Key Terms Flashcards
Entrepreneurs
individuals who, typically, set up and run a business and take the risks associated with this.
Intrapreneurs
employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer.
Brand name
a name, term, sign, symbol, design or any other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.
E-commerce
Conducting business transactions online
Online retailing or e-etailing
The retailing of goods online
Market
a set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services.
Marketing
a management process involved in identifying, anticipating and satisfying consumer requirements profitably.
Market share
the proportion of total sales in a particular market for which one or more businesses or brands are responsible. It is expressed as a percentage and can be calculated by value or volume.
Mass market
A very large market in which products with mass appeal are targeted
Niche market
A smaller market, usually within a large market or industry
Consumer panels
Groups of customers that are asked for feedback about products over period of time
Database
an organised collection of data stored electronically with instant access, searching and sorting facilities.
Focus groups
where a number of customers are invited to attend a discussion about a product led by market researchers.
Market orientation
an approach to business which places the needs of consumers at the centre of the decision-making process
Market research
the collection, presentation and analysis of information relating to the marketing and consumption of goods and services.
Market segment
part of a whole market where a particular customer group has similar characteristics.
Primary research or field research
the gathering of new information which does not already exist
Product orientation
an approach to business which places the emphasis upon the production process and the product
Qualitative research
the collection of data about attitudes, beliefs and intentions.
Quantitative research
the collection of data that can be quantified.
Respondent
a person or organisation that answers questions on a survey.
Sample
A small group of people who must represent a proportion of a total market when carrying out market research
Secondary research or desk research
the collection of data that is already in existence.
Socio-economic groups
division of people according the social class.
Added value
the extra features that may be offered by a business when selling a product, such as high quality customer service, which helps to exceed customer expectations.
Competitive advantage
an advantage that enables a business to perform better than its rivals in the market.
Market maps or perceptual maps
typically a two-dimensional diagram that shows two of the attributes or characteristics of a brand and those of rival brands in the market.
Market positioning
the view consumers have about the quality, value for money and image of a product in relation to ppthose of competitors,
Complementary goods
Goods that are purchased together because they are consumed together
Product differentiation
an attempt by a business to distinguish its product from those of competitors.
Reposition
change the view consumers have about a product by altering some of its characteristics.
Unique selling point (or preposition)
the aspect or feature of a product that clearly distinguishes it from its rivals.
Demand
The quantity of product bought or given price over a given period of time
Demand curve
A line drawn on a graph that shows how much of a good will be bought at different prices
Inferior goods
goods for which demand will fall if income rises or rise if income fall.
Normal goods
goods for which demand will rise if income rises or fall it income falls.
Substitute goods
goods that can be bought as an alternative to others but preforms the same function
Subsidy
A grant given to producers, usually to encourage production of a certain good
Supply
The amount of a product that suppliers make available to the market at any given price in a given period of time
Supply curve
A line drawn on a graph that shows how much of a good sellers are willing to supply at different prices
Equilibrium price/market clearing price
The price where supply and demand are equal
Excess demand
The position where demand is greater than supply at a given price and there are shortages in the market
Excess supply
The position where supply is greater than demand at a given price and there are unsold goods in the market
Total revenue
The amount of revenue generated from the sale of goods calculated by multiplying price by quantity in a given period of time
Price elastic demand
A change in price results in greater change in demand
Price elasticity of demand
The responsiveness of demand to a change in price
Price inelastic demand
A change in price results in a proportionately smaller change in demand
Discretionary expenditure
Non-essential spending or spending that is not automatic
Income elastic demand
The percentage change in demand for a product is proportionately greater than the percentage change in income
Income elasticity of demand
The responsiveness of demand to a change in income
Income inelastic demand
Where the percentage change in demand is proportionately less than the percentage change in income
Consumer durables
Goods that can be used repeatedly over a period of time, such as cars and household appliances
Design mix
The range of features that are important when designing a product
Ergonomics
The study how people interact with their environment and the equipment they use - often in the workplace
Ethical sourcing
Using materials, components and services from suppliers that respect the environment, treat their workforce well and generally trade with integrity
Product design
The process of creating a new product or service
Recycling
Making use of materials that have been discarded as waste
Resource depletion
The using up of natural resources
Waste minimisation
Reducing the quantity of resources that are discarded in the production process
Above-the-line promotion
Placing adverts using the media
Advertising
Communication between a business and its customers where images are placed in the media to encourage the purchase of products
Below-the-line promotion
Any promotion that doesn’t involve using the media
Emotional branding
