Key Terms for bus 1

Question 1

Markets

Answer 1

Are places where buyers and sellers meet to exchange products

Question 2

Mass marketing

Answer 2

Creating a product which appeals to the whole market

Question 3

Niche marketing

Answer 3

Aiming a product at a specific type of consumer

Question 4

Competition

Answer 4

When two or more businesses try to sell products to the same group of consumers

Question 5

Risk

Answer 5

Is the uncertainty a business takes

Question 6

Primary market research

Answer 6

Collect new data

Question 7

Secondary market research

Answer 7

Collects existing data

Question 8

Quantitive data

Answer 8

Uses secondary market research to identify facts

Question 9

Qualitative data

Answer 9

Uses primary research to identify consumers opinions

Question 10

Market segmentation

Answer 10

Breaking up a market in to submarkets

Question 11

Market mapping

Answer 11

Process that plots two features of all products in the market

Question 12

Competitive advantage

Answer 12

Set of features firm has that consumers see as being superior to others in the market

Question 13

Product differentiation

Answer 13

When a business successfully distinguishes its products from rivals

Question 14

Added value

Answer 14

The difference between the revenue from selling out put and the cost of inputs

Question 15

Demand

Answer 15

The amount of a product to consumers are willing and able to buy at various prices

Question 16

Supply

Answer 16

The amount of a product produces are willing and able to sell at various prices

Question 17

Equilibrium price

Answer 17

Is the price where quantity demanded for a product equals the quantity supplied

Question 18

Excess demand

Answer 18

When quantity Demanded for a product exceeds the quantity supplied

Question 19

Excess supply

Answer 19

When quantity supplied for a product exceeds quantity demanded

Question 20

PED

Answer 20

The responsiveness of quantity demanded to be given change in priceFirms income from selling out put

Question 21

Total revenue

Answer 21

Firms income from selling output

Question 22

Income elasticity of demand

Answer 22

The responsiveness of demand to a given change in consumer income

Question 23

Marketing mix

Answer 23

Product, price, promotion, and place

Question 24

Product

Answer 24

Goods and services

Question 25

Above the line Promotion

Answer 25

Advertising in the media e.g. TV and newspapers

Question 26

Brand

Answer 26

A name, term, design, symbol which differentiates firm from others in the market

Question 27

Branding

Answer 27

Process of creating a brand

Question 28

Re-branding

Answer 28

When a new name, term, is given to a product / firm

Question 29

Emotional branding

Answer 29

Aims to connect the brand with the consumer for long-term

Question 30

Cost plus pricing

Answer 30

Price is set by adding a mark up to average cost

Question 31

Price skimming

Answer 31

Where firms set a high price to Maximise sales revenue

Question 32

Price penetration

Answer 32

When firms set a low price to maximise sales volume

Question 33

Competitive pricing

Answer 33

Setting a price which takes account of prices set by other competitors

Question 34

Psychological pricing

Answer 34

Setting a price Slightly below around number e.g. 99p

Question 35

Distribution

Answer 35

The delivery of products from the producer to the consumer

Question 36

Product life-cycle

Answer 36

Three stages of a product life introduction, growth, maturity, and decline

Question 37

Extension strategy

Answer 37

Strategy to make products last longer in their working life

Question 38

Product portfolio

Answer 38

The range of goods and services offered by an organisation

Question 39

Customer loyalty

Answer 39

The willingness of customers to make repeat purchases

Question 40

Dismissal

Answer 40

Employment is terminated against the will of an employee

Question 41

Redundancy

Answer 41

Is when a role within a business is removed to reduce size of workforce

Question 42

Trade unions

Answer 42

Can organise collective baragaining for many workers and take action to improve working conditions

Question 43

Recruitment

Answer 43

Process by which a business seeks the right person for a job

Question 44

Chain of command

Answer 44

The way in which instructions are passed down a business from superiors to subordinates

Question 45

Line manager

Answer 45

Is a member of staff directly responsible for soboordinates

Question 46

Authority

Answer 46

Is the power managers have to direct subordinates and make decisions

Question 47

Delegation

Answer 47

Occurs when managers entrust tasks or decisions to subordinates

Question 48

Centralisation

Answer 48

Authority is retained by senior managers at the top.

Question 49

Decentralisation

Answer 49

Authority is delegated down the chain of command to subordinates