THEME 1 Flashcards
(212 cards)
1
Q
What is % change in price?
A
Price new- price old / price old x 100
2
Q
What is market share?
A
The % of a market that a business, product or service has
3
Q
What is added value?
A
Value is added when a business chooses to enhance the quality of a core product by providing extras to improve a customers utility/experience
4
Q
What is market size?
A
Measured by volume of sales or value
5
Q
What is above the line promotion?
A
Placing adverts using the media
6
Q
What is marketing?
A
A management process involved in identifying, anticipating and satisfying consumer requirements profitably
7
Q
What is advertising?
A
Communication between a business and its customers where images are place in the media to encourage the purchase of products
8
Q
What is the marketing mix?
A
Price, place, promotion and product, how a business uses these 4 elements strategically
9
Q
What is aesthetics?
A
What a item looks like
10
Q
What is a marketing strategy?
A
A set of plans that aim to achieve a specific marketing objective
11
Q
What is a agent or broker?
A
Foreign sales agent is a business which represents products from another business in a new country
12
Q
What is a mark-up?
A
The amount above cost added to a product before it is placed for sale
13
Q
What is a aim? (Business terms)
A
What a business tries to achieve in the long term
14
Q
What is Maslow’s hierarchy of needs?
A
The order of people’s needs starting with the basic human requirements
15
Q
What is articles of association?
A
A document that provides details of the internal running of a limited company
16
Q
What is a mass market?
A
Products or services that are sold or advertised to everyone at the same time in the same way
17
Q
What is authority? (Business terms)
A
This is the power or right to give orders in an organisation
18
Q
What is a matrix structure?
A
This is a hierarchy design which groups by project and function
19
Q
What is autocratic leadership?
A
Leader makes all the decisions
20
Q
What is mechanisation?
A
Method of operating or controlling processes using machinery
21
Q
What is automation?
A
Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction
22
Q
What is merchandising?
A
A promotion specifically at the point of sale of a product
23
Q
What is below the line promotion?
A
Any promotion that does not involve the use of media
24
Q
What is memorandum of association?
A
A document that sets out the constitution and states key external details about a limited company
25
What is a bonus?
A payment in addition to the basic wage for reaching targets or in recognition of service
26
What is meant by being motivated?
The desire to take action to achieve a goal
27
What is a brand?
A name, logo or symbol which differentiates one business from another, often with competitors
28
What is motivators (Hertzberg theory)?
Things at work that result in satisfaction
29
What is the 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
30
What is multi skilling?
An employee is trained to do more than one job, for example an electrician is trained to plaster walls
31
What is breaking- bulk?
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
32
What is mutual organisation?
A business owned by its members, who are customers not shareholders
33
What is business choices?
Deciding between alternative uses of resources
34
What is a niche market?
A small sub section of a larger market which sells goods to customers often with specialist wants and needs
35
What is certification of incorporation?
A document that declares a business is allowed to trade to trade as a limited company
36
What is a normal good?
Products where an increase in consumers income means an increase in demand
37
What is 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
38
What is off the job training?
Training that takes place away from the area of work
39
What is collective bargaining?
A union representative will speak to the management on behalf of all the workers in a business, usually about working conditions or pay
40
What is online retailing or etailing?
The retailing of goods online
41
What is co-operative?
A business organisation owned by its members, who have equal voting rights
42
What is a Online business?
A business that uses global communications infrastructure of the internet as a trading base
43
What is commission?
Percentage payment on a sale made to the salesperson
44
What is on the job training?
Training that takes place while doing the job
45
What is competitive advantage?
An advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry
46
What is opportunity cost?
The cost of the loss of the item not chosen, or the profit from the goods not produced
47
What is competitive pricing?
To charge a similar amount for goods as are charged elsewhere
48
What is an organisational chart?
A diagram that shows the different job roles in a business and how they relate to each other
49
What is a complimentary product?
Products that need to be used together, for example a printer will need ink
50
What is outsourcing?
Getting other people or businesses to undertake work that was originally done in house
51
What is consumer durables?
Goods that can be used repeatedly over a period of time, such as cars and household appliances
52
What is a private brand? (Or distributer or own-label)
Products that are manufactured for wholesalers or retailers by other businesses
53
What is consumer panels?
Groups of customers are asked for feedback about products over a period of time
54
What is a partnership?
