Theme 1 Flashcards
A#
1
Q
Brand
A
A symbol, logo or design that is recognisable and distinguishes
a product from competitors
2
Q
Competition
A
The rivalry among sellers trying to achieve goals such as
increasing profits, market share, and sales volume
3
Q
Competitive
market
A
When there are many rivals selling similar products
4
Q
Competitor
A
A rival business operating in the same market offering similar
goods or services/an appropriate
5
Q
Direct6 Competition
A
Businesses produce similar products that appeal the same
group of customers
6
Q
Dynamic Market
A
A market that is subject to rapid/continuous change.
7
Q
Indirect competition
A
Different businesses make or sell products that are not in direct
competition but compete for the same customer experience e.g.
Netflix and the local cinema
7
Q
Market
A
Where buyers and sellers interact
8
Q
Innovation
A
The creation, development and implementation of a new
product, process or service.
9
Q
Market Share
A
The % of the total market a business has in terms of volume or
value
10
Q
Market Growth
A
An increase in demand/sales for a particular product/service
11
Q
Market size
A
The total amount of sales/customers in a market measured by
value/volume
12
Q
Mass Market
A
A large unsegmented market where mass appeal products are
on sale
13
Q
Niche Market
A
A specialist area of the market/is a subset of the market on
which a specific product focuses. It is a smaller segment of a
larger market where consumers have specific needs and wants.
14
Q
Online Retailing
A
Selling goods and services on the internet
15
Q
Product innovation
A
The development/creation of products not previously available
16
Q
Sales Volume
A
The quantity of a good or service sold within a period of time.
Calculation Sales revenue/selling price
16
Q
Focus Group
A
A group of people who participate in a discussion as part of
market research to give feedback about a product or service
16
Q
Uncertainty
A
The inability to predict/a lack of knowledge about future events
and outcomes/reasons for uncertainty. Is caused by unexpected
often external factors outside the businesses control, even
though sometimes these can be predictable
17
Q
Biased Questions
A
Where the findings do not give a true reflection of the views of
the target audience on the product or service
17
Q
Consumer Behaviour
A
Observes how consumers make decisions about how they
choose and use products or services
18
Q
Databases
A
An organised collection of data stored electronically with instant
access, searching and sorting facilities
18
Q
Face-To-Face Survey
A
A research method used where the interviewer communicates
directly with the respondent using a questionnaire
19
Q
Government Data
A
Government publications that a business can use such as the
census of the population
20
Interview Bias
Where the opinion of the interviewer interferes with the
judgements of the interviewee
21
Market Orientation
When a businesses products/services are based around the
needs and wants of the customer.
21
Market Research
A document that contains information, stats, research and facts
on a chosen field
22
Market reports
A document that contains information, stats, research and facts
on a chosen field
23
Market segmentation
Dividiing a whole market into particular customer groups that
have similar characteristics
24
Market Segments
An identifiable group of individuals/a part of the market where
consumers share one or more characteristic or need
25
Observations
Where market researchers watch the behaviour of customers
26
Primary Market Research
Obtaining data first hand by the business to match the specific
needs of the business. It can also be known as field research
27
Qualitative research data
Market research collected relating to the opinions and beliefs of
consumers . Data not presented numerically
27
Product Orientation
When a business prioritises a products design quality or
performance rather than meeting customer preferences to guide
production and marketing decisions
28
Quantatative research data
Numerical information gathered and can be presented and
analysed using graphs, charts, table etc
29
Respondant bias
When respondents respond inaccurately to a question for some
reason
30
Sample
A small group of people who must represent a proportion of a
total market when carrying out market research
31
Secondary Market research
Data collected by another business or organisation but used by
the business in question. Also known as desk research
32
Segmentation
Dividing the market into groups of people with similar attributes
or common characteristics
33
Social networking
A platform such as Facebook, X and YouTube to market a
businesses products/services
34
Survey
A method of (primary) research used to collect information
35
Test Marketing
