Key Terms for bus 1 Flashcards
Markets
Are places where buyers and sellers meet to exchange products
Mass marketing
Creating a product which appeals to the whole market
Niche marketing
Aiming a product at a specific type of consumer
Competition
When two or more businesses try to sell products to the same group of consumers
Risk
Is the uncertainty a business takes
Primary market research
Collect new data
Secondary market research
Collects existing data
Quantitive data
Uses secondary market research to identify facts
Qualitative data
Uses primary research to identify consumers opinions
Market segmentation
Breaking up a market in to submarkets
Market mapping
Process that plots two features of all products in the market
Competitive advantage
Set of features firm has that consumers see as being superior to others in the market
Product differentiation
When a business successfully distinguishes its products from rivals
Added value
The difference between the revenue from selling out put and the cost of inputs
Demand
The amount of a product to consumers are willing and able to buy at various prices
Supply
The amount of a product produces are willing and able to sell at various prices
Equilibrium price
Is the price where quantity demanded for a product equals the quantity supplied
Excess demand
When quantity Demanded for a product exceeds the quantity supplied
Excess supply
When quantity supplied for a product exceeds quantity demanded
PED
The responsiveness of quantity demanded to be given change in priceFirms income from selling out put
Total revenue
Firms income from selling output
Income elasticity of demand
The responsiveness of demand to a given change in consumer income
Marketing mix
Product, price, promotion, and place
Product
Goods and services
Above the line Promotion
Advertising in the media e.g. TV and newspapers
Brand
A name, term, design, symbol which differentiates firm from others in the market
Branding
Process of creating a brand
Re-branding
When a new name, term, is given to a product / firm
Emotional branding
Aims to connect the brand with the consumer for long-term
Cost plus pricing
Price is set by adding a mark up to average cost
Price skimming
Where firms set a high price to Maximise sales revenue
Price penetration
When firms set a low price to maximise sales volume
Competitive pricing
Setting a price which takes account of prices set by other competitors
Psychological pricing
Setting a price Slightly below around number e.g. 99p
Distribution
The delivery of products from the producer to the consumer
Product life-cycle
Three stages of a product life introduction, growth, maturity, and decline
Extension strategy
Strategy to make products last longer in their working life
Product portfolio
The range of goods and services offered by an organisation
Customer loyalty
The willingness of customers to make repeat purchases
Dismissal
Employment is terminated against the will of an employee
Redundancy
Is when a role within a business is removed to reduce size of workforce
Trade unions
Can organise collective baragaining for many workers and take action to improve working conditions
Recruitment
Process by which a business seeks the right person for a job
Chain of command
The way in which instructions are passed down a business from superiors to subordinates
Line manager
Is a member of staff directly responsible for soboordinates
Authority
Is the power managers have to direct subordinates and make decisions
Delegation
Occurs when managers entrust tasks or decisions to subordinates
Centralisation
Authority is retained by senior managers at the top.
Decentralisation
Authority is delegated down the chain of command to subordinates
