Theme 1 Key Terms Flashcards
What’s the calculation for percentage change in price?
Price new
————— X 100
Price old
What is market share?
The % of a market that a business, product or service has.
What is added value?
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.
What is market size?
Measured by volume of sales or value.
What’s above the line promotion?
Placing adverts using the media.
What’s marketing?
A management process involved in identifying, anticipating and satisfying consumer requirements profitably.
What’s advertising?
Communication between a business and its customers where images are placed in the media to encourage the purchase of products.
What’s the marketing mix?
Price, place, promotion and product, how a business uses these 4 elements strategically
What’s aesthetics?
What the item looks like.
What’s a marketing strategy?
A Set of plans that aim to achieve a specific marketing objective.
What’s an agent or broker?
Foreign sales agent is a business which represents products from another business in a new country.
What’s mark up?
The amount above cost added to a product before it is placed for sale.
What are aims?
What a business tries to achieve in the long term.
What’s Maslow’s Hierarchy of Needs?
The order of people’s needs starting with the basic human requirements.
What are Articles of Association?
A document that provides details of the internal running of a limited company.
What’s a mass market?
Products or services that are sold or advertised to everyone at the same time in the same way.
What’s authority?
This is the power or right to give orders in an organisation.
What’s the matrix structure?
This is a hierarchy design which groups by project and function.
What’s autocratic leadership?
Leader makes all the decisions.
What’s mechanisation?
Method of operating or controlling processes using machinery.
What’s automation?
Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction.
What’s merchandising?
A promotion specifically at the point of sale of a product.
What’s below the line promotion?
Any promotion that does not involve using the media.
What’s Memorandum of Association?
A document that sets out the constitution and states key external details about a limited company.
What’s a bonus?
A payment in addition to the basic wage for reaching targets or in recognition for service.
What’s motivation?
The desire to take action to achieve a goal.
What’s a brand name?
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.
What are motivators (Hertzberg)?
Things at work that result in satisfaction.
What’s 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’s multi-skilling?
An employee is trained to do more than one job, for example an electrician is trained to plaster walls.
What’s breaking-bulk?
Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers.
What’s a mutual organisation?
A business owned by its members, who are customers not shareholders.
What are business choices?
Deciding between alternative uses of resources.
What’s a niche market?
A subset of a normal market that caters for specific consumer needs and wants.
What’s certification of incorporation?
A document that declares a business is allowed to trade as a limited company
What’s a normal good?
Products where an increase in consumer’s income means an increase in demand.
