WHOLE THEME 1 DEFINITIONS Flashcards
KEY TERMS FROM: - 1.1 Meeting customer needs - 1.2 Market - 1.3 Marketing mix and strategy - 1.4 managing people - 1.5 entrepreneurs and leaders (149 cards)
1
Q
Brand
A
- A symbol, logo or design that is recognisable and distinguishes a product from competitors Brand
- A unique design/sign/symbol/words/logo which makes it recognisable/distinguishes/differentiates it from its
competitors
2
Q
competition
A
The rivalry among sellers trying to achieve goals such as
increasing profits, market share, and sales volume
3
Q
competitive market
A
When there are many rivals selling similar products
4
Q
competitor
A
- A rival business operating in the same market offering similar
goods or services - A rival business operating in the same market
offering similar goods or services e.g. KFC and McDonalds
5
Q
dynamic market
A
A market that is subject to rapid/continuous change.
6
Q
indirect competition
A
Different businesses make or sell products that are not in
direct competition but compete for the same customer
experience e.g. Netflix and the local cinema
7
Q
innovation
A
- The creation, development and implementation of a new
product, process or service. - Creating a new idea/product/process and turning it into a
marketable/sellable product/service - Putting new ideas/designs into action
8
Q
market
A
Where buyers and sellers meet to exchange goods and services
9
Q
market growth
A
An increase in demand/sales for a particular product/service
10
Q
market share
A
The % of the total market a business has in terms of volume
or value
11
Q
market size
A
The total amount of sales/customers in a market measured
by value/volume
12
Q
mass market
A
A large unsegmented market where mass appeal products
are on sale
13
Q
niche market
A
- A specialist area of the market/is a subset of the market on
which a specific product focuses. It is a smaller segment of a
larger market where consumers have specific needs and
wants. - A specialised section of the market where customers have
specific needs/wants. - A small section of a market with distinctive specialised
requirements
14
Q
online retailing
A
Selling goods and services on the internet
15
Q
sales volume
A
The quantity of a good or service sold within a period of time.
Calculation Sales revenue/selling price
16
Q
uncertainty
A
The inability to predict/a lack of knowledge about future
events and outcomes/reasons for uncertainty. Is caused by
unexpected often external factors outside the business’s
control, even though sometimes these can be predictable
17
Q
consumer behaviour
A
How consumers make decisions about how they choose and
use products or services
18
Q
focus group
A
A group of people who participate in a discussion as part of
market research to give feedback about a product or service
19
Q
market orientation
A
-When a business’s products/services are based around the
needs and wants of the customer. The business finds out the needs and wants of the customers and responds to them/meets customer requirements
20
Q
market research
A
Gathering, presenting and analysing information about
products/customers
21
Q
market segmentation
A
Dividing a whole market into particular customer groups that
have similar characteristics
22
Q
primary research
A
Obtaining data first hand by the business to match the
specific needs of the business. It can also be known as field
research
23
Q
product orientation
A
When a business prioritises a product’s design quality or
performance rather than meeting customer preferences to
guide production and marketing decisions
24
Q
added value
A
The increase in value that a business creates when
producing a product/service. The difference between the
price the customer pays and the total cost of inputs needed
to create a product The difference between the selling price and the cost of
inputs
25
competitive advantage
A feature of a business and/or its products that enable it to
compete effectively with rival producers/products. Using differentiation/USP to have an edge over the
competition
26
market mapping
A form of market positioning. It is the use of a 2-dimensional
diagram that plots products or services in a market using two
key variables. It is used to spot a gap in the market
27
market positioning
An effort to influence consumer perception of a brand or
product, relative to the perception of competing brands or
products
28
product differentiation
The act of distinguishing a product/service from competitors
to make it more attractive to a particular target market
29
complementary good
Products consumed/used together, so they are purchased
together E.g. printer and printer ink
30
Demand
The quantity of goods/services that a consumer is willing to
buy at a given price and at a given time
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external shocks
Factors beyond the control of a business
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seasonality
When demand rises or falls at particular times of the year
according to seasonal factors
33
substitute goods
Goods that can be bought as an alternative to others, but
perform the same function E.g. petrol car and electric cars
34
government subsidies
A payment given to producers, usually to encourage
production of a certain good
35
indirect taxes
Taxes imposed by the government on spending e.g. VAT and
Excise duties. Responsibility for payment lies with the
business.
