All Keywords Theme 1 and 2 Flashcards
1
Q
Market Share
A
Proportion of a market that is held by a business, a product or a number of businesses or products. Expressed as a percentage calculated by sales / total sales x 100
2
Q
Niche
A
A smaller segment of a larger market, usually with low output and revenue.
3
Q
Differentiation
A
The extent to which consumers percieve a brand from being different to another
4
Q
Qualitative Data
A
Non numerical data, often opinions and viewpoints usually gathered through surveys or questionnaires among other things
5
Q
Marketing Objective
A
Targets the marketing department must achieve
6
Q
Marketing Strategy
A
The medium to long term plan for meeting the marketing objective.
7
Q
Sample
A
The selection of people used in a market research exercise.
8
Q
Consumer Goods
A
Items bought and used by consumers usually in a mass market e.g bread.
9
Q
Marketing
A
Targeting the right product/service to the right target market through the likes of price, promotion and place.
10
Q
Dynamic Market
A
Fast moving markets that are constantly changing which can be sensitive to aspects leading to market changes
11
Q
Economies of Scale
A
Factors that cause the cost per unit to fall due to an increase in the size of an enterprise
12
Q
Secondary Research
A
Finding out information that has already been gathered by another entity e.g using government stats
13
Q
Quantitative Research
A
Research using data gathering which allows for numerical analysis.
14
Q
Mass Marketing
A
The attempt to appeal to an entire market with one large strategy.
15
Q
Sample Bias
A
Where a sample result can be distorted due to the possibility of excluding possible customers
16
Q
Asset led or Asset Bases
A
A business which considers both its strengths and weaknesseses aswell as their market needs.
17
Q
Profit
A
The amount gained after revenue exceeds the total costs and expenses of a business
18
Q
Market Size
A
The total possible customers a business could target.
19
Q
Primary Research
A
Finding out information first hand.
20
Q
Revenue
A
turnover - income
21
Q
Demand
A
A measure of the level of interest consumers have in a product
22
Q
Supply
A
Quantity of a product that producers are able to deliver at a point in time
23
Q
Complementary Goods
A
Goods usually bought together e.g cereal and milk
24
Q
Inferior goods
A
Cheaper alternative, doesn’t always mean a sub-standard product. Demand falls when income increases and vice versa e.g Asda Smartprice
25
Normal Goods
Goods for which demand increases when income rises
26
Substitute Goods
Goods that can be bought as an alternative whilst performing the same function
27
External Shock
Factors beyond a businesses control that can impact them e.g Iceland volcano was a shock to flights
28
Government Subsidary
A kind of grant from the government made available to certain businesses, often to increase jobs or encourage production of a certain product.
29
Centeris Paribus
Taking a situation at face value and that nothing will change
30
Disposable Income
The money consumers have left after all other financial commitments are met
31
Indirect Tax
Tax levied on goods and services rather than income and profits e.g VAT
32
Direct Tax
Tax levied on income and profits
33
Free Market
An economic system in which prices are determined by unrestricted competition between privately owned businesses
34
Market Equilibrium
Point where price and quantity meet. Suppliers sell for the right price for customers to have enough quantity to satisfy demand
35
Surplus
Not enough demand in regards to supply
36
Shortage of Goods
When prices are lower then the equilibrium and supply is low thus demand is high and cannot be fulfilled
37
Surplus of goods
Prices are higher than the equilibrium and supply is higher meaning demand is lower thus less demand
38
Added Value
The difference between price sold for and the total cost of making the product or service e.g bread may be made for 25p and sold for £1, Added Value is 75p
39
Direct Competition
Another company that offers the same product or service to the same market and customer base, with the goal being to increase their market share
40
Demographics
Population Data e.g Age, Ethnic Origin or Gender
41
Price
The amount a consumer pays for a good or service
42
Pricing Strategy
Plan for setting mid to long term pricing of a product or service
43
Loss Leader
Selling for below costs to gain more profitable business in the future
44
Price Sensitive
When demand for a product reacts sharply to a price change
45
Pricing Tactics
Short-term pricing responses to opportunities or threats
46
Promotional Hook
Promotional Techniques used to gain customers interest
47
Promotional Reach
Maximising the number of people exposed to media in a given time period
48
Emotional Branding
Practice of using the emotion of a consumer to build a brand
49
Generic Brand
