Theme 1 Flashcards
(217 cards)
1
Q
Percentage change in price
A
New price - Old price
——————————– x 100
Old price
2
Q
Market share
A
The percentage of the market that business, product or service has.
3
Q
Added value
A
Value added is when the business chooses to enhance the quality of a core product by providing extras to improve a customers 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 customer requirements profitably
7
Q
Advertising
A
Communication between business and customer 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 the 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 peoples needs starting with 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 that are sold and advertised to everyone at the same time and in the same way.
17
Q
Authority
A
This the is the power or right to give orders in an organisation
18
Q
Matrix structure
A
The hierarchy design which groups by project and function
19
Q
Autocratic leadership
A
Leader makes all decisions
20
Q
Mechanisation
A
Method of operating or controlling process using machinery
21
Q
Automation
A
Method of operating or controlling process by automatic means using devices. Reduces need for human interaction.
22
Q
Below the line promotion
A
Any promotion that does not involve using media
23
Q
Memorandum of Association
A
A document that sets out the constitution and states key external details about the limited company.
24
Q
Bonus
A
A payment in addition to the basic wage for reaching targets or in recognition of service
25
Motivated
The desire to take action to achieve a goal
26
Brand name
A name, term, symbol, or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.
27
Motivators (Hertzberg)
Things at work that result in satisfaction
28
Boston Matrix
A 2x2 model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market.
29
Multiskilling
An employee is trained to do more than one job, for example and electrician is trained to plaster walls.
30
Breaking-bulk
Dividing a large quantity of of goods received from a supplier before selling them on in smaller quantities to customers.
31
Mutual organisation
A business owned by its members who are customers not shareholders.
32
Business choices
Deciding between alternative uses of resources.
33
Niche Market
A subset of a normal market that caters for specific consumer needs and wants.
34
Certification of incorporation
A document that declares a business is allowed to trade as a limited company.
35
Normal Good
Products where and increase in consumers income means an increase in demand.
36
Centralisation
A type of business organisation where major decisions are made at the centre or core of the organisation and passed down the chain of command.
37
Objectives
The goals or targets set by a business to hep achieve its long-term purpose.
38
Chain of command
this is the route that orders travel down in and organisation and complaints travel up
39
Off the job training
Training takes place away from the area of work
40
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.
41
Online retailing or etailing
The retailing of goods online.
42
Co-operative
A business organisation owned by its members, who have equal voting rights.
43
Online businesses
A business that uses the global communications infrastructure of the internet as a trading base.
44
Commision
Percentage payment on a sale made to the salesperson.
45
On the job training
training that takes place while doing the job.
46
Competitive advantage
An advantage a business has over its competitors, allowing it to generate larger then average turnover for the industry.
47
Opportunity cost
The cost of the loss for the item not chosen, or the profit from the goods not produced.
48
Competitive pricing
To charge a similar amount for goods as are charged elsewhere
49
Organisational chart
A diagram that shows the different job roles in a business and how they relate to eachother.
50
Complimentary products
Products that need to be
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 or household appliances.
54
Own-label, distributor or private brand
Products that are manufactured for wholesaler 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 twenty people who set up a business together as joint owners Eg vets.
57
Consultation
Listening to the views of employees before making key decisions that affect them
58
Part-time
Employees work less then 35 hours 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 percentage to 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 job seeker.
62
Payment by results
Payment methods that rewards worker for the quantity and quality of work they produce.
63
Database
An organised collection of data stored electronically with instant access, searching and sorting facilities.
64
PED equation
% change in quantity demanded
--------------------------------------------------
% change in price
65
Deed of partnership
Binding 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 of the organisation
70
Person Specification
The characteristics the candidate both needs to have and 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 and agreed rate for every item produced.
73
Demand
Amount customers are willing and able 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
Aline 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
Setting a low price forcing rivals out of business
79
Demographics
The statistical data relating to population- used to describe a group in marketing.
80
Price elastic demand
The change in price results in a greater change in demand
81
Design mix
The rang of features that are important when designing a product. Aesthetics function and cost
82
Price elasticity of demand
How responsive demand is to a change in price
83
Differentiation
How well a business can change the product so that a consumer recognises it as superior.
