Business key words theme one

What is a Market?

A place where buyers and sellers come together to exchange goods and services.

What is a Mass Market?

A large market for products that have broad appeal to a wide audience.

What is a Niche Market?

A smaller, specialized market that caters to a specific segment of consumers.

What is Market Share?

The percentage of total sales in a market controlled by a business.

What is Market Size?

The total sales revenue or volume of sales within a market.

What is Market Research?

The process of collecting, analyzing, and interpreting information about the market.

What is Primary Research?

Collecting original data directly from the source (e.g., surveys, interviews).

What is Secondary Research?

Using data that has already been collected (e.g., reports, studies).

What is Qualitative Research?

Research focusing on consumer attitudes, opinions, and motivations.

What is Quantitative Research?

Research based on numerical data and statistics.

What is Sampling?

The process of selecting a representative group for research.

What are Focus Groups?

A small group of people whose opinions are gathered on a product or service.

What is Bias in research?

A systematic error introduced into research outcomes, distorting the results.

What is Market Positioning?

The strategy used to position a product in the market to create a specific image or perception in the consumer’s mind.

What is Competitive Advantage?

A condition that allows a business to perform better than its competitors.

What is Product Differentiation?

Creating unique features in a product to make it stand out from competitors.

What is USP (Unique Selling Proposition)?

A unique feature or benefit that sets a product apart from competitors.

What is Demand?

The quantity of a good or service that consumers are willing and able to purchase at various prices.

What is Demand Curve?

A graph showing the relationship between the price of a product and the quantity demanded.

What is Elastic Demand?

When a change in price leads to a larger change in demand.

What is Inelastic Demand?

When a change in price leads to a smaller change in demand.

What is Market Demand?

The total demand from all consumers in the market for a specific good or service.

What is Supply?

The quantity of a good or service that producers are willing to sell at various prices.

What is Supply Curve?

A graph showing the relationship between the price of a good and the quantity supplied.

What is Elastic Supply?

When a change in price leads to a significant change in the quantity supplied.

What is Inelastic Supply?

When a change in price leads to a small change in the quantity supplied.

What is Market Equilibrium?

The point where the quantity demanded equals the quantity supplied.

What is Surplus?

A situation where the quantity supplied exceeds the quantity demanded.

What is Shortage?

A situation where the quantity demanded exceeds the quantity supplied.

What is the Market Clearing Price?

The price at which supply equals demand, clearing the market.

What is Price Elasticity of Demand (PED)?

A measure of how responsive the quantity demanded is to a change in price.

What is Unitary Elastic Demand?

When the percentage change in price equals the percentage change in demand (PED = 1).

What are the Factors Affecting PED?

Availability of substitutes, necessity vs. luxury, percentage of income spent on the good.

What is Income Elasticity of Demand (YED)?

The responsiveness of demand to changes in consumer income.

What are Normal Goods?

Goods for which demand increases as income increases.

What are Inferior Goods?

Goods for which demand decreases as income increases.

What are Luxury Goods?

A type of normal good for which demand increases more than proportionally as income increases.

What is Product Demand?

The willingness and ability of consumers to buy a product at a given price.

What is Service Demand?

The willingness and ability of consumers to buy a service at a given price.

What is Derived Demand?

Demand for a factor of production or intermediate good resulting from the demand for a final product.

What is Branding?

The process of creating a unique image or identity for a product or company.

What is Brand Loyalty?

The preference of consumers for a specific brand over others.

What is Above-the-Line Promotion?

Mass media advertising (TV, radio, print, etc.) to reach a broad audience.

What is Below-the-Line Promotion?

Direct marketing and promotional activities, such as sales promotions, sponsorships, and public relations.

What is Public Relations (PR)?

Activities aimed at managing the company’s image and building relationships with the public.

What is Personal Selling?

The direct interaction between a salesperson and a potential customer to influence their purchasing decisions.

What is Cost-Plus Pricing?

Setting a price by adding a markup to the cost of production.

What is Penetration Pricing?

Introducing a new product at a low price to gain market share quickly.

What is Skimming Pricing?

Setting a high price initially and gradually lowering it over time.

What is Psychological Pricing?

Pricing based on the psychological impact of the price (e.g., $9.99 instead of $10).

What is Price Discrimination?

Charging different prices for the same product in different markets or to different consumers.

