Theme 1 Flashcards
Indirect taxes
Taxes on goods and services rather than on income or profits e.g cigarettes
Emotional branding
Creating a brand that directly appeals to the customers emotional state e.g Nike
Intrapreneurship
People within a business creating/discovering new business opportunities which leads to a higher level of innovation
Profit maximisation
Making as much profit as possible by determining the price and output level that returns the greatest profit
Profit satisficing
Making enough profit to keep shareholders happy
Lifestyle business
Where the aim is to sustain a particular level of income and no more in order to enjoy a particular lifestyle
Government subsidies
Any support given by the government (non financial or financial) to a producer or sometimes a consumer e.g to provide more jobs in an area
Ethical sourcing
Where a business only buys products that are produced with fair working conditions and pay for workers, as well as minimalising the impact on the environment
Niche marketing
A smaller segment of a larger market, where customers have specific needs and wants requiring differentiated products
Mass marketing
The largest part of the market, where there are many similar undifferentiated products offered by competitors
Market size
The overall size or demand for a specific market
Market growth
The percentage rate of growth in market size over a period
Market share
The proportion of market size held by each competitor in a market
Dynamic market
Market that is constantly changing e.g film industry
Competitive advantage
The ability of a business to add more value for its customers than its rivals and attain a position of relative advantage