Trialling the product in a small area or to a limited number of
users to assess the suitability of a product
36
Trade publications
Specialist magazines that look at current trends in the business
world
37
Added value
The increase in value that a business creates when producing a
product/service. The difference between the price the customer
pays and the total cost of inputs needed to create a product
38
Competitive Advantage
A feature of a business and/or its products that enable it to
compete effectively with rival producers/products
39
Differentiation
Making products or services different or distinct from competing
products/creating a USP
40
Market Mapping
A form of market positioning. It is the use of a 2-dimensional
diagram that plots products or services in a market using two
key variables. It is used to spot a gap in the market
41
Market Positioning
An effort to influence consumer perception of a brand or product,
relative to the perception of competing brands or products
42
Product Differentiation
The act of distinguishing a product/service from competitors to
make it more attractive to a particular target market
43
Complementary Goods
Products consumed/used together, so they are purchased
together
44
Consumer income
The money earned/received from work/investments 1
45
Demand
The quantity of goods/services that a consumer is willing to buy
at a given price and at a given time
46
Demographics
The structure of the population such as age, gender and
geographical distribution
47
External shocks
Factors beyond the control of a business
48
48
Seaonality
When demand rises or falls at particular times of the year
according to seasonal factors
49
Substitutes
Goods that can be bought as an alternative to others, but
perform the same function
50
Government Subsidies
A payment given to producers, usually to encourage production
of a certain good
51
Indirect Taxes
Taxes imposed by the government on spending e.g. VAT and
Excise duties. Responsibility for payment lies with the business.
52
Supply
The amount that producers are willing/able to produce at a given
price/over a given period of time
53
Equilibrium Price
The price where supply and demand are equal. Also known as
market clearing price
54
Non price factors
Factors other than price e.g. Change in consumer incomes,
advertising and seasonality
55
Shortage in Markets
Where demand exceeds supply
56
Surplus in Markets
Where supply exceeds demand
57
Luxury
Goods that consumers like to buy if they can afford them eg air
travel and fashion items
58
Necessity
Basic goods that consumers need to buy eg food, electricity and
water
59
Price Elastic
Demand is responsive to a change in price
60
Price elasticity of demand
Measures the responsiveness of demand to a change in price.
Always negative due to laws of demand.
61
Price inelsatic
Demand for the product is less responsive proportionately to a
change in price
62
income elasticity of demand
Measures the responsiveness of changes in demand to changes
in consumer income
63
inferior good
When incomes increase there is a decrease in demand eg
budget goods
64
Marketing mix
A plan for using the right blend of product, price, promotion, and
place in order to maximise sales
65
Social trends
Changing patterns in consumer behaviour reflected in changing
demands e.g. increased use of social media/being
environmentally friendly
66
Aesthetics
Relates to the appearance of a product
67
Cost (Design mix)
When the business focusses on being economically viable,
therefore they aim to minimise costs
68
Design for recycling
Producing products using materials that have been discarded as
waste and recycled
69
Design for reuse
When materials used in the initial product are utilised again in
the future beyond their initial intended use.
70
Design for waste minimisation
Reducing the quantity of resources that are discarded in the
production process
71
Design mix
The combination of factors needed in designing a product and
include Aesthetics, Function, Economic Manufacture
72
Ethical Sourcing
When a business buys materials that are produced with fair
working conditions/pay and minimum impact on the environment
73
Function
Relates to the quality and reliability of a product.
74
Re branding
A marketing strategy in which a new name, term, symbol, design
or combination is created for an established brand with the
intention of developing a new, differentiated identity in the minds
of consumers, investors, and/or competitors.
75
Resource Depletion
The using up of natural resources
76
Advertising
A paid form of communication, used by a business to raise
customer awareness of its products, services and brands, to
persuade purchases to be made
77
Customer Loyalty
Repeat purchases with the same business/favour it over
competitors in the same market.
