Key Terms P - S Flashcards
Price taker
A business that has no option but to charge the ruling market price
Pricing decisions
The decisions taken about how to price a product
Pricing strategies
The overall strategic approach to pricing over the medium to long term
Pricing tactics
Short-term pricing decisions and approaches
Product life cycle
A theory which predicts the stages a product goes through from introduction to withdrawal from a market
Product portfolio
The collection of products and brands owned and operated by a firm
Productivity
Measures of output per worker over a given time period
Profitability
The ability of a business to generate profits from its activities. Usually measured on net profit margin or return on capital invested
Promotional mix
The mix of activities and approaches taken to promoting a product, including advertising, direct selling etc.
Psychological pricing
Using price as a way of influencing a consumer’s behaviour on perceptions
Public relations (PR)
The promotion of a business through news stories, sponsorship and similar activities
Quality
Where a product meets a customer requirements
Quality assurance
Organising every process of production to get the product right the first time
Quality control
The inspection of products as part of a sampling process to ensure that the right production standards have been achieved
Rationalisation
Re-organising production in order to increase productivity and efficiency. Often involves closure or relocation or production capacity
Robotics
The science and technology of robots and their design, manufacture and application
Sale and leaseback
Involves a business selling a major asset and then leasing it back from the new owner
Sales promotion
Point-of-sale material or other incentives designed to stimulate purchases
Selection
The process of deciding which applicant for a job a business should accept
Span of control
The number of employees who are directly supervised by a manager
Spare capacity (excess capacity)
When a business is able to produce more with existing resources
Stock control
The processes and controls employed by a business to ensure that it has sufficient stock for its purposes
Price skimming
Pricing strategy where a higher price is charged for a new product to take advantage of customers prepared to pay for innovation
