Keywords Flashcards
(17 cards)
Enterprise
An enterprise can just be another name for a business. It can also mean having the skill and taking initiative and the risk to make a business happen.
SME
A small to medium sized enterprise. Medium less that 250. Turnover of less than 50million euros. 99.9% of businesses in the UK are SMEs.
Needs
Needs are what people need to survive - food, shelter, warmth. Needs are limited.
Wants
Wants are what people desire but they are not necessary for survival. Wants are unlimited.
Entrepreneur
A person who uses an idea and starts a business. Taking on the risks in hope of making a profit.
Market
Any place where buyers and sellers meet to exchange goods.
Competition
Competition refers to the number of businesses in a market.
Competitive Market
A competitive market is one where there are numerous producers that compete with one another to provide goods and services consumers want and need. A number of marketing strategies can be used to gain customers/market share e.g competitive pricing.
Mass Market
Mass marketing is where a business sells to the whole market and markets the product to all consumers in the same way.
Niche market
Targets the small segment of a larger market where customers have specific needs and wants. This may have less competition.
Market Size
The total number of sales, by value or volume, in a market as a whole.
Market Share
This measures the sales of a firm relative to the total sales in the market.
Market Share Formula
Sales of a business/ total sales in a market x100
Market Segmentation
A process of subdividing a market into identifiable subgroups that have similiar needs, wants or characteristics and providing them with goods or services that meet their needs and wants.
Primary Sector
This involves acquiring raw materials. This is sometimes known as extractive production for example coal mining.
Secondary Sector
this is the manufacturing and assembly process. it involves converting raw materials into components. it also involves assembling the product. For example, house building or manufacturing.
Tertiary Sector
This refers to the commercial services that support the production and distribution process. It involves providing a service. For example, insurance, retaining.
