Studied by 16 people
niche market
When businesses identify and satisfy the demands of a small segment of a larger market
Mass Marketing
When businesses aim their products at most of the available market
Dynamic market
A market that is constantly changing to customers needs and wants
Risk
Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
market research
The activity of gathering information about consumers' needs and preferences.
Primary Research
research done firsthand for the first time
Secondary Research
past research which has already been performed and often already published
Qualitative Research
research that relies on what is seen in field or naturalistic settings more than on statistical data
Quantitative Research
research that collects and reports data primarily in numerical form
Sampling
The process of selecting representative units from a larger population
Marketing Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Market Targeting
the process of evaluating each market segment's attractiveness and selecting one or more segments to enter
market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Market mapping
Helps businesses to identify market segments and position their products through identifying gaps in the market
product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
Customisation
The creation of individualised products to meet the specific needs of the customers
Added value
the difference between the cost of purchasing raw materials and the price the finished goods are sold for
substitute
A similar rival product that consumers may choose instead.
complementary goods
Goods that are commonly used with other goods
Indirect taxes
Taxes imposed by the government on goods and services
equilibrium price
the price that balances quantity supplied and quantity demanded
Elasticity
The ability of a material to bounce back after being disturbed
Marketing Mix
Product, Price, Place, Promotion, people, process, physical environment
promotion
Advance an employee earns by being productive, cooperation, dependable, and highly skilled.
Branding
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
Distribution
The range of activities necessary to make the product available to customers
multichannel distribution
Where firms use more than one type of distrubution channel e.g. shops, online, click and collect.
marketing strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Product Life Cycle
The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.
Extension strategies
Methods used to prolong the life of a product
Flexible workforce
A workforce that can respond, in quantity and type, to changes in market demand
Outsourcing
Hiring workers in other countries to do a set of jobs
redundant
When an employer reduces its workforce because a job or jobs are no longer needed
Induction
The training given when an employee joins to familiarise them with the business and workplace
Labour turnover
The rate at which workers leave a business
hierarchy
A group organized by rank
chain of command
the order of authority within a facility
authority
the power or right to give orders, make decisions, and enforce obedience.
span of control
the number of subordinates who report directly to a manager
Centralisation
Keeping all of the important decision-making powers within head office or the centre of the organisation
Decentralisation
Decision-making powers are passed down the organisation to empower subordinates and regional/product managers
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal
Motivation
a need or desire that energizes and directs behavior
Manager
one who handles business affairs
Leader
someone who can influence others and who has managerial authority
Entrepreneur
A person who organizes, manages, and takes on the risks of a business.
Objectives
specific results that a business wishes to achieve
corporate business
Business that have a legal identity that is separate from that of their owners
limited liability
A form of business ownership in which the owners are liable only up to the amount of their individual investments.
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
sales forecast
A prediction of future sales over a specific period of time
Social enterprise
A business that is set up to help society rather than to make a profit.
oppurtunity cost
The next best alternative foregone
Business Angels
individuals who invest their personal capital directly in start-ups
Crowdfunding
using social networking to appeal to potential investors
trade credit
the practice of buying goods and services now and paying for them later
unlimited liability
The owner is personally and fully responsible for all losses and debts of the business
business plan
a formal written document that describes the nature of a business and how it will operate
Cash flow forecast
forecast that predicts the cash inflows and outflows in future periods, usually months or quarters
extrapolation
the act of estimation by projecting known information
Trend
a general direction in which something is developing or changing
revenue
money recieved from sales
variable costs
costs that vary with the quantity of output produced
fixed costs
Costs that do not vary with the quantity of output produced
breakeven point
the point at which the costs of producing a product equal the revenue made from selling the product
contribution
The amount of money left over after variable costs have been subtracted from revenue. The money contributes towards fixed costs and profit.
Margin of Safety
difference between your actual or expected profitability and the break even point
budget
A plan for making and spending money
Variance Analysis
Statistical method for identifying the degree of difference between planned and actual performance or outcomes.
profit
total revenue minus total cost
Gross Profit
Sales revenue - cost of sales
operating profit
Gross Profit - Expenses
Profit for the year
Operating profit + profit from other activities - net finance costs - tax
Statement of Comprehensive Income
A financial document showing a company's income and expenditure over a particular time period, usually one year
profit margin
net income/net sales
Liquidity
the ease with which an asset can be converted into cash
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
Assets
money and other valuables belonging to an individual or business
Liabilities
Amounts owed to creditors
current assets
cash and other assets expected to be exchanged for cash or consumed within a year
Current Liabilities
liabilities due within a short time, usually within a year
Working Capital
current assets - current liabilities
business failure
a business that has stopped operating with a loss to creditors
Productivity
the quantity of goods and services produced from each unit of labor input
competitiveness
How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
unit cost
A unit rate that gives the cost per unit.
Efficiency
The percentage of the input work that is converted to output work
capital intensive
using more capital than labor in the production process
Labour intensive
where production relies more heavily on labour relative to machinery
Capacity utilisation
Actual level of output / maximum possible output x 100
dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations
just in time
a logistics process in which goods arrive when needed for production, use, or sale rather than sitting in storage
Lean production
a management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders
Quality Assurance
The maintenance of a desired level of quality in a service or product
Total Quality Management (TQM)
a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
Kaizen
continuous improvement
Inflation
A general and progressive increase in prices
exchange rate
The measure of how much one currency is worth in relation to another.
monetary policy
Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.
interest rates
The cost of borrowing money
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