36
supply
The amount that producers are willing/able to produce at a
given price/over a given period of time The amount that producers are willing and able to produce at
a given price.
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equilibrium price
The price where supply and demand are equal. Also known
as market clearing price
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Surplus in markets
Where supply exceeds demand
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Price elasticity of
demand (PED)
Measures the responsiveness of quantity demanded to a
change in price. Always negative due to laws of demand. Measures the responsiveness of quantity demanded to a
change in price.
40
price elastic
Quantity demand is responsive to a change in price
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price inelastic
Quantity demanded for the product is less responsive
proportionately to a change in price
42
Income elasticity of
demand (YED)
Measures the responsiveness of changes in quantity
demanded to changes in consumer income. To estimate how quantity demanded will change given
changes in income
43
Inferior goods
When incomes increase there is a decrease in quantity
demanded e.g. budget goods
44
Marketing Mix
A plan for using the right blend of product, price, promotion,
and place in order to maximise sales
45
social trends
Changing patterns in consumer behaviour reflected in
changing demands e.g. increased use of social media/being
environmentally friendly Changing patterns in consumer behaviour reflected in
changing demands
46
Design Mix
The combination of factors needed in designing a product
including Aesthetics, Function, Economic Manufacture
The combination of elements, (function, aesthetics, cost) that
a business considers when creating a product
The combination of factors needed in designing a product OR
Aesthetics, Function, Economic Manufacture
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ethical sourcing
When a business buys materials that are produced with fair
working conditions/pay and minimum impact on the
environment Involves the business buying materials that are produced
with fair working conditions/pay and minimum impact on the
environment
48
Re Branding
A marketing strategy in which a new name, term, symbol,
design or combination is created for an established brand
with the intention of developing a new, differentiated identity
in the minds of consumers, investors, and/or competitors.
49
customer loyalty
Customers favouring a business over competitors when
making a purchase/favour it over competitors in the same
market.
Repeat purchases with the same business
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Direct marketing
Where a business mails out leaflets or letters to households
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emotional Branding
The creation of brands that may appeal to customers’
emotional nature, rather than their logical side.
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Manufacture/corpor
ate branding
Brands created by the producers of goods and services e.g.
Kellogg’s cornflakes (bear the producers name)
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Own Brand
Products that are manufactured for wholesalers or retailers
by other businesses e.g. Tesco Beans
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Personal selling
Direct communication between a salesperson and the
customer
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What is a premium price?
Charging a higher price than competitors due to customer loyalty or a lack of substitutes.
## Footnote
Premium pricing is often used to reflect the perceived value of a product.
57
Define product branding.
Products that only contain the name of the product category, rather than the company or product name (e.g., Carrots).
## Footnote
This can lead to brand recognition based on product category rather than individual brands.
58
What is promotion in a business context?
The way a business creates demand/awareness for its product/service.
## Footnote
This includes tactics such as advertising and discounts.
59
What does public relations involve?
An organisation’s attempt to communicate with interested parties, usually through unpaid media such as press conferences.
## Footnote
Public relations aim to build a positive image and manage the organization's reputation.
60
What are sales promotions?
Methods of promoting products in the short term to boost sales.
## Footnote
This can include special offers, discounts, or limited-time sales.
61
Define sponsorship.
A company giving a product or money to support another business or person, often in return for brand visibility.
## Footnote
This can relate to sporting, cultural, or social events.
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What does USP stand for?
Unique Selling Proposition.
## Footnote
A feature that differentiates a product from its competitors.
63
What is viral marketing?
Encouraging customers to share information/adverts through existing social media platforms like Facebook.
## Footnote
This strategy leverages social networks to increase brand exposure.
64
What is competitive pricing?
When a business sets a price similar to competitors selling similar/rival products.
## Footnote
This strategy can help maintain market share.
65
Define cost plus pricing.
