Flashcards
Business Key Terms
Cards in this deck (104)
- 1Above the line promotionPromotion in the form of advertising
- 2Adverse varianceactual figures that are worse than planned figures
- 3Advertising mediathe means by which advertisments can be communicated to the public
- 4Advertisinga form of advertising between a business and its customers where a buisnesss uses visual, oral and pictoral images in the media to encourage the purchase of products
- 5Agent/Brokeran intermediatary which arrages contracts for the sale of products between a supplier and a customer
- 6Assset-led marketingwhere a business combines its knowlege of the market with an understanding of its strengths and weaknesses to decide what products to bring to market
- 7Authoritythe right to command a situation, task or activity
- 8Barrier to entryfactors whcih make it diffcult or impossible for business to enter a market and compete with existing producers
- 9Below the line promotionpromotion that is not media advertising
- 10Boston Matrixa model which analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market
- 11Brand leadera brand with the high sales or sometimes the brand with the highest sales in the market
- 12Brand loyaltythe extent to whci hcustomers of a brand repeat purchases of that brand rather than others
- 13Branda name, term, sign, symbol, design or any other feature that allows cnsumers to identify the goods and services and differentiate them from those of competitiors
- 14Budgetinga business system which involves making future plans, comparing the actual results with the planned results and then investigating causes of any differences
- 15Business to business marketingwhere a business markets its products to other businesses
- 16Capacity Utilisationthe use that a business makes of its resources
- 17Capacitythe possible maxium output a business can produce
- 18Cartela group a businesses which join together to agree on pricig and output in a market in an attempt to gain higher profits at te expense of customers
- 19Chain of commandthe way authority and power are passed down in a business
- 20Competiton rivalryrivalry between buisnesses offering products in the same market, it can take many forms such a price competition, advetising and distribution
- 21Consumer Marketingwhere a business is marketing to consumers
- 22Consumer productsGoods or services sold to individuals for personal consumption
- 23Contribution pricingwhen a business sets its price to cover all of its variable costs, but only a contribution is made to fixed costs and profit
- 24Cost based pricingmethods of pricing products which are based on costs
- 25Credit controlthe process of monitoring and collecting the money owed to a business
- 26Creditorsthose to whom a business owes money to for goods and services delivered but not paid for yet
- 27Customer Servicesa series of activities designed to enhance the level of customer satisfaction
- 28Delegationauthority passeed down from superior to subordinate
- 29Direct marketingselling by manufacturers direct to consumers without passing theough retailers or wholesalers
- 30Distribution channelthe path taken by a product as it goes from manufacturer to the ultimate customer
- 31Excess Capcitywhen a business has too many resources, such as labour and capital, to produce its desired level of output
- 32Extension Strategymethods used to extend the life of a produ
- 33External recruitmentwhen a employer looks for applicants for a job outside the organisation
- 34Favorable varianceactual figures better than the planne dfigures
- 35Going Rate Pricingwhere prices is set equal to the prices of similar products in the market
- 36Gross Profit Margingross profit expressed as a percentage of sales revenue
- 37Gross Profittotal sales revenue minus cost of sales
- 38Growthstage of product life cylce where the product has become establishes and customers are becoming aware of it
- 39Hawthorn Effectthe idea taht workers are motivated by recognition given to them as a group
- 40Hierarchyth elevels of management of a business from lowest to highest
- 41Hygiene Factorsthose things that can lead to workers becoming dissatisfied
- 42Informative advertisingadvertising which primarily seeks to provide consumers with information about a product
- 43Internal Recruitmentwhen an employer seeks to find applicants for a job from inside the organisation
- 44Job analysisa studt of what a job entails, such as skills, tasks and performance expected
- 45Job Descriptiona statement of the task to be undertaken and responsibilities of the employee holding the job
- 46Labour Productivityoutput per worker
- 47Labour Turnoverthe proportion of staff leaving the business over a period of time
- 48Loss Leadersproducts with prices set deliberately below average total cost to attract customers who will then buy other, more profitable, products
- 49Market Structuresthe charaterisitics of a market, such as size of the barriers to entry to the market, number of businesses in the market, which determine the behaviour of businesses within the market
- 50Market intermediarya business or individual which acts as a link between the producer and customer
- 51Marketing MixThe elements of a business marketing that are designed to meet the needs of its customers. Elements are reffered to the 4 P's
- 52Marketingthe management process invloved in identiftying, anticipated and satisfying consumer requirement profitbly
- 53Market-orientation pricingwhere a business takes intoaccount conditions in the market without setting prices
