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| Question | Answer |
| Added value | Difference between selling price and cost of making product |
| Advertising | Paid method of promotion Above line : mass media Below line : one to one |
| Autocratic leaders | No consultation One way communication Manager decided |
| Bonus | Extra monetary payment for meeting or exceeding a target |
| Boston matrix | Shows position of products within market share and growth |
| Cash cow | High market share Low market growth |
| Dog | Low market share Low market growth |
| Rising star | High market share High market growth |
| Problem child | Low market share High market growth |
| Branding | Establishing an identity to distinguish from competition |
| Business objective | Target set by business in short term |
| Centralisation | Authority and control is in hands of senior managers only |
| Chain of command | Line of communication and authority |
| Collective bargaining | Negotiations of wages organised by a group of employees |
| Commission | Money paid upon completion of a tast |
| Complementary good | Goods with joint demand where change in price of one affects the other |
| Consultation | Asking for and taking into consideration the views of people who will be affected by a decision |
| Consumer income | Money received by an employee in return for their services |
| Consumer loyalty | Retaining customers who regularly repeat purchase |
| Cost efficiency | Keeping low unit costs or low running costs |
| Decentralised | Decision making powers and authority is passed down hierarchy |
| Delayering | Removing layers of the heirarchy to cut labour costs |
| Delegation | Authority, power and decision making is passed down layers of heirarchy |
| Demand | The amount desired by customers who are willing and able to pay at a given price and at a given time |
| Democratic | Leadership style where manager discusses decisions |
| Demographics | Change in population structure and size over time |
| Design mix | Combination of factors needed in designing a product Aesthetics Economic Function |
| Differentiation | Making a product unique and distinctive to add a USP |
| Dismissal | When a employees contract is terminated due to incompetence or unacceptable behaviour |
| Distribution channels | Methods used to get products from manufacturers to. Consumer |
| Dynamic market | Market subject to rapid or continuous change |
| Economies of scale | Factors that cause unit cost to fall as scale of production increases |
| Efficiency | Improved operations so a business can run smoothly without much waste and without compromising quality |
| Emotional branding | Brands that appeal directly to a consumers emotional state |
| Demployee welfare | The wellbeing of staff to ensure they're being treated in according to the employee law |
| Empowerment | Providing employees with power and decision making responsibilities |
| Entrepreneur | A risk taker who sets up a business to make profit |
| Ethical sourcing | Ensuring throughout the supply of chain goods are manufactured under good conditions and employees are treated fairly |
| Extension strategy | Plan to elngthen the life cycle of a product when it comes to maturity |
| External recruitment | Selecting candidates from outside the business to fill a vacancy |
| External shocks | Unexpected events that affect supply and demand |
| Financial motives | Monetary incentive that drives an employee to work |
| Flexible working | Allowing a worker to do different jobs, work flexible hours and when the organisation needs them |
| Franchise | Allowing others to trade under their name in return for payment |
| Government subsidies | Financial support from the government with the aim of promoting social and economic policy |
| Herzbergs theory | Employees have motivators and hygiene needs and hygiene needs are not motivators |
| Hierarchy | The levels of authority |
| Home working | Allowing an employee to work off the premises |
| Indirect taxes | A tax levied on goods and services e.g. VAT |
| Induction training | The introduction of a new employee to the firm showing the layout and health and safety procedures |
| Innovation | The implementation of new ideas and. Commercial application of them |
| Internal recruitment | Selecting candidates from inside the business to fill a vacancy |
| Job enlargement | Increasing tasks and responsibilities to make the job more challenging in hope to motivate staff |
| Job enrichment | Redesigning jobs to make them more challenging and complex |
| Job rotation | Moving employees to different departments to give a varied job role and increased motivation |
| Labour turnover | Measure of the rate of change of a firms workforce |
| Laissez-faire | Employees trusted to make their own decisions without input from management |
| Leadership | To inspire staff and achieve demanding goals |
| Lifestyle businesses | Starting up a business based on their own / families needs |
| Market mapping | Positioning a product on a map which shows where there is a gap in the market |
| Marketing objectives | Marketing targets that a firm must achieve to support corporate objectives Relating to sales/ market share |
| Market orientation | Responding to market research and producing a product that satisfies the wants and need some of target market |
| Market segmentation | Dividing up the target market to better tailor products and promotion |
| Market size | Measured by sales value Volume of products sold |
| Marketing strategy | Methods used to achieve market objectives |
| Market share | Percentage of sales in a market that a firm is accountable for |
| Maslow Hierarchy of needs | A pyramid that individuals must climb based on their needs |
| Mass market | A large undifferentiated market that produces standard products |
| Matrix structure | Where employees have the flexibility to work on products with or for other departments |
| Mayo's theory | Employees were motivated by the attention that is given to their welfare |
| Motivation | What drives a worker to achieve a goal |
| Multiskilling | Training staff in many toasts to promote job rotation |
| Niche market | A small specialised segment