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Definitions Flashcards

1
Q

What is Market Share?

A

This represents the percentage of an industry’s total sales that a particular company has earned over a period of time.

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2
Q

What is Market Growth?

A

This represents an increase in demand for the industry’s product/service over a period of time.

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3
Q

What is Market Size?

A

This refers to the volume/value of sales generated by individual firms who make up the industry as a whole.

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4
Q

What is a Monopoly?

A

A market structure in which only one firm supplies the entire output, there is no competition and there are barriers to entry.

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5
Q

What is an Oligopoly?

A

A market structure that has a small number of firms who dominate the market by producing heavily branded products. There are some barriers to entry.

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6
Q

What is Perfect Competition?

A

A market structure where there is perfect knowledge, many buyers and sellers, freedom of entry and exit and a homogeneous product.

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7
Q

What is the Office of Fair Trading?

A

A Government body that has responsibility for overseeing all policy relating to competition and consumer protection.

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8
Q

What is the Competition Commission?

A

It will investigate and report on any monopoly, proposed merger or anti-competitive practices that are referred to it by the Office of Fair Trading or Regulators of privatised industries.

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9
Q

What are Regulators of Private Utilities?

A

Agencies set up to regulate prices in the provision of water, gas, electricity etc. to the general public.

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10
Q

What is Market Research?

A

The collection, collation and analysis of data relating to the marketing and consumption of goods and services.

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11
Q

What is Primary Research?

A

Information collected by a business through field research e.g. survey. It involves the collection of data that does not already exist.

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12
Q

What is Secondary Research?

A

Using existing sources of information to research the market e.g. past sales data.

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13
Q

What are Focus Groups?

A

A range of individuals who are deemed to be representative of the customers in a particular segment who are brought together to answer and discuss questions prepared by market researchers.

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14
Q

What are Consumer Panels?

A

A group of consumers who are consulted about their views on a particular product over a period of time.

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15
Q

What is Test Marketing?

A

Selling a product in a restricted section of the market in order to assess consumer’s reaction to it.

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16
Q

What are Surveys?

A

These are used to obtain views about a firm’s product/service from existing or potential customers.

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17
Q

What is Observation in market research?

A

Watching and recording how people react to the firm’s product/service displays and interact with staff without their knowledge.

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18
Q

What is a Questionnaire?

A

A range of questions designed by the business to collect both quantitative and qualitative data from consumers about their products/services.

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19
Q

What are Store Loyalty Cards?

A

Given to customers as a reward for shopping in a particular store, providing data to identify spending patterns.

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20
Q

What is a Sample?

A

A group of consumers selected from the population.

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21
Q

What is a Random Sample?

A

Everyone is given an equal chance of being chosen.

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22
Q

What is a Cluster Sample?

A

The population is divided into ‘clusters’ usually geographic areas and then a random sample is chosen.

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23
Q

What is a Quota Sample?

A

The population is segmented into groups who share specific characteristics, and interviewers are given targets for each segment.

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24
Q

What is a Stratified Sample?

A

The population is divided into mutually exclusive strata with random sampling taking place within each stratum.

