Definitions T1 Flashcards
(219 cards)
1
Q
What is a brand?
A
A symbol, logo or design that is recognisable and distinguishes a product from competitors
2
Q
Define competition.
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
What is 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 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 is innovation?
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
What is market size?
A
The total amount of sales/customers in a market measured by value/volume
13
Q
Define mass market.
A
A large unsegmented market where mass appeal products are on sale
14
Q
What is a niche market?
A
A specialist area of the market on which a specific product focuses
15
Q
What is online retailing?
A
Selling goods and services on the internet
16
Q
What is product innovation?
A
The development/creation of products not previously available
17
Q
Define sales volume.
A
The quantity of a good or service sold within a period of time
18
Q
What is uncertainty?
A
The inability to predict future events and outcomes caused by unexpected factors
19
Q
Define biased questions.
A
Questions that do not produce findings that reflect true views of the target audience
20
Q
What is 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
22
Q
What is a face-to-face survey?
A
A research method where the interviewer communicates directly with the respondent
23
Q
What is a focus group?
A
A group of people participating in a discussion to give feedback about a product or service
24
Q
What is government data?
A
Government publications that a business can use for information
25
What is interview bias?
When the opinion of the interviewer interferes with the judgements of the interviewee
26
Define market orientation.
When a business’s products/services are based around the needs and wants of the customer
27
What are market reports?
Documents containing information, stats, research and facts on a chosen field
28
What is market research?
Gathering, presenting and analysing information about products/customers
29
What is market segmentation?
Dividing a whole market into particular customer groups with similar characteristics
30
Define market segments.
An identifiable group of individuals sharing one or more characteristic or need
31
What are observations in market research?
When market researchers watch the behaviour of customers
32
What is primary market research?
Obtaining data first hand by the business to match specific needs
33
Define product orientation.
When a business prioritises a product’s design or performance over customer preferences
34
What is qualitative research?
Market research collected relating to the opinions and beliefs of consumers
35
What is quantitative research data?
Numerical information gathered that can be presented using graphs or charts
36
Define respondent bias.
When respondents answer inaccurately to a question
37
What is a sample in market research?
A small group of people representing 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
40
What is social networking?
Platforms that can be used to market a businesses products/services
41
What is a survey?
A method of primary research used to collect information
42
What is test marketing?
Trialling the product in a small area to assess its suitability
43
What are trade publications?
Specialist magazines that look at current trends in the business world
44
What is added value?
The increase in value that a business creates when producing a product/service
45
Define competitive advantage.
A feature of a business that enables it to compete effectively with rivals
46
What is differentiation?
Making products or services different from competing products
47
What is market mapping?
A form of market positioning using a 2-dimensional diagram to spot a gap in the market
48
Define market positioning.
An effort to influence consumer perception of a brand relative to competing brands
49
What is product differentiation?
The act of distinguishing a product/service from competitors
50
What are complementary goods?
Products consumed together and purchased together
51
Define consumer income.
The money earned/received from work or investments
52
What is demand?
The quantity of goods/services that a consumer is willing to buy at a given price
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
Define seasonality.
When demand rises or falls at particular times of the year
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 a certain good
58
What are indirect taxes?
Taxes imposed by the government on spending, e.g., VAT and Excise duties
59
Define supply.
The amount that producers are willing/able to produce at a given price
60
What is equilibrium price?
The price where supply and demand are equal
61
What are non-price factors?
Factors other than price that affect supply and demand
62
Define 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
What are necessity goods?
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 to a change in price
69
What is income elasticity of demand (YED)?
Measures the responsiveness of 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
71
Define social trends.
Changing patterns in consumer behaviour reflected in changing demands
72
What are aesthetics in product design?
Relates to the appearance of a product
73
What does cost mean in design mix?
When the business focuses on being economically viable and minimising costs
74
What is design for recycling?
Producing products using materials that have been discarded as waste
75
What is design for reuse?
When a product is designed to allow for disassembly and reuse of materials
76
What is design for waste minimisation?
Reducing the quantity of resources discarded in the production process
77
What is design mix?
The combination of factors needed in designing a product including aesthetics, function, and economic manufacture
78
What is ethical sourcing?
