definitions Flashcards
direct distribution
a customer buys directly from you
intermediatory distribution
a customer buys your product from retailer shops
multichannel distribution
a business using more than 1 channel of distribution. e.g retailer + e-commerce
e-commerce
companies and individuals that buy and sell goods and services over the internet
target market
a group of customers that business aims to attract
market segmentation
the way in which market is broken down into sub-groups with similar wants, needs and characteristics
market mapping
visually organising competitors in a specific industry to understand their positions and potential market trends
CRM
customer relationship management - principles, practices and guidelines a business has to follow when interacting with its customers
guerilla marketing
use of unconventional methods in order to boost sales
promotional mix
the blend of marketing and communication elements
fiscal policy
the use of government spending and setting taxes
monetary policy
setting interest rates
bank of england
central bank that controls the supply of money and sets interest rates
base rate
interest rate set by the benk of england
VAT
value added tax
competition
a rivalry where brands have common goal that can’t be shared
interest rates
cost of borrowing and reward for saving
exchange rates
value of one currency in relation to another
inflation
the rate of increase in prices over time - how quickly money lose its purchasing ability
unemployment
number of unemployed people who are ABLE to work
GDP
value of all products and services bought/produced in a country over a year
dividends
a distribution of profits by a corporation to its shareholders
market capitalisation
total value of a company based on current share price and the number of stocks
productivity
the rate at which you produce the output
efficiency
how much input you use to produce the output
quality control
the process of checking the quality of already existing product
quality assurance
the process of preventing the reduction of the quality
procurement
purchasing
cash flow
money flowing in and out of the business
trade credit
time given to pay back
logistics
transport management of stock
lead time
time between re-order and delivery
kaizen
continuous improvement
lean production
philosophy of improving efficiency by reducing waste whilst ensuring quality
cell production
everything you need is close to you = no mobility issues
mass customisation
customising goods in large quantities
critical path
the longest activities that have to be completed on time if the project is to meet its deadline
market capitalisation of a business
how much it costs to buy 100% of a company
direct marketing
directly asking a customer to buy from you e.g. email
indirect marketing
building general awareness of the brand
profitability / profit margin
the percentage of revenue that company keeps as a profit
monopoly
one firm dominating the market (more than 25%)
oligopoly
small number of firms dominating the market
real income
income adjusted for inflation
correlation
relationship between 2 factors
negative correlation
2 factors change in the opposite ways
positive correlation
2 factors change in the same way
extrapolation
making predictions about the future based on past trends
confidence data
how certain people are that they represent the whole population
confidence interval
the range of possible outcomes
economies of scale
- benefit of buying in bulk. e.g. discounts
- the ability to spread costs among all the products = lower unit cost
chain of command
the formal line of authority within an organization, outlining who reports to whom and the hierarchical structure of responsibility
span of control
the number of direct reports a manager or supervisor oversees
Functional structure
organises a company based on specialized functional areas or departments, such as marketing, finance, human resources, sales, and operations
product structure
organises the company based on its individual product lines or services
regional territory
organises the company based on the geographical territory
variance analysis
the difference between the planned (budgeted) figure and the actual figure
liquidity
difference between current assets and current liabilities
current liabilities
debt that needs to be repaid within one year (trade credit)
current assets
used in a day to day running of the business e.g. cash in bank
debt factoring
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
trade credit
when a supplier allows a business to pay for supplies after they’ve been received
overdraft
when a bank allows you to over spend on a current account
receivables days
average number of days it takes customers to pay
payables days
average number of days it takes to pay suppliers
