Key Words

Question 1

Percentage Change in price

Answer 1

Price new – Price old

Price old x 100

Question 2

Market Share

Answer 2

The % of a market that a business, product or service has

Question 3

Added value

Answer 3

Value added is when a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience

Question 4

Market size

Answer 4

Measured by volume of sales or value

Question 5

Above the line promotion

Answer 5

Placing adverts using the media

Question 6

Marketing

Answer 6

A management process involved in identifying, anticipating and satisfying consumer requirements profitably

Question 7

Aesthetics

Answer 7

What the item looks like

Question 8

Marketing strategy

Answer 8

A Set of plans that aim to achieve a specific marketing objective.

Question 9

Agent or broker

Answer 9

Foreign sales agent is a business which represents products from another business in a new country

Question 10

Mark-up

Answer 10

The amount above cost added to a product before it is placed for sale

Question 11

Aims

Answer 11

What a business tries to achieve in the long term

Question 12

Maslow’s Hierarchy of Needs

Answer 12

The order of people’s needs starting with the basic human requirements.

Question 13

Articles of Association

Answer 13

A document that provides details of the internal running of a limited company

Question 14

Mass market

Answer 14

Products or services that are sold or advertised to everyone at the same time in the same way

Question 15

Authority

Answer 15

This is the power or right to give orders in an organisation

Question 16

Matrix structure

Answer 16

This is a hierarchy design which groups by project and function

Question 17

Autocratic leadership

Answer 17

Leader makes all the decisions

Question 18

Mechanisation

Answer 18

Method of operating or controlling processes using machinery

Question 19

Automation

Answer 19

Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.

Question 20

Merchandising

Answer 20

A promotion specifically at the point of sale of a product

Question 21

Below the line promotion

Answer 21

Any promotion that does not involve using the media

Question 22

Memorandum of Association

Answer 22

A document that sets out the constitution and states key external details about a limited company

Question 23

Bonus

Answer 23

A payment in addition to the basic wage for reaching targets or in recognition for service.

Question 24

Motivated

Answer 24

The desire to take action to achieve a goal

Question 25

Brand name

Answer 25

A 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.

Question 26

Motivators (Hertzberg)

Answer 26

Things at work that result in satisfaction.

Question 27

Boston Matrix

Answer 27

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.

Question 28

Multi-skilling

Answer 28

An employee is trained to do more than one job, for example an electrician is trained to plaster walls

Question 29

Breaking-bulk

Answer 29

Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.

Question 30

Mutual Organisation

Answer 30

A business owned by its members, who are customers not shareholders.

Question 31

Business choices

Answer 31

Deciding between alternative uses of resources.

Question 32

Niche Market

Answer 32

A subset of a normal market that caters for specific consumer needs and wants

Question 33

Certification of incorporation

Answer 33

A document that declares a business is allowed to trade as a limited company

Question 34

Normal good

Answer 34

Products where an increase in consumer’s income means an increase in demand