When a business buys materials produced with fair working conditions and minimum environmental impact
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 creating a new identity for an established brand
81
What is resource depletion?
The using up of natural resources
82
What is advertising?
A paid form of communication used to raise awareness of products
83
What is customer loyalty?
Customers favouring a business over competitors when making a purchase
84
Define digital communications.
The electronic transfer of data
85
What is direct marketing?
Where a business mails out leaflets or letters to households
86
What is emotional branding?
Creating brands that appeal to customers’ emotional nature
87
What is manufacture/corporate branding?
Brands created by the producers of goods and services
88
What is an own brand?
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 due to customer loyalty
91
What is product branding/generic branding?
Products that only contain the name of the product category
92
What is promotion?
The way a business creates demand/awareness for its product/service
93
What is public relations?
An organisation’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?
Websites and applications that enable users to participate in social networking
96
What is sponsorship?
A company providing funds for a sporting or cultural event in return for brand display
97
What is a USP (Unique Selling Point)?
A feature that differentiates a product from its competitors
98
What is viral marketing?
Encouraging customers to share information/adverts through social channels
99
What is sponsorship?
A company giving a product or money to support another business or person
## Footnote
A form of promotion involving funds for events in return for brand display.
100
What does USP stand for?
Unique Selling Point
## Footnote
A feature that differentiates a product from its competitors.
101
Define viral marketing.
Encouraging customers to share information/adverts through existing social media platforms
## Footnote
Examples include platforms like Facebook.
102
What is competitive pricing?
When a business sets a price similar to competitors selling similar/rival products.
103
What is cost plus pricing?
A cost-based method for setting prices by adding a mark-up percentage to the cost of the product.
104
What is penetration pricing?
Setting a low price initially to build market share before switching to a higher price.
105
What is predatory pricing?
Setting a low price to force rivals out of the market; illegal in the UK but difficult to prove.
106
Define price skimming.
Setting a high price at product launch to recover R&D costs and target early adopters.
107
What is a pricing strategy?
A method used by a business to decide the price at which a product is sold.
108
What is psychological pricing?
Tactics designed to appeal to a customer’s emotional response to prices.
109
Define channels of distribution.
Methods used by businesses to get their products from manufacture to consumer.
110
What does distribution mean?
Getting products to the right place for customers at the right time.
111
What are distribution channels?
The methods by which a product gets from the manufacturer to the consumer.
112
What is a distribution strategy?
A plan to get a product or service to the customer.
113
What is a four-stage distribution channel?
Manufacturer to wholesaler to retailer, then consumer; examples include groceries.
114
Define online distribution.
The use of electronic systems to sell goods and services.
115
What does 'place' refer to in marketing?
Where the product can be purchased and the process of making it available to consumers.
116
What is a product?
A tangible item offered for sale.
117
Define service in a business context.
The non-physical, intangible parts of our economy, as opposed to goods.
118
What is a three-stage distribution channel?
Manufacturer to retailer, then consumer; examples include electrical goods.
119
What is a two-stage distribution channel?
A direct marketing approach with no intermediary levels; e.g., manufacturer to consumer.
120
What is the Boston matrix?
A method used to analyse the product portfolio of a business.
121
What does B2B stand for?
Business to business; promoting the sale of products/services to other businesses.
122
What does B2C mean?
Business to customer; targeting individual customers for sales.
123
Define consumer loyalty.
A preference for a product or brand based on experience and emotional attachment.
124
What is an extension strategy?
A plan aimed at preventing the decline stage of a product’s sales.
125
What is a marketing objective?
A goal the business aims to achieve through its marketing activities.
126
Define marketing strategy.
The methods used to achieve marketing objectives.
127
What is portfolio analysis?
When a business considers each of its products in the context of its market position.
128
What is the product life cycle?
The stages that a product goes through from introduction to decline.
129
What is a product portfolio?
The collection of items/products produced/sold by a business.
130
Define collective bargaining.
Negotiation of wages/conditions of employment between employee representatives and the employer.
131
What is dismissal?
The termination of employment by an employer against the will of the employee.
132
What are employer/employee relations?
The way a company’s management and its employees behave towards each other.
133
What is the individual approach in employer/employee relations?
When employers develop relationships with employees at an individual level.
