business T4 test

tertiary sector

offer services rather than physical goods

privately owned business

business whose shares or assets are not traded on public stock markets and ownership rests with individuals, families, etc, not government

market share

the percentage of total sales in a market that is attributed to a particular business

revenue

The total income generated by a business from its sales of goods or services before any costs are deducted

international hotel chains

a hospitality company that owns, manages, or franchises multiple lodging properties across different countries under a common brand name or parent group

independent hotels

a privately owned and operated lodging property that has no affiliation with a major corporate hotel chain or franchise

market research

the process of gathering, analysing, and interpreting information about a market, including its customers, competitors, and trends

customer loyalty

a customer's ongoing emotional and behavioral commitment to consistently purchase from a specific brand or company over competitors, driven by positive experiences and trust

branding

the ongoing process of giving a company a distinct identity, name, symbol so that people easily recognize it

target market

the specific group of consumers or businesses that a company aims to serve and sell its products or services to

market segmentation

the process of dividing a broad consumer or business market into smaller, distinct sub-groups of customers who share similar characteristics, needs, or behaviors

marketing strategy

a company’s long-term, big-picture plan for reaching potential customers, communicating its unique value, and turning them into buyers

marketing mix

a strategic framework of controllable tools and variables that a business uses to promote and sell its product or service in the target market

competitive advantage

the unique edge, attribute, or strategy that allows a business to outperform its competitors, attract more customers, and generate higher profit margins

customer retention

a business's ability to keep its existing customers buying products or using services over a specific period of time, rather than losing them to competitors

market share growth

the increase in the proportion of total industry sales, revenue, or unit volume controlled by a specific company over a given period of time

labour costs

the total financial outlay an employer spends to maintain a workforce, including gross wages, salaries, employee benefits, insurance, paid leave, and payroll taxes

profit margin

the percentage of net profit relative to net sales. It reflects a company's ability to generate profit after accounting for all expenses, including taxes and interest

strategic objectives

high-level, measurable outcome statements that bridge an organization's broad vision with its day-to-day execution

revenue growth

the percentage increase or decrease in a company's total sales or income from one period to the next

customer value proposition

a clear business statement that explains why a customer should choose a specific product or service over competitors

cost plus

sets the selling price by adding a predetermined markup percentage for profit

penetration pricing

low initial pricing to enter the market

loss leader

selling product below its cost to attract customers

predatory pricing

setting price to deliberately undercut rivals

premium pricing

high price to signal quality/status

dynamic pricing

adjusting price of product in real time based on market conditions, supply and demand, etc

competitive pricing

setting the product price to be similar or lower than prices charged by other businesses in the same market

contribution pricing

a product’s selling price is based on its variable costs with the goal to contribute to its fixed costs