Theme 1 Flashcards
Market
A medium in which buyers and sellers interact and agree to trade at a price
Niche market
a small part of the overall market that provides specialised or luxury product or service
Mass market
a large market with a high sales volume that provides standardised products aimed at large groups of consumers for that particular product or service
Risk
owners taking actions where the outcomes unknown
Uncertainty
a market that the bsn operates in is subject to external influences which are beyond the bsns constrol
Dynamic markets
a market which is subject to continuous rapid change
Product innovation
new technologies make it possible to create new products
Process innovation
using new techonologies to improve the production mtheods of the bsn
Market research
the process of gathering data about the product, customers and influences on the sales of the product
Primary research
collecting first hand primary data which is information that did not exist before the researcher began
Secondary research
the collection of secondary data which is information that already exists in some form
Product orientation
when a bsn concentrates on the production of the roduct by placing its efforts into creating and developing it and then trying to sell it to customers
Market orientation
when a bsn concentrates on the needs and wants of the customers first and then develop the product that meets their needs
Market segmentation
dividing the market into groups of customers with similar characteristics to allow the positioning of the bsn and customer targeting to take place
Market mapping
is the use of a grid to show 2 features of a market. Brands are added to the grid to identify potential gaps or niches in the market
Competitive advantage
a set of unique features of a business and its products that are perceived by customers as superior to the competition
Adding value
the difference between the price paid and the total cost of production.
Demand
the amount of a product that consumers are willing and able to purchace at a given price
Supply
the amount of a product that suppliers will offer to the market at a given price
Design mix
the combination of elements that make up a products design including function,aesthetic and cost
Ethical sourcing
means that products are produced without exploitation of workers or environmental damage
Promotion
a method in which a bsn makes its products known to current and potential customers
Above the line promotion
involves any form of advertising through the media such as televison and newspapers
Below the line promtion
ivoloves promtion through marketing materials suchas sales promtions(bogoff) and public relations(sponsorships)
Branding
the process of creating a unique and identifiable name, design or feature that differentiates a product/service or from its competitors.
Types of brands
manufacturers brands - Coco pops
own-label brands(retailer) - Tesco crisps
generic brands(dont have a paticular brand name) - apples
Emotional branding
creating a brand that directly appeals to the customer’s emotional state
Cost-plus pricing
=unit cost + (markup% + unitcost)
when the business calculates the cost of production and then adds a markup to determine the final price
Price skimming
The business sets an initially high price for a new product when it is high in demand then price falls overtime
Penetration pricing
The business sets a low price for a new product/service when it is first introduced
Predatory pricing (illegal)
The business sets prices so low that it drives its competitors out of the market
Competitive pricing
The business sets its prices based on its competitors’ prices
Psychological pricing
The business bases the price below the next whole number to trick consumers into thinking the price is lower
Distribution
how a business gets its products to the customers
Product portifolio analysis
used to analyse and track the development of multiple products over time taking into account a number of factors such as growth ,sales and market conditions.
Marketing strategy
a set of plans that aim to achieve a specific marketing objective
B2B marketing
focuses on selling products to other businesses e.g. manufacturers selling parts to other manufacturers
B2C marketing
focuses on selling products/services directly to consumers e.g clothing retailers
Flexible working
working arrangements which allow employees to vary the amount, timing, or location of their work,
Dismissal
when employees fail meet the required standard or through misconduct
Redundancy
where the services of an employee are no longer required by the business so they are asked to leave
Collective bargaining
the process by which employees use unions to negotiate for better terms.
Individual bargaining
A negotiation between an individual employee and an employer on pay and working conditions
Internal recruitment
when a role is filled by promoting the employees from within the business
External recruitment
involves bringing new employees in from outside the organisation
Training
the process of developing employees by improving their knowledge and skills so they can perform their duties better
On the job training
employees receive training whilst remaining in the workplace
e.g mentoring
Off the job training
training that is undertaken outside the place of work
e.g training centres
Centralisation
a decision-making process whereby the majority of the decisons are led by senior managers
Decentralisation
a decison-making process whereby the majority of decisions are delegated to employees further down the chain
Tall organisational structure
has many leaders and layers of management
Flat organisational structure
with only a few layers of management
Matrix structure
built around specific products or projects
Commission
a bonus paid based on achieving a sales target
Piecework
payment based on number of units of output produced
Performance-related pay
A salary or bonus scheme linked to job related targets.Targets reviewed every 6 months
Profit sharing/bonus schemes
Distributing a percentage of net profit across the work force
Delegation,consultation and empowerment
Giving employees autonomy,authority and the power to influence key business decisions
Teamworking
Organising the workforce into teams in order to benefit from the social aspects of motivation
Flexible working
Adopting flexible contracts and approaches that do not require employees to work in an office every day from 9am to 5pm
Job rotation/enrichment and enlargement
Encouraging employees to work across a range of roles,develop understanding of different areas of the business and develop skills.
Autocratic leader
Leader has complete control over decision-making with little or no input from others
Democratic
Leader involves their team in the decision making process
Laissez-faire
Leader takes a hands-off approach and allows their team to manage their own work
Paternalistic
Leader takes on a parental role, making decisions in the best interest of their staff
Entrepreneur
a person who is willing and able to create a new business idea or invention and takes risks in pursuing success
Intrapreneurship
employees within a business who have the freedom and opportunity to develop their ideas and use their creativity to innovate
Objectives
medium to long-term plans that are established to coordinate the business and act as targets
Private limited company
a company whose shares are not listed on a stock exchange and have limited liability
Public limited company
a larger business that sells shares to the public on the stock market and has limited liability for its shareholders
Franchise
a company that licenses the right for individuals or groups to set up an identical operation in a new reigon
Stock market floatation
when a company goes public and becomes a public limited company meaning that the companys shares are offered on sale to the general public
Opportunity cost
the benefit lost from the next best alternative
trade off
the loss or compromise of another option or factor
