mock exams

Marketing Objectives

The goals set for the marketing department to help the business achieve its (corporate) objectives.

Marketing

The management task of identifying and meeting the needs of customers profitably by getting the right product at the right price to the right place at the right time.

Corporate Objectives

Well-defined and realistic goals that are set for the whole company.

Marketing Strategy

A plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantage.

Equilibrium Price

The price level at which demand is equal to supply.

Demand

The quantity of a product that consumers are willing and able to buy at a given price in a specific time period.

Supply

The quantity of a product that firms are prepared to supply at a given price in a specific time period.

Market Segment

A subgroup of a whole market in which consumers have similar characteristics.

Industrial Market

The selling of products by businesses to other businesses, also known as business to business or B2B.

Consumer Market

The selling of products by businesses to the final end user, also known as business to consumer or B2C.

Customer (or Market) Orientation

An outward-looking approach that bases product decisions on consumer demand, as established by market research.

Product Orientation

An inward-looking approach that focuses on making products that can be made-or have been made for a long time-and then trying to sell them.

Market Size

The total value (or quantity) of sales of all producers within a market in a given time period.

Market Growth

The percentage change in the total size of a market (volume or value) over a period of time.

Brand Leader

The brand with the highest share of the market.

Consumer Products

Goods or services sold to end users.

Industrial Products

Goods or services sold to businesses.

Mass Marketing

Selling standardized products or ranges of products in the same way to the whole market.

Niche Marketing

Identifying and exploiting a small segment of a larger market by developing differentiated products to suit that segment.

Market Segmentation

The identification of different groups of customers with common needs within a market and the marketing of different products or services to those customer groups.

Consumer Profile

A quantified picture of a business's consumers, showing data about their age groups, income levels, location, gender and social class.

Customer Relationship Marketing (CRM)

Using marketing activities to build and establish good customer relationships so that the loyalty of existing customers can be maintained.

Human Resource Management (HRM)

The strategic approach to the effective management of employees so that they help the business gain a competitive advantage.

Workforce Planning

Forecasting the numbers of workers and the skills that will be required by the organisation to achieve its objectives.

Workforce Audit

A check on the skills and qualifications of all existing workers/managers.

Labour Turnover

Measures the rate at which employees are leaving an organisation.

Recruitment

The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable candidates for the job.

Selection

The series of steps by which candidates are interviewed, tested and screened to choose the most suitable person for a vacant post.

Recruitment Agency

A business that offers the service of recruiting applicants for vacant posts.

Job Description

A detailed list of the key points about the job to be filled, stating all its key tasks and responsibilities.

Person Specification

A detailed list of the qualities, skills and qualifications that a successful applicant will need to have.

Application Form

A set of questions answered by a job applicant to give a potential employer information about the applicant, such as educational background and work experience.

Curriculum Vitae (CV)

A detailed document highlighting all of a person's professional and academic achievements, work experience and awards.

Résumé

A less detailed document than a CV, which itemizes work experience, educational background and special skills relevant to the job being applied for.

Reference

Comment from a trusted person about an applicant's character or previous work performance.

Assessment Centre

A place where a range of tests is used to judge job applicants on their potential ability to perform a particular role.

Internal Recruitment

When a business aims to fill a vacancy from within its existing workforce.

External Recruitment

When a business aims to fill a vacancy with a suitable applicant from outside of the business, such as an employee of another organization.

Employment Contract

A legal document that sets out the terms and conditions governing a worker's job.

Redundancy

When a job is no longer required, the employee doing this job becomes unnecessary through no fault of their own.

Dismissal

Being dismissed or fired from a job due to incompetence or breach of discipline.

Unfair Dismissal

Ending a worker's employment contract for a reason that the law regards as being unfair.

Employee Morale

Overall outlook, attitude and level of satisfaction of employees when at work.

Employee Welfare

Employees' health, safety and level of morale when at work.

Work-Life Balance

A situation in which employees are able to allocate the right amount of time and effort to work and to their personal life outside work.

Equality Policy

Practices and processes aimed at achieving a fair organisation where everyone is treated in the same way without prejudice and has the opportunity to fulfil their potential.

Diversity Policy

Practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace.

Training

Work-related education to increase workforce skills and efficiency.

Induction Training

Introductory training program to familiarize new recruits with the systems used in the business and the layout of the business site.

On-the-Job Training

Instruction at the place of work on how a job should be carried out.

Off-the-Job Training

Training undertaken away from the place of work.

Multi-skilling

The training of an employee in several skills to allow for greater flexibility within the business.

