definitions

Question 1

direct distribution

Answer 1

a customer buys directly from you

Question 2

intermediatory distribution

Answer 2

a customer buys your product from retailer shops

Question 3

multichannel distribution

Answer 3

a business using more than 1 channel of distribution. e.g retailer + e-commerce

Question 4

e-commerce

Answer 4

companies and individuals that buy and sell goods and services over the internet

Question 5

target market

Answer 5

a group of customers that business aims to attract

Question 6

market segmentation

Answer 6

the way in which market is broken down into sub-groups with similar wants, needs and characteristics

Question 7

market mapping

Answer 7

visually organising competitors in a specific industry to understand their positions and potential market trends

Question 8

CRM

Answer 8

customer relationship management - principles, practices and guidelines a business has to follow when interacting with its customers

Question 9

guerilla marketing

Answer 9

use of unconventional methods in order to boost sales

Question 10

promotional mix

Answer 10

the blend of marketing and communication elements

Question 11

fiscal policy

Answer 11

the use of government spending and setting taxes

Question 12

monetary policy

Answer 12

setting interest rates

Question 13

bank of england

Answer 13

central bank that controls the supply of money and sets interest rates

Question 14

base rate

Answer 14

interest rate set by the benk of england

Question 15

VAT

Answer 15

value added tax

Question 16

competition

Answer 16

a rivalry where brands have common goal that can’t be shared

Question 17

interest rates

Answer 17

cost of borrowing and reward for saving

Question 18

exchange rates

Answer 18

value of one currency in relation to another

Question 19

inflation

Answer 19

the rate of increase in prices over time - how quickly money lose its purchasing ability

Question 20

unemployment

Answer 20

number of unemployed people who are ABLE to work

Question 21

GDP

Answer 21

value of all products and services bought/produced in a country over a year

Question 22

dividends

Answer 22

a distribution of profits by a corporation to its shareholders

Question 23

market capitalisation

Answer 23

total value of a company based on current share price and the number of stocks

Question 24

productivity

Answer 24

the rate at which you produce the output

Question 25

efficiency

Answer 25

how much input you use to produce the output

Question 26

quality control

Answer 26

the process of checking the quality of already existing product

Question 27

quality assurance

Answer 27

the process of preventing the reduction of the quality

Question 28

procurement

Answer 28

purchasing

Question 29

cash flow

Answer 29

money flowing in and out of the business

Question 30

trade credit

Answer 30

time given to pay back

Question 31

logistics

Answer 31

transport management of stock

Question 32

lead time

Answer 32

time between re-order and delivery

Question 33

kaizen

Answer 33

continuous improvement

Question 34

lean production

Answer 34

philosophy of improving efficiency by reducing waste whilst ensuring quality

Question 35

cell production

Answer 35

everything you need is close to you = no mobility issues

Question 36

mass customisation

Answer 36

customising goods in large quantities

Question 37

critical path

Answer 37

the longest activities that have to be completed on time if the project is to meet its deadline

Question 38

market capitalisation of a business

Answer 38

how much it costs to buy 100% of a company

Question 39

direct marketing

Answer 39

directly asking a customer to buy from you e.g. email

Question 40

indirect marketing

Answer 40

building general awareness of the brand

Question 41

profitability / profit margin

Answer 41

the percentage of revenue that company keeps as a profit

Question 42

monopoly

Answer 42

one firm dominating the market (more than 25%)

Question 43

oligopoly

Answer 43

small number of firms dominating the market

Question 44

real income

Answer 44

income adjusted for inflation

Question 45

correlation

Answer 45

relationship between 2 factors

Question 46

negative correlation

Answer 46

2 factors change in the opposite ways

Question 47

positive correlation

Answer 47

2 factors change in the same way

Question 48

extrapolation

Answer 48

making predictions about the future based on past trends

Question 49

confidence data

Answer 49

how certain people are that they represent the whole population

Question 50

confidence interval

Answer 50

the range of possible outcomes

Question 51

economies of scale

Answer 51

- benefit of buying in bulk. e.g. discounts - the ability to spread costs among all the products = lower unit cost

Question 52

chain of command

Answer 52

the formal line of authority within an organization, outlining who reports to whom and the hierarchical structure of responsibility

Question 53

span of control

Answer 53

the number of direct reports a manager or supervisor oversees

Question 54

Functional structure

Answer 54

organises a company based on specialized functional areas or departments, such as marketing, finance, human resources, sales, and operations

Question 55

product structure

Answer 55

organises the company based on its individual product lines or services

Question 56

regional territory

Answer 56

organises the company based on the geographical territory

Question 57

variance analysis

Answer 57

the difference between the planned (budgeted) figure and the actual figure

Question 58

liquidity

Answer 58

difference between current assets and current liabilities

Question 59

current liabilities

Answer 59

debt that needs to be repaid within one year (trade credit)

Question 60

current assets

Answer 60

used in a day to day running of the business e.g. cash in bank

Question 61

debt factoring

Answer 61

business sells its accounts receivables to a third party at a discount, enabling companies to immediately unlock cash tied up in unpaid invoices without having to wait the usual payment terms

Question 62

trade credit

Answer 62

when a supplier allows a business to pay for supplies after they've been received

Question 63

overdraft

Answer 63

when a bank allows you to over spend on a current account

Question 64

receivables days

Answer 64

average number of days it takes customers to pay

Question 65

payables days

Answer 65

average number of days it takes to pay suppliers