Theme 1 Key Terms

Question 1

Percentage Change in Price

Answer 1

(Price new - price old) / price old x100

Question 2

Market Share

Answer 2

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

Question 3

Added Value

Answer 3

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 4

Market Size

Answer 4

Measured by volume of sales or value

Question 5

Above the line Promotion

Answer 5

Placing adverts using the media

Question 6

Marketing

Answer 6

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

Question 7

Advertising

Answer 7

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

Question 8

Marketing Mix

Answer 8

Price, Place, Promotion and Product, how a business uses these 4 elements strategically

Question 9

Aesthetics

Answer 9

What the item looks like

Question 10

Marketing strategy

Answer 10

A set of plans that aim to achieve a specific marketing objective

Question 11

Agent or Broker

Answer 11

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

Question 12

Mark-up

Answer 12

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

Question 13

Aims

Answer 13

What a business tries to achieve in the long term

Question 14

Maslow’s Hierarchy of needs

Answer 14

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

Question 15

Articles of Association

Answer 15

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

Question 16

Mass Market

Answer 16

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

Question 17

Authority

Answer 17

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

Question 18

Matrix Structure

Answer 18

This is a hierarchy design which groups by project and function

Question 19

Autocratic Leadership

Answer 19

Leader makes all the decisions

Question 20

Mechanisation

Answer 20

Method of operating or controlling process of using machinery

Question 21

Automation

Answer 21

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

Question 22

Merchandising

Answer 22

A promotion specifically at the point of sale of a product

Question 23

Below the line Promotion

Answer 23

Any promotion that does not involve using the media

Question 24

Memorandum of Association

Answer 24

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

Question 25

Bonus

Answer 25

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

Question 26

Motivated

Answer 26

The desire to take action to achieve a goal

Question 27

Brand Name

Answer 27

A name, term, symbol, 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 28

Motivators (Hertzberg)

Answer 28

Things at work that result in satisfaction

Question 29

Boston Matrix

Answer 29

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 30

Multi-skilling

Answer 30

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

Question 31

Breaking-bulk

Answer 31

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

Question 32

Mutual Organisation

Answer 32

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

Question 33

Business Choices

Answer 33

Deciding between alternative uses of resources

Question 34

Niche market

Answer 34

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

Question 35

Certification of Incorporation

Answer 35

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

Question 36

Normal Good

Answer 36

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