1.3 Business key terms (part 1)

Question 1

consumer durables

Answer 1

goods that can be used repeatedly over a period of time

such as cars and household appliances: washing machine and so on

Question 2

design mix

Answer 2

the range of features that are important when designing a product, includes:

• aesthetics: based on the subjective judgement of consumers, how the product appeals to consumers, ways to differentiate the product
• economic manufacture: how much value is added during the production process, does the design allow the product to be made and sold profitably
• function: the way the product works, does it do what it needs to do, is the product reliable

Question 3

ergonomics

Answer 3

the study of how people interact with their environment and the equipment they use - often in a work place

Question 4

ethical sourcing

Answer 4

using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity

Question 5

product design

Answer 5

the process of creating a new product or service

Question 6

recycling

Answer 6

making use of materials that have been discarded as waste

Question 7

resource depletion

Answer 7

the using up of natural resources

Question 8

waste minimization

Answer 8

reducing the quantity of resources that are discarded in the production process

Question 9

above the line promotion

Answer 9

paid for communication in the independent media
e.g. advertising on TV, radio or in the newspapers.
though it can be targeted, it can also be seen by anyone outside the target audience

Question 10

advertising

Answer 10

communication between a business and its consumers where images are placed in the media to encourage the purchase of products

Question 11

below the line promotion

Answer 11

promotional activities where the business has direct control over the target audience without the use of media
e.g. sales promotions, direct marketing and personal selling

Question 12

emotional branding

Answer 12

the practice of using the emotions of consumers to build a brand

Question 13

generic brands

Answer 13

products that only contain the name of the product category rather than the company or product name
e.g. banana

Question 14

manufature brands

Answer 14

brands created by the producers of goods or services

Question 15

marketing mix

Answer 15

the elements of a business’s marketing that are designed to meet the needs of consumers
the four elements are often called the 4P’s
- product
- place
- price
- promotion

Question 16

merchandising

Answer 16

the activity of promoting the sale of goods, especially by their presentation in retail outlets

Question 17

own-label or
distributor or
private brands

Answer 17

products that are manufactured for wholesalers or retailers by other businesses

Question 18

point of sale

Answer 18

any point where a consumer buys a product

Question 19

promotion

Answer 19

an attempt to obtain and retain customers by drawing their attention to a firm or its product

Question 20

public relations

Answer 20

an organisation’s attempts to communicate with interested parties

Question 21

sales promotion

Answer 21

methods of promoting products in the short term to boost sales

Question 22

sponsorship

Answer 22

making a financial contribution to an event in return for publicity

Question 23

vital marketing

Answer 23

any strategy that encourages people to pass on messages to others about a product or a business electronically