134
Define multiskilling.
The process of increasing the skills of employees.
135
What are part-time employees?
Workers that generally work fewer hours than full-time employees.
136
What is redundancy?
When a business needs to reduce its workforce or close.
137
What does 'staff as a cost' mean?
A cost to businesses in terms of recruitment, training, remuneration, and welfare.
138
What does 'staff as an asset' imply?
Employers recognize employees as an important resource contributing to output value.
139
What is temporary work?
A job position generally for a limited period of time.
140
Define trade unions.
A workforce representative that acts to protect and improve working conditions.
141
What is external recruitment?
When the business looks to fill a vacancy from outside the business.
142
What is induction training?
Introductory training covering the company’s background and policies.
143
Define internal recruitment.
Selecting employees who already work within the business for job vacancies.
144
What is off-the-job training?
Training given away from the normal job environment, often in a classroom.
145
What is on-the-job training?
Learning/developing skills while working.
146
What is recruitment?
The process of finding and selecting workers.
147
Define training.
The development of a person to enhance skills and knowledge.
148
What is a centralised structure?
An organisational structure where decisions are made at the top of the hierarchy.
149
What does 'chain of command' refer to?
The way authority and power is organised in an organisation.
150
What is a decentralised structure?
When a business allows branches to make their own decisions.
151
Define flat organisational structure.
A structure with few layers and a wider span of control for each manager.
152
What is hierarchy in an organisation?
The order of levels of responsibility in an organisation.
153
What is a matrix organisational structure?
Organises employees from different disciplines into projects/teams.
154
What is an organisation structure?
A diagram showing who is answerable to whom in an organisation.
155
What is span of control?
The number of employees that a manager is responsible for.
156
Define tall organisational structure.
One with many layers and a narrow span of control for each manager.
157
What is a bonus?
A sum of money added to an employee’s wage as a reward for performance.
158
What is commission?
A payment to a worker based on a percentage of the value of sales.
159
What is consultation in a business context?
Seeking employee opinions when making business decisions.
160
Define delegation.
Authority passed down from superior to subordinate.
161
What is empowerment?
Giving official authority to employees to make decisions.
162
What are financial incentives?
Monetary rewards to improve staff motivation and achievement.
163
Define flexible workforce.
Employees have choice over how/when they work by agreement with the company.
164
What is flexible working?
Offering different working hours/location to improve work-life balance.
165
What is job enlargement?
Giving an employee more work of a similar nature.
166
Define job enrichment.
Giving employees greater responsibility and recognition.
167
What is job rotation?
The changing of jobs or tasks among employees.
168
What is Maslow's hierarchy of needs?
The order of people’s needs, starting with basic human needs.
169
What does Mayo's human relations theory emphasize?
The importance of how people interact and are treated.
170
Define motivation.
The reason for people's actions, willingness, and goals.
171
What are non-financial methods of motivation?
Ways of encouraging employees without monetary rewards.
172
What are non-financial techniques?
Ways of encouraging employees without monetary rewards, such as empowerment and team working.
173
What is performance related pay?
A financial reward for employees whose work meets a required standard.
174
What is piece rate?
A payment system where employees are paid for every item produced.
175
What is profit sharing?
A form of financial incentive where part of the profit is shared with employees.
176
What is Taylor’s scientific management?
Suggested breaking jobs into parts to find the most efficient way of working.
177
Define team working.
Organising people into working groups with a common aim.
178
What are working conditions?
The physical surroundings and atmosphere of the workplace.
179
What is autocratic leadership?
A style where decision-making is kept with managers, with little consultation.
180
What is democratic leadership?
A style where group members participate in the decision-making process.
181
Define laissez-faire leadership.
A style where employees are encouraged to make their own decisions within limits.
182
What is leadership?
Having a vision, sharing that vision with others, and providing direction.
183
What is management?
The day-to-day organisation of the business, including staffing.
184
What are paternalistic leaders?
Leaders that are in control but consider the welfare of employees.
185
Define entrepreneur.
Someone who organises a business venture and takes financial risks for profit.
186
What is entrepreneurship?
The activity of setting up a business and taking on risks.
187
What is resilience?
The ability to recover from difficulties and try again.