Two to 20 people who set up a business together as joint owners
55
What is consultation?
Listening to the views of employees before making key decisions that effect them
56
What is part-time?
Employees who work less than 35 hours a week but still get sick pay and work benefits
57
What is cost-plus pricing?
To set the price of a product or service by calculating the cost then adding a set amount or % to it
58
What is a paternalistic leadership style?
Leader makes decisions but takes employees point of view into consideration
59
What is a CV (Curriculum vitae)?
A document that lists personal details, qualifications, work experience, references and other information about the jobseeker
60
What is payment by results?
Payment methods that rewards workers for the quantity and quality of work they produce
61
What is a database?
An organise collection of data stored electronically with excellent access, searching and sorting facilities
62
What is PED?
% change in quantity demanded / % change in price
63
What is a deed of partnership?
Legal document that states the formal rights of partners
64
What is penetration pricing?
Price when launching a new product in order to get established in the market
65
What is decentralisation?
Type of business organisation with decision-making is pushed down the chain of command and away from the centre of organisation
66
What is PPP (Performance Related Pay)?
System designed for non-manual workers where pay increases are given if performance targets are met
67
What is delayering?
Removing layers of management from the hierarchy of an organisation
68
What is person specification?
The characteristics the candidates both need to have and those which are desired, for example skills and Qualifications
69
What is delegation?
The act of asking a worker to perform a task
70
What is piece rate?
A payment system where employees are paid an agreed rate for every item produced
71
What is demand?
The amount a customer is willing and able to buy a product at any given price
72
What is a PLC?
A public limited company, shares are floated on the stock market and can be bought by anyone
73
What is a demand curve?
A line to Line to pilot relationship between price and quantity demanded
74
What is a point of sale?
Any point where a consumers buys a product
75
What is a democratic leadership style?
Leaders encourage participation in decision-making
76
What is predatory pricing?
Setting a low price forcing rivals out of business
77
What is demographics?
The statistical data relating to population which is used to describe a group in marketing e.g Uk’s ageing population demographics
78
What is price elasticity demand?
The change in price results in a greater change in demand
79
What is the design mix?
The range of features that are important when designing a product:
Aesthetics
Function
Cost
80
What is price elasticity of demand?
How much demand for a good or service is likely to fluctuate with a change in price
81
What is differentiation?
How well a business can change the product so that a consumer recognised it as superior e.g Audi/BMW/ German technology engines
82
What is price inelastic demand?
A change in price result in a proportionately smaller change in demand
83
What is direct selling?
Produces selling their products directly to consumers
84
What is price skimming?
Setting a high price initially and then lowering it later
85
What is discretionary channel (place of the 4 p’s)?
Where a product it’s self is sold and how many stages it takes to a customer e.g 3 stage distribution
86
What is primary research?
Research done by the business itself
87
What is discretionary expenditure?
Non- essential spending or spending that is not automatic
88
What is a pricing strategy?
The pricing policies or methods used by a business when deciding what to charge for its products
89
What is a dynamic market?
A market that is constantly changing to suit customers wants and needs
90
What is the primary sector?
Production involving the extraction of raw materials from earth
91
What is e-commerce?
Conducting business transactions online
92
What is a private equity company?
A business usually owned by private individuals backed by financial institutions
93
What is economics of scale?
The reductions in average costs enjoyed by a business as output increases
94
What is product design?
The process of creating a new product or service
95
What is emotional branding?
The practice of using the emotions of a consumer to build a brand
96
What is product differentiation?
How a business differentiates products; through reputation, service, features or value
97
What is empowerment?
Giving official authority to employees to make decisions and control their own work activities
98
What is the product life cycle?
The stages that a product moves through over time
99
What is an entrepreneur?
A person who sets up a business, taking financial risks in the hope of making a profit
100
What is product lines?
A group of products that are very similar
101
What is a equilibrium price?
The price where supply and demand are equal
102
What is product orientation?
To sell products and services that the business wants to produce
103
What is ergonomics?
The study of how people interact with their environment and the equipment they use- often in the workplace
104
What is a product portfolio?
The collection of products a business is currently making
105
What is ethical sourcing?
Buying from sustainable sources, for example tree’s from forest suppliers who replant
106
What is productivity?
The rate at which goods or services are produced
107
What is a ethical stance?