The practice of using the emotions of consumer to build a brand
Generic brands
Products that only contain the name of the product category rather than the company or product name
Manufacturer brands
Brands created by the producers of goods or services
Marketing mix
The elements of a businesses marketing that are designed to meet the needs of customers. The four elements are often called the 4ps: product, price, promotion and placd
Merchandising
A promotion specifically at the point of sale of a product
Own label, distributor or private brands
Products that are manufactured for wholesalers or retailers by other businesses
Point of sale
Any point where a consumer buys a product
ProMotion
An attempt to obtain and retain customers b drawing their attention to a firm or its products
Public relations
An organisations attempt to communicate with interested paties
Sales promotions
Methods of promoting products in the short term to boost sales
Sponsorship
Making a financial contribution to an event in return for publicity
Viral marketing
Any strategy that encourages people to pass on messages to others about a product or a business electronically
Competitive pricing
Pricing strategies based on the prices charged by rivals
Cost plus pricing
Adding a percentage to the costs of producing a product to get the price
Mark-up
The percentage added to unit cost that makes a profit for a business when setting the price
Penetration pricing
Setting a low price when launching a new product in order to get established in the market
Predatory or destroyer pricing
Setting a low price forcing rivals out of business
Pricing strategy
The pricing policies or methods used by a business when deciding what to charge for its products
Product life cycle
Shows the different stages in the life of a product and the sales that can be expected at each stage
Psychological pricing
Setting the price slightly below a round figure
Skimming or creaming
Setting a high price initially and then lowering it later
Unit costs
The same as average cost (total cost divided by output)
Agent or broker
And intermediary that brings together buyers and sellers
Breaking-bulk
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
Direct selling
Producers selling their products directly to consumers
Distribution
The delivery of goods from the producer to the consumer
Distribution channel
The route taken by a product from the producer to the customer
E-commerce
The use of electronic systems to sell good and services
Intermediaries
Links between the producer and the consumer
Retailer
A business that buys goods from manufacturers and wholesalers, and sells them in small quantities to consumers
Wholesaler
A business that buys goods from manufacturers and sells them in smaller quantities to retilers
Boston matrix
A 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market
Extension strategies
Methods used to prolong the life of a produvt
Marketing strategy
A set of plans that aim to achieve a specific marketing objective
Product lines
A group of products that are very similar to
Product portfolio
The collection of products a business is currently marketing
Collective bargaining
A method of determining conditions of work and terms of employment through negotiations between employers and employee representatives
Flexible workforce
A workforce that can respond, in quantity and type, to changes in market demand
Home workers
People who undertake their regular work from home
Industrial action
Disruptive measures taken by workers to apply pressure on employers when disagreements cannot be resolved
Outsourcing
Getting other people or business to undertake work that was originally done in-house
Multi-skilling
The process of increasing the skills of employees
Trade unions
Organisations of workers that exist to promote the interests of their memebers
Zero-hours contract
A contract that does not guarantee any particular number of hours work
Zero-hours contract
A contract that doesn’t guarantee any particular number of hours work
Currículum vitae
A document that lists personal details, qualifications, work experience, referees and other information about a jobseeker
External recruitment
Appointing workers from outside the business
Introduction training
Training given to new employees when they first start a job
Internal recruitment
Appointing workers from inside the business
Job description
A document that shows clearly the tasks, duties and responsibilities expected of a worker for a particular job
Off-the-job training
Training that takes place away from the work area
On-the-job training
Training that takes place while doing the job
Person specification
A personal profile of the type of person needed to do a particular job
Training
A process that involved increasing the knowledge and skills of a worker to enable them to do their jobs more effectively
Authority
The right to command and make decisions
Centralisation
A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command
Chain of command
The ay authority and power is organised in an organisation
Decentralisation
A type of business organisation where decision making is pushed down the chain of command and away from the centre of the organisation
Delayering
Removing layers of management from the hierarchy of an organisation
Delegation
Authority to pass down from superior to subordinate
Formal organisation
The internal structure of a business as shown by an organisational chart
Hierarchy
The order or levels of responsibility in an organisation, from the lowest to the highest
Organisational chart
A diagram hat shows the different job roles in a business and how they relate to each other
Responsibility
The duty to complete a task
Span of control
The number of people a person is directly responsible for in a business
Subordinates
People in the hierarchy who work under the control of a senior worker
Bonus
A payment in addition to the basic wage for reaching targets or in recognition for service
Commission
Percentage payment on a sale made to the salesperson
Consultation
Listening to the views of employees before making key decisions that affect them
Delegation
The passing of authority further down the managerial hierarchy
Empowerment
Giving official authority to employees to make decisions and control their activities
Hawthorne effect
The idea that workers are motivated by recognition given to them as a group
