisions and control their own work activities
131
Hawthorne effect
The idea that Workers are motivated by recognition given to them as a group
132
Hygiene / maintenance factors
Things that work that result in dissatisfaction
133
Job enlargement
Giving an employee more work to do of a similar nature; horizontally extending their work role
134
Job enrichment
Giving employees greater responsibility and recognition by virtually extending their work role
135
Job rotation
The periodic changing in jobs or tasks
136
Maslow hierarchy of needs
The order of people’s needs starting with basic human requirements
137
Motivated
The desire to take action to achieve a goal
138
Motivators
Things at work that result in satisfaction
139
Payment by results
Payment methods ghat reward workers for the quantity and quality of work they produce
140
Performance related pay (PRP)
A payment system designed for non-manual workers where pay increases are given in performance targets are met
141
Piece rates
A payment system where employees are paid an agreed rate for every item produced
142
Profit sharing
Where workers are given a share of the profits, usually as a part of their pay
143
Scientific management
A theory that suggests there is a “best way” to perform work tasks
144
Self actualisation
A level in maslow’s hierarchy where people realise their full potential
145
Team working
Organising people into working groups that have a common aim
146
Autocratic leadership
A leadership style where a manager makes all the decisions without consultation
147
Democratic leadership
A leadership style where managers allow others to participate in decision making
148
Laissez-fairs leadership
A leadership style where employees are encouraged to make their own decisions within certain limits
149
Paternalistic leadership
A leadership style where the leader makes decisions but takes into account the welfare of employees
150
Entrepreneurs
Individuals who, typically, set up and run a business and take the risks associated with this
151
Intrapreneurs
Employees who use their entrepreneurial skills without having to risk their own money to find and develop initiatives that will have financial benefits for their employer
152
Profit maximisation
An attempt to make as much profit as possible in a given period of time
153
Profit satisfying
Making enough profit to satisfy the needs of the business owner
154
Aims
What a business tries to achieve in the long term.
155
Objectives
The goals or targets set by a business to help achieve its long term purpose
156
Sales maximisation
An attempt to sell as much as possible in a given time period (or an attempt to generate as much sales revenue as possible in a given time period)
157
Articles of association
A document that provides details of the internal running of a limited company
158
Certificate of incorporation
A document that declares a business is allowed to trade as a limited company
159
Co operative
A business organisation owned by its members who have equal voting rights
160
Deed of partnership
A binding legal document that states the formal rights of partners
161
Franchise
A business model in which a business (the franchisor) allows another operator (the franchises) to trade under their name
162
Lifestyle business
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
163
Limited company
A business organisation thay has a separate legal entity from that of its owner
164
Limited liability
A legal status which means that a business lender is only liable for the original amount of money invested in the business
165
Limited partnership
A partnership where some members contribute capital and enjoy a share of profit but do not participate in the running of the business at least one partner must have unlimited liability
166
Memorandum of association
A document that sets out the constitution and states key external details about a limited company
167
Mutual organisation
A business owned by its members who are customers not shareholders
168
Online business
A business that uses the global communications infrastructure of the internet as a trading base
169
Partnership
A business organisation that is usually owned by between 2-20 people
170
Primary sector
Production involving the conversion of raw materials from the earth
171
Secondary sector
Production involving the conversion of raw materials into finished and semi finished goods
172
Sleeping partner
A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
173
Social enterprise
A business that trades with the objective of improving human or environmental well-being -charities and workers’ co-operatives, for example
174
Sole trader / sole proprietor
A business organisation which had a single owner
175
Tertiary sector
The production of services in the economy
176
Unlimited liability
A legal status which means that the owner of a business is personally liable for all business debts
177
Private equity company
A business usually owned by private individuals backed by financial institutions
178
Public limited company
A company owned by shareholders where the shares can be traded openly on the stock market
179
Stock market
A market for second hand shares
180
Stock market flotation it initial public offering
The process of a company ‘going public’- making shares available to the public for the first time
181
Choices
In business, deciding between alternative uses of resources
182
Opportunity cost
When choosing between different alternatives, the opportunity cost is the benefit lost from the next best alternative to the one that has been chosen
183
Trade offs
In business, where a decision-maker faces a compromise between two different alternatives; for example, between paying dividends to shareholders and re-investing profits in the business
184
Capital
The money provided by the owners in a business
185
Capital expenditure
Spending on business resources that can be used repeatedly over a period of time
186
Internal finance
Money generated by the business or urs current owners
187
Retained profits
Profit after tax that is ‘ploughed back’ into the business
188
Revenue expenditure
Spending in the business resources that have already been consumers or will be very shortly
189
Sake and leaseback
The practice of selling assets, such as property or machinery, and leasing them back from the buyer
