Theme 1-All Keyword Definitions Flashcards
Brand name?
A name, term, sign or symbol or any other feature that allows consumers to identify the goods and services and differentiate those from competitors.
E-commerce?
Conducting business transactions online.
Online retailing?
The purchase of goods online.
Market?
A set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods.
Marketing?
A management process involved in identifying and satisfy consumers’ requirements.
Market share?
The proportion of total sales in a particular market for which businesses and brands are responsible. Calculated by value and expressed as a percentage.
Mass market?
A very large market in which products with mass appeal are targeted.
Niche market?
A smaller market which is usually within a large market.
Consumer panels?
When groups of customers are asked for feedback on a product for a period of time.
Database?
An organised collection of data stored electronically with instant access, searching and sorting facilities.
Focus groups?
Where a number of customers are invited to after a discussion about a product led by market researchers.
Market orientation?
An approach to business which places the needs of consumers at the centre of the decision making.
Market research?
The collection, presentation and analysis of information relating to the marketing of goods and services.
Market segment?
Part of a whole market where a particular customer group has similar characteristics.
Primary research?
The gathering of ‘new’ information which doesn’t already exist.
Product orientation?
An approach to business which places the emphasis upon the production process and the product itself.
Qualitative research?
The collection of data about attitudes, beliefs and intentions.
Quantitative research?
The collection of data that can be quantified.
Respondent?
A person who answers a question in a survey.
Sample?
A small group of people who must represent a proportion of a total market when carrying out market research.
Secondary research?
The collection of data that already exists.
Socio-economic groups?
Division of people according to social class.
Added value?
The extra features that may be offered by a business when selling a product, such as high quality customer service, which helps exceed their expectations.
Competitive advantage?
An advantage that enables a business to perform better than its rivals in the market.
Market maps?
Typically a 2-D diagram that shows two of the characteristics of a brand and those of rival brands in the market.
Market positioning?
The view consumers have about the quality, value for money and it’s image compared to competitors.
Product differentiation?
An attempt by a business to distinguish its product from those of its competitors.
Reposition?
Change the view consumers have about a product by altering some of its characteristics.
Unique selling point(USP) or proposition?
The feature of a product that clearly distinguishes from its competitors.
Complementary goods?
Goods that are purchased together because they are consumed together.
Demand?
The quantity of a product bought at a given price over a period of time.
Demand curve?
A line drawn on a graph that shows how much of a good will be bought at different prices.
Inferior goods?
Goods to which demand will fall if income rises or rise of income falls.
Normal goods?
Goods for which demand will rise if income falls or fall if income falls.
Substitute goods?
Goods that can be bought as an alternative to others, but perform the same function.
Subsidy?
A grant given to producers, usually to encourage the production of a certain good.
Supply?
The amount of a product that suppliers make available to the market at any given price in a period of time.
Supply curve?
A line drawn on a graph that shows how much of a good sellers are willing to supply at different prices.
Equilibrium price?
The price where demand and supply are equal.
Excess demand?
When demand is greater than supply at any given price and there are shortages in the market.
Excess supply?
When supply is greater than demand at a given price and there are unsold goods in the market?
Total revenue?
The amount of revenue generated from the sale of goods.
Price elastic demand?
A change in price results in a greater change in demand.
Price elasticity of demand?
The responsiveness of demand to a change in price.
Price inelastic demand?
A change in price results in a smaller change in demand.
Discretionary expenditure?
Non-essential spending or non-automatic spending.
Income elastic demand?
The % change in demand for a product is proportionately greater than the % change in income.
Income elasticity of demand?
The responsiveness to a change in income.
Income inelastic demand?
Where the % change in demand is less than the % change in income.
Consumer durables?
Goods that can be used repeatedly over a period of time.
Design mix?
The range of features that are important when designing a product.
Ergonomics?
The study of how people interact with the environment.
Ethical sourcing?
Using materials, components and services from suppliers that respect the environment and treat their workforce well.
Product design?
The process of creating a new product or service.
Recycling?
Making use of materials that have been discarded as waste.
Resource depletion?
Using up natural resources.
Waste minimisation?
Reducing the quantity of resources that are discarded in the natural process.
Above-the-line promotion?
Placing adverts using the media.
Advertising?
Communication between a business and its customers where images are placed in the media to encourage the purchase of products.
Below-the-line promotion?
Any promotion that doesn’t involve using the media.
Emotional branding?
The practice of using the emotions of a consumer to build a brand.