- 54Mass Marketingthe marketing of a product to all possible customers in te same way
- 55Merchandisinga promotion specifically the point of sale promotion
- 56Monopolistic competitiona market structure where there is a large number of small busiinesses producing differentiated, branded products, where the barriers to entery are low and businesses are price setters
- 57Monopolya market structure wher theer is a single business in the market and there are barriers to entry
- 58Motivatorsthose things that can lead to workers being satisfied
- 59Net profit marginnet proft expressed as a percentage of sales revenue
- 60Net Profittotal sales revenue minus costs of sales and overheads
- 61Niche Marketingthe marketing of theproducts to a particular, small segment of the market
- 62Oligopolya market structure where a few large businesses dominate the market producing differntiated, branded, products, where barriers to entry are low and where businesses are price-takers
- 63operational targetsthe goals set by a business that must be achieved in the production of a product or provision or a service
- 64Operations Managementthe organisation and control of the process by which inputs, such as labour are transformed into final products or by which services are provided to customers
- 65Overtradinga sistuation where a business does not have enough cash and liquid resources to support its production and sales
- 66Penetration Pricingwhen a business sets low prices in an attempt to enter a new market
- 67Persuasive adevertisingadvertising which seeks to influence and persuade consumers to buy a product
- 68Point of Saleany point where a customer buys a product
- 69Premium Pricingwher high prices are charged to reinforce the quality and luxury imaghe of a product
- 70Price Skimmingwhere a product with a USP may have a high price for a limited period o time to tahe advantage of the newness of the product
- 71Price Takera business that is unable to choose the price it sets an follows the market price
- 72Pricing Strategiesthe pricing policies or methods of pricing adopted by businesses
- 73Pricing tacticsways of using price as a promtional tactic usually over a short period of time
- 74Product Life Cycleshows the diffferent stages in the life of a product and the sales that can be expected at each stage
- 75Product portfolio analysisan analysis of a particualr portfolio of products which a firm is marketing
- 76Profit Marginsprofit expressed as a percentage of turnover
- 77Promotionan attempt to retain and obtain customers by drawing attention to a firm or its products
- 78Promotional Mixthe mixture of promtional techniques used by a business to promote its products
- 79Quality Assurancea method of working for businesses that take into account customers wants and standardising quality. invloves guaranteeing that quality standards are met
- 80Quality Controlmaking sure that the quality of a product meets specified quality perfomance criteria
- 81Rate of Absenteeismthe number of staff absent as a percentage of the total number staff employeed
- 82Rationalisingreducing the number of resources, particularly labour and capital, put into the production process, usually undertaken because a business has excess capacity
- 83Reassuring advertisinga method used to assure consumers about their purchases and encourage them to make repeat purchases
- 84Relationship marketingan approach to marketing which seeks to strengthen a business's relationships with customers
- 85Retailera type of business which buys goods from manufacturers and wholesalers and sells them, typically in smaller quantities
- 86Return on Capitalthe amount of profit expressed as a percentage of the capital invested in a business
- 87Sales promotionsmethods of promoting a product in the short term to give a boost to sales
- 88Saturationstage of the product life cycle where sales are no longer growing
- 89Scientific managementa theory that suggests there is a 'best' way to perform work tasks
- 90Self-actualisationA level on Maslow's hierarchy where an employee realises his or her full potential
- 91Span of Controlthe number of subordinates working under a superior
- 92Subcontractinghiring or contracting another business to do work that could be done in-house by the business
- 93Tangible benefitsbenefits that can be measured
- 94Technologya creative process which uses human, scientific and material resources to solve problems and improve efficiency
- 95Total quality managementa managerial approach which focuses on quality and aims to improve the effectiveness, flexibility and competitiveness of a business
- 96Trade CreditGven when a supplier allows a customer to receive goods or services but pay for them at a later point in times
- 97Trainingthe process of increasing the knowledge and skills of workers so they are better able to perform their jobs
- 98USPthenaspect or feature of the product that differentiates it from its rivals
- 99Variance Analysisthe process of calulating variances and attempting to identify their causes
- 100Variancethe difference between actual financial outcomes and those which were budgeted
- 101Vendor ratinga method of measuring and evaluating the performance of suppliers
- 102Wholesalera type of business which buys goods from manufactures and sells them in small quantities to retailers
- 103Work life balancethe relationship between time spent at work and time spent away from work as a proportion of total time
- 104Zero Budgetinga system of budgeting where no money is allocated for costs or spending unless they can be justified by the fund holder