Key Words Flashcards
Added value
when a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience
Percentage change in price calculation
Price new – Price old
Price old x 100
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
Aesthetics
What the item looks like
Agent or broker
Foreign sales agent is a business which represents products from another business in a new country
Market share
The % of a market that a business, product or service has
Market size
Measured by volume of sales or value
Marketing
management process involved in identifying, anticipating and satisfying consumer requirements profitably
Marketing mix
Price, place, promotion and product, how a business uses these 4 elements strategically
Marketing strategy
A Set of plans that aim to achieve a specific marketing objective.
Mark up
The amount above cost added to a product before it is placed for sale
Aims
What a business tries to achieve in the long term
Articles of association
document that provides details of the internal running of a limited company
Authority
This is the power or right to give orders in an organisation
Autocratic leader
Leader makes all the decisions
Automation
Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.
Below the line promotion
Any promotion that does not involve using the media
Maslows hierarchy of needs
The order of people’s needs starting with the basic human requirements.
Mass market
Products or services that are sold or advertised to everyone at the same time in the same way
Matrix structure
This is a hierarchy design which groups by project and function
Mechanisation
Method of operating or controlling processes using machinery
Merchandising
promotion specifically at the point of sale of a product
Memorandum of association
document that sets out the constitution and states key external details about a limited company
Bonus
payment in addition to the basic wage for reaching targets or in recognition for service.
Brand
name, term, symbol, sign, design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.
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.
Breaking- bulk
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
Business choices
Deciding between alternative uses of resources.
Certificate of incorporation
document that declares a business is allowed to trade as a limited company
Motivated
The desire to take action to achieve a goal
Multi skilling
An employee is trained to do more than one job, for example an electrician is trained to plaster walls
Mutual organisation
business owned by its members, who are customers not shareholders.
Niche market
subset of a normal market that caters for specific consumer needs and wants
Normal good
Products where an increase in consumer’s income means an increase in demand
Centralisation
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
This is the route that orders travel down in an organisation and complaints travel up
Collective bargaining
union representative will speak to the management on behalf of all the workers in a business, usually about working conditions or pay
Co operative
A business organisation owned by its members, who have equal voting rights.
Commission
Percentage payment on a sale made to the salesperson.
Competitive advantage
advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry
Objectives
The goals or targets set by a business to help achieve its long-term purpose
Off the job training
Training that takes place away from the area of work.
Online retailing
The retailing of goods online.
Online businesses
business that uses the global communications infrastructure of the internet as a trading base
On the job training
Training that takes place while doing the job
Opportunity costs
The cost of the loss of the item not chosen, or the profit from the goods not produced
Competitive pricing
To charge a similar amount for goods as are charged elsewhere
Complimentary products
Products that need to be used together, for example a printer will need ink
Consumer durables
Goods that can be used repeatedly over a period of time, such as cars and household appliances.
Consumer panels
Groups of customers are asked for feedback about products over a period of time.
Consultation
Listening to the views of employees before making key decisions that affect them
Cost plus pricing
To set the price of a product or service by calculating the cost then adding a set amount or % to it.
Organisational chart
diagram that shows the different job roles in a business and how they relate to each other.
Outsourcing
Getting other people or businesses to undertake work that was originally done in house
Own- label, distributor or private land
Products that are manufactured for wholesalers or retailers by other businesses
Partnership
Two to 20 people who set up a business together as joint owners e.g. vets, solicitors, dentists
Part time
Employees work less than 35 hours a week but still get sick pay and work benefits
Paternalistic leadership,
Leader makes decisions but takes employees point of view into consideration
Curriculum virtae
A document that lists personal details, qualifications, work experience, referees and other information about the jobseeker.
Database
An organised collection of data stored electronically with instant access, searching and sorting facilities.
Deed of partnership
Binding legal document that states the formal rights of partners.
Decentralisation
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
The act of asking a worker to perform a task
Payment by results
Payment methods that rewards workers for the quantity and quality of work they produce.
PED
change in Q demanded __________________________________
% change in price
Penetration pricing
Setting a low price when launching a new product in order to get established in the market.
Performance related pay
payment system designed for non-manual workers where pay increases are given if performance targets are met.
Person specification
The characteristics the candidate both needs to have and those which are desired, for example skills and qualifications
Piece rate
payment system where employees are paid an agreed rate for every item produced