Generic brands?
Products that only contain the name of the product category rather than the product name.
Manufacturer brands?
Brands created by the producers of goods or services.
Marketing mix?
The elements of a business’s marketing that are designed to meet the needs of customers. The 4 elements are called the ‘4P’s’ - Product, price, place and promotion.
Merchandising?
A promotion specifically at the point of sale of a product.
Own-label brands/private brands?
Products that re manufactured for retailers by other businesses.
Point of sale?
Any point where a consumer buys a product.
Promotion?
An attempt to obtain and retain customers by drawing their attention to a certain product.
Public relations?
An organisation’s attempt to communicate with interested parties.
Sales promotions?
Methods of promoting products in the short term to boost sales.
Sponsorship?
Making a financial contribution to an event in return for publicity.
Viral marketing?
Any strategy that encourages people to pass on messages to others about a business electronically.
Competitive pricing?
Pricing strategies based on the prices charged by rivals.
Cost-plus pricing?
Adding a percentage to the costs of producing a product to get the price.
Mark-up?
The percentage added to unit cost that makes a profit for a business when setting the price.
Penetration pricing?
Setting a low price
Predatory pricing?
Setting a low price forcing rivals out of business.
Pricing strategy?
The pricing methods used by a business when deciding what to charge for its products.
Product life cycle?
Shows the different stages in the life of a product.
Psychological pricing?
Setting the price below a round figure.
Price skimming?
Setting a high price initially and then lowering it later.
Unit costs?
The same as average cost (total cost divided by output).
Agent?
An intermediary that brings together Byers and sellers.
Breaking-bulk?
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.
Direct selling?
Producers selling their products directly to consumers.
Distribution?
The delivery of goods from the producer directly to consumers.
Distribution channel?
The route taken by a product from the producer to the customer.
E-commerce?
The use of electronic systems to sell goods and services.
Intermediaries?
Links between the producer and the consumer.
Retailer?
A business that buys goods from manufacturers and wholesalers and sells them to consumers.
Wholesaler?
A business that buys goods from manufacturers and sells them to retailers.
Boston Matrix?
A 2x2 Matrix model that analyses a product portfolio according to the growth rate of the market and the market share.
Extension strategies?
Methods used to prolong the life of a product.
Marketing strategy?
A set of plans that aim to achieve a specific marketing objective.
Product lines?
A group of products that are very similar.
Product portfolio?
The collection of products a business is currently marketing.
Collective bargaining?
A method of determining conditions of work and terms of employment through negotiations between employers and employee representatives.
Flexible workforce?
A workforce that can respond in quantity and type to changes in market demand.
Home workers?
People who undertake regular work form home.
Industrial action?
Disruptive measures taken by workers to apply pressure on employers when disagreements can’t be resolved.
Outsourcing?
Getting other people or businesses to undertake work that was originally done in-house.
Multi-skilling?
The process of increasing the skills of employees.
Trade unions?
Organisations of workers that exist to promote the interests of their members.
Zero-hour contracts?
A contract that doesn’t guarantee any particular number of hours work.
Curriculum vitae?
A document that lists personal details, qualifications , work experience, referees and other information about the jobseeker.
External recruitment?
Appointing workers from outside the business.
Induction training?
Training given to new employees when they first start a job.
Internal recruitment?
Appointing workers from inside the business.
Job description?
A document that shows clearly the tasks, duties and responsibilities expected of a worker from particular job.
Off-the job training?
Training that takes place away from the work area.
On-the-job training?
Training take takes place while doing the job.
Person specification?
A personal profile of the type of person needed to do a particular job.
Training?
The process that involves increasing the skills and knowledge of a worker so they can do jobs more effectively.
Authority?
The right to command and make decisions.
Centralisation?
A type of business organisation where major decisions are made at the centre of the organisation and passed down the chain of command.
Chain of command?
The way authority and power is organised in an organisation.
Decentralisation?
A type of business organisation where decision making is pushed down the chain of command and away from the centre of the organisation.
Delayering?
Removing layers of management from the hierarchy of an organisation.
Delegation?
The authority to pass down from superior to subordinate.
Formal organisation?
The internal structure of a business as shown by an organisational chart.
Hierarchy?
The order or levels in responsibility in an organisation.
Organisational chart?
A diagram that shows the different job roles in a business and how they relate to each other.
Responsibility?
The duty to complete a task.
Span of control?
The number of people a person is directly responsible for in a business.