Brand which becomes the name of a product e.g Hoover
50
Merchandising
Methods used at point of sale
51
Cost Plus Pricing
Cost-based strategy, calculated as the cost to produce plus a % mark up e.g production costs £1, markup is 40% it would be sold for £1.40
52
Penetration Pricing
Price set low to gain market share
53
Price Skimming
Initially set at a high price whilst a product has its new appeal to gain development costs back as soon as possible usually used in the tech market
54
Competitive Pricing
Price set at market level
55
Psychological Pricing
Using the consumers psychological price barrier e.g 2.99 instead of 3
56
Predatory Pricing
Setting a low price to force rivals out of business (Illegal but still happens)
57
Sustainability
An ability of something to be maintained or to sustain itself, taking what we need now
58
Ethical Sourcing
Using Materials, components and services that come from suppliers who respect the environment and treat their workforce fair e,g Fairtrade
59
Ergonomicss
Study of how people interact with their environment and the equipment they use
60
Waste Minimisation
Reducing the quantity of resources discarded in the process of production
61
Above the Line Promotion
Advertising in the media, often more expensive
62
Below the Line Promotion
Any form of promotion which doesn't use media
63
Viral Marketing
Any strategy that encourages people to pass on a message
64
Distribution Channel
Route taken by a product from producer to consumer
65
Distribution
Delivery of goods from the producer to the consumer
66
Remuneration
Entire package of material rewards received by an employee e.g pay, pension, share options plus infringe benefits such as a company car
67
Outsourcing
Paying another business or individual to undertake a task which would otherwise be done by an employee
68
Labour Turnover
Number of staff leaving a company as a percentage of number employed
69
Subcontracting
Using another business to complete an aspect of operations e.g health and safety
70
Core Workers
Employees essential to the running of a business usually with high pay, high job security and good conditions
71
Zero Hour Contracts
Workers on demand with no commitment from the employer. Rate of duties is agreed weekly and may not work at all
72
Severence
The word for the ending of a contract of employment due to dismissal or redundancy
73
Redeployment
Moving an employee to a new job function because their department has been closed or they are not good enough for current post
74
Dismissal
Termination of an employees contract due to gross misconduct
75
Redundancy
Contract is terminated due to job no longer existing
76
Trade Union
Organisation representing the interests and goals of working people, member pay to join but receive help if they need it such as legal aid
77
Collective Bargaining
A group or body that represents employees and negotiates changes on behalf of the workers. Have more bargaining power as they speak for many
78
Individual Approach
Where an individual discusses issues relating to their terms and conditions of employment with their employer - the employer has the position of strength over an individual
79
Lean Production
Term used to describe a range of methods of waste saving
80
Absenteeism
Measure of the rate of deliberate workforce absence as a proportion to all the employees
81
Centralised Structure
Organisation where decision making made by one or few people
82
Decentralised Structure
Organisation where decision making is run through everyone down a chain of command
83
Heirarchy
Traditional business structure with a series of levels that represents authority and responsibility
84
Chain Of Control
Path of communications and authority up and down the heirarchy
85
Span Of Control
The number of workers who are answerable directly to a manager
86
Narrow Span Of Control
Responsibility for fewer workers
87
Wide Span Of Control
Responsibility for a lot of workers
88
Organisational Design
Structure of a business commonly organised by either: Area, customer, function, product or process
89
Matrix Structure
Where staff work in project teams in addition to their responsibilities within their own department.Answerable to more than one boss
90
Job Enrichment
Adding tasks which have more responsibility to help increase overall skills which may be useful preparation for promotion
91
Crowdfunding
Finance obtained from many individuals through small investments usually over the internet
92
Entrepreneur
Someone who makes a business idea happen, either through their own effort or by organising others to do the work
93
Piece Rate
Paying workers per piece they produce e.g £2 per pair of jeans
94
Budgets
An agreed maximum on monthly expenses set by a manager
95
Mission Statment
A short and powerfully expressed sentence or two that clearly outlines the businesses aims clearly and motivationally
96
Share Holder Value
