THEME 1 Flashcards
What is % change in price?
Price new- price old / price old x 100
What is market share?
The % of a market that a business, product or service has
What is added value?
Value is added when a business chooses to enhance the quality of a core product by providing extras to improve a customers utility/experience
What is market size?
Measured by volume of sales or value
What is above the line promotion?
Placing adverts using the media
What is marketing?
A management process involved in identifying, anticipating and satisfying consumer requirements profitably
What is advertising?
Communication between a business and its customers where images are place in the media to encourage the purchase of products
What is the marketing mix?
Price, place, promotion and product, how a business uses these 4 elements strategically
What is aesthetics?
What a item looks like
What is a marketing strategy?
A set of plans that aim to achieve a specific marketing objective
What is a agent or broker?
Foreign sales agent is a business which represents products from another business in a new country
What is a mark-up?
The amount above cost added to a product before it is placed for sale
What is a aim? (Business terms)
What a business tries to achieve in the long term
What is Maslow’s hierarchy of needs?
The order of people’s needs starting with the basic human requirements
What is articles of association?
A document that provides details of the internal running of a limited company
What is a mass market?
Products or services that are sold or advertised to everyone at the same time in the same way
What is authority? (Business terms)
This is the power or right to give orders in an organisation
What is a matrix structure?
This is a hierarchy design which groups by project and function
What is autocratic leadership?
Leader makes all the decisions
What is mechanisation?
Method of operating or controlling processes using machinery
What is automation?
Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction
What is merchandising?
A promotion specifically at the point of sale of a product
What is below the line promotion?
Any promotion that does not involve the use of media
What is memorandum of association?
A document that sets out the constitution and states key external details about a limited company
What is a bonus?
A payment in addition to the basic wage for reaching targets or in recognition of service
What is meant by being motivated?
The desire to take action to achieve a goal
What is a brand?
A name, logo or symbol which differentiates one business from another, often with competitors
What is motivators (Hertzberg theory)?
Things at work that result in satisfaction
What is the Boston matrix?
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
What is multi skilling?
An employee is trained to do more than one job, for example an electrician is trained to plaster walls
What is breaking- bulk?
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
What is mutual organisation?
A business owned by its members, who are customers not shareholders
What is business choices?
Deciding between alternative uses of resources
What is a niche market?
A small sub section of a larger market which sells goods to customers often with specialist wants and needs
What is certification of incorporation?
A document that declares a business is allowed to trade to trade as a limited company
What is a normal good?
Products where an increase in consumers income means an increase in demand
What is centralisation?
A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command
What is off the job training?
Training that takes place away from the area of work
What is collective bargaining?
A union representative will speak to the management on behalf of all the workers in a business, usually about working conditions or pay
What is online retailing or etailing?
The retailing of goods online
What is co-operative?
A business organisation owned by its members, who have equal voting rights
What is a Online business?
A business that uses global communications infrastructure of the internet as a trading base
What is commission?
Percentage payment on a sale made to the salesperson
What is on the job training?
Training that takes place while doing the job
What is competitive advantage?
An advantage a business has over its competitors, allowing it to generate larger than average turnover for the industry
What is opportunity cost?
The cost of the loss of the item not chosen, or the profit from the goods not produced
What is competitive pricing?
To charge a similar amount for goods as are charged elsewhere
What is an organisational chart?
A diagram that shows the different job roles in a business and how they relate to each other
What is a complimentary product?
Products that need to be used together, for example a printer will need ink
What is outsourcing?
Getting other people or businesses to undertake work that was originally done in house
What is consumer durables?
Goods that can be used repeatedly over a period of time, such as cars and household appliances
What is a private brand? (Or distributer or own-label)
Products that are manufactured for wholesalers or retailers by other businesses
What is consumer panels?
Groups of customers are asked for feedback about products over a period of time
What is a partnership?
Two to 20 people who set up a business together as joint owners
What is consultation?
Listening to the views of employees before making key decisions that effect them
What is part-time?
Employees who work less than 35 hours a week but still get sick pay and work benefits
What is cost-plus pricing?