Subordinates?
People in the hierarchy who work under the control of a senior worker.
Bonus?
A payment in addition to the basic wage for reaching a certain target.
Commission?
Percentage payment on a sale made to the salesperson.
Consultation?
Listening to the views of employees before making key decisions that affects them.
Empowerment?
Giving official authority to employees who make decisions and control their own work activities.
Hawthorne effect?
The idea that workers are motivated by recognition given to them as a group.
Hygiene and maintenance factors (Herzberg’s)?
Things at work that result in dissatisfaction.
Job enlargement?
Giving an employee more do of a similar nature; horizontally extending their work role.
Job enrichment?
Giving employees greater responsibility and recognition by vertically extending their work role.
Job rotation?
The periodic changing of jobs or tasks.
Maslow’s hierarchy of needs?
The order of people’s needs starting with the basic requirements.
Motivation?
The desire to take action to achieve a goal.
Motivators(Herzberg’s)?
Things at work that result in satisfaction.
Payment by results?
Payment methods that reward workers for the quantity and quality of work they produce.
Performance-related pay?
A payment system designed for non-manual workers where pay increases are given if performance targets are met.
Piece rates?
A payment system where employees are paid an agreed rate for every item produced.
Profit sharing?
Where workers are given a share of the profits, usually as part of their pay.
Scientific management?
A theory (Taylor’s) that suggests there is a ‘best way’ to perform work tasks.
Self-actualisation?
A level in Maslow’s hierarchy where people realise their full potential.
Teamworking?
Organising people into working groups that have a common aim.
Autocratic leadership?
A leadership style where a manager makes all the decisions without consultation.
Democratic leadership?
A leadership style where managers allow others to participate in decision making.
Laissez-faire leadership?
A leadership style where employees are encouraged to make their own decisions, within certain limits.
Paternalistic leadership?
A leadership style where the leader makes decisions but takes into account the welfare of employees.
Entrepreneurs?
Individuals who set up the business, run it and take the risks associated with it.
Intrapreneurs?
Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that financially benefit the employer.
Profit maximisation?
Trying to make as much profit as possible in a given time period.
Profit satisficing?
Making enough profit to satisfy the needs of the owner.
Aims?
What a business tries to achieve in the long term.
Objectives?
The goals or targets set by a business to help achieve its long term purpose.
Sales maximisation?
An attempt to sell as much as possible in a given time period.
Articles of Association?
A document that provides details of the internal running of a limited company.
Certificate of Incorporation?
A document that declares a business is allowed to trade as a limited company.
Co-operative?
A business organisation owned by its members, who have equal voting rights.
Deed of Partnership?
A binding legal document that states the formal rights of partners.
Franchise?
A business model in which a business allows another operator to trade under their name.
Lifestyle business?
A business that aims to make enough money and provide the flexibility needed to support a lifestyle of the owner.
Limited company?
A business organisation that has a separate legal entity from that of its owners.
Limited liability?
A legal status which means that a business owner is only liable for the original amount of money invested in the business.
Limited partnership?
A partnership where some members contribute capital and enjoy a share of profit, but don’t participate in the running of the business.
Memorandum of Association?
A document that sets out the constitution and states key eternal details about a limited company.
Mutual organisation?
A business that is owned by its members.
Online business?
A business that uses the global communications infrastructure of the internet as a trading base.
Partnership?
A business organisation that’s usually owned by 2-20 people.
Primary sector?
Production involving the extraction of raw materials from the earth.
Secondary sector?
Production involving the conversion of raw materials into finished and semi-finished goods.
Sleeping partner?
A partner that contributes capital and enjoys a share of the profit but takes no active role in running the business.
Social enterprise?
A business that trades with the objective of improving human or environmental well-being.
Sole trader?
A business that is run and owned by a single owner.
Tertiary sector?
The production of services in the economy.
Unlimited liability?
A legal status which means that the business owner is personally liable for all of the business debts.
Private equity company?
A business usually owned by private individuals backed by financial institutions.
Public limited company?
A company owned by shareholders where the shares can be openly traded on the stock market.
Stock market?
A market for second-hand shares.
Stock market flotation?
The process of a company ‘going public’.
Choices?
In business, deciding between alternative uses of resources.
Opportunity cost?
When choosing between different alternatives, the opportunity cost is the benefit lost from the next best alternative to the one that has been chosen.
Trade-offs?
Where a decision-maker faces a compromise between two different alternatives.
