OCR Business GCSE Paper 1

4P's of the marketing mix

4P's that create a marketing strategy - Product, Place, Price, Promotion

Academic qualifications

School, college or university qualifications e.g. GCSE, A Level or degrees

Accountability

Who is responsible for getting a job done. They will therefore take the credit or the blame for how things go

Advertising campaign

A series of advertisements often using different media

Advertising media

Methods a business can use to advertise e.g. newspaper, tv and radio

Aims and objectives

The goals that the business is trying to achieve e.g. survive, make a profit or achieve growth

Analysing HR needs

Deciding on how many and what type of workers it should employ

Application form

A form provided by the business to candidates for a job to outline their personal details, experience and skills

Apprenticeship

Long term development programme for workers to learn skills while they work through a mix of on and off the job training

Authority

Who has the power to make a decision or control what others do in a business

Award Scheme

Presentation of some kind (e.g. employee of the week) to recognise an employee's efforts

Backwards vertical growth

A business merges with or takes over a business that supplies it with goods or services e.g. Bakery buys out a wheat farm

Bonus

An additional payment to a worker for reaching or exceeding a target

Business Objectives

What a business is trying to achieve e.g. profit / growth / survival / provide a service

Business Plan

Document that sets out details on the product / service to be sold, where the finance will come from, how the business will be marketed and the market research to show there is a need.

Capital

The money raised to start or develop a business

Census Data

Data collected on the entire population by the Government every 10 years on their income, occupation

Chain of command

The links in the levels of authority from top to bottom, showing who is in charge of who

Communication

The transmission of a message from a sender to a receiver through a means of communication

Competitor pricing

Price is set based on prices charged by a competitor business for a similar product

Continuity

Whether a business continues to exist if an owner dies (Sole trader / Partnership cease to exist - Ltd and PLC continue to exist)

Contract of employment

A legal agreement between an employers and employee

Cost Plus pricing

Price is set by adding a percentage of profit to the total costs of making a product, creating a selling price

Customer service

Service given to customers including at time of sale and after the sale

CV

Curriculum Vitae - A document on which the applicant outlines their personal details, experience and skills

Decline

Sales of a product are falling as customers switch to newer products

Deed of Partnership

Document setting out terms of partnership e.g. how profits are shared

Delegation

The process of passing down responsibility to a subordinate to complete a task or make a decision

Design

An important element which considers style and technology

Development

Long term training focused on helping staff realise their long term potential

Digital communication

The exchange of information electronically using ICT

Digital Distribution

The distribution of goods and services digitally downloaded from a website

Discrimination

When one worker is treated differently to another because of: gender, race, religion, disability etc

Diversification

A business merges with or takes over a business with which it has no connection e.g. Coke Cola buys a clothing company

Dividend

Money paid to shareholders from the profits as a return on their investment

Employment agency

An organisation that has readily available workers for a business to hire on short term contracts

Employment law

Laws created to protect the rights of workers from employers who may treat staff unfairly

Employment tribunal

A panel that hears cases where employment laws may have been broken

Enterprising characteristics

The features of an entrepreneur e.g. determination, creativity, risk taker

Entrepreneur

An person who takes the risk of starting and running a business enterprise

External communication

Communication between people in an organisation and others outside the organisation

External growth

Growth achieved through a takeover or merger

External methods of recruitment

Includes websites, newspapers, social media and specialist magazines

External Recruitment

A job vacancy is filled by someone from outside the business

External Stakeholders

Stakeholders outside of the business e.g. Suppliers / customers / Government / local community

Feedback

The response by a person who receives a communication indicating they have, or have not understood the message

Finance

The business word for the money needed to start up / run a business

Flat structure

A business with few layers. These tend to have wider spans of control.

Flexible working

When staff work partly in their place of work and partly at home or whilst they are mobile

Focus Groups

A selected, small group of customers who give their opinions on a product

Formal communication

Communication using official channels of communication in the business e.g. meetings / reports / line management meetings

Forwards vertical growth

A business merges with or takes over a business that it supplies goods or services to e.g. Ice cream factory buys a fleet of ice cream vans

Fringe benefits

Additional benefits a worker can receive on top of their wages as a motivator e.g. subsidised meals lunches / childcare vouchers/ discounts off products or services

Full time working

When an employee is contracted to work 40 hours of more per week

Functions

The different jobs / departments in a business e.g. marketing, finance, operations and human resources

Group activities

Activities designed to test how well applicants work with others

Growth

A business becomes larger by making more products or opening more outlets

Hierarchy

The levels of authority within a business

Holiday entitlement

The amount of paid holiday time a worker can have in a year

Horizontal communication

Communication between people on the same level of the hierarchy in an organisation

Horizontal growth

Merger or takeover where 2 businesses are involved in the same industry e.g. Car factory 1 buys out car factory 2

HR Department

The department that deals with all matters relating to workers e.g. recruitment / motivation / training / pay

Human resources

The workers employed by a business

Human Resources Plan

Document that outlines a business's staffing needs e.g. how many, full or part time, what skills

Identifying human resource needs

The activity of predicting what type and how many workers a business will need

Induction training

Training given to new staff e.g. tour of the business / introduce to other staff / go through fire procedures etc

Informal communication

Communication outside of official channels e.g. grapevine

Innovation

The improvement of an original idea, which will often use new processes

Internal communication

Communication between people in the same organisation

Internal Data

Data already in the business e.g. past sales data

Internal methods of recruitment

Includes noticeboards, word of mouth, company website and emails to staff

Internal Recruitment

A job vacancy is filled by someone who already works in the business - so someone is transferred or promoted

Internal Stakeholders

Stakeholders from within the business e.g. owners / workers

Interview

A question sheet filled in by the person conducting the interview

Interviews

Sessions in which interviewers get the opportunity to ask questions of the applicants

Introduction

When a product is launched into the market

Invention

The introduction of a totally new product or feature

Job description

A document that lists the main duties of a job / hours of work / line manager etc - provided to potential applicants for a job

Layers

The number of levels of authority within the chain of command

Letter of application

A letter written by the applicant explaining why they think they are suitable for the job

Limited liability

The responsibility for paying back debt is limited to the amount invested by a shareholder (this protects their personal possessions)

Limited Liability Partnership

A partnership that has limited liability

Loss Leaders

Products sold at a loss to attract customer to a business, where they are likely to spend money on additional items

Market Data

Information that can help marketing decisions, such as market share, changes in demand and effects of promotions

Market research

Collecting data on consumer habits to help marketing decision making

Market Research

Collecting data on consumer habits to help marketing decision making

Market segmentation

Splitting the market for a product into parts / segments e.g. age / income etc

Market Share

The percentage of a market a business controls. E.g. the % of sales a business has in a market

Marketing

Finding the needs of consumers and then demonstrating how the business will meet those needs to increase sales

Marketing mix 4P's

4P's that create a marketing strategy - Product, Place, Price, Promotion

Markets

Where businesses sell their goods and services

Maturity

Sales have reached their peak / highest level

Merger

Two or more businesses agree to join together to become one large business

Motivation

When workers are incentivised to work and work efficiently, using pay and non-pay rewards

Off the job training

Training that occurs away from the workplace

On the job training

Training that occurs in the work place, while they are doing their job

Operate

How the business works

Organic growth

Internal growth of a business by increasing sales

Organisation chart

A diagram that shows how the workers are organised in a business. Who is in charge or who? Shows channels of communication

Part time working

When an employee is contracted to work less than 40 hours per week