84
Price inelastic demand
A change in price results in a small change in demand
85
Direct selling
Producers selling their products directly to consumers
86
Price skimming
Setting a high price initially then lowering it.
87
Discretionary expenditure
Non-essential spending or 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 the consumer.
90
Primary research
Research that is carried out by the business itself
91
Dynamic market
A market that is constantly changing
92
Primary Sector
Production involving the extraction of raw materials
93
E-commerce
Conducting business transactions online
94
Private equity company
A business usually owned by private individuals backed by financial institutions.
95
Economic of scale
The reduction in average costs enjoyed by a business as output increases
96
product Design
The process of creating anew 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 or service
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 orienatation
when a business focuses completely on the product when producing it.
105
Ergonomics
The study of how people interact with their environment and they equipment they use
106
Product portfolio
The collection of products a business currently marketing
107
Ethical sourcing
Buying from sustainable sources.
108
Productivity
The rate at which goods or services are produced
109
Ethical stance
To trade in a way that is respectful of people, animals, and 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 the demand is greater then supply at a given price and there are shortages in the market.
112
Profit satisficing
The aim of the business is to make just enough profit to satisfy the owner.
113
Excess supply
When the supply is greater then the demand at a given price and there is an excess of supply in the market.
114
Profit sharing
Where workers are given a share of the profits, usually as part of their pay.
115
Extension strategy
A plan to extend the maturity stage of the product life cycle of the product.
116
Promotion
An attempt to obtain and retain customers by drawing their attention to a firm or its products
117
External recruitment
Appointing workers from outside of the business
118
Psychological Pricing
Setting the price slightly below the round figure
119
Flat structure
This is the hierarchy design which has few layers and short chains of command but a wide span of control
120
Public Relations
An organisations attempt to communicate with interested parties.
121
Flexible workforce
A workforce that can respond in quantity and type to changes in market demand
122
Qualitative data
Non numerical data such as opinions
123
Flexitime
Employees can start and finish when they need as long as they work their 35 hours
124
Quantitative data
numerical data that can be analysed easily
125
Focus groups
Where a number of customers are invited to attend a discussion about a product led by market researchers.
126
Recruitment
Process by which a job vacancy is identified & potential employees are notified
127
Formal organisation
The internal structure of a business as shown by an organisational chart
128
Recycling
Making use of materials that have been discarded as waste
129
Franchise
A business idea in a box which is sold to other owners who run it under a license and pay royalties, in return they get branding and marketing support.
130
Reposition
Change the view consumers have about a product by altering some of its characteristics.
131
Franchisee
The person who buys the franchise.
132
Responsibility
The duty to complete a task.
133
Franchisor
The person who sells the franchise.
134
Resource depletion
The use up of natural resources
135
Function
What the item is used for.
136
Respondents
A person or organisation that answers questions in a survey
137
Generic brands
Products that only contain the name of the product category rather then the company or product name
138
Retailer
A business that sells goods to consumers
139
Government subsidy
A grant or gift of money from the government to encourage supply of goods
140
Risk
The possibility of financial loss
141
Hawthorne effect
The idea that workers are motivated by recognition given to them as a group.
142
Sales maximisation
An attempt to sell as much as possible in a given time period
143
Hierarchy
A system in an organisation where people are ranked according to the authority that they have.
