definitions whole unit

• Mass Market


  The main market where customers' needs and wants are the same for a product
• Niche Market

  A segment of the larger market where customers have specific needs, and it is where a specific product is focused
• Dynamic Market


  A market that is constantly changing and adapting to customers' ever-changing needs
• Risk


  The probability that hoped for outcomes will not occur
• Uncertainty


  The unpredictable and uncontrollable events that affect business decisions and actions
• Competition


  Other businesses operating in the same market selling similar products that are competing for share of the market
• Product orientation


  A business develops products based on what they are good at producing, not what the market wants
• Market orientation


  A business develops products with the market in mind, making products they believe customers want and will buy
• Primary market research


  A business collecting data first-hand for a specific research project
• Secondary market research


  Using data that already exists, collected by someone else for another purpose (e.g. internal or external commercial market organisations, government, competitors, trade publications, general media)
• Market segmentation


  Splitting up the market into distinct groups with similar attributes (e.g. geographical, demographic, income, behavioural)
• Market mapping


  A way of analysing where the business or its products sit in the market and see where there is a gap in the market to help put new product ranges
• Competitive advantage


  A way of adding more value to its products than its rivals to have a position of relative advantage
• Product differentiation

  Making products unique so they are different and distinct from competitors in a desirable way (e.g. be distinctive, visible to customers, not easily copied, affordable, profitable to sell)
• Adding value


  Ways to make a product seen as more valuable and worth a higher price, or ways to increase the price
• Demand


  The amount of product or service that customers are willing to pay for
• Supply

  The amount of product or service that is available for the customers to purchase
• Price elasticity of demand


  The responsiveness of demand to a change in the price of a product. Measures how much quantity demanded changes when price changes.
• Income elasticity of demand


  The responsiveness of demand to a change in income. Measures how much quantity demanded changes when incomes change.
• Design mix


  The combination of different design elements that are used to create a product: function, aesthetics and cost
• Promotion


  Techniques used to make products known to customers: personal selling, direct marketing, above/below the line marketing, PR and sponsorship, sales promotion (BOGOFF, price discounts, money off coupons, samples/give aways, special events, point of sale), digital communication (online adverts, mobile communications, advergaming, social media, consumer generated content, viral strategies)
• Branding


  A characteristic, name, symbol that distinguishes one product from another. Types include manufacturer/corporate branding, product branding, own product brand products (rebranding).
• Pricing strategy


  The approach a business takes when setting the price of goods (e.g. cost plus, price skimming, penetration, predatory, competitive, psychological)
• Distribution


  The way a product gets from the manufacturer to the consumer. Distribution channels bring the product to the buyer and provide a link between production and consumption. Can be 2 stage (manufacturer - retailer - consumer) or 3 stage (manufacturer - wholesaler - retailer - consumer).
• Product life cycle


  The stages a product goes through from when it is first thought of until it is removed from the market: development, introduction, growth, maturity, decline. Extension strategies can prolong the maturity stage.
• Boston Matrix


  A model which helps businesses analyse their portfolio of businesses and brands.
• Marketing strategies

  Methods used by a business to achieve its marketing objectives: mass market and niche market strategies, business to business marketing, business to consumer marketing.
• Flexible workforce


  Employees who have the ability to adapt to changing work demands and schedules: multi-skilling, part-time, temporary, flexible hours, home working, outsourcing.
• Dismissal


  When an employer ends an employee's employment, either because the employee is at fault or due to redundancy (a reduced need for employees by the firm).
• Recruitment


  The process of finding people to work for a company or become new members of an organisation. Can be internal (from existing employees) or external (from outside the business).
• Training


  Giving employees the skills needed for the job: induction, on-the-job, off-the-job.
• Organisational design


  A diagram or chart which shows the lines of authority and layers of hierarchy of the business. Needs to consider hierarchy, chain of command, span of control, and whether it is centralised or decentralised.
• Organisational structure


  Can be tall, flat or matrix, and impacts motivation.
• Motivation


  Ways in which businesses can encourage staff to want to work. Theories include Taylor (scientific management), Mayo (human relations theory), Maslow (hierarchy of needs), Herzberg (two-factor theory). Can be financial and non-financial.
• Leadership


  The action of leading a group of people or an organisation, and the ability to do this.
• Management


  The process of dealing with or controlling things or people, and the responsibility for and control of a company or organisation.
• Leadership styles

  Autocratic (managers make decisions with no input from employees), democratic (allow employees to help in the decision-making process), paternalistic (leader makes decisions they believe are right for employees), laissez-faire (employees can carry out activities and make decisions freely).
• Entrepreneur


  A person who sets up a business and takes risks in the hope of profit or reward.
• Intrapreneurship


  An employee within a large business who acts like an entrepreneur, e.g. takes risks, is innovative, solves problems.
• Risk

  The possibility that a business will have lower than expected profit or a loss.