188
Define risk in entrepreneurship.
Probabilities of outcomes that an entrepreneur can plan for.
189
What are entrepreneurial characteristics?
Qualities or traits demonstrated by individuals starting and running a business.
190
What is an entrepreneurial motive?
Factors that drive a person to start a business.
191
Define ethical stance.
In support of a moral belief.
192
What is home working?
Setting up a business from home.
193
What does independence mean in business?
A desire to be one’s own boss.
194
What is profit satisficing?
Making enough profit to satisfy the needs of the business owner.
195
Define social entrepreneurship.
Setting up a business with concern for social issues.
196
What is a business objective?
A goal/target set by the business to help achieve its aim.
197
What is cost efficiency?
Minimising costs/expenses/waste when producing a product or service.
198
Define customer satisfaction.
The degree to which customers are happy with a product or service.
199
What is profit satisficing?
Making enough profit to satisfy the needs of the business owner
## Footnote
This concept emphasizes achieving sufficient profit rather than maximizing profits.
200
Define social entrepreneurship.
Setting up a business and showing concern for social issues
## Footnote
Social entrepreneurship focuses on creating social value alongside economic value.
201
What is a business objective?
A goal/target set by the business in the short/medium term to help achieve its aim/mission
## Footnote
Business objectives guide the operations and strategy of a business.
202
What does cost efficiency refer to?
Minimising costs/expenses/waste when producing a product or service
## Footnote
This concept is crucial for maintaining competitiveness in the market.
203
How is customer satisfaction measured?
It is a measurement of how satisfied a customer is with their purchase
## Footnote
Customer satisfaction is often assessed through surveys and feedback forms.
204
What is employee welfare?
Facilities and benefits provided by a business to meet the well-being of the employee
## Footnote
Employee welfare can include health benefits, workplace safety, and work-life balance initiatives.
205
What is the difference between profit maximisation and sales maximisation?
Profit maximisation is when the difference between sales revenue and cost is at its greatest; sales maximisation is an attempt to sell as much as possible in a given time period
## Footnote
These strategies can sometimes conflict, as maximizing sales does not always lead to maximized profits.
206
What are social objectives?
A goal to benefit/improve the community
## Footnote
Social objectives can include initiatives like sustainable practices or community engagement.
207
What does survival mean in a business context?
A short-term business objective that aims to keep the business running
## Footnote
Survival is often a primary concern for startups and businesses facing financial difficulties.
208
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 allows individuals to operate under a recognized brand with established operational support.
209
Define franchising.
A type of business where a business operator (franchisor) allows others (franchisee) to trade under its name (for a fee)
## Footnote
This model is prevalent in sectors like fast food and retail.
210
What is 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 the owner's quality of life over aggressive growth or profit maximization.
211
What is a partnership?
A type of business ownership/organisation owned by two or more people
## Footnote
Partnerships can allow for shared responsibility and resources among owners.
212
What characterizes a private limited company?
A small to medium sized business, usually run by the family that owns it. Shares are sold to friends, family, and business associates and it has limited liability
## Footnote
This structure protects owners' personal assets from company debts.
213
What is a public limited company?
A business with limited liability whose shares are publicly traded on the stock market
## Footnote
Public limited companies are subject to strict regulatory requirements and must disclose financial information.
214
What defines a social enterprise?
A business that has aims/objectives which benefits society and is not for profit/its profits are reinvested into the business/community
## Footnote
Social enterprises balance social missions with business practices.
215
What is a sole trader?
A business that is owned by one person who has unlimited liability
## Footnote
Sole traders are responsible for all debts and obligations of the business.
216
What is stock market flotation?
When a business sells shares publicly on the stock exchange for the first time
## Footnote
This process is often referred to as an Initial Public Offering (IPO).
217
Define opportunity cost.
The next best alternative forgone when making a decision
## Footnote
Opportunity cost is a key concept in economics that helps in understanding trade-offs.
218
What is a trade-off?
A situation where having more of one thing leads to having less of something else
## Footnote
Trade-offs are essential in decision-making processes, especially in resource allocation.
219
Who is a leader in a business context?
A person who inspires and motivates others to meet objectives
## Footnote
Leadership qualities can significantly impact a team's performance and organizational culture.