To trade in a way that is respectful of people, animals or the environment
108
What is profit maximisation?
The aim of the business is to make as high profits as possible in the time frame
109
What is excess demand?
The position where demand is greater than supply at a given price and there are shortages in the market
110
What is profit satisficing?
The aim of the business is to make just enough profit to satisfy its owners but with other managers objectives
111
What is excess supply?
The position where supply is greater than demand at a given price and there are unsold goods in the market
112
What is profit sharing?
Where workers are given a share of the profits, usually as part of their pay
113
What is a extension strategy?
A plan to extend the maturity stage of a product life cycle of a product, for example changes to promotion
114
What is promotion?
An attempt to obtain and retain customers by drawing their attention to a firm or its products
115
What is external recruitment?
Appointing workers from outside the business
116
What is psychological pricing?
Setting the price slightly below the round figure
117
What is a flat structure?
This is a hierarchy design which has few layers and short chain of command but has a wide span of control
118
What is public relations?
An organisation’s attempt to communicate with interested parties
119
What is a flexible workforce?
A workforce that can respond, in quantity and type, to chances in the market demand
120
What is qualitative data?
Non numerical data such as how customers use the product?
121
What is flexitime?
Employees can start and finish when they need to as long as they work their 35 hours and the job gets done
122
What is quantitative date?
Data gathered that is numerical such as % of customers who buy more than once a week
123
What is a focus group?
Where a number of customers are invited to attend a discussion about a product led by market researchers
124
What is recruitment?
Process by which a job vacant is identified and potential employees are notified
125
What is a formal organisation?
The internal structure of a business as soon by an organisational chart
126
What is recycling?
Making use of materials that have been discarded as waste
127
What is a franchise?
A business idea in a box which is sold to other owners who run it under a licence and pay royalties, in return they get branding and marketing support e.g subway
128
What is a reposition?
Change the view consumers have about a product by altering some of its characteristics
129
What is a franchisee?
The person who buys the franchise
130
What is responsibility?
The duty to complete a task
131
What is a franchisor?
The person who sells the franchise
132
What is resource depletion?
The use up of natural resources
133
What is function?
What the item is used for
134
What is respondents?
A person or organisation that answers every question in a survey
135
What is a generic brand?
Products that only contain the name of the product category rather than the company or product name
136
What is a retailer?
A business that sells goods to consumers
137
What is a government subsidy?
A grant or gift of money from the government to encourage supply of certain goods e.g milk subsidies
138
What is risk?
The possibility of financial loss
139
What is the Hawthorne effect?
The idea that workers are motivated by recognition given to them as a group
140
What is 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)
141
What is a hierarchy?
A system in organisation where people are ranked in according to the authority that they have
142
What is sales promotion?
Methods of promoting products in the short term to boost sales
143
What is home working?
To work from home, for example an eBay business
144
What is a sample?
A small group of people who mock represent a proportion of a total market when carrying out market research
145
What is hygiene factors (Hertzberg theory)?
Things at work that result in dissatisfaction
146
What is the secondary sector?
Production involving the conversion of raw materials into finished and semi-finished goods
147
What is income elasticity of demand?
How much demand changes when the consumer has a change in income
148
What is scientific management?
A theory that suggests there is a ‘best way’ to perform work tasks
149
What is income inelastic demand?
Where the % change in demand is proportionally less than the % change in income
150
What is selection?
The process of candidates and appointing a post holder
151
What is independence? (Business terms)
To trade in a way which meets the entrepreneur’s own goals and allows them to be their own boss
152
What is self actualisation? (In maslows theory)
A level in maslows hierarchy where people realise their full potential
153
What is indirect tax?
Taxes levied on products or services before they reach the consumer e.g VAT
154
What is social entrepreneurship?
To trade with the goal of helping the community in some way
155
What is induction training?
Training given to new employees when they first start their new job
156
What is a sleeping partner?
A partner that contributes capital and enjoys a share of the profit but takes no active role in the running of the business
157
What is industrial action?
Disruptive measures taken by workers to apply pressure on employers when disagreements cannot be resolved
158
What is socio economic groups?
A division of people according to social class
159
What is a inferior good?
Products where an increase in consumers income means a decrease in demand
160
What is a sole trader?
A person who sets up a business on their own, they can have employees but there is only one owner
161
What is innovation?
