Marketing Flashcards
Customer base Market Target market Customer Consumer Industrial market Business environment
Group of cus. that repeatedly purchase g and s of a busi.
Cus. or cons. that are interested in buying a product and have financial resources to do so.
Individual or organisation identified by a busi. as a cus. or cons. of its products.
An Individual or busi. that buy g and s from a busi
The final user of a product
Market for g and s bought by other busi to use in their production process
Combination of internal and external factor that influence the operation of the busi.
Niche market Mass market Market segment Market segmentation Geographic segmentation Demographic segmentation Psychographic segmentation
Develop a product to a small segment of market
Sell the same product to the whole market
Part of the whole market in which cons. has specific characteristics.
Dividing the whole market into segments by cons.characteristics and then targeting different products to each segment
Dividing cons in the market by geographical area
Dividing cons in the market by factors such as age, gender, ethnic background, income and social class
Dividing cons in the market by personalities, lifestyles and attitudes
Market research Unique selling point Market orientated Product orientated Primary research Secondary research
The process of collecting, recording and analysing the data about the cus. competitor andarket of a product.
The special feature of a product that set it apart from other competitor product
Product are developed based on cons. demand as identified by market research
Firm decide what to produce and try to find buyers for the product
The collection of first hand data for specific use of the bus.
The collection of data from the second sources.
Quantitative research Qualitative research Sample Primary too ex. use sampling 1 quota sampling 2 stratified sampling 3 random sampling
Collection of numerical data that can be analysed using statistical technique
Collection of data about the cus buying behaviour and their opinion about the product
A representative sample of the target market selected to take part in market research.
Start up capital Working capital Non current asset Capital expenditure Long term finance Short term finance Retained profit
Capital needed by an entrepreneur when first starting up a business.
Capital needed to pay day to day expenses and short term debt. Example..
Asset that the busi expect to use for more than one year. Ex..
Money spent on purchasing non current asset such as…
Debt use to finance expansion plan and purchasing of NCA. busi is not expected to repay in less than five years.
Loans given by lender to the busi. Busi expect to repay within one year.
Profit that is remaining after tax, dividend and expenses have all been paid. It is ploughed back into the busi.
Overdraft Trade receivable Debt factoring Bank loan Leasing
An agreement with the bank that allows the busi to spend more money than the busi. has in its bank account. Need to repay withing 12 months
The amount the credit cus. owed to the busi. Theses cus buy good on credit
Selling trade receivable to a company to improve busi liquidity
Provision of finance by the bank to purchase NCA or finance the expansion plan of the busi. Need to repay with interest over an agreed period of time
Obtaining use of a NCA by paying instalments to the leasing company over a fixed period of time. Ownership remains with the leasing company
Hire purchase Mortgage Debenture Share issue Equity finance Micro finance Crowd funding
Purchasing a NCA by paying an instalment over a fixed period of time. The asset is owned by the purchasing company after the completion of final repayment.
Long term loan used for the purchase of land and building
A bond issued by the busi to raise long term finance usually at a fixed rate of interest.
A permanent capital to limited company
Permanent capital provided by the owners of a Ltd company.
Provide a small amount of capital loaned to the entrepreneurs in countries where busi. finances are hard to obtain. Need to repay within a very short period of time
Finance a busi idea by obtaining a small amount of capital from a large crowd of people. Used Internet and social media networks.
MNC Host country Domestic country Globalisation Quota Tariffs Trade bloc
An organisation that has operation in more than one country
Foreign country where the MNC operates in
The country where the MNC first established its operations
The process by which countries are connected with each other because of trade of goods and services
The physical limit of the amount of goods that can be imported and exported
Tax charged on imported and exported goods
A group of countries that trade with each other and are usually part of a free trade agreement
Exchange rate
Appreaciation
Depreciation
Balance of payment
The rate at which one country’s currency can be exchanged for that of another.
A currency is said to appreciate if its value of currency increases with respect to another
A currency is said to depreciate if its value of currency goes down with respect to another
The difference between the value of imported and exported goods and services over a year.
Externality Sustainable development Pressure group Social benefit Social cost Cost benefit analysis
The effect of business decisions on unrelated parties
A business is said to be sustainable if it has an overall positive impact on the environment and its stakeholder, ensuring its survival in the future
A group of like-minded people that put pressure on government and business and try to influence them in terms of decision-making.
The positive impact of the busi on the society
The negative impact of the busi on teh society
The analysis of the cost and benefit of a project, the focus being on the social cost and benefit.
Recession Inflation Level of unemployment GDP Tax Interest rate Direct tax Indirect tax Disposable income
The economy shrinks in size. Unemployment rate rises and m there is a falling demand of g and s
The increase in value of g and s over a time
The percentage of a population that are capable of working but could not find a job
The value of all g and s produced by a country in a year
Money charged on income and g and s. Money will be use by the govern. for reinvestment.
Money charge on the amount an individual or a busi loaned from a lender.
Tax charged on personal income or tax on the profit earned by a busi.
Tax charged on the price of g and s, which is added to the price of g and s before they are bought
Amount of income left after all the taxes have been paid
Gross profit margin Profit margin Adding value Return on capital employed Liquidity Current ratio Acid test ratio
Ratio between gross profit and revenue
Ratio between profit before tax and revenue
The difference between the cost of bought in material and selling price of a product
Ratio between profit and capital employed
A measure of how well the busi is able to pay day to day expenses and short term debt
Ratio between current asset and current liability
Ratio between liquid asset and current liability
Gross profit Profit Total cost Revenue Cost of sales Expenses Income statement
Difference between revenue an cost of sales
Difference between revenue and total cost
Cost of sales plus expenses
The amount earned from the sales of a product
The cost of purchasing the goods used to make the products sold
day to day operating expenses of a business
.
