as_business_u1_20230227145405 Flashcards
Business Idea
A potential Business Opportunity
Research and Development
The initial stage of the product life cycle during which a business invests in the generation and development of new ideas.
Innovation
A new idea/invention which is launched onto the market
Franchise
When one business allows another permission to trade using its name and products/services
Copyright
Legal protection that has produced work in literature, drama, music, art, ect, which prevent that work from being copied without the permission of the owner
Patent
Protection of an idea by granting the holder the sole right to use unique features of a new product or process for a fixed period of time
Trademark
Protects a feature that distinguishes a business such as words, logos, pictures and stops others copying it.
Marketing
The management process that allows firms to indentify, anticipate and fulfill customer needs profitably.
Market research
The collection, collation and analysis of data and information regarding a particular market.
Primary market research
The collection of first hand data for a specific purpose. Didn’t exist before.
Secondary market research
The use if data that already exists, already collected by an organisation/own
Internal secondary data
The use if back data that already exists in a business, colleceted for records ect…
External secondary data
The use if data collected for other purposes from sources outside of the business.
Qualitative research
Non statistical information in depth insight into opinions and reasons for behaviour.
Quantitative
Statistical market research.
Sample
Representative section of the whole population that is studied for market research.
Random sample
Representative group of population with an equal chance for selection.
Quota sample
People chosen reflect the characteristics of the market..
Stratified sample
A group studied selected from a specific sub section of the population.
Bias
A factor that finds findings to be unrepresentative of population as a whole.
Confidence level
How likely it is the data is representative of the whole population..
Market
Any situation which brings together buyers and sellers to conduct transactions
Demand
The willingness and ability to buy a good/service
Quantity Demanded
The number of products that consumers are willing and able to buy at a given price
Market Segment
A small section of the market containing a group of customer with similar needs
Market Segmentation
Breaking down the market into smaller groups of customers with specific needs/characteristics, determining their wants and needs and deciding how this can be targeted
Market Size
Total sales in the market
Market Growth
The % change in market size from one year to the next
Market Share
The proportion of the total market sales made by one firm
Market Mapping
A visual wat to represent segments of the market according to 2 variables
Market Niche/Gap in the market
A customer need which is not currently being met by any business
Price
The component of marketing mix that determines the amount paid for a good/service.
Price Leader/Price maker
A business that has the power to influence the market price, due to significant market share or price inelasticity.
Price Taker
A business which sets its price at the market price, due to low market share or price elastic.
Pricing Strategies
Long term pricing plans to achieve business objectives
Price Discrimination
Charging different groups of customers different prices, where the difference in price doesn’t reflect the difference in provision.
Price Skimming
A pricing strategy that involves entering the market with a high price that early adopters will pay in order to recoup high development costs.
Destroyer/Predator Pricing
Pricing below cost with the aim to try and put rivals out of business, then raising when competition is removed, illegal.
Pricing Tactics
Manipulating price in order to achieve short term objectives
Loss Leaders
A pricing tactic that involves making a loss on certain products in order to try and attract customers to buy other goods.
Psychological
A tactic designed to entice customers to buy products they think are cheaper.
Price elasticity of Demand
The responsiveness of a change in demand following a change in price.
Price Inelasticity
Quantity demanded isn’t very responsive to a change in price
Price Elastic
Quantity demanded is very responsive to a change in price
Promotional Mix
The combination of promotional activities that a firm uses in order to create awareness/generate sales.
Promotion
Bringing attention to a producto/range of products to existing/new customers.
Promotional Activities
The way in which businesses communicate with existing and potential customers.
Direct Selling
When the supplier of a product sells straight to the final consumer cutting out intermediaries.
Merchandising
The visual representation of a product to the consumer at the point of sale.
Advertising
A promotional method that involves communicating with the media and other interested parties in order to get favourable publicity.
Public Relations
A promotional method that involves communicating with the media and other interested parties in order to get favourable publicity.
Branding
The creation of an identity for a business and/or its individual products in order to differentiate them from rivals.
Business Idea
A potential business opportunity.
Research and Development
The initial stage of the product life cycle during which a business invests on the generation and development of new ideas.
Franchise
When one business allows the permission to trade using its name and products/service. Successful/Proven Idea, Marketing nationally by FranchisePay for rights/reduced profitNo wage cost, Spreads Business, Receive profits Franchise doesn’t work damages it its reputation
Copyright
Legal protection for anyone that has produced any literature, music, recordings, drama, art and broadcasts preventing them from being copied without permission of the owner.
Patent
Protection of an idea for a fixed period of time.
Trademark
Protests features of which distinguishes a business.
Adding Value
The process of increasing the worth of resources by modifying them.
Value Added
The value of finished goods over and above the cost of inputs used.
Primary Sector
Extraction of raw materials.
Secondary Sector
Turning raw materials into finished goods.
Tertiary Sector
Provision of services.
Business Plan
A business plan is a report describing the marketing, operational, HR and financial strategies of a business
Business Objectives
Specific targets that a business wants to achieve within a period of time.
Marketing
The management process that allows firms to identify, anticipate and fulfil customer needs profitably.
Primary Research
The collection of first hand data for a specific purpose, not existing before.
Secondary Research
The use of data that already exists as it has already been collected.
Internal Secondary Data
The use of data that has already been collected by the business.
Qualitative Research
The gathering of non statistical information giving reasons and opinions of human behaviour.
Quantitative Research
The gathering of statistical research.
Sample
A representative section of the whole population.
Random Sample
A representative group from the whole population selected to be studied where each individual has an equal chance of being selected.
Quota Sample
A representative group from the whole population where the people reflect the characteristics of the target market.
Stratified Sample
A group to be studied selected from a specific sub-section of the population, with an equal chance of being selected.
Bias
A factor that causes the research to be unrepresentative.
Confidence Level
How likely it is that the data collected will represent the view of the population.
Markets
An interaction between buyers and sellers to exchange goods/services.
Market Segment
A small section of the market containing a group of people with specific with similar characteristics.
Market Segmentation
The technique of breaking down the market into smaller groups of customers with specific characteristics.
Market Size
Total sales in a market.
Market Growth
The % change in market size from one year to the next.
Market Share
The proportion of the total market sales made by one firm.
Niche Market
A market of which provides for a small number of people with specific needs.
Employer
A business that pays employees a wage or salary to work for them.
Employee
A person who works for a business supplying labour services in return for a wage.
Full Time Employee
A worker who is contracted to work for over 30 hours in one week.
Part Time Employee
A worker who is contracted to work for over 30 hours in one week.
Consultant
An individual or business who provides professional advice/services for a fee.
Electronic Market
Where buyers and seller meet to make transactions in the virtual world, i.e over the internet or phone.
Local Market
Customers are located in a small geographical area.
National Market
A geographically dispersed market where customers are widely dispersed.
Quantitative Factors
Factors influencing business start-ups measured by financial costs/benefits.
Qualitative Factors
Factors influencing start-up location based upon personal preferences/opinions/needs.
Sole Trader
A sole trader is a business that is unincorporated (has unlimited liability) and which is owned by one person. Profit kept, full control, unlimited liability, difficult to raise finance, skills required?
Private Limited Company
A private limited company is incorporated (has limited liability) and is usually run by the owners. Funds, liable for debts, shared business taking profits.
Public Limited Company (PLC)
Where the shares are brought and sold by the general public meaning they have a market value. Floatation expensive, separation of ownership/control. Scale of funds, banks/investors see PLC as stable.
Social Entreprise
Provides a social benefit not for profit, where profits are re-invested.
Market Research
The collection and analysis of market information