78
Digital communications
The electronic transfer of data
79
Direct marketing
Where a business mail out leaflets or letters to households 1
80
Emotional Branding
The creation of brands that perhaps appeal to customers’
emotional nature, rather than their logical side.
81
Manufacturer/corporate branding
Brands created by the producers of goods and services eg
Kellogg’s cornflakes (bear the producers name)
82
Own brand
Products that are manufactured for wholesalers or retailers by
other businesses e.g. Tesco Beans
83
Personal Selling
Direct communication between a salesperson and the customer
84
Premium Price
Charging a higher price than competitors because of customer
loyalty that has been built up over a period of time
85
Product
branding/Generi
c branding
Products that only contain the name of the product category
rather than the company or product name e.g. Carrots
85
Promotion
The way a business creates demand/awareness for their
product/service.
86
Public relations
An organisations attempt to communicate with interested
parties, usually through unpaid media such as press
conferences
87
Sales promotions
Methods of promoting products in the short term to boost sales
88
Social media
Websites and applications that enable users to participate in
social networking.
89
Sponsorship
A company giving a product or money to support another
business or person
90
USP
A feature that differentiates a product from its competitors
91
Viral Marketing
Encouraging customers to share information/adverts through
existing social media platforms e.g. Facebook
92
competitive pricing
When a business sets a price similar to competitors selling
similar/rival products
93
Cost Plus Pricing
A cost-based method for setting the prices of goods and
services and is calculated by adding a mark-up percentage to
the cost of the product
94
Penetration Pricing
Setting a low price initially and accepting limited short-term
profits/losses in order to build market share before switching to a
more profitable price
95
Predatory pricing
Setting a low-price forcing rivals out of the market. This is illegal
in the UK
96
Price comparison websites
A website that compares the price of a particular product or
service in different stores or from different businesses
97
Price skimming
Setting a high price at the launch of a product, to gain the money
back from R&D and to take advantage of those wanting to be
the first people to purchase.
98
Pricing strategy
A method used by a business when deciding the price at which
a product is sold for
99
Channels of distribution
Methods used by businesses to get their products from
manufacture to consumer. It can include intermediaries such as
wholesalers and retailers.
100
Distribution
Getting products to the right place for customers and at the right
time
100
psychological Pricing
Tactics that are designed to appeal to a customer’s emotional
response to prices
101
Distribution channels
The methods by which a product gets from the manufacturer to
the consumer
102
Distribution Strategy
A plan to get a product or service to the customer
103
Four stage distribution channel
Manufacturer/producer to wholesaler to retailer, then consumer.
Examples include groceries and confectionery
104
E-commerce
The use of electronic systems to sell goods and services 1
105
Place
Where the product can be purchased and is also the process of
making a product or service available to the consumer
106
Product
A tangible item offered for sale
107
Two stage
distribution
channel
A direct marketing approach with no intermediary levels e.g.
Manufacturer/producer to consumer
107
Service
The non-physical, intangible parts of our economy, as apposed
to goods, which we can touch
108
Three stage
distribution
channel
Manufacturer/producer to retailer, then consumer. Examples
include electrical goods and cars.
109
Boston matrix
A method used to analyse the product portfolio of a business
that contains stars, Cash cow, question mark and dog
110
Business to
business (B2B)
When a business promotes the sale of products/services to
other businesses for use in their operations
111
Business to
customer (B2C)
Where a company targets to sell its products to individual
customers
112
Customer Loyalty
A preference for a product or brand based on experience and/or
an emotional attachment, which inclines buyers to repeat
purchases and away from rivals
113
Extension Strategy
A plan that is aimed at preventing the decline stage of a
product/service’s sales in the medium-to-long term
114
Marketing Objective
A goal the business aims to achieve through its marketing
activities
114
Marketing Strategy
The methods used/plan/way chosen to achieve marketing
objectives
114
Product Portfolio
The collection/range/ list of items/products produced/sold/
offered by a business
114
Portfolio Analysis
When business considers each of its products in the context of
its market position
114
Product Life-Cycle
The stages that a product goes through from introduction to
decline
114
Dismissal
Referred to informally as firing or sacking. It is the termination of
employment by an employer against the will of the employee.