Financial statement that records the revenue, cost of sales and profit of a business for a given period of time.
Statement of financial position Asset Liabilities Trade receivable Trade payable NCA NCL CA CL Owner equity Shareholder equity
Accounting statement records the asset, liabilities and owner’s equity of a busi at a particular date
All the resources owned by the business
Dets or loans that the busi. expects to pay to the lenders
The amount the credit customers owe to the busi. They buy goods on credit
The amount the busi. owes to the credit suppliers. The busi buy goods on credit.
Resources that the busi owns and expects to use for more than one year
Debts of the busi that will be payable for more than one year
Resources that are more liquid than non current asset and expects to use up within a year.
Debts that the busi is expected to clear before the date of the next statement of financial position
The amount the busi owes to the owner’s, including capital and retained profits
An alternative term of owner equity, but can only be used by limited liability companies
Credit sales Cash flow forecast Net cash flow Infrastructure Government incentives
Goods sold to cus who will pay for these at an agreed date in the future
An estimate of the cash inflow and cash outflow
Cash inflow minus cash outflow
The basic facilities, services and installations needed for a business to function such as power, water and transport link
Usually finance such as grants and interest free loans provided to a busi to help when locating in a country or in an area of a coutry.
Quality Quality assurance Quality control Quality srandards Break even
Ensure a g or s that meet the needs and requirements of the cus
A system of setting agreed standards for every stage of production
Checking the quality of the product through inspection.
The minimum standards of production or service that is acceptable to cons.
The level of output where the revenue equals the totals cost. The busi is neither making a profit nor lost
Margin of safety Total cost Fixed cost Variable cost Diseconomies of scale Economies of scale Average cost
The difference between the current level of output and the break even output
All the variable and fixed cost of producing the total output
Cost that do not change with output
Cost that change in direct proportion to output
Factors that cause the avarage cost to increases when the scale of operation increase
The reduction of avarage cost as a result of an increases in the scale of operation
The cost needed to produce a single unit of product
Production Productivity Inventories Lean production Just in time inventory control Kaizen Job production Batch production Flow production Capital intensive
The process of converting inputs such as land, labour and capital into saleable goods
A measure of the efficiency of the inputs used in the production process
The stock of raw materials, work in progress and finished good held by a busi.
The production of g and s with the minimum waste of resources
Means that no inventories is held by the busi. They will arrive just the time they are needed in the production process
This approach gives all the employees opportunities to raise up their voice on how to improve the productivity and quality
Production of a items one at a time
Production of items in batches. The batches will pass through different stages during the production process
The production of large quantity of identicle goods at a continuously moving process
The excessive use of capital equipment during the production process compared to labour input
Joint venture Domestic market Barrier of trade Marketing strategy Niche market Mass market E commerce
An agreement between two or more businesses to work together on a project
The market of g and s in the business ‘s own country
Usually taxes, quotas or bans that one country places on the goods or other countries to prevent or increase the cost of them entering that country
The plan to achieve marketing objectives uing the given level of resources
Produce a product to a small segment of market
Produce the same products to the whole market
The use of tech and inter by the busi to promote and sell g and s to cus.
Personal selling Direct mail Sales promotion Advertising Below the line promotion Channels of distribution Middlemen Retailer Wholesaler
Sales staff sells the products directly to cus. To achieve a sale and form long term relationship between cus and company
Sending leaflets and printed materials to the addresses of targeted cus.
Incentives used to encourage short term an increase in sales and repeat purchase
Paid for communication with the cus that use visual media. Aim to inform and persuade cons to buy a product
Not paid for communication use incentives to attract people to buy g and s
How the product gets from the producer to the final cus.
The intermediaries in the channel of distribution such as retailer and wholesaler
Outlets and shops that sells g and s to the final cus.
Business that buys goods in bulk from the producers and send them to retailers.
Promotion Informative advertising Persuasive advertising Sponsorship Marketing budget
Marketing activity use to create product awareness and attract more potential cus.
Form of advertising that provide detailed info of the product to cus. Create product awareness
Form of advertising that convince the cus to buy the busi products rather than the competitors products
The payment for advertising the brand name and product of a busi through associating with a particular event.
The amount set aside for conducting marketing activities during a particular period of time
Marketing mix Four P Product Brand Brand image Product life cycle Extension strategy Price Product quality
Four marketing decisions needed for the effective marketing of a product
The right product at the right price with the right promotion in the right place
G or s produce to satisfy cus need and want
A name, logo or image that distinguishes a product from competitors products
The general impression of a product held by cons
The pattern of sales of a product from introduction to its withdrawal from the market
Marketing activities used to extend the maturity stage of a product
The amount the cus pay to the supplier for the g or s that they bought.
The product meet the need and expectation of cus.
Price skimming Penetration pricing Competitive pricing Price leadership pricing Cost plus pricing Loss leader pricing Demand Price elasticity of demand
Setting high price for a new product because of its unique features
Set lower than its competitors, use to launch new product
Set price similar to competitors products, already establish in the market
Based on price set by dominant firms
Set price of a small no. Of product below cost to attract into outlet, hope they will buy other products priced to earn profit
The cost of manufacture the product plus a profit of mark up
The amount of g and s cus. Are willing and able to buy
% change in demand < % $
% change in demand > % $
Price inelastic demand
Price elastic demand
The percentage change of the demand is less than the percentage change in price
The percentage change of the demand is greater than the percentage change in price