A cost-based method for setting prices by adding a mark-up percentage to the cost of the product.
## Footnote
This ensures that all costs are covered while making a profit.
66
What is penetration pricing?
Setting a low price initially to build market share before switching to a higher price.
## Footnote
This strategy may involve accepting short-term losses.
67
What is predatory pricing?
Setting a low price to force rivals out of the market.
## Footnote
This practice is illegal in the UK but difficult to prove.
68
Define price skimming.
Setting a high price at the launch of a product to recover R&D costs and target early adopters.
## Footnote
This strategy can maximize profits from initial sales.
69
What is a pricing strategy?
A method used by a business when deciding the price at which a product is sold.
## Footnote
Common strategies include penetration, price skimming, cost plus, competitive, predatory, and psychological pricing.
70
What is psychological pricing?
Tactics designed to appeal to a customer’s emotional response to prices.
## Footnote
This may involve pricing items just below a round number (e.g., $9.99 instead of $10).
71
What are channels of distribution?
Methods used by businesses to get their products from manufacture to consumer, including intermediaries.
## Footnote
Examples include wholesalers and retailers.
72
Define distribution.
Getting products to the right place for customers and at the right time.
## Footnote
Effective distribution is crucial for customer satisfaction.
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What is a distribution strategy?
A plan to get a product or service to the customer
75
What are the stages in a four stage distribution channel?
Manufacturer/producer, wholesaler, retailer, consumer
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What is online distribution?
The use of electronic systems to sell goods and services
77
What does 'place' refer to in marketing?
Where the product can be purchased and the process of making it available to the consumer
78
Define 'product' in a marketing context.
A tangible item offered for sale
79
What is a service?
The non-physical, intangible parts of our economy
80
What are the stages in a three stage distribution channel?
Manufacturer/producer, retailer, consumer
81
What characterizes a two stage distribution channel?
A direct marketing approach with no intermediary levels
82
What is the Boston matrix?
A method used to analyse the product portfolio of a business
83
What does B2B stand for?
Business to business
84
What does B2C stand for?
Business to customer
85
What is an extension strategy?
A plan aimed at preventing the decline stage of a product/service’s sales
86
Define 'marketing objective'.
A goal the business aims to achieve through its marketing activities
87
What is a marketing strategy?
The methods used/plan/way chosen to achieve marketing objectives
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What is the product life cycle?
The stages that a product goes through from introduction to decline
89
What is a product portfolio?
The collection/range/list of items/products produced/sold/offered by a business
90
What is collective bargaining?
Negotiation of wages/conditions of employment between employee representatives/trade unions and the employer
91
What does dismissal refer to?
The termination of employment by an employer against the will of the employee
92
What are employer/employee relations?
The way in which a company’s management and its employees behave towards each other
93
What is multiskilling?
The process of increasing the skills of employees
94
What are part-time employees?
Workers that generally work fewer hours than a full-time employee
95
What is redundancy?
When a business needs to reduce the size of its workforce or even close
96
What does 'staff as a cost' imply?
A cost to businesses in terms of recruitment, training, remuneration, welfare and severance
97
What does 'staff as an asset' mean?
Employers recognise the input of employees as an important business resource
98
Trade Union
A workforce representative that act to protect and improve
the economic and working conditions for their members.
99
external recruitment
When the business looks to fill the vacancy from outside of
the business.
100
Induction training
Introductory training given to employees covering its
background, policies, health and safety procedures
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internal recruitment
Selecting employees who already work within the business to
fill job vacancies
102
off the job training
When employees are given training away from their normal
job environment, often in a classroom
103
on- the job training
Learning/gaining/developing skills whilst at work doing the job
104
Training
The developing of a person, to enhance skills and
knowledge. Training can be on-the-job or off-the-job
105
centralised structure
An organisational structure where business decisions are
made at the top of the hierarchy by senior management/or at
the headquarters of a business
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chain of command
The way authority and power is organised in an organisation
107
decentralised structure
When a business allows branches to take more control/make
their own decisions Allows branches to take more control/make their own
decisions.