To set the price of a product or service by calculating the cost then adding a set amount or % to it
What is a paternalistic leadership style?
Leader makes decisions but takes employees point of view into consideration
What is a CV (Curriculum vitae)?
A document that lists personal details, qualifications, work experience, references and other information about the jobseeker
What is payment by results?
Payment methods that rewards workers for the quantity and quality of work they produce
What is a database?
An organise collection of data stored electronically with excellent access, searching and sorting facilities
What is PED?
% change in quantity demanded / % change in price
What is a deed of partnership?
Legal document that states the formal rights of partners
What is penetration pricing?
Price when launching a new product in order to get established in the market
What is decentralisation?
Type of business organisation with decision-making is pushed down the chain of command and away from the centre of organisation
What is PPP (Performance Related Pay)?
System designed for non-manual workers where pay increases are given if performance targets are met
What is delayering?
Removing layers of management from the hierarchy of an organisation
What is person specification?
The characteristics the candidates both need to have and those which are desired, for example skills and Qualifications
What is delegation?
The act of asking a worker to perform a task
What is piece rate?
A payment system where employees are paid an agreed rate for every item produced
What is demand?
The amount a customer is willing and able to buy a product at any given price
What is a PLC?
A public limited company, shares are floated on the stock market and can be bought by anyone
What is a demand curve?
A line to Line to pilot relationship between price and quantity demanded
What is a point of sale?
Any point where a consumers buys a product
What is a democratic leadership style?
Leaders encourage participation in decision-making
What is predatory pricing?
Setting a low price forcing rivals out of business
What is demographics?
The statistical data relating to population which is used to describe a group in marketing e.g Uk’s ageing population demographics
What is price elasticity demand?
The change in price results in a greater change in demand
What is the design mix?
The range of features that are important when designing a product:
Aesthetics
Function
Cost
What is price elasticity of demand?
How much demand for a good or service is likely to fluctuate with a change in price
What is differentiation?
How well a business can change the product so that a consumer recognised it as superior e.g Audi/BMW/ German technology engines
What is price inelastic demand?
A change in price result in a proportionately smaller change in demand
What is direct selling?
Produces selling their products directly to consumers
What is price skimming?
Setting a high price initially and then lowering it later
What is discretionary channel (place of the 4 p’s)?
Where a product it’s self is sold and how many stages it takes to a customer e.g 3 stage distribution
What is primary research?
Research done by the business itself
What is discretionary expenditure?
Non- essential spending or spending that is not automatic
What is a pricing strategy?
The pricing policies or methods used by a business when deciding what to charge for its products
What is a dynamic market?
A market that is constantly changing to suit customers wants and needs
What is the primary sector?
Production involving the extraction of raw materials from earth
What is e-commerce?
Conducting business transactions online
What is a private equity company?
A business usually owned by private individuals backed by financial institutions
What is economics of scale?
The reductions in average costs enjoyed by a business as output increases
What is product design?
The process of creating a new product or service
What is emotional branding?
The practice of using the emotions of a consumer to build a brand
What is product differentiation?
How a business differentiates products; through reputation, service, features or value
What is empowerment?
Giving official authority to employees to make decisions and control their own work activities
What is the product life cycle?
The stages that a product moves through over time
What is an entrepreneur?
A person who sets up a business, taking financial risks in the hope of making a profit
What is product lines?
A group of products that are very similar
What is a equilibrium price?
The price where supply and demand are equal
What is product orientation?
To sell products and services that the business wants to produce
What is ergonomics?
The study of how people interact with their environment and the equipment they use- often in the workplace
What is a product portfolio?
The collection of products a business is currently making
What is ethical sourcing?
Buying from sustainable sources, for example tree’s from forest suppliers who replant
What is productivity?
The rate at which goods or services are produced
What is a ethical stance?
To trade in a way that is respectful of people, animals or the environment
What is profit maximisation?
The aim of the business is to make as high profits as possible in the time frame
What is excess demand?