114
Collective bargaining
Negotiation of wages/conditions of employment between
employee representatives / trade unions and the employer
115
Employer/emplo
yee relations
The way in which a company’s management and its employees
behave towards each other
116
Individual
approach
(employer/ee
relations)
When employers develop relationships with employees at an
individual level
117
Multiskilling
The process of increasing the skills of employees
118
Part-time employees
Workers that generally work a few hours or a few days a week.
Fewer hours than a full-time employee.
118
Redundancy
When a business needs to reduce the size of its workforce or
even close. Redundancy can be voluntary
119
Staff as a cost
A cost to businesses in terms of recruitment, training,
remuneration, welfare and even severance
120
Staff as an asset
Employers recognise the input of employees as an important
business resource. They contribute to the value of output,
whether this is through providing added value to a product by
supporting the manufacturing process or through effective
customer service
121
Temporary work
The job position is generally for a limited period of time
121
Trade unions
A workforce representative that act to protect and improve the
economic and working conditions for their members.
122
Induction training
Introductory training given to employees coering its background,
policies, health and safety procedures
122
External recruitment
When the business looks to fill the vacancy from outside of the
business.
123
internal recruitment
Selecting employees who already work within the business to fill
job vacancies
124
off the job training
When employees are given training away from their normal job
environment, often in a classroom
125
on the job training
Learning/gaining/developing skills whilst at work doing the job
126
Recruitment
The process of finding and selecting workers.
127
Training
The developing of a person, to enhance skills and knowledge.
Training can be on-the-job or off-the-job
128
Centralised structure
An organisational structure where business decisions are made
at the top of the hierarchy by senior management/or at the
headquarters of a business
129
Flat organisational structure
One with few layers and a wider span of control for each
manager
130
Chain of command
The way authority and power is organised in an organisation
131
Decentralised structure
When a business allows branches to take more control/make
their own decisions
132
Hierarchy
The order or levels of responsibility in an organisation, from the
lowest to the highest
133
Matric Organisational Structure
Organises employees from different disciplines or divisions into
projects/teams
134
Organisational Structure
A diagram that shows who is answerable to whom in an
organisation. It can also show vertical and horizontal
communication links
135
Span of control
The number of employees/subordinates that a manager is
responsible for
136
Tall organisational structure
One with many layers and a narrow span of control for each
manager
137
Bonus
A sum of money added to an employee’s wages/salary as a
reward for performance when they reach or exceed their targets
138
Commission
A payment to a worker based on a percentage of the value of
sales.
139
Consultation
Employees opinions/feedback are sought when making
business decisions
140
Delegation
Authority to pass down from superior to subordinate
141
Empowerment
Giving official authority to employees to make decisions and to
control their own work activities
142
Financial incentives
Monetary rewards used to help improve staff motivation and
achievement. They can include Piecework, commission,
bonuses, profit sharing and performance related pay
143
Flexible workforce
Employees have choice over how/when they work by agreement
with the company. E.g. zero hours contracts, homeworking, parttime
144
Herzberg’s two
factor theory
A theory of motivation that is split into two categories: Motivators
and Hygiene factors
145
Job enlargement
Giving an employee more work to do of a similar nature,
horizontally extending their work role
146
Job enrichment
Giving employees greater responsibility and recognition by
vertically extending their work role
147
Job rotation
the changing of jobs or tasks
148
Maslow's hierarchy of needs
The order of people’s needs, starting with basic human needs
149
Mayo's human relations theory
Emphasises the importance of the ways in which people interact
and how they are treated. Motivation can improve when
employees feel more involved
150
Motivation
The reason for people's actions, willingness and goals.
