Theme 1

Question 1

Added value

Answer 1

Value added is when a business chooses to enhance the quality of a core product by providing extras to improve a customer’s utility/experience

Question 2

Percentage change in price

Answer 2

Price new – price old x 100

Question 3

Market share

Answer 3

The % of a market that a business, product or service has

Question 4

Market size

Answer 4

Measured by volume of sales or value

Question 5

Marketing

Answer 5

A management process involved in identifying, anticipating and satisfying consumer requirements profitably

Question 6

Advertising

Answer 6

Communication between a business and its customers where images are placed in the media to encourage the purchase of products

Question 7

Marketing mix

Answer 7

Price, place, promotion and product, how a business uses these 4 elements strategically

Question 8

Aesthetic

Answer 8

How the product looks

Question 9

Marketing strategy

Answer 9

Set of plans that aim to achieve a specific marketing objective.

Question 10

Agent or broker

Answer 10

Foreign sales agent is a business which represents products from another business in a new country

Question 11

Mark up

Answer 11

The amount above cost added to a product before it is placed for sale

Question 12

Aims

Answer 12

What a business tries to achieve in the long term

Question 13

Maslows hierarchy of needs

Answer 13

The order of people’s needs starting with the basic human requirements.

Question 14

Articles of association

Answer 14

A document that provides details of the internal running of a limited company

Question 15

Mass market

Answer 15

Products or services that are sold or advertised to everyone at the same time in the same way

Question 16

Authority

Answer 16

This is the power or right to give orders in an organisation

Question 17

Matrix structure

Answer 17

This is a hierarchy design which groups by project and function

Question 18

Autocratic leadership

Answer 18

Leader makes all the decisions

Question 19

Mechanisation

Answer 19

Method of operating or controlling processes using machinery

Question 20

Automation

Answer 20

Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.

Question 21

Merchandising

Answer 21

A promotion specifically at the point of sale of a product

Question 22

Below the line promotion

Answer 22

Any promotion that does not involve using the media

Question 23

Memorandum of association

Answer 23

A document that sets out the constitution and states key external details about a limited company

Question 24

Bonuses

Answer 24

A payment in addition to the basic wage for reaching targets or in recognition for service.

Question 25

Motivated

Answer 25

The desire to take action to achieve a goal

Question 26

Brand name

Answer 26

A name, term, symbol, sign, design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors.

Question 27

Motivators

Answer 27

Things at work that result in satisfaction.

Question 28

Boston matrix

Answer 28

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.

Question 29

Multi skilling

Answer 29

An employee is trained to do more than one job, for example an electrician is trained to plaster walls

Question 30

Breaking- bulk

Answer 30

Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.

Question 31

Mutual organisation

Answer 31

A business owned by its members, who are customers not shareholders.

Question 32

Business choices

Answer 32

Deciding between alternative uses of resources.

Question 33

Niche market

Answer 33

A subset of a normal market that caters for specific consumer needs and wants

Question 34

Certification of incorporation

Answer 34

A document that declares a business is allowed to trade as a limited company

Question 35

Normal goods

Answer 35

Products where an increase in consumer’s income means an increase in demand