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25
What is Quantitative Research Data?
Data collected that can be analysed and easily presented in tables and charts.
26
What is Qualitative Research Data?
Data collected that helps choose a particular strategy, providing answers to questions such as ‘why’ or ‘how’.
27
What is the Marketing Mix?
The elements of an organisation’s marketing plan designed to meet the needs of its customers.
28
What is Price in the Marketing Mix?
The amount charged by the business for providing a product to the consumer.
29
What is Product in the Marketing Mix?
This represents the nature of the item provided by the business to the consumer.
30
What is Promotion in the Marketing Mix?
The efforts made by the business to retain and attract consumers by drawing attention to its product.
31
What is Place in the Marketing Mix?
The means by which the product will be distributed at a time and location convenient to the consumer.
32
What are People in the Marketing Mix?
The behaviour and attitude of staff who determine the level of customer satisfaction in business transactions.
33
What are Processes in the Marketing Mix?
The systems employed by the firm to ensure their services are successfully delivered to customers.
34
What is the Physical Environment in the Marketing Mix?
This applies to the store, office and company website where business transactions occur.
35
What is E-Commerce?
The selling, marketing and servicing of products or services over electronic systems such as the internet.
36
What is Price Elasticity of Demand?
A measure used to show the responsiveness of the quantity demanded of a product/service to a change in its price.
37
What is Income Elasticity of Demand?
A measure used to show the responsiveness of the quantity demanded of a product/service to a change in consumer income.
38
What is the Product Life Cycle?
This shows the different stages in the life of a product and the sales that can be expected at each stage.
39
What are Extension Strategies?
The methods used by a business to extend the life of a product.
40
What is a Product Portfolio?
The particular mix of products which a firm is marketing.
41
What is Marketing Positioning?
The perception that consumers have of the quality, value for money and image of the product relative to those of competitors.
42
What is Market Segmentation?
Breaking down a market into sub-groups which share similar characteristics e.g. age, gender, income.
43
What is SWOT?
Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats.
44
What is E-Business?
This refers to business activity conducted using online information systems and applications.
45
What is Digital Marketing?
This is an umbrella term used to describe the marketing of products/services via mobile technology and the internet.
46
What is Social Media?
This refers to a range of online communication channels that provides opportunities for interaction and sharing of information.
47
What is Mobile Technology?
This technology is portable and used by businesses to promote products/services via electronic channels.
48
What is Mobile Ticketing?
A process that allows customers to order, pay for, or validate tickets by using their mobile phones.
49
What is Mobile Marketing?
This is a form of advertising delivered to consumers via mobile/smartphones and other handheld devices.
50
What is an Internal Source of Finance?
These are funds available from within the business, e.g., retained profit and money gained from selling assets.
51
What is an External Source of Finance?
These are funds available from outside the business, e.g., loan, overdraft, hire purchase.
52
What is the Break-Even Point?
This is the level of output where total revenue is equal to total cost.
53
What is the Margin of Safety?
The range of output between break-even output and the current level of output, over which a profit is made.
54
What are Variable Costs?
Costs that change directly as output levels change.
55
What are Semi-variable Costs?
A cost that has an element of both fixed and variable charges.
56
What are Total Costs?
Fixed and variable costs added together.
57
What is Total Revenue?
The number of units sold by the business multiplied by the selling price per unit.
58
What is Contribution?
The amount of money left over after a sale when all variable costs have been covered.
59
What are Fixed Costs?
Costs that do not change as output levels change.
60
What is Profit?
This is the excess of revenue over costs within the business.
61
What is Cash?
This is ‘ready money’ used in business and includes money-in-hand, money in the bank, and petty cash.
62
What is a Cash Flow Forecast?
This is an estimate of a firm’s cash inflows and outflows at various times during a specific period.
63
What is Budgetary Control?
A business system that involves making future plans and comparing actual results with planned results.
64
What is a Budget?
An agreed financial plan drawn up for a specific time frame, setting out proposed revenue and costs.
65
What is a Fixed Budget?
A budget that is not changed even when the actual activity levels differ from those set.
66
What is a Flexible Budget?
A budget that is changed to allow for the behaviour of variable costs at different levels of activity.
67
What is an Income Statement?
Summarises income/expenses and details the profit/losses made by the business in the accounting period.
68
What is Sales Revenue?
Income earned in the accounting period from trading activities.
69
What are Opening Inventories?
Inventories that the organisation has at the start of the trading period.
70
What are Purchases?
Additional inventories bought by the business for re-sale.
71
What are Closing Inventories?
The amount of unsold inventories left at the end of the trading period.
72
What is Cost of Sales?
Opening Inventories + Purchases – Closing Inventories.
73
What is Gross Profit?
Sales Revenue – Cost of Sales.
74
What is Net Profit?
Gross Profit – Expenses.
75
What is the Statement of Financial Position?
Details in summary format, the financial position of the business at a specific date.
76
What are Assets?
Items of value held by a business which are likely to generate future income.
77
What are Non-Current Assets?
Assets that the business expects to retain ownership of for a period of at least one year.
78
What are Current Assets?
Assets that the business expects to turn into cash within one year.
79
What are Trade Receivables?
Money that is owed from customers to the business arising from goods sold on credit.
80
What are Non-Current Liabilities?
Debts that the business is required to meet in a future accounting period.
81
What are Current Liabilities?
Liabilities that the business expects to pay within a one-year accounting period.
82
What are Trade Payables?
Money that is owed from the business to a supplier who provided goods/services on credit.
83
What is ROCE?
This ratio measures the profitability of the business in relation to the amount of capital invested.
84
What is Net Profit Margin?
This ratio measures the net profit as a percentage of the sales revenue made by the business.
85
What is Current Ratio?
This measures the liquidity of the business and its ability to meet debts.
86
What is Gearing?
This ratio measures the proportion of funds used within the business that is from a borrowed source.

Business AS2 (13 decks)

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