Theme 1 Flashcards
(219 cards)
1
Q
Percentage change in price
A
Price new-price old /price old x100
2
Q
Market share
A
The % of a market that a business, product or service has
3
Q
Added value
A
Value is added when a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience
4
Q
Market size
A
Measured by volume of sales or value
5
Q
Above the line promotion
A
Placing adverts using the media
6
Q
Marketing
A
A management process involved in identifying, anticipating and satisfying consumer requirements profitably
7
Q
Advertising
A
Communication between a business and its customers where images are placed in the media to encourage the purchase of products
8
Q
Marketing mix
A
Price,place,promotion and product, how a business uses these 4 elements strategically
9
Q
Aesthetics
A
What the item looks like
10
Q
Marketing strategy
A
A set of plans that aim to achieve a specific marketing objective
11
Q
Agent or broker
A
Foreign sales agent is a business which represents products from another business in a new country
12
Q
Mark-up
A
The amount above cost added to a product before it is placed for sale
13
Q
Aims
A
What a business tries to achieve in the long term
14
Q
Maslow’s Hierarchy of Needs
A
The order of people’s needs starting with the basic human requirements
15
Q
Articles of Association
A
A document that provides details of the internal running of a limited company
16
Q
Mass market
A
Products or services that are sold or advertised to everyone at the same time in the same way
17
Q
Authority
A
This is the power or right to give orders in an organisation
18
Q
Matrix structure
A
This is a hierarchy of design which groups by project and function
19
Q
Autocratic leadership
A
Leader makes all the decisions
20
Q
Mechanisation
A
Method of operating or controlling processes using machinery
21
Q
Automation
A
Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.
22
Q
Merchandising
A
A promotion specifically at the point of sale of a product
23
Q
Below the line promotion
A
Any promotion that does not involve using the media
24
Q
Memorandum of Association
A
A document that sets out the constitution and states the key external details about a limited company
25
Bonus
A payment in addition to the basic wage for reaching targets or in recognition for a service
26
Motivated
The desire to take action to achieve a goal
27
Brand name
A name, term, symbol,design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors .
28
Motivators (Hertzberg)
Things at work that result in satisfaction.
29
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
Multi-skilling
An employee is trained to do more than one job, for example an electrician is trained to plaster walls
31
Breaking- bulk
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.
32
Mutual Organisation
A business owned by its members, who are customers not shareholders.
33
Business choices
Deciding between alternative uses of resources.
34
Niche market
A subset of a normal market that caters for specific consumer needs and wants
35
Certification of incorporation
A document that declares a business is allowed to trade as a limited company
36
Normal good
Products where an increase in consumer's income means an increase in demand
37
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
Objectives
The goals or targets set by a business to help achieve its long-term purpose
39
Chain of command
This is the route that orders travel down in an organisation and complaints travel up
40
Off the job training
Training that takes place away from the area of work.
41
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
42
Online retailing or etailing
The retailing of goods online.
43
Co-operative
A business organisation owned by its members , who have equal voting rights.
44
Online business
A business that uses the global communications infrastructure of the internet as a trading base
45
Commission
Percentage payment on a sale made to the salesperson.
46
On the job training
Training that takes place while doing the job
47
Competitive advantage
An advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry
48
Opportunity cost
The cost of the loss of the item not chosen, on the profit from the goods not produced
49
Competitive pricing
To charge a similar amount for goods as a charged elsewhere
50
Organisational chart
A diagram that shows the different job roles in a business and how they relate to each other.
51
Complimentary products
Products that need to be used together, for example a printer will need ink
52
Outsourcing
Getting other people or businesses to undertake work that was originally done in house.
53
Consumer durables
Goods that can be used repeatedly over a period of time, such as cars and household appliances.
54
Own-label, distributor or private band
Products that are manufactured for wholesalers or retailers by other businesses
55
Consumer panels
Groups of customers are asked for feedback about products over a period of time.
