Business Key Terms

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  • Created by: Natalie
  • Created on: 17-11-13 12:46
Marketing
the management process that is responsible for anticipating, indentifying and satisfying customer needs profitably
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Market Research
the process of gaining information about customers, competitiors and market trends through collecting primary and secondary data
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Primary Data
information that has been gathered for a specific purpose through direct investigation such as observation, surveys and experiments
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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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Quantitive Data
data that can be expressed as numbers and can be statistically analysed
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Qualitative Data
data about opinions, judgements and attitudes
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Survey
research involving asking questions of people or organisations
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Respondents
those who provide data for a survey usually by answering questions
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Market Segement
part of a market that contains a group of buyers with similar buying habits
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Sample
a small group of people out of the total population which is selected to take part in a survey
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Quesionnaires
a list of questions to be answered by respondents, designed to give information about consumers' tastes
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Product Trial
when consumers buy 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 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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Trade Buyers
buyers of goods which then sell those goods on to consumers or other buyers; they include supermarket chains and wholesalers
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Wholesalers
businesses which buy in bulk from a manufacturer or other supplier and then sell the stock on in smaller quantities to retailers
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Retailers
businesses which specialise in selling goods in small quantities to the consumer
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Customer Loyalty
the willingness of buyers to make repeated purchases of a product or from a business
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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, launching the product, growth, maturity, saturation and decline
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Research and Development
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 ir Product Mix
the combination or range that a business sells
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Product Portfolio Analysis
investigation of the combination of products sold by a business
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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 the market; a product is placed in one of the 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 the 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 summarising as the 4 Ps (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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Maximum Stock Level
the highest amount of stock to be kept by a business
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Re-order Level
the amount of stock held by a business at which an order for new stock is placed with suppliers
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Buffer Stock Level or Minimum Stock Level
the lowest amount of stock to be kept by a business
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Just in Time (JIT)
a stock management system where stocks are only delivered when they are needed by the production system, and so no stocks are kept by the 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 Control
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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Sales of Good Legislation
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 Descriptions 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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Financial Management
deliberately changing monetary variables like cash flows to achieve financial objectives such as improved cash flows
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De-stocking
reducing the level of stocks in a business
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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
occurs when the revenues of a business are greater than its costs over a period of time
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Revenues
the amount of money recieved from selling goods or services over a period of time
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Break-even 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
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Total Revenue
the revenue earned by a business from the sale of a given quantity of products. It is equal to quantity sold x average price
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Total Costs
all the costs of a business; equal to fixed costs plus variable costs
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Fixed Costs
costs which do not vary with the amount produced, such as rent, business rates, advertising costs, administrating costs and salaries
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Variable Costs
costs which change directly with the number of products made by a business, such as the cost of buying raw materials
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Break-even Chart
a graph which shows total revenue and total cost, allowing the break-even point to be drawn
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Margin of Safety
the amount of output between the actual level of output where profit is being made and the break-even level of output; if the margin ot safety is zero, then production is at or below the break-even level
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Financing a Business
how a business obtains money and other financial resources to start up, expand and if necessary pay off losses it has made
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Internal Sources of Finance
finance which is obtained within the business such as retained profit or the sales of assets
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External Sources of Finance
finance which is obtained within 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 business
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Equality 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 quater 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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Bonds
a long-term where typically interest is paid at regular intervals like a year and the loan is all repaid at the end of the life of the bonf. Bonds are traded on stock markets
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Organisation
the way in which a business is stuctured for it to achieve its objectives
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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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Line Manager
employee who is responsible for overseeing the work of others futher down the heirarchy of an organisation
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Function
tasks or jobs. Organisation by function means that a business is organised according to tasks that have to be completed, such as production or finance
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Authority
the right to decide what to do in a situation and take command of it to be able to make decisions without referring to anyone else
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Subordinate
workers in the heirachy 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
moving layers of management and workers in a heirachy so that there a fewer workers in the chain of command
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Empowerment
giving more responsibility to workers futher down the chain of command in a heirarchy
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Downsizing
when a business emplys fewer workers to produce the same amount through increases in productivity which can be achieved through delayering
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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 for work to another worker futher 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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Hierarchy of Needs
placing needs in an order of importance, starting with basic needs
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Communication
messages passed between a sender and a reciever, through a medium such as a letter or an email
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Feedback
response to a message by its reciever to the sender
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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 grapevinve communication
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Formal Channels of Communication
channels of communication that are recognised and approved by the business and by employee representatives such as trade unions
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Informal Communication or Communication Through the Grapevine
communication through channels that are not formally recognised by the business
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Payment Systems
methods of orgaising the payment of workers, such as piece rates or salaries
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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 do 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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Basic Pay
pay earned for working the basic working week
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Non-manual or White Collar Workers
workers 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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Full-time Workers
employees who work the whole of the working week
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Temporary Workers
workers who have no permanent contract of employement with a business and so tend to work only for a short period of time for an employer
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Freelance Workers
workers who tend to be self employed and do particular pieces of work for a business as a supplier
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Fringe Benefits
payments in a kind over and above the wage or salary, such as a company car
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Business 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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Developed Countires
countries with a relatively high income per person
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Developing Countries
countries with a lower income per person than developed countries
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Import
an import is the purchase of a good or service from a foreign business that leads to a flow of money out of the UK. The UK buyer will have to change pounds into the seller's currency to make the transaction
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Export
an export is the sale of a good or service to a foreign buyer that leads to a flow of money into the UK. The foreign buyer will have to change their currency into pounds to complete the purchase
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Protectionist Policies
measures designed to reduce foreign products coming into a country but give an advantage to domestic firms to sell products at home or export products
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Tariffs or Customs Duties
taxes put on goods imported into a country which make them more expensive for the buyer
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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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Protectionist Policies
measures designed to reduce foreign products coming into a country but give an advantage to domestic firms to sell products at home or export products
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Tariffs or Custom Duties
taxes put on goods imported into a country which make them more expensive for buyers
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Minimum Wage
the lowest payment per 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, competitiors and market trends through collecting primary and secondary data

Back

Market Research

Card 3

Front

information that has been gathered for a specific purpose through direct investigation such as observation, surveys and experiments

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 numbers and can be statistically analysed

Back

Preview of the back of card 5
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Comments

davidsalter

A superb, large collection of the main key terms needed for the GCSE exam. Can be used alone or for joint revision or adapted to produce further revision aids

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