151
Non-financial
techniques
Ways of encouraging employees without the use of monetary
rewards e.g Delegation, consultation, empowerment, team
working, flexible working, job enrichment, job rotation and job
enlargement
152
Performance related pay
A financial reward to employees whose work is considered to
have reached a required standard
153
piece rate
A payment system where employees are paid an agreed rate for
every item produced
154
Profit sharing
A form of financial incentive given to employees, where part of
the profit of the business is shared amongst the employees.
155
Taylor’s
scientific
management
Suggested a job could be broken down into constituent parts, so
that the most efficient way of working could be calculated. He
believes workers are motivated by money
156
Team working
Organising people into working groups that have a common aim
157
Working Conditions
The physical surroundings and the atmosphere of the
workplace, and the way staff are treated by managers
158
Autocratic leadership
A leadership style where the decision-making is best kept with
managers, who will direct subordinates with little consultation
159
Democratic
leadership
A type of leadership style in which members of the group take a
participative role in the decision-making process. Group
members are encouraged to share ideas and communication is
two ways
160
Laissez-faire
A leadership style where employees are encouraged to make
their own decisions within certain limits
161
Paternalistic
leaders
Leaders that are in control, but take the welfare of employees
into account when making decisions
161
Management
The day-to-day organisation of the business, including staffing.
162
Leadership
Having a vision, sharing that vision with others and providing
direction.
163
Entrepreneur
Someone who organises a business venture by combining the
other factors of production, namely land, labour and capital.
They task risks to set up a business in hope of profit/reward
164
Entrepreneurshi
p
The activity of setting up a business, taking on risks, normally in
the hope of making a profit
165
Risk
Something an entrepreneur can essentially plan for. Probabilities
of outcomes are known or at least understood or considered.
166
Entrepreneurial
characteristics
Qualities or traits demonstrated by an individual starting up and
running a business
167
Entrepreneurial
motive
Factors that drive a person to start a business
168
Ethical stance
In support of a moral belief that they believe in
169
Home working
Setting up a business from home
170
Independence
A desire to be their own boss
171
Profit Satisficing
Making enough profit to satisfy the needs of the business owner
172
Social
entrepreneurshi
p
Setting up a business and showing concern for the local area
173
Business
objective
A goal/target set by the business in the short/medium term to
help achieve its aim/mission
174
Cost efficiency
Minimising costs/expenses/waste when producing a product or
service
175
Customer
satisfaction
Is a measurement of how satisfied a customer is with their
purchase
176
Employee
welfare
Facilities and benefits provided by a business to meet the wellbeing of the employee
177
Profit
maximisation
When the difference between sales revenue and cost is at its
greatest
178
Sales
maximisation
An attempt to sell as much as possible in a given time period (or
to generate as much sales revenue as possible)
179
Social
objectives
A goal to benefit/improve the community
180
Survival
A short-term business objective that aims to keep the business
running.
181
Franchise
A business is buys the right to trade using the
brand/logo/business model of an existing firm in return for a
fee/royalty
182
Franchising
A type of business where a business operator (franchisor) allows
others (franchisee) to trade under its name (for a fee)
183
Lifestyle
business
A business set up with the aim of making no more than a set
level of income from which to enjoy a particular lifestyle
184
Partnership
A type of business ownership/organisation owned by two or
more people
185
Private limited
company
A small to medium sized business, usually run by the family that
owns it. Shares are sold to friends, family, and business
associates and it has limited liability.
186
Public limited
company
A business with limited liability whose shares are publicly traded
on the stock market
187
Social
enterprise
A business that has aim/objectives which benefits society and is
not for profit/its profits are reinvested into the
business/community
188
Sole trader
When a business sell shares publicly on the stock exchange for
the first time
189
Opportunity cost
The next best alternative forgone when making a decision.
190
Trade-off
A situation where having more of one thing leads to having less
of something else
191
Leader
A person who inspires and motivates others to meet objectives
192
Salaries
A fixed regular payment to an employee
193
Wages
A payment made to the employee from the employer, usually
paid on an hourly or daily basis