56
Partnership
Two to 20 people who set up a business together as joint owners e.g. vets,solicitors,dentists
57
Consultation
Listening to the views of employees before making key decisions that affect them
58
Part-time
Employees work less than 35hours a week but still get sick pay and work benefits
59
Cost-plus pricing
To set the price of a product or service by calculating the cost then adding a set amount or % onto it.
60
Paternalistic Leadership
Leader makes decisions but takes employees point of view into consideration
61
Curriculum vitae
A document that lists personal details, qualifications , work experience, referees and other information about the jobseeker.
62
Payment by results
Payment methods that rewards workers for the quantity and quality of work they produce.
63
Database
An organised collection of data sorted electronically with instant access, searching and sorting facilities.
64
PED:
= %change in Q demanded/ %change in price
65
Deed of partnership
Blinding legal document that states the formal rights of partners.
66
Penetration pricing
Setting a low price when launching a new product in order to get established in the market.
67
Decentralisation
A type of business organisation where decision making is pushed down the chain of command and away from the centre of the organisation.
68
PPP
| performance related pay
A payment system designed for non-manual workers where pay increases are given if performance targets are met.
69
Delayering
Removing layers of management from the hierarchy or an organisation
70
Person specification
The characteristics the candidate both needs to have and those which are desired, for example skills and qualifications
71
Delegation
The act of asking a worker to perform a task
72
Piece rate
A payment system where employees are paid an agreed rate for every item produced
73
Demand
Amount customers are willing to buy
74
PLC
Stands for public limited company, shares are floated on the stock market and can be bought by anyone
75
Demand curve
A line to plot relationship between price and quantity demanded
76
Point of sale
Any point where a consumer buys a product
77
Democratic leadership
Leaders encourage participation in decision making
78
Predatory Pricing of destroyer pricing
Setting a low price forcing rivals out of a business
79
Demographics
The statistical data relating to population- used to describe a group in marketing e.g. UK's aging population demographics
80
Price elastic demand
The change in price results in a greater change in demans
81
Design mix
The range of features that are important when designing a product Aesthetics, Economics and Function
82
Price elasticity of demand
How much demand for a good or service is likely to fluctuate with a change in price e.g. petrol will still be demanded no matter what the price is, therefore it is inelastic in that demand doesn't change much with a price increase.
83
Differentiation
How well a business can change the product so that a consumer recognises it as superior e.g. Audi/ BMW German technology engines
84
Price in elastic demand
A change in price results in a proportionally smaller change in demand
85
Direct selling
Producers selling their products directly to consumers
86
Price skimming
Setting a high price initially and then lowering it later
87
Discretionary expenditure
Non-essential spending that is not automatic.
88
Pricing strategy
The pricing policies or methods used by a business when deciding what to charge for its products.
89
Distribution channel (place)
Where a product is sold and how many stages it takes to get to a customer e.g. factory outlet= 2 stages: manufacturer > customer
90
Primary research
The gathering of new information which does not already exist
91
Dynamic market
A market that is constantly changing to suit customers needs and wants
92
Primary sector
Production involving the extraction of raw materials from earth
93
E commerce
Conducting business transactions online
94
Private Equity Company
A business usually owned by private individuals backed by financial institutions
95
Economies of sale
The reductions in average costs enjoyed by a business as output increases
96
Product design
The process of creating a new product or service
97
Emotional branding
The practice of using the emotions of a consumer to build a brand
98
Product differentiation
How a business differentiates its products, through reputation, service, features or value
99
Empowerment
Giving official authority to employees to make decisions and control their own work activities.
100
Product life cycle
The stages that a product moves through over time
101
Entrepreneur
A person who sets up a business, taking financial risks in the hope of making a profit
102
Product lines
A group of products that are very similar.
103
Equilibrium price
The price where supply and demand are equal
104
Product orientation
To sell products and services that the business wants to produce
105
Ergonomics
The study of how people interact with their environment and the equipment they use- often in the workplace
106
Product portfolio
The collection of products a business currently marketing.
107
Ethical sourcing
Buying from sustainable sources, for example trees from forest suppliers who replant
108
Productivity
The rate at which goods od services are produced
109
Ethical stance
To trade in a way that is respectful of people, animals, or the environment.