An invention taken to market and sold
162
What is meant by span of control?
This is the number of subordinates that a supervisor or manager is in charge of
163
What is meant by intermediates?
Links between the producer and consumer
164
What is meant by sponsorship?
Making a financial contribution to an even in return for publicity
165
What is internal recruitment?
Appointing workers from inside the business
166
What is a strong brand?
A brand which is recognised by everyone e.g rolls Royce, Rolex
167
What is a intrapreneur?
An employee who works for a large business but thinks like an entrepreneur
168
What is meant by subordinates?
People in the hierarchy who work under the control of a senior worker?
169
What is meant by job analysis?
Investigating the requirements of a job to identify the tasks and skills required
170
What is a stock market?
A market for second hand shares
171
What is meant by job description?
Identifies tasks and responsibilities involved in the job
172
What is meant by stock market floatation?
The process of a company ‘going public’ or ‘floating on the stock market’- making shares available to the public for the first time
173
What is meant by job enlargement?
Giving an employee work of a similar responsibility to do
174
What is a subsidy?
A grant given to producers, usually to encourage production of a certain good
175
What is meant by job enrichment?
Giving an employee more responsible tasks
176
What is a substitute product?
Products that can be used in place of each other, for example of no tea is available a substitute hot beverage is coffee or hot chocolate
177
What is meant by job rotation?
Moving an employee round similar tasks
178
What is supply?
The amount a business is willing to supply at a set price
179
What is laissez-faire leadership?
Leaders allow employees to make their own decisions
180
What is the supply curve?
A line to pilot the relationship between price and quantity supplied
181
What is a leader?
A person who has vision and followers
182
What is a tall structure?
A hierarchy design which is the opposite to a flat structure, it has a long chain of command but a short span of control
183
What is meant by leadership?
The same as management plus is a visionary who motivates their workers, a strategist and a problem solver
184
What is meant by team working?
Employees in a small group with a similar aim
185
What is a lifestyle business?
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
186
What is the tertiary sector?
The production of services in the economy
187
What is meant by limited liability?
A legal status which means that a business owner is liable for the original amount of money invested in the business
188
What is meant by temporary staff?
Employees are hired on a fixed term contract, to finish building a house estate for example
189
What is a limited company?
A business organisation that has a separate legal entity from that of its owners
190
What is meant by total revenue?
The amount of revenue generated from the sale of goods calculated by price x quantity, in a given period of time
191
What is a limited partnership?
A partnership where some members contribute capital and enjoy a share of the profits, but do not participate in the running of the business. At least one partner must have unlimited liability
192
What is a trade union?
Organisations of workers that exist to promote the interests of their members
193
What is a LTD?
Stands for private limited company, shares can only be sold to friends and family
194
What is meant by trade off’s?
In business, where a decision maker faces a compromise between two different alternatives, for example between paying dividends to shareholders or reinvesting profits in the business
195
What is meant by management?
Authority to make decisions in the best interest of the business
196
What is meant by training?
A process that involves the knowledge and skills of a worker to enable them to do their job effectively
197
What is a manufactured brand?
A brand created by the producers of good and services
198
What is meant by uncertainty?
Something in the world which is not known to the business, e.g a recession or Coronavirus
199
What is a mark up?
The % added to unit costs that makes a profit for a business when setting the price
200
What is meant by unit costs?
The same as average costs- total costs / output
201
What is meant by the term ‘market’?
A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services
202
What is meant by unlimited liability?
A legal status which means that the owner of a business is personally liable for all business debts
203
What is meant by market mapping?
Market mapping is about positioning the products/service a business plans to provide
204
What is a ‘USP’?
The aspect of feature of a product that clearly distinguishes it from its rivals
205
What is market orientation?
To sell products or services based on customers wants and needs
206
What is viral marketing?
Any strategy that encourages people to pass on messages to others about a product or a business electronically
207
What is market positioning?
The view consumers have about the quality, value for money and image of a product in relation to those of competitors
208
What is waste minimisation?
Reducing the quantity of resources that are discarded in the production process
209
What is market segmentation?
A whole market can be divided into sections called segments
210
What is a wholesaler?
A business that sells goods to retailers
211
What is a zero hour contract?
Employees are called into work only when they are needed, they get no work benefits and cannot be guaranteed work
212
What is YED?
Income elastic demand
