business theme 1 flashcards

• Percentage Change in price

  Price new – Price old / Price old x 100
• Market share


  The % of a market that a business, product or service has
• Added value


  Value added is when a business chooses to enhance the quality of a core product by providing extras to improve a customer's utility/experience
• Market size


  Measured by volume of sales or value
• Above the line promotion


  Placing adverts using the media
• Marketing


  A management process involved in identifying, anticipating and satisfying consumer requirements profitably
• Advertising


  Communication between a business and its customers where images are placed in the media to encourage the purchase of products
• Marketing mix


  Price, place, promotion and product, how a business uses these 4 elements strategically
• Aesthetics


  What the item looks like
• Marketing Strategy


  A Set of plans that aim to achieve a specific marketing objective
• Agent or broker


  Foreign sales agent is a business which represents products from another business in a new country
• Mark-up


  The amount above cost added to a product before it is placed for sale
• Aims


  What a business tries to achieve in the long term
• Maslow's Hierarchy of Needs


  The order of people's needs starting with the basic human requirements
• Articles of Association


  A document that provides details of the internal running of a limited company
• Mass market


  Products or services that are sold or advertised to everyone at the same time in the same way
• Authority


  This is the power or right to give orders in an organisation
• Matrix structure


  This is a hierarchy design which groups by project and function
• Autocratic Leadership


  Leader makes all the decisions
• Mechanisation


  Method of operating or controlling processes using machinery
• Automation


  Method of operating or controlling processes by automatic means using devices. Reduces need for human interaction
• Merchandising


  A promotion specifically at the point of sale of a product
• Below the line promotion

  Any promotion that does not involve using the media
• Memorandum of Association


  A document that sets out the constitution and states key external details about a limited company
• Bonus


  A payment in addition to the basic wage for reaching targets or in recognition for service
• Motivated


  The desire to take action to achieve a goal
• Brand Name


  A name, term, symbol, sign, design or other feature that allows consumers to identify the goods and services of a business and to differentiate them from those of competitors
• Motivators (Hertzberg)


  Things at work that result in satisfaction
• Boston Matrix


  A 2x2 matrix model that analyses a product portfolio according to the growth rate of the market and the relative market share of products within the market
• Multi-skilling


  An employee is trained to do more than one job, for example an electrician is trained to plaster walls
• Breaking – bulk


  Dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
• Mutual Organisation


  A business owned by its members, who are customers not shareholders
• Business Choices


  Deciding between alternative uses of resources
• Niche market


  A subset of a normal market that caters for specific consumer needs and wants
• Certification of incorporation

  A document that declares a business is allowed to trade as a limited company
• Normal good


  Products where an increase in consumer's income means an increase in demand
• Centralisation


  A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command
• Objectives


  The goals or targets set by a business to help achieve its long-term purpose
• Chain of command


  This is the route that orders travel down in an organisation and complaints travel up
• Off the job training


  Training that takes place away from the area of work