110
Profit maximisation
The aim of the business is to make as high profits as possible in the time frame
111
Excess demand
The position where demand is greater than supply at a given price and there are shortages in the market
112
Profit maximisation
The aim of the business is to make as high profits as is possible in the time frame
113
Excess demand
The position where demand is greater than supply at a given price and there are shortages in the market
114
Profit satisfying
The aim of the business is to make just enough profit to satisfy the owners but with other managers objectives
115
Excess supply
The position where supply is greater than demand at a given price and there are unsold goods in the marker
116
Profit sharing
Where workers are given a share of the profits, usually as part of their pay.
117
Extension n strategy
A plan to extend the maturity stage of a product life cycle of a product, either through changes to the product or promotions to boost sales
118
Promotion
An attempt to obtain and retain customers by drawing their attention to a firm or its products
119
External recruitment
Appointing workers from outside of the business
120
Psychological pricing
Setting the price slightly below a round figure
121
Flat structure
This is a hierarchy design which has few layers and short chain of command but a wide span of control
122
Public relations
An organisation's attempt to communicate with interested parties
123
Flexible workforce
A workforce that can respond, in quantity and type, to changes in market demand.
124
Qualitative data
Non numerical data such as how customers use the product
125
Flexitime
Employees can start and finish when they need to as long as they work their 35 hours and the job gets done
126
Quantitative data
Data gathered that is numerical such as % of customers who buy more than once a week
127
Focus groups
Where a number of customers are invited and to attend a discussion about a product a product led by market researchers.
128
Recruitment
Process by which a job vacancy is identified & potential employees are notified
129
Formal organisation
The internal structure of a business as shown by an organisational chart.
130
Recycling
Make use of materials that have been discarded as waste
131
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
132
Reposition
Change the view consumers have about a product by altering some of its characteristics.
133
Franchisee
The person who buys the franchise
134
Responsibility
The duty to complete a task
135
Franchisor
The person who sells the franchise
136
Resource depletion
The use up of natural resources
137
Function
What the item is used for
138
Respondents
A person or organisation that answers question in a survey
139
Generic bands
Products that only contain the name of the product category rather than the company or product name
140
Retailer
A business that sells goods to consumers
141
Government subsidy
A grant or gift of money from the government to encourage supply of certain goods e.g. milk subsidies
142
Risk
The possibility of financial loss
143
Hawthorne Effect
The idea that workers are motivated by recognition given to them as a group.
144
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)
145
Hierarchy
A system in an organisation where people are ranked according to the authority that they have
146
Sales promotion
Methods of promoting products in the short term to boost sales
147
Home working
To work from home, for example an eBay business
148
Sample
A small group if people who must represent a proportion of a total market when carrying out market research
149
Hygiene factors (Hertzberg)
Things at work that result in dissatisfaction
150
Secondary sector
Production involving the conversion of raw materials into finished and semi-finished goods.
151
Income elasticity of demand
How much demand changes when the consumer has a change in income
152
Scientific Management
A theory that hat suggests there is a 'best way' to perform work tasks.
153
Income elasticity of demand
The percentage change in demand for a product is proportionally greater than the percentage change in income.
154
Secondarily market research
Information which already exists
155
Income inelastic demand
Where percentage change in demand is less than the percentage change in income
156
Selection
Process of assessing candidates and appointing a post holder
157
Independence
To trade in a way which meets the entrepreneur's own goals and allows them to be their own boss
158
Self actualisation
A level in Maslow's hierarchy where people realise their full potential
159
Indirect tax
Taxes levied on products or services before they reach the consumer e.g. VAT and excise
160
Social entrepreneurship
To trade with the goal of helping the community in some way
161
Induction training
Training given to new employees when they first start their new job.
162
Sleeping partner
A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
163
Industrial action
Disruptive measures taken by workers to apply pressure on employers when disagreements cannot be resolved.
