Business Key Terms// Ellie

Question 1

What Is A Supplier?

Answer 1

A business which sells (or supplies) products to another business.

Question 2

What is a customer?

Answer 2

Any person or organisation which buys or is supplied with a product or by a business.

Question 3

What is a consumer?

Answer 3

The person who ultimately uses (or consumes) a product.

Question 4

What are customer needs?

Answer 4

Value for money
Disability access
Good quality
Safe environment

Question 5

what is Primary or field research?

Answer 5

The gathering of new information which has not been collected before. E.g Survey, focus group, interview

Question 6

what is a survey?

Answer 6

Research involving asking questions of people or organisations.

Question 7

what is a respondent?

Answer 7

Those who provide data for a survey usually by answering questions in a questionnaire or interview.

Question 8

what is a Questionnaire?

Answer 8

A list of questions to be answered by respondents, designed to gather information about consumers’ tastes.

Question 9

What is a focus group?

Answer 9

In market research, a group of people brought together to answer questions and discuss a product, brand or issue.

Question 10

what is secondary research?

Answer 10

Information that has already been gathered e.g sales records, government statistics, newspaper articles

Question 11

what is qualitative data?

Answer 11

Information about opinions, judgements and attitudes. E.g interviews, focus groups, questionnaires

Question 12

what is quantitative data?

Answer 12

Data that can be expressed as numbers and can be statistically analysed. E.g survey, sales data

Question 13

what is a market segment?

Answer 13

Part of a market that contains a group of buyers with similar buying habits, such as age or income.

Question 14

what does price sensitive mean?

Answer 14

When the price is very important in the decision about whether or not to buy.

Question 15

Market Map (Perceptual Map or Positioning Map)

Answer 15

A diagram that shows the range of possible positions for two features of a product, such as low to high price and low to high quality.

Question 16

What is a gap in the market?

Answer 16

Occurs when no business is currently serving the needs of customers for a particular product.

Question 17

What is a product range?

Answer 17

A group of similar products made by a business like a number of different soap products.

Question 18

what is a brand?

Answer 18

A named product which customers see as being different from other products and which they can associate or identify with.

Question 19

What is added value?

Answer 19

The increase worth that a business creates for a product; it is the difference between what a business pays to its suppliers and the price that is able to charge for the product/ service.

Question 20

what is a unique selling point?

Answer 20

A characteristic of a product that make it different from other similar products being sold in the market such as design, quality or image.

Question 21

what is a franchise?

Answer 21

The right given by one business to another to sell goods or services using its name.

Question 22

what is a franchisee?

Answer 22

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor.

Question 23

what is a franchiser?

Answer 23

The business that gives franchisees the right to sell its product, in return for a fixed sum of money or a royalty payment.

Question 24

what is an entrepreneur?

Answer 24

A person who owns and runs their own business and takes risks.

Question 25

what is an enterprise?

Answer 25

A willingness by an individual or a business to take risks, show initiative and undertake new ventures.

Question 26

what is a good?

Answer 26

Physical, tangible products like a car, a pair of scissors or a television set.

Question 27

what is a service?

Answer 27

Non-physical, intangible products like a taxi journey, a haircut or a television program.

Question 28

what is competitive advantage?

Answer 28

An advantage a business has that enable it to perform better than its rivals in the market and which is both distinctive and defensible.

Question 29

what is lateral thinking

Answer 29

Thinking differently to try and find new and unexpected ideas.

Question 30

what is blue skies thinking?

Answer 30

A technique of creative thinking where participants are encourage to think of as many ideas as possible about an issue or a problem.

Question 31

what is an invention?

Answer 31

The discovery of new processes and potential new products, typically after a period of research.

Question 32

What is an innovation?

Answer 32

The process of transforming inventions into products that can be sold to customers.

Question 33

what is a patent?

Answer 33

Right of ownership of an invention or process when it is registered with the government

Question 34

copyright????

Answer 34

Legal ownership of material such as books, music and films which prevents these being copied by others.

Question 35

trademark????

Answer 35

The symbol, sign, or other features of a product or business that can be protected by law.

Question 36

calculated risk???

Answer 36

The probability of a negative event occurring.

Question 37

financial objectives???

Answer 37

Targets expressed in money terms such as making a profit, earning income or building wealth.

Question 38

Smart???

Answer 38

Specific, measurable, achievable, realistic and timed

Question 39

Revenues
Sales Revenue
Turnover
Sales Turnover

Answer 39

The amount of income received from selling goods or services over a period of time

Question 40

total revenue

Answer 40

TR = P x Q

Total Revenue = Price x Quantity