Studied by 11 people
Product
Good or service that a business sells
Market
Any place that buyers and sellers exchange products
Mass Market
Market targeted at a wide range of people
Niche Market
Smaller segment of a larger market
Market Size
Volume of sales in the market
Market Share
Proportion of total market sales a firm has
Brand
Feature that distinguishes one seller’s product from others
Dynamic
Constantly moving
E-commerce
Process of buying and selling products over the internet
Competition
Rivalry between 2 or more businesses striving for the same market
Monopoly
When a business dominates a market
Duopoly
When 2 companies dominate a market
Oligopoly
When a few companies dominate a market
Monopolistic Competition
When many producers sell the same product and differentiate using things like branding and quality
Market Research
Collection and analysis of information to inform the business about its market
Primary Market Research
Collection of first-hand data
Secondary Market Research
Market research which has already been undertaken by another business
Qualitative Data
Gathering of non-numerical information
Quantitative Data
Gathering of numerical data
Open Question
Question asking for a detailed opinion
Closed Question
Question asking you to choose between a limited amount of options
Sample
Group of respondents that have been chosen from a larger group for an investigation
Product Orientation
Product is made the focus of a business
Market Orientation
Consumer is made the focus of the business
Market Segmentation
When the market is split into groups that have similar buying characteristics
Demographic
Breakdown of population
Geographic
Segmented by location
Market Positioning
How the product is viewed by the market
Market Mapping
Diagram showing the position of the product in the market relative to its competitors
Product Differentiation
USP that makes a product stand out
Demand
Relationship between price and quantity
Advertising
Communicating with customers to generate awareness and desire
External Shocks
Unexpected events outside business control that have a direct impact on demand
Seasonality
Fluctuations in demand depending on the time of year
Supply
Amount of a product that producers are willing to sell
Subsides
Encouraging/discouraging suppliers to produce products
Equillibrium
Where demand and supply meet
Price Elasticity of Demand (PED)
How responsive demand is to a change in price
Income Elasticity of Demand (YED)
How responsive demand is to a change in income
Bespoke Product
Made specifically for you
Ethical Sourcing
Buying materials from suppliers that are behaving in a morally correct manner
Promotion
Activities designed to communicate with the customer to increase awareness of a product
Cost-plus Pricing
Where a mark-up is added to the cost of a product to give you the selling price
Price Skimming
Setting a high initial price for a new product
Price Penetration
Setting a low initial price to gain a foothold in the market
Predatory Pricing
When the prices are set low for a short period to force out competitors
Competitive Pricing
Charging a similar price to competitors
Price Leader
A firms market share is so strong that when they change the price and others are forced to follow
Price Taker
Following the price strategy of the price leader
Place
Getting the product from the manufacturer to the consumer
Product Mix
Different products that a company provides
Product Range
Different types of a similar product
Hard HR
Staff are treated as a resource
Soft HR
Staff are treated as a valuable asset
Flexible Workforce
Workers being able to take on as many jobs as possible to meet the business needs
Multiskilling
Training an employee in multiple skill sets
Job Sharing
2 part time worker sharing 1 full time job
Complementary Goods
Good whose appeal increases with the popularity of its complement
Inferior Good
Goods whose demand decreases when consumer income rises
Luxury Good
Good whose demand increases when consumer income rises higher than usual
Normal Good
Good which experiences a rise in demand due to an increase in income
Substitutes
Thing that can serve in the place of another
Outsourcing
Tasks are completed by a 3rd party organisation
Homeworking
Staff can work remotely from home
Redundant
The job no longer exists
Dismissal
When an employee’s contract is terminated due to a breach of terms
Internal Recruitment
Recruiting someone within the organisation
External Recruitment
Candidates are recruited from outside of the organisation
Levels of Hierarchy
Number of levels of management within the business
Span of control
Number of subordinates that someone has to directly manage
Chain of command
Lines of authority within a business
Centralised structure
One or a few people make decisions in the business
Decentralised structure
Decision making is spread across the whole business
Motivation
Factors that influence the way someone behaves
Piece rate
You are paid for every thing you make
Job enrichment
An increase in the level of responsibility an employee has
Job enlargement
An increase in the number of responsibilities an employee has
Job rotation
Varying the tasks that an employee does to reduce boredom and increase skillsets
Intrapreneur
An employee with the characteristic of an entrepreneur
Objective
A quantifiable target
Cost efficiency
Achieving maximum output from minimum input
Unincorporated
Entrepreneur and business are the same legal entity
Incorporated
Entrepreneur and business are a separate legal entity
Franchise
Granting a business to use an established business’ branding in return for a fee
Franchisee
Person or business that buys the franchise
Franchisor
Person or business that sells the franchise
Social enterprise
Business where society benefits
Opportunity cost
Next best alternative that is lost from making a decision
Trade off
Alternatives sacrificed to chose the best opportunity
Crowd funding
Large number of people giving a small amount of money
Business angels
Wealthy people make personal investments into start up businesses in return for a share of the business
Overdraft
Short term facility to overspend on a current account up to an agreed sum
Trade credit
Paying suppliers a period of time after the goods or services have been recieved
Leasing
Allows a business to use an asset without buying or owning it
Venture capital
Investment from an established business in return for a percentage of the business
Share capital
Finance raise from the sale of shares
Grant
Fixed amount given by the government for a specific project
Cash flow
The money that flows in and out of the business
Sales forecasting
Identifying potential future sales volume and trends
Break even
When total revenue is equal to total costs
Note 
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