164
Socio Economic groups
Division of people according to social class
165
Inferior good
Products where an increase in consumers income means a decrease in demand
166
Sole trader
Person who sets up business on their own, they can have employees but there is only one owner
167
Innovation
An invention taken to market and sold
168
Span of control
This is the number of subordinates that a supervisor or manager is in charge of
169
Intermediates
Links between the producer and the consumer
170
Internal recruitment
Appointing workers from inside the business
171
Strong brand
A brand that is recognised by everyone, e.g. Rolls Royce, Rolex, Ford, Chanel
172
Intrapreneur
An employee who works for a large business but thinks like an entrepreneur
173
Subordinates
People in the hierarchy who work under the control of a senior worker.
174
Job analysis
Investigating the requirements of a job to identify the tasks and skills required
175
Stock market
A market for second hand shares
176
Job description
Identifies tasks and responsibilities involved in the job
177
Stock market floatation
The process of a company 'going public' - making shares available to the public for the first time.
178
Job enlargement
Giving an employee work of a similar responsibility to do
179
Subsidy
A grant given to producers, usually to encourage production of a certain good.
180
Job enrichment
Giving an employee more responsible tasks
181
Substitute products
Products that can be used in place of each other, for example if no tea is available a substitute hot beverage is coffee or hot chocolate
182
Job rotation
Moving an employee round similar tasks
183
Supply
Amount businesses willing to supply
184
Laissez-faire Leadership
Leaders allow employees to make their own decisions
185
Supply curve
A line to plot the relationship between price and quantity supplied
186
Leader
A person who has vision and followers
187
Tall structure
This is a hierarchy design which is the opposite to a flat structure, it has a long chain of command but a short span of control
188
Leadership
Same as management plus is a visionary who motivates their workers, a strategist and a problem solver
189
Team working
Employees in small groups with a similar aim
190
Lifestyle business
A business aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
191
Tertiary sector
The production of services in the company
192
Limited liability
A legal status which means that a business owner is only liable for the original amount of money invested in the business
193
Temporary staff
Employees are hired on a fixed term contract, to finish building a housing estate for example
194
Limited company
A business organisation that has a separate legal entity from that of its owners
195
Total revenue or total expenditure
The amount of revenue generated from the sale of goods calculated by multiplying price by quantity in a given period of time.
196
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 limited liability
197
Trade union
Organisations of workers that exist to promote the interests of their members
198
LTD
Stands for private limited company, shares can only be sold to friends and family
199
Trade offs
In business, where a decision maker faces a compromise between two different alternatives, for example between paying dividends to shareholders and reinvesting profits in the business
200
Management
Authority to make decisions in the best interest of the business
201
Training
A process that involves increasing the knowledge and skills of a worker to enable them to do their job effectively.
202
Manufactured brands
Brands created by the producers of goods and services
203
Uncertainty
Something in the future which is not known, for example a world recession
204
Mark up
The percentage added to unit costs that makes a profit for a business when setting up the price.
205
Unit costs
The same as average costs- total costs divided by output
206
Market
A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services.
207
Unlimited liability
A legal status which means that the owner of a business is personally liable for all the business debts
208
Market mapping
Marker mapping is about positioning the products/ service a business plans to provide
209
USP
The aspect or feature of a product that clearly distinguishes it from its rivals.
210
Market orientation
To sell products or services based on customer needs and wants
211
Viral marketing
Any strategy that encourages people to pass on messages to others about a product or a business electronically
212
Market positioning
The view consumers have about the quality, value for money and image of a product in relation to those of competitors.
213
Waste minimisation
Business way of making sure that there is no waste in the production process, for example making other goods from offcuts
214
Market research
The collection, presentation and analysis of information relating to the marketing and consumption of goods and services.
215
Waste minimisation
Reducing the quantity of resources that are discarded in the production process
216
Market segmentation
A whole market can be divided into sections called segments
217
Wholesaler
A business that sells goods to retailers
218
Zero hour contracts
Employees are called into work only when they are needed, they get no work benefits and cannot be guaranteed work
219
YED
Income elastic demand ( we use Y because the letter I is used for the word investment)