The position where demand is greater than supply at a given price and there are shortages in the market
What is profit satisficing?
The aim of the business is to make just enough profit to satisfy its owners but with other managers objectives
What is excess supply?
The position where supply is greater than demand at a given price and there are unsold goods in the market
What is profit sharing?
Where workers are given a share of the profits, usually as part of their pay
What is a extension strategy?
A plan to extend the maturity stage of a product life cycle of a product, for example changes to promotion
What is promotion?
An attempt to obtain and retain customers by drawing their attention to a firm or its products
What is external recruitment?
Appointing workers from outside the business
What is psychological pricing?
Setting the price slightly below the round figure
What is a flat structure?
This is a hierarchy design which has few layers and short chain of command but has a wide span of control
What is public relations?
An organisation’s attempt to communicate with interested parties
What is a flexible workforce?
A workforce that can respond, in quantity and type, to chances in the market demand
What is qualitative data?
Non numerical data such as how customers use the product?
What is flexitime?
Employees can start and finish when they need to as long as they work their 35 hours and the job gets done
What is quantitative date?
Data gathered that is numerical such as % of customers who buy more than once a week
What is a focus group?
Where a number of customers are invited to attend a discussion about a product led by market researchers
What is recruitment?
Process by which a job vacant is identified and potential employees are notified
What is a formal organisation?
The internal structure of a business as soon by an organisational chart
What is recycling?
Making use of materials that have been discarded as waste
What is a franchise?
A business idea in a box which is sold to other owners who run it under a licence and pay royalties, in return they get branding and marketing support e.g subway
What is a reposition?
Change the view consumers have about a product by altering some of its characteristics
What is a franchisee?
The person who buys the franchise
What is responsibility?
The duty to complete a task
What is a franchisor?
The person who sells the franchise
What is resource depletion?
The use up of natural resources
What is function?
What the item is used for
What is respondents?
A person or organisation that answers every question in a survey
What is a generic brand?
Products that only contain the name of the product category rather than the company or product name
What is a retailer?
A business that sells goods to consumers
What is a government subsidy?
A grant or gift of money from the government to encourage supply of certain goods e.g milk subsidies
What is risk?
The possibility of financial loss
What is the Hawthorne effect?
The idea that workers are motivated by recognition given to them as a group
What is sales maximisation?
An attempt to sell as much as possible in a given time period (or an attempt to generate as much sales revenue as possible in a given time period)
What is a hierarchy?
A system in organisation where people are ranked in according to the authority that they have
What is sales promotion?
Methods of promoting products in the short term to boost sales
What is home working?
To work from home, for example an eBay business
What is a sample?
A small group of people who mock represent a proportion of a total market when carrying out market research
What is hygiene factors (Hertzberg theory)?
Things at work that result in dissatisfaction
What is the secondary sector?
Production involving the conversion of raw materials into finished and semi-finished goods
What is income elasticity of demand?
How much demand changes when the consumer has a change in income
What is scientific management?
A theory that suggests there is a ‘best way’ to perform work tasks
What is income inelastic demand?
Where the % change in demand is proportionally less than the % change in income
What is selection?
The process of candidates and appointing a post holder
What is independence? (Business terms)
To trade in a way which meets the entrepreneur’s own goals and allows them to be their own boss
What is self actualisation? (In maslows theory)
A level in maslows hierarchy where people realise their full potential
What is indirect tax?
Taxes levied on products or services before they reach the consumer e.g VAT
What is social entrepreneurship?
To trade with the goal of helping the community in some way
What is induction training?
Training given to new employees when they first start their new job
What is a sleeping partner?
A partner that contributes capital and enjoys a share of the profit but takes no active role in the running of the business
What is industrial action?
Disruptive measures taken by workers to apply pressure on employers when disagreements cannot be resolved
What is socio economic groups?
A division of people according to social class
What is a inferior good?
Products where an increase in consumers income means a decrease in demand
What is a sole trader?
A person who sets up a business on their own, they can have employees but there is only one owner
What is innovation?
An invention taken to market and sold
What is meant by span of control?
