Theme 1 Flashcards
Customer needs
Price,quality,choice and convenience
Primary research
Refers to research that the business finds out for themselves.
Secondary research
Existing research that was collected by another organisation
Market segmentation
The process of breaking the market up into different customer groups.
Demographics
This is segmentation relating to the structure of the population. E.g, gender and family dynamics.
The marketing mix
The 4ps. Product, place, price and promotion
Labour
The skills and number of employees employed by a business
Adding value
This is the process of increasing the worth of the material because of the business doing something and then selling the product
Innovation
This is using an existing product and turning it into something else that can be used and sold.
USP
Unique selling point
Liability
Being legally responsible for something. Or in business sense, needing to pay back debt.
Sole trader
A business run and owned by one person
Incorporation
The legal process by which the business entity is formed
Partnership
A type of business with 2 or more owners that sets up a business between them.
Private limited company
An incorporated business with a separate legal identity. They are protected by limited liability and can only sell shares to those they choose.
Public limited company
A limited company which is able to sell shares on the stock exchange.
Franchise
A type of business ownership with the franchisor and franchisee
Franchisor
The person who sells the ip rights of the company and helps and supervises the franchisee.
Franchisee
Gains use of the company’s ip and help from the company but has to pay an initial fee and needs to pay royalty every year.
E-commerce
Refers to business transactions online
