Edexcel A-Level Business - Paper 1 Topics

mass market

a market that targets a large segment - products are standardised

niche market

a market that targets a small segment - customers have specific needs that aren't catered by the mass market

brand name

a name, sign, symbol or other feature that allows consumers to identify the goods of a business and differentiate it from rivals

e-commerce

conducting business transactions online

online retailing/ e-tailing

buying goods online

market

a arrangement where the buyer and seller can trade and communicate

marketing

process that involves identifying, analysing and anticipating customer requirements profitably

market share

the total sales a business has in a particular market that involves one and more other businesses

primary/field research

data collected first-hand for a specific purpose (involves questionnaires)

secondary/desk research

data that already exists for a different purpose (can be internal - stock movements/sales figures and external - international publications/rival websites)

quantitative research

data can be measured (financial element to it)

qualitative research

research based on opinions, beliefs and intentions.

consumer panel

group of consumers are asked for feedback of a product after a period of time

database

a system that stores data electronically - has features such as find and sorting.

focus groups

consumers are invited for a discussion about a product that is going to be launched in the market

market orientation

a business that places the needs of the customers at the centre of decision making

product orientation

a business that puts emphasis on the product itself - meaning contact with customer comes last

market research

collection, presentation and analysis of data relating to the marketing and consumption of goods and services

market segmentation

a group that has similar characteristics in a whole market (behavioural, psychographic, demographic and geographic)

added value

the extra features that may be offered when selling a product which helps to exceed customer satisfaction

competitive advantage

an advantage that helps a business to perform better than its rivals

market/perceptual map

a two-dimension diagram that places a brand with other rivals against two characteristics or attributes (based on opinion)

market positioning

the view a customer has of a product compared to other rivals (in terms of quality, value and image)

product differentiation

at attempt by a business to set the product apart from its rivals

reposition

the process by which a business attempts to change the position consumers have of their product

USP

the aspect or feature of a product that clearly distinguishes it from its rivals

demand

amount of a product consumers are willing and able to buy at any given price

Factors affecting demand

price of substitutes, complementary goods, advertising and branding, fashion and tastes, seasonality, demographics and external shocks (government, competition and economic climate)

complementary goods

goods that are purchased together because they are consumed together (milk and cereal)

inferior goods

income rising = demand falls (Tesco value crisps)

substitute good

goods that can be bought as an alternative to other but perform the same function

normal good

income rising = demand rises (kettle chips for example)

supply

amount of a product which suppliers will offer at a given price

factors affecting supply

cost of production, introduction of new technology, indirect taxes, government subsidy and external shocks (weather and government)

subsidy

a grant given to producers using to encourage production

equilibrium price/ market clearing price

the price which demand and supply are equal

excess demand

point at which supply is unable to meet demand (shortage of goods)

excess supply

point at which supply is greater than demand (unsold supply)

total revenue

money generated from sales of good (price x quantity)

price elasticity of demand

measures the responsiveness to a change in quantity demanded to a change in price

price/income elastic

change in price/income results in a greater change in demand

price/income inelastic

change in price/income results in a small change in demand

income elasticity of demand

measures the responsiveness to a change in quantity demanded to a change in income

factors affecting PED

time, competition and branding

factors affecting YED

necessity or luxury

design mix

range of features that are important when designing a product (aesthetics, functionality and cost)

ethical sourcing

using materials and components from suppliers that respect the environment, workers and trade with integrity.

recycling

making use of resources that have been discarded as waste

resource depletion

using up of natural resources

waste minimisation

reducing the amount of resources that are discarded in the production process

above-the-line promotion

promotion that involves the use of media (newspapers, TV, cinema, radio, internet and social media)

below-the-line promotion

promotion that doesn't involve the use of the media

sales promotion

methods used to boost sales: BOGOF offers, coupons, loyalty cards and competitions

public relations

communicating with stakeholders to improve image: press release and press conference

merchandising

point of sale: product layout and display

direct mailing

sending out letters and leaflets by post informing customers about specific products

brands

manufactorer brands (Heinz Beans), own-label (Tesco value beans) and generic (carrots)

choosing promotion

cost, market type, product type, stage in product lifecycle, legal factors and competitors promotion

emotional branding

building a brand through consumers emotions

viral marketing

encouraging the passing on a message electronically

cost-plus pricing

adding a mark-up to the cost of making the product to get the price

penetration pricing

setting a low price to get established in the market

predatory pricing

setting a low pricing to force rivals out of the market

competitive pricing

setting a price accordingly to rivals

psychological pricing

setting a price slightly below a round figure (£9.99)

price skimming

setting a high price initially and then lowering it later

distribution channel

the route a product takes to get from the manufacturer to the consumer

agent/broker

an intermediary that brings together buyer and seller (travel and estate)

breaking-bulk

buying products in large quantities and selling them in smaller chunks

direct selling

manufacturer sells its products directly to seller (without the use of intermediaries)

intermediary

brings together producer and buyer (wholesaler, agents/brokers, retailers)

retailer

a business that buys products from producer or wholesaler and sells them in smaller chunks to consumers

wholesaler

a business that buys goods from manufacturer and sells them in small quantities to retailer

marketing strategy

a set of plan that helps the business achieve its marketing objective

product line

products a business produces that are quite similar

product portfolio

range of products a business is currently marketing

extension strategy

strategy used to prolong the life of a product (used when the product has hit saturation - product ajustment and promotion)

Boston matrix

2x2 model that analyses a product portfolio of a business according to its market growth and market share (cash cow, star, question mark and dog)

marketing mix (4Ps)

product, place, price and promotion

B2B

business to business (wholesaling) - COSCO wholesale

B2C

business to consumer (retailer) - TESCO

soft HRM

staff as an asset: caring about the workers - flexible hours, financial and non-financial incentives andchances for promotion

hard HRM

staff as an cost: treating staff as an cost - means minimising costs - low motivation, use of zero-hour contracts and inflexibility

collective bargaining

a method used to determine conditions of work and terms of employment through a worker's representative (trade union) and employer

flexible workforce

where workers can respond to a change in demand

home workers

people who undertake their regular work from home (suitable for parents and carers)

industrial action

disruptive measures taken by employees to put pressure on employer to solve a disagreement (strikes)

multi-skilling

process of improving the skills of the workplace

zero-hour contract

contract that doesn't guarantee the hours of work

CV (curriculum vitale)

a document that lists personal details, qualifications, education, experience and other specific details required by jobseeker

job description

a document that gives details about the duties and responsibility of the job role

person specification

a person profile that enlists the type of person (character) wanted for the job

on-the-job training

training taken at the workplace

induction training

training given to employee on the first day (tour, rules, etc)

off-the-job training

training provided externally (can be a short course)

responsibility

the duty to carry out a task

centralisation

decision-making takes place in the core of the workplace (top-down)

de-centralisation

decision-making is pushed down the chain of command away from the core (subordinates - bottom-up)

hierarchy

the order of levels of responsibility of a organisation

chain of command

the way authority and power is organised in the workplace