What is Dynamic Pricing?

Adjusting prices based on demand and market conditions (e.g., surge pricing).

What are Distribution Channels?

The path through which goods or services travel from producer to consumer.

What is Direct Distribution?

Selling directly to consumers, bypassing intermediaries.

What is Indirect Distribution?

Using intermediaries such as wholesalers and retailers to sell products.

What is a Wholesaler?

A business that sells large quantities of goods to retailers.

What is a Retailer?

A business that sells goods directly to consumers.

What is Multi-Channel Distribution?

Using several distribution channels to reach different customer segments.

What is Marketing Strategy?

A plan for reaching a target market and achieving marketing objectives.

What is a Target Market?

The specific group of consumers a company aims to serve.

What is the Marketing Mix (4Ps)?

Product, Price, Place, Promotion – the key elements used to market a product.

What is Positioning?

Creating a distinct image for a product in the minds of consumers.

What is Staffing?

The process of hiring and developing employees.

What is Flexible Working?

Allowing employees to work flexible hours or locations.

What is Outsourcing?

Contracting external businesses to carry out functions or tasks.

What are Zero-Hours Contracts?

Employment contracts with no guaranteed hours of work.

What is Offshoring?

Moving business processes or production to another country to reduce costs.

What is Recruitment?

The process of finding and attracting candidates for a job.

What is Selection?

The process of choosing the most suitable candidate from the pool of applicants.

What is Training?

Providing employees with the necessary skills and knowledge to perform their roles.

What is Induction?

Introducing new employees to the business and its operations.

What is On-the-Job Training?

Training provided while employees are working.

What is Off-the-Job Training?

Training conducted away from the job, such as at a training center.

What is Organisational Structure?

The way in which a business arranges its employees and departments.

What is a Hierarchical Structure?

A structure with multiple levels of authority and clearly defined roles.

What is a Flat Structure?

A structure with few levels of management, providing more autonomy to employees.

What is a Matrix Structure?

A structure where employees report to more than one manager, typically in a project-based environment.

What is Delegation?

The process of assigning responsibility and authority to others.

What is Centralisation?

A structure where decision-making is concentrated at the top of the organization.

What is Decentralisation?

A structure where decision-making is distributed throughout the organization.

What is Motivation?

The factors that drive people to achieve goals or perform tasks.

What is Maslow’s Hierarchy of Needs?

A theory suggesting that human needs are arranged in a hierarchy, starting with basic needs and moving to higher-level needs.

What is Herzberg’s Two-Factor Theory?

A theory proposing that job satisfaction is influenced by hygiene factors and motivators.

What is McGregor’s Theory X and Y?

A theory suggesting two different approaches to management: Theory X (authoritarian) and Theory Y (participative).

What is Equity Theory?

A theory suggesting that employees are motivated by fairness and that perceived inequities can lead to dissatisfaction.

What is Leadership?

The ability to influence and guide individuals or teams to achieve goals.

What is Autocratic Leadership?

A leadership style where decisions are made by the leader with little to no input from others.

What is Democratic Leadership?

A leadership style where decisions are made with input and collaboration from team members.

What is Laissez-Faire Leadership?

A leadership style where leaders allow team members to make decisions with minimal interference.

What is Transformational Leadership?

A leadership style that focuses on inspiring and motivating employees to achieve exceptional outcomes.

What is Transactional Leadership?

A leadership style that focuses on maintaining routine and providing rewards or punishments based on performance.

What is an Entrepreneur?

An individual who takes the initiative to create and manage a business, taking on financial risks in the hope of profit.

What is Innovation?

The process of coming up with new ideas, products, or methods.

What is Risk?

The potential for loss or failure when undertaking a new business venture.

What is Opportunity?

A favorable condition that may lead to business success.

What are Motives in entrepreneurship?

The reasons behind an entrepreneur’s decision to start and run a business (e.g., profit, independence, social impact).

What are Characteristics of successful entrepreneurs?

Traits commonly found in successful entrepreneurs, such as determination, creativity, risk-taking, and leadership.

What is Opportunity Recognition?

The ability to identify a viable business opportunity or market gap.

What are Business Objectives?

Specific, measurable targets that a business seeks to achieve, such as increasing profit, market share, or brand awareness.

What is Profit Maximization?

The objective of maximizing the difference between revenue and costs.