Business 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
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
Market Research
Collecting data on consumer habits to help marketing decision making
Market research
Collecting data on consumer habits to help marketing decision making
Markets
Where businesses sell their goods and services
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
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
Partnership
A business owned by 2 to 20 people
Part time working
When an employee is contracted to work less than 40 hours per week
Pay
The money earned by workers as a reward for the work they do
Penetration pricing
When a price is set lower than the competitor business, usually to help break into a market (A short term strategy)
Person Specification
A document that lists the qualities, qualifications and knowledge of the ideal candidate for a job
Physical Distribution
The distribution of goods or services using a physical presence such as a shop or office
Point of sale promotions
Promotions such as price reductions, loss leaders, competitions or free samples
Praise
Method of motivating workers by complimenting their work, making them feel valued
Primary Research
Data collected first hand often using surveys. Also known as Field Research
Print Media
Newspapers, posters, billboards, leaflets
Private Limited company
A business that can sell shares to family and friends, not to the general public. Usually smaller businesses.
Productivity
The output per person in a business (can be used as a measure of performance)
Product Life Cycle
The life of a product shown as a graph divided into introduction, growth, maturity and decline
Professional development
Learning over a long period of time (vocational or academic) often completed through external courses
Profit
The difference between revenue and costs
Profit Sharing
Workers are paid a share of the profits on top of their basic wage, which motivates them to work hard to make the business do well
Promotional pricing
Prices are reduced to boost sales or sell off old stock
Providing a service
Meeting the needs of customers
Public Limited Company
A large business that can sell shares to the public on the stock market
Purpose of human resources
The work that must be done within the business by the workers
Qualitative Data
Data based on consumers opinions
Quantitative Data
Data collected that is measurable based on facts or numbers. Easier to analyse
Questionnaire
A question sheet filled in by the potential consumer
Recruitment agency
An organisation that completes the recruitment and selection process on behalf of a business
References
Statements from current or previous employers about the suitability of the applicant
Regulations
Rules imposed on a business by the Government
Research and development (R&D)
Used to help introduce both new and existing products. Research can be testing products in a laboratory or conducting research with customers
Resources
The things a business needs to make it work (CELL - Capital, enterprise, land and Labour)
Retention
Keeping staff in the organisation e.g. through motivation or job opportunities
Satisficing
The business makes enough profit to enable it to meet its needs but not as much profit as possible
Secondary Research
Collecting existing data from magazines /internet. Also known as Desk Research
Selection
The process of choosing between applicants for a job
Shareholders
The owners of a private or public limited company
Skills Gap
When a business recruits skilled workers because it is short of them
Skills shortage
When a business cannot recruit workers with the skills they need
Skimming pricing
Charging a high price for a new product, which is more advanced than that of the competition (Sometimes called 'Creaming')
Sleeping Partner
A partner who invests money in a business but takes no part in the day to day running
Social Media
Online network allowing people to create and share content
Social media
Online network allowing people to create and share content
Sole trader
A business owned by one person
Span of control
The number of workers who report directly to the line manager
Spotting and opportunity
The ability to see the need for a particular product or service that customers need
Stakeholders (Stakeholder groups)
Individual or group that has an interest in a business BIGCOWS - Banks/Investor/Government /Customer/Owner/Worker/Supplier
Start-up
A new business enterprise
Statement of employment particulars
Part of an employment contract giving details of the terms of employment
Subordinates
The worker a line manager is responsible for. Someone lower down the chain of command
Success
Success can be measured in different ways e.g. survival, profit, good customer service
Survival
When a business just manages to keep going (e.g. break-even)
Takeover
One business takes a controlling interest of another business
Tall structure
A business with lots of layers. This will have lots of middle managers and supervisors
Target Market
The group of customers who the business will aim its products. This can include other businesses or consumers
Target market
The group of customers who the business will aim its products. This can include other businesses or consumers
Temporary work
Employees on fixed term contracts e.g. a Christmas job
Tests
Activities completed by applicants to assess their skills
Trade Union
An organisation that exists to protect workers' rights (represents the interests of its members)
Training
Short term methods to focus on helping staff do their job well
Trials
Product trials are used to test whether customers will buy a product
Turnover of Labour
A measure of how many staff leave a business each year
Unlimited liability
Responsibility for all the debts rests with the owners, so personal possessions can be at risk
Verbal communication
Spoken communication methods e.g. telephone, video conferencing, face to face
Vertical communication
Communication up or down the hierarchy in an organisation
Vocational qualifications
Skills based qualifications e.g. BTEC and Apprenticeships
Website
Online location with several pages that can be contacd by internet users
Working environment
The quality of the work place, which can motivate or demotivate staff
Working time directive
A statement of the maximum hours of work that a person can be asked to work
Written communication
Communication using written words and diagrams e.g. text, email, letter, report
Zero hours contract
Contracts that do not guarantee workers a specific number of hours