Mix of shareholder dividends and a rising price that stems from rising profit
97
Staff Retention
Retaining Staff
98
Bankrupt
When a person is unable to meet personal liabilities, some or all of which are a consequence of business activites
99
Creditiors
Those owed money by a business
100
Debtors
Those who owe a business money
101
Franchisee
An independent business who has bought the right to use another businesses brand, logo and trading practices in a certain area
102
Incorporation
Establishing a business as a separate legal entity from its owners and thus giving them limited liability
103
Limited Liability
Owners are not liable for the debts raised by a business, loss is limited to what they invest
104
Sole Trader
One person who owns a business and holds unlimited liability
105
Unlimited Liability
Owners are liable to all of the businesses debts so can have personal possessions taken away to cover the debt if need be
106
Opportunity Cost
The cost of missing out on the next best alternative when making a decision or committing resources
107
Trade-Off
Accepting less of something to achieve more of another e.g less quality for lower costs
108
Liquidity
The ability a business has to pay its debts on time which relies on how much money they have in the bank
109
Overtrading
When a business expands at a rate that it cannot be sustained due to its capital base
110
Capital
Wealth in the form of money or assets that signifies the financial strength of an individual, business or nation
111
Fixed Costs
Costs that stay the same regardless of output
112
Variable Costs
Costs that change relevant to the level of output
113
Working Capital
The finance available for the day to day running of a business
114
Angel Investors
Investors who back a business before it opens its doors, taking a full equity risk
115
Collateral
An asset used as security for a loan
116
Public Limited Company (PLC)
Company with limited liability and shares which are available for sale on the stock market
117
Seedcorn capital
The early stage finance that may come from an angel investor
118
Share Capital
Business Finance that has no guarantee of repayment or of an annual income, but gains a share of the business and its profits
119
Stock Market
The market for buying and selling company shares supervising the issuing of shares by a business and providing a market place for the buying and selling of second hand shares
120
Venture Capital
High risk capital invested in a combination of loans and shares, usually in a small and dynamic business
121
Best Case
An optimistic estimate of the best possible outcome of a business
122
Business Plan
A document setting out a businesses idea, showing how it will be financed, marketed and put into practice
123
Cashflow Forecast
A predictive business management tool which estimates the amount of money flowing in and out of a business allowing you to predict net cash flow
124
Just-In-Time
Ordering stock so that it comes just before it runs out
125
Overdraft
An authorised short term loan from a bank used for daily cash defecits
126
Defecit
Negative balance in the cash flow forecast
127
Surplus
Positive balance in the cash flow forecast
128
Worst Case
A pessimistic estimate assuming the worst possible outcome for a business
129
Retained Profit
Profit after tax which is invested back into the business
130
Debenture
Long term business to business loan
131
Lease
Essentially hiring equipment from other external businesses
132
Secured Loan
A loan where the lender requires security e.g collateral
133
Unsecured Loan
Where the lender has no protection if the borrower fails to repay its money
134
Capital Gain
Profit made from selling a share for more than you bought it for
135
Undercapitalised
A firm not raising enough capital when the business starts up
136
Cashflow Forecast
A predictive business management tool which estimates monthly cash inflows and outflows to be able to manage net cashflow
137
Opening Balance
The balance at the start of each month which is the closing balance of the previous months
138
Net Cashflow Balance
The difference between cash flowing in and out
139
Closing Balance
The amount in the bank at the end of the month
140
Adverse Variance
Difference between budgeted and actual figures that I worse for the business
141
Favourable Variance
Difference between budgeted and actual figures where it is good for the business
142
Income Budget
Setting a minimum figure for the revenue to be generated by a product, department or manager
143
Zero Budgeting
Setting all future budgets at zero and having all expenses asked for and justified by those who need it
144
Margin of Safety
Amount you which current output exceeds the breakeven output
145
Contribution
Selling Price - Variable Costs per unit
146
Breakeven
Predictive calculation used to calculate the amount a business must sell to cover its costs
147
Breakeven Formula