144
Sales promotion
Methods of promoting products in the short term to boost sales
145
Home working
To work from home
146
Sample
A small group of people who must represent a proportion of a total market when carrying out market research
147
Hygiene factors (Herzberg)
Things at work that result in dissatisfaction
148
Secondary sector
Production involving conversion of raw materials into finished goods
149
Income elasticity of demand
How responsive demand is to a change in a consumers income
150
Scientific Management
A theory that suggests there is a best way to perform work tasks
151
Income elastic demand
Demand is extremely responsive to a change in income
152
Secondary market research
Research that another business has carried out
153
Income inelastic demand
Demand isn't very responsive to a change in income
154
Selection
Process of assessing candidates and appointing a post holder
155
Independence
To trade in a way which meets the entrepreneurs own goals and allows them to be their own boss
156
Self actualisation
A level in Maslow's hierarchy where people realise their full potential
157
Indirect tax
Taxes levied on products or services before they reach the consumer
158
Social entrepreneurship
to trade with the goal of helping the community in some way
159
Induction training
Training given to new employees when they first start at their new job
160
Sleeping partner
A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
161
Industrial Action
Disruptive measures taken by workers to apply pressure on employers when disagreements cant be resolved
162
Socio Economic groups
Division of people according to social class
163
Inferior good
products where and income in increase leads to a decrease in demand
164
Sole trader
Person who sets up a business on their own, they can have employees but there is only one owner
165
Innovation
An invention taken to the market and sold
166
Span of control
This is the number of subordinates that a supervisor or manager in charge of
167
Intermediaries
Links between the producer and the consumer
168
Sponsorship
Making a financial contribution to an event in return for publicity
169
Internal recruitment
Appointing workers from within the business
170
Strong brand
A brand that is recognised by everyone, eg Rolls royce
171
Intrapreneur
An employee who works for a large business but thinks like a entrepreneur
172
Subordinates
People in the hierarchy who work under the control of a senior worker
173
Job analysis
Investigating the requirements of a job to identify the tasks and skills required
174
Stock market
A market for second hand shares
175
Job description
Identifies tasks ad responsibilities involved in the job
176
Stock market floatation
The process of a company going public- making shares available to the public for the first time
177
Job enlargement
Giving an employee work of a similar responsibility to do
178
Subsidy
A grant given to producers, usually to encourage production of a certain good
179
Job enrichment
Giving an employee more responsible tasks
180
Substitute products
Products that can be used in place of each other
181
Job rotation
Moving an employee round similar tasks
182
Supply
The amount a business is willing and able to supply
183
Laissez-faire Leadership
Leaders allow employees to make their own decisions
184
Supply curve
A line to plot the relationship between price and quantity supplied
185
Leader
A person who has vision and followers
186
Tall structure
This is the hierarchy design which is the opposite to a flat structure, it has a long chain of command but short span of control
187
Leadership
Same as management plus is a visionary who motivates their workers, a strategist and a problem solver
188
Team working
Employees in small groups with a similar aim
189
Lifestyle Business
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
190
Tertiary business
The production of service in the economy
191
Limited liability
A legal status which means that a business owner is only liable for the original amount of money invested into the business
192
temporary staff
Employees are hired on a fixed term contract
193
Limited company
A business organisation that has a separate legal entity from that of its owner
194
Total revenue
The amount of revenue generated from the sales of goods
195
Limited partnership
A partnership where some members contribute capital and enjoy a share of the profits, but do not participate in running the business
196
LTD
Stands for limited company, shares can only be sold to family and friends
197
Trade offs
in business, where a decision maker faces a compromise between two different alternatives.
198
Management
Authorities to make decisions int the best interest of the business
199
Training
A process that involves increasing the knowledge and skills of a worker to enable them to do their job effectively.
200
Manufactured brands
Brands created by the producers of goods and services
201
Uncertainty
Something in the future which is not known
202
Mark up
The percentage added to the unit cost that makes a profit
203
Unit cost
The same as average costs- total costs divided by output
204
Market
A set of arrangements that allows buyers and sellers to communicate and trade
205
Unlimited liability
A legal status which means that the owner of a business is personally liable for all business debts
206
Market mapping
Positioning the products/service a business plans to provide
207
USP
The aspect or feature of a product that clearly distinguishes it from its rivals
208
Market orientation
To sell products based on what the customer wants
209
Viral marketing
Any strategy that encourages people to pass on messages to others about a product or a business electronically
210
Market positioning
The view consumers have about the quality, value for money and image of a product in relation to those of competitors
211
Waste minimisation
Businesses way of making sure that there is no waste in the production process
212
Market research
The collection, presentation and analysis of information relating to the marketing and consumption of goods or services
213
waste minimisation
Reducing the quantity of resources that are discarded in the production process
214
Market segmentation
A whole market can be divided into sections
215
Wholesaler
A business that sells goods to retailers
216
Zero hour contracts
Employees are called into work only when they are needed, they get no work benefits and cannot be guaranteed work
217
YED
Income elastic of demand