108
flat organisational structure
A structure with few layers and a wider span of control for
each manager
109
matrix organisational structure
Organises employees from different disciplines or divisions
into projects/teams
110
span of control
The number of employees/subordinates that a manager is
responsible for
111
tall organisational structure
One with many layers and a narrow span of control for each
manager
112
what is a bonus?
A sum of money added to an employee’s wages/salary as a
reward for performance when they reach or exceed their
targets
113
commission
A payment to a worker based on a percentage of the value of
sales.
114
consultation
Employee opinions/feedback are sought when making
business decisions
115
delegation
Authority to pass down from superior to subordinate
116
empowerment of employees
Giving official authority to employees to make decisions and
to control their own work activities
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financial incentives
Monetary rewards used to help improve staff motivation and
achievement. They can include Piecework, commission,
bonuses, profit sharing and performance related pay
118
flexible workforce
Employees have choice over how/when they work by
agreement with the company. E.g. zero hours contracts,
homeworking, part-time
119
flexible working
Offering different working hours/location/pattern of working
that improve work-life balance/motivation for employees
120
Job enlargement
Giving an employee more work to do of a similar nature,
horizontally extending their work role
121
job enrichment
Giving employees greater responsibility and recognition by
vertically extending their work role
122
job rotation
the changing of jobs or tasks
123
Maslow's theory
hierarchy of needs:
The order of people’s needs, starting with basic human
needs
- 5 sets of basic human needs:
physiological needs, safety needs, love and belonging, esteem, self actualisation (physiological is the bottom and self-actualisation at the top)
124
Mayo's theory
human
relations theory:
Emphasises the importance of the ways in which people
interact and how they are treated. Motivation can improve
when employees feel more involved
125
motivation
The reason for people's actions, willingness and goals.
126
non-financial methods of motivation
Ways of encouraging employees without the use of monetary
rewards. Include consultation, empowerment, team working, flexible
working and job rotation
127
financial methods of motivation
Ways of encouraging employees without the use of monetary
rewards e.g Delegation, consultation, empowerment, team
working, flexible working, job enrichment, job rotation and job
enlargement
128
performance related pay
A financial reward to employees whose work is considered to
have reached a required standard
129
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piece rate
A payment system where employees are paid an agreed rate for every item produced
130
profit sharing
A form of financial incentive given to employees, where part
of the profit of the business is shared amongst the
employees.
131
Taylor's theory
- Suggested a job could be broken down into constituent parts,
so that the most efficient way of working could be calculated.
He believed workers are motivated by money
- Employee pay should be related to the amount of work they
do/Money is the most appropriate motivator for employees
132
working conditions
The physical surroundings and the atmosphere of the
workplace, and the way staff are treated by managers
133
autocratic leadership
A leadership style where the decision-making is best kept
with managers, who will direct subordinates with little
consultation
134
democratic leadership
A type of leadership style in which members of the group
take a participative role in the decision-making process.
Group members are encouraged to share ideas and
communication is two-ways
134
Laissez-faire
A leadership style where employees are encouraged to make their own decisions within certain limits
135
leadership
Having a vision, sharing that vision with others and providing
direction
136
management
The day-to-day organisation of the business, including
staffing.
137
paternalistic leaders
Leaders that are in control, but take the welfare of employees
into account when making decisions
138
entrepreneur
Someone who organises a business venture by combining
the other factors of production, namely land, labour and
capital. They task risks to set up a business in the hope of
profit/reward
139
risk
Something an entrepreneur can essentially plan for.
Probabilities of outcomes are known or at least understood or
considered.
140
Entrepreneurial
characteristics
Qualities or traits demonstrated by an individual starting up
and running a business
141
profit satisficing
Making enough profit to satisfy the needs of the business
owner
142
social entrepreneurship
Setting up a business and showing concern for social issues
143
144
Cost efficiency
Minimising costs/expenses/waste when producing a product
or service
145
consumer satisfaction
Is a measurement of how satisfied a customer is with their
purchase
146
Employee welfare
Facilities and benefits provided by a business to meet the
well-being of the employe
147
profit maximisation
When the difference between sales revenue and cost is at its
greatest