Selling price - VC per unit = Contribution
| Fixed costs / Contribution = Breakeven Quantity
148
Total Contribution Formula
Contribution x Breakeven Quantity
149
Total Revenue at Breakeven Formula
Selling price per item x Breakeven Quantity
150
Sales Forecast
Method of predicting future sales based on past statistics
151
Time Series Data
Method that allows a business to predict future levels based on past output
152
Extrapolation
Forecasting future trends based on past data
153
Real Incomes
Changes in household incomes after allowing for changes in price I.e percentage change in household income - inflation = real income
154
Contingency Plans
Plans held in reserve in case things go wrong e.g sales predicted at 30% lower in worst case
155
Sales Volume
Number of units sold in a given time period
156
Capacity Utilisation
The use a business makes of its resources
157
Rationalisation
Reducing resources usually due to excess capacity
158
Batch Production
Products passed through each production stage in batches
159
Flow Production
A continuous production where standardised products are assembled in stages
160
Job Production
One off production, usually unique products and services
161
Lean Production
An approach to operations that focuses on a reduction of resources
162
Cell Production
Involves producing a family of products in a small self contained unit of a factory
163
Capital Intensive
More machinery used relative to Labour
164
Labour Intensive
More labour used relative to machinery
165
Division of Labour
Specialisation in specific tasks or skills by an individuals
166
Production
A measure of quantity output
167
Productivity
Measure of efficiency measured by dividing output by inputs per time period e.g a factory worker may make 10 computer chips every hour
168
Efficiency
Producing a level of output where average costs are minimised
169
Kaizen
Japanese term meaning continuous improvement
170
Buffer Stock
Stock held as a precaution to cope with unforeseen demand
171
TQM
Constant Company Wide culture of total quality management
172
Lead Time
Time between placing an order and delivery
173
Re-order Level
The level of current stock when a new order is placed
174
Re-order Quantity
Amount of stock ordered when an order is placed
175
Stock Rotation
Flow of stock into and out of a business
176
Work-In-Progress
Partly Finished Goods
177
Quality
Features of a product that allow it to satisfy customers needs
178
Quality Assurance
A method of working for businesses that takes into account customers wants when standardising quality
179
Quality Circles
Groups of workers meeting regularly to solve problems and discuss work issues
180
Quality Chains
When employees form a link between customers and suppliers internally and externally
181
Appreciation In A Currency
Rise in value of a currency
182
Base Rate
Rate of interest the bank structures other interests off
183
Gross Domestic Product (GDP)
Common measure of national income, output or employment
184
Boom
The peak in an economic cycle, GDP is growing at its fastest
185
Consumer Price Index (CPI)
Common measure of price changes used in the EU
186
Deflation
A fall in the general price level
187
Depreciation
Fall in the value of a currency
188
Downturn
The GDP is growing but more slowly than before
189
Fiscal Policy
Using changes in Taxation and government expenditure to manage the economy
190
Inflation
General rise in prices
191
Monetary Policy
Using changes in interest and money supply to manage the economy
192
Recession
Less severe form of depression when GDP has decrease for more than 2 quarters
193
Index linked
Linking of certain payments, such as benefits to the rate of inflation
194
Slump or Depression
The bottom of the economic cycle where the GDP starts to fall with a significant increase in unemployment
195
Taxation
Charges made by governments on the activities, earnings and incomes of individuals
196
Anti-Competitive or Restrictive Practices
Attempt by firms to prevent or restrict competition
197
Barriers of Entry
Obstacles that make it hard for a business to enter the market
198
Collusion
Two or more businesses working together to do restrictive practices such as price fixing
199
Contract Of Employment
Written agreement between an employer and employee with each having obligations
200
Employment Tribunal
Court that deals with cases involving disputes between employers and employees
201
Cartel
Group of businesses or countries which join together to agree on pricing and output in a market in attempt to gain higher profit at the consumers expense
202
Market Structures
Characteristics of a market e.g size of barriers of entry, number of businesses,what they produce and the behaviour of them within the market
203
Monopoly
Absence of competition where a single group or company has vast market share
204
Unfair Dismissal
Illegal dismissal of a worker by a business