Employee Appraisal

The process of assessing the effectiveness of an employee judged against pre-set objectives.

Industrial Action

Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees.

Collective Bargaining

The process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official.

Trade Union Recognition

When an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargain individually with each worker.

Go-Slow

A form of industrial action in which workers keep working but at the minimum pace demanded by their contract of employment.

Work-to-Rule

A form of industrial action in which employees refuse to do any work outside the precise terms of the employment contract.

Overtime Bans

Industrial action in which workers refuse to work more than the contracted number of hours each week.

Strike Action

The most extreme form of industrial action in which employees totally withdraw their labor for a period of time.

Internal Recruitment

Filling vacancies from within the existing workforce, leveraging known talent and organizational culture.

External Recruitment

Attracting candidates from outside the organization to bring in new ideas and skills.

Revenue

The total value of sales made during the trading period (selling price x quantity sold).

Capital Employed

The total value of all long-term finance invested in the business.

Market Capitalization

The total value of a company's issued shares.

Market Share

Sales of the business as a proportion of total market sales.

Organic Growth

Expansion of a business by means of opening new branches, shops, or factories (also known as internal growth).

External Growth

Business expansion achieved by integrating with another business by either merger or takeover.

Merger

An agreement by owners and managers of two businesses to bring them together in a new combined business. This is often referred to as a friendly merger.

Takeover

When a company buys more than 50% of the shares of another company and becomes its controlling owner. It can be called an acquisition.

Horizontal Integration

Integration with a business in the same industry and at the same stage of production.

Vertical Integration

Integration with a business in the same industry.

Forward Vertical Integration

Vertical integration with a customer business.

Backward Vertical Integration

Vertical integration with a supplier business.

Conglomerate Integration

Integration with a business in a different industry.

Synergy

Literally means that 'the whole is greater than the sum of parts' - it is often assumed that the new business will be more successful than the original separate businesses.

Strategic Alliance

Agreement between two organisations to commit resources to achieving a specific objective while remaining independent.

Number of Employees

A measure of business size based on the number of people employed by the business.

Revenue/Sales Turnover

This is often used as a measure of size, especially when comparing businesses in the same industry; it is the total value of sales.

Capital Employed

A measure of business size which is the total value of all long-term finance invested in the business.

Market Capitalisation

A measure of business size calculated by current share price x total number of shares issued.

Market Share

A relative measure, if a firm has a high amount of this, it must be among the leaders in the industry and comparatively large.

Small Business

Businesses employing few people and with relatively low annual revenue are considered this.

Importance of Small Firms

These create employment, variety/choice. and competition, supply specialist goods and services, and they all began small.

Advantages of Small Businesses

Can be managed/controlled by the owner, adapt quickly to customer needs, offer personal service; it is often family-owned; it can usually be started with low capital investment.

Disadvantages of Small Businesses

Limited access to finance sources, the the owner has a large burden of responsibilities. They may not be diversified, they have high costs due to little economies of scale.

Strengths of Family Businesses

Commitment, reliability and pride, knowledge continuity are all strengths of this type of business.

Weaknesses of Family Businesses

Succession/continuity problems, informality, tradition, and conflicts are weaknesses of this type of business.

Importance of Small Businesses in the Economy

Help generate economic growth, amount to a high percentage of all employers, create a high percentage of all new jobs, and are often innovative.

Reasons for Business Growth

To increase profits, increased market share, increased economies of scale, increased power and status, and a reduced risk of being a takeover target.

Organic Growth Example

opening more shops in new locations to grow the business.

Disadvantages of Horizontal Integration

May bring bad publicity, customer opposition, and monopoly investigation.

Business Objective

A stated measurable target that a business plans to achieve. For example, a business objective could be to increase sales by 10% in the next year.

Profit Maximisation

Producing at that level of output where the greatest positive difference between total revenue and total costs is achieved.

Profit Satisficing

Aiming to achieve enough profit to keep the owners satisfied, rather than maximizing profit.

Corporate Social Responsibility (CSR)

When businesses consider the interests of society by taking responsibility for the impact of their decisions and activities on customers, employees, communities, and the environment. Examples include reducing carbon footprint and ethical sourcing.

Pressure Group

Organizations created by people with a common interest or aim, who put pressure on businesses and governments to change policies so that an objective is reached. Examples include Greenpeace and Amnesty International.

Triple Bottom Line

The three objectives of social enterprises: economic, social, and environmental.

SMART Objectives

Aims that are Specific, Measurable, Achievable, Realistic, and Time-limited.

Business Aim

A long-term goal that a business hopes to achieve.