Theme 1 Key Terms

Question 1

What’s the calculation for percentage change in price?

Answer 1

Price new
————— X 100
Price old

Question 2

What is market share?

Answer 2

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

Question 3

What is 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

What is market size?

Answer 4

Measured by volume of sales or value.

Question 5

What’s above the line promotion?

Answer 5

Placing adverts using the media.

Question 6

What’s marketing?

Answer 6

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

Question 7

What’s 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

What’s the marketing mix?

Answer 8

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

Question 9

What’s aesthetics?

Answer 9

What the item looks like.

Question 10

What’s a marketing strategy?

Answer 10

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

Question 11

What’s an agent or broker?

Answer 11

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

Question 12

What’s mark up?

Answer 12

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

Question 13

What are aims?

Answer 13

What a business tries to achieve in the long term.

Question 14

What’s Maslow’s Hierarchy of Needs?

Answer 14

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

Question 15

What are Articles of Association?

Answer 15

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

Question 16

What’s a mass market?

Answer 16

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

Question 17

What’s authority?

Answer 17

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

Question 18

What’s the matrix structure?

Answer 18

This is a hierarchy design which groups by project and function.

Question 19

What’s autocratic leadership?

Answer 19

Leader makes all the decisions.

Question 20

What’s mechanisation?

Answer 20

Method of operating or controlling processes using machinery.

Question 21

What’s automation?

Answer 21

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

Question 22

What’s merchandising?

Answer 22

A promotion specifically at the point of sale of a product.

Question 23

What’s below the line promotion?

Answer 23

Any promotion that does not involve using the media.

Question 24

What’s Memorandum of Association?

Answer 24

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

Question 25

What’s a bonus?

Answer 25

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

Question 26

What’s motivation?

Answer 26

The desire to take action to achieve a goal.

Question 27

What’s a brand name?

Answer 27

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 28

What are motivators (Hertzberg)?

Answer 28

Things at work that result in satisfaction.

Question 29

What’s the 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

What’s 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

What’s 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

What’s a mutual organisation?

Answer 32

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

Question 33

What are business choices?

Answer 33

Deciding between alternative uses of resources.

Question 34

What’s a niche market?

Answer 34

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

Question 35

What’s certification of incorporation?

Answer 35

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

Question 36

What’s a normal good?

Answer 36

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