business unit 3 key words

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marketing
process that anticipates, identifies and satisfies customer needs profitably
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market research
The process of gaining information about customers, competitors and market trends through collecting primary and secondary data
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primary data
New information that has been gathered for a specific purpose through direct investigation such as questionnaires, surveys and interviews
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secondary data
Information that already exists such as accounts and sales records, government statistics, newspaper and internet articles and reports from advertising agencies
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quantitative data
Data that can be expressed as number and can be statistically analysed
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qualitative data
Data about opinions, judgements and attitudes
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respondents
Those who provide data for a survey usually by answering questions
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market segment
Part of a market that contains a group of buyers with similar buying habits
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sample
A small group out of the total population which is selected to take part in a survey
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product trial
When consumers try a good for the first time and assess whether or not they want to buy it again
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public relations
Promotion of a positive image about a product or business through giving information about the product to the general public
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viral marketing
Getting individuals to spread a message about a product through their social networks like Facebook or their group of friends
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penetration pricing
Setting an initial low price for a new product so that it is attractive to customers. The price is likely to be raised later as the product gains market share.
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retailers
Businesses which specialise in selling goods in small quantities to the consumer
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repeat purchase
When a customer buys a product more than once
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product life cycle
The stages through which a product passes from its development to being withdrawn from sale; the phases are research and development, launch, growth, maturity, and decline
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research and dvelopment
The process of scientific and technological research and then development of the findings of that research before a product is launched
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extension strategy
Method used to increase the life of a product and prevent it falling into decline
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product portfolio
The combination or range of products that a business sells
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Boston matrix
A model which analyses a product portfolio according to the growth rate of the whole market and the relative market of a product within that market; a product is placed in one of four categories – star, cash cow, problem child or dog
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brand
A named product which consumers see as being different from other products and which they can associate and identify with
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generic product
A product made by a number of different businesses in which customers see very little or no difference between the product of one business compared to the product of another business
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own brand
A product which is sold under the brand name of a supermarket chain or other retailer rather than under the name of the business which manufactures the product
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product differentiation
Making one product different from another in some way, for instance through the quality of a product, its design, packaging or advertising
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premium price
A price which is above average for products of a particular type
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marketing mix
A combination of factors which help a business to take into account customer needs when selling a product, usually summarised as the 4P’s (price, product, promotion and place)
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design mix
The range of variables which contribute to successful design; they are function, cost, and appearance
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stocks
Materials that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers
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buffer stock level
The lowest amount of stock to be kept by a business
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just in time
A stock management system where stocks are only delivered when they are needed by the production system, and so no stocks are kept by a business
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quality
Achieving a minimum standard for a product or service, or a production process which meets customers needs
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quality controll
Ensuring that a product or service meets minimum standards, often through testing of sample products once they have been made
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quality assurance
Ensuring that quality is produced and delivered at every stage of the production process, often through making quality the responsibility of every worker
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customer service
The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations
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innovation
The process of transforming inventions into products that can be sold to customers
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sale of goods act
Gives consumers rights to compensation if a product they buy is not of merchantable quality, not as described or not fit for purpose
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Trade description legislation
Makes businesses liable for prosecution and fines if products are sold in a misleading way
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cash flow
The flow of cash into and out of a business
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de-stocking
Reducing the levels of stocks in a business, usually by having a sale
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trade credit
Where a supplier gives a customer a period of time to pay for a bill (or invoice) for goods or services once they have been delivered
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profit
Total Revenue - Total Costs.
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revenue
Price x Quantity sold
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break-even point
Total revenue - total costs. Or profit is 0 and losses are 0
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total costs
total fixed costs + total variable costs
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fixed costs
costs that do not change with output
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variable costs
costs that change directly with output
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margin of safety
The amount of output between the actual levels of output where profit is being made and the break-even level of output
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internal sources of finance
Finance which is obtained within the business such as retained profit or the sale of assets
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external sources of finance
Finance which is obtained from outside the business such as bank loans and cash from the issue of new shares
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retained profit
Profit which is kept back in the business and used to pay for investment in the company
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equity or share capital
The monetary value of a business that belongs to the business’ owners. In a company, this would be the value of their shares
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share
A part ownership in a business; for example a shareholder owning 25% of the shares of a business owns a quarter of the business
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overdraft
Borrowing money from a bank by drawing more money than is actually in a current account. Interest is charged on the amount overdrawn
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organisation chart
A diagram which shows the internal structure of an organisation
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hierarchy
Structure of different levels of authority in a business organisation, one on top of the other
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subordinate
Workers in the hierarchy who work under the control of a more senior worker
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chain of command
The path (or chain) down which orders (or commands) are passed. In a company, this goes from the board of directors down to other workers in the organisation
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delayering
Removing layers of management and workers in a hierarchy so that there are fewer workers in the chain of command
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empowerment
Giving more responsibility to workers further down the chain of command in a hierarchy
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span of control
The number of people who report directly to another worker in an organisation
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delegation
Passing down of authority to work to another worker further down the hierarchy of the organisation
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centralisation
A type of business organisation where decisions are made at the centre or core of the organisation and then passed down the chain of command
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decentralisation
A type of business organisation where decision-making is pushed down the hierarchy and away from the centre of the organisation
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motivation
In work, the desire to complete a task
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maslows hierarchy of needs
Placing needs in an order of importance, starting with basic needs
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communication
Messages passed between sender and a receiver, through a medium such as a letter or an email
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internal communication
Communication within the business organisation
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external communication
Communication between the business and an outside individual or organisation like a customer, a supplier or a tax inspector
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channel of communication
The path taken by a message, such as horizontal communication, vertical communication or grapevine communication
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manual or blue collar workers
Workers who do mainly physical work like an assembly line worker
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wages
Tend to be paid to manual workers for working a fixed number of hours per week plus overtime
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overtime
Time worked over and above the basic working week
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non-manual or white collar workers
Worker who do non-physical work, like an office worker or teacher
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salary
Pay, usually of non-manual workers, expressed as a yearly figure but paid monthly
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commission
Payment system usually operated for sales staff where their earnings are determined by how much they sell
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bonus
Addition to the basic wage or salary, for instance, for achieving a target
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part-time workers
Employees who work only for a fraction of the working week
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temporary workers
Workers who have no permanent contract of employment with a business and so tend to work only for a short period of time for an employer
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fringe benefits
Payments in kind over and above the wage or salary, such as a company car
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ethics
Ideas about what is morally correct or not, applied in a business situation
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supply chain
The processes that are involved in the route taken by a product from the raw materials needed to create it right through to the final customer
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developing countries
Countries with a lower income per person than developed countries
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import
Purchasing goods from abroad.
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export
Uk goods being sold overseas
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tariffs
Taxes put on goods imported into a country which make them more expensive
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import protection
TARIFFS OR QUOTAS designed to protect UK businesses
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quotas
Limits on the physical number of goods that can be imported over a period
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export subsidies
Measures that reduce the price of goods sold abroad
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minimum wages
The lowest payment for hour, day or week that can be given to a worker for their work
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Other cards in this set

Card 2

Front

The process of gaining information about customers, competitors and market trends through collecting primary and secondary data

Back

market research

Card 3

Front

New information that has been gathered for a specific purpose through direct investigation such as questionnaires, surveys and interviews

Back

Preview of the back of card 3

Card 4

Front

Information that already exists such as accounts and sales records, government statistics, newspaper and internet articles and reports from advertising agencies

Back

Preview of the back of card 4

Card 5

Front

Data that can be expressed as number and can be statistically analysed

Back

Preview of the back of card 5
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