This is the number of subordinates that a supervisor or manager is in charge of
What is meant by intermediates?
Links between the producer and consumer
What is meant by sponsorship?
Making a financial contribution to an even in return for publicity
What is internal recruitment?
Appointing workers from inside the business
What is a strong brand?
A brand which is recognised by everyone e.g rolls Royce, Rolex
What is a intrapreneur?
An employee who works for a large business but thinks like an entrepreneur
What is meant by subordinates?
People in the hierarchy who work under the control of a senior worker?
What is meant by job analysis?
Investigating the requirements of a job to identify the tasks and skills required
What is a stock market?
A market for second hand shares
What is meant by job description?
Identifies tasks and responsibilities involved in the job
What is meant by stock market floatation?
The process of a company ‘going public’ or ‘floating on the stock market’- making shares available to the public for the first time
What is meant by job enlargement?
Giving an employee work of a similar responsibility to do
What is a subsidy?
A grant given to producers, usually to encourage production of a certain good
What is meant by job enrichment?
Giving an employee more responsible tasks
What is a substitute product?
Products that can be used in place of each other, for example of no tea is available a substitute hot beverage is coffee or hot chocolate
What is meant by job rotation?
Moving an employee round similar tasks
What is supply?
The amount a business is willing to supply at a set price
What is laissez-faire leadership?
Leaders allow employees to make their own decisions
What is the supply curve?
A line to pilot the relationship between price and quantity supplied
What is a leader?
A person who has vision and followers
What is a tall structure?
A hierarchy design which is the opposite to a flat structure, it has a long chain of command but a short span of control
What is meant by leadership?
The same as management plus is a visionary who motivates their workers, a strategist and a problem solver
What is meant by team working?
Employees in a small group with a similar aim
What is a lifestyle business?
A business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
What is the tertiary sector?
The production of services in the economy
What is meant by limited liability?
A legal status which means that a business owner is liable for the original amount of money invested in the business
What is meant by temporary staff?
Employees are hired on a fixed term contract, to finish building a house estate for example
What is a limited company?
A business organisation that has a separate legal entity from that of its owners
What is meant by total revenue?
The amount of revenue generated from the sale of goods calculated by price x quantity, in a given period of time
What is a limited partnership?
A partnership where some members contribute capital and enjoy a share of the profits, but do not participate in the running of the business. At least one partner must have unlimited liability
What is a trade union?
Organisations of workers that exist to promote the interests of their members
What is a LTD?
Stands for private limited company, shares can only be sold to friends and family
What is meant by trade off’s?
In business, where a decision maker faces a compromise between two different alternatives, for example between paying dividends to shareholders or reinvesting profits in the business
What is meant by management?
Authority to make decisions in the best interest of the business
What is meant by training?
A process that involves the knowledge and skills of a worker to enable them to do their job effectively
What is a manufactured brand?
A brand created by the producers of good and services
What is meant by uncertainty?
Something in the world which is not known to the business, e.g a recession or Coronavirus
What is a mark up?
The % added to unit costs that makes a profit for a business when setting the price
What is meant by unit costs?
The same as average costs- total costs / output
What is meant by the term ‘market’?
A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services
What is meant by unlimited liability?
A legal status which means that the owner of a business is personally liable for all business debts
What is meant by market mapping?
Market mapping is about positioning the products/service a business plans to provide
What is a ‘USP’?
The aspect of feature of a product that clearly distinguishes it from its rivals
What is market orientation?
To sell products or services based on customers wants and needs
What is viral marketing?
Any strategy that encourages people to pass on messages to others about a product or a business electronically
What is market positioning?
The view consumers have about the quality, value for money and image of a product in relation to those of competitors
What is waste minimisation?
Reducing the quantity of resources that are discarded in the production process
What is market segmentation?
A whole market can be divided into sections called segments
What is a wholesaler?
A business that sells goods to retailers
What is a zero hour contract?
Employees are called into work only when they are needed, they get no work benefits and cannot be guaranteed work
What is YED?
Income elastic demand
