Business Studies
Key Terms
- Created by: Bethany Ward
- Created on: 28-03-11 17:42
Primary
Information gathered for a specific purpose through direct investigation.
Secondary
Information that already exists.
Segments
Part of a market that contains a group of buyers with similar buying habits.
Quantitative
Data than can be expressed as numbers and can be statistically analysed.
Qualitative
Data about opinions, judgements and attitudes.
Socio-economic groups
The classing for the sort of people the products are aimed at.
Brand loyalty
Keeping with the same brand of product.
Product life cycle
Introduction: The introduction of the product.
Product life cycle
Growth: More people start to buy the product.
Product life cycle
Maturity: Lots of people have the product.
Product life cycle
Decline: The sales start to decrease/ decline.
Product life cycle
Extension strategy: A strategy to extend the products life.
The Boston Matrix
Problem children: Low market share with low sales but high potential.
The Boston Matrix
Cash cows: High market share, low growth market.
The Boston Matrix
Dogs: Low market share, low market growth.
USP
Unique Selling Point.
Differentiation
Each product can be used for a different purpose.
Logo
Brand symbol.
Brand
Company name.
Price
Make the product affordable to the target market. (amount the product is being sold for).
Product
Is aimed at a certain audience and is to the customers need. (the item being offered to the public).
Place
Easily accessible for the customer.
Promotion
Getting the product out there and known.
Customer expectations
The customer needs and wants out of a product.
Aesthetics
How well a product appeals to the senses.
Patent
Granted by the government meaning no-one can copy your invention for a number of years.
Buffer stock
The lowest amount of stock a business will hold.
Retailer
A business that sells goods to the customer.
Stocks
The amount of resources a company has at one time e.g. raw materials, work in progress, finished product.
JIT- Just In Time
A stock management system where stocks are only delivered when they are needed and so no stocks are kept by the business.
Culture
The work environment and the product are good quality so they are willing to make the product to a high standard.
Quality control
Quality culture includes quality improvement measures as well as the individual and collective commitment to quality maintenance and improvement.
Warranty
An agreement between customer and the business detailing conditions where the product will be fixed or replaces with no cost to the customer.
Automated
Machine operated.
Productivity
The efficiency of a worker or business.
Customer service
The quality of the product or service provided to the customer.
Repeat purchase
The customer buys the same brand of product repeatedly.
Durability
Assurance to the customer that the product will last and work for the amount of time promised.
Monopoly
A company that has 25% or more of the market share.
Red tape
The collection or sequence of forms and procedures required to gain bureaucratic approval for something.
EU Grant
Money given to company/ industry from european union which does not need to be paid back.
Profit
Money left after paying all of the costs. The difference between revenue and costs.
Revenue
Amount of money earned by a firm from selling its products/ services.
Calculation: Products sold X Price.
Breakeven point
The level of output where total revenues are equal to total costs; this is where neither a profit nor a loss is being made.
Breakeven chart
A graph which shows total revenue and total costs, allowing the break-even point to be drawn.
External finance
Finance which is obtained from outside the business such as bank loans and cash from the issue of new shares.
Internal finance
Finance which is obtained within the business such as retained profit or the sale of assets.
Organisational chart
A diagram which shows the internal structure of an organisation.
Centralised organisation
A type of business organisation where decisions are made at the centre of the organisation and then down the chain of command.
Decentralised organisation
A type of business organisation where decision-making is pushed down the hierarchy and away from the centre.
Motivation
In work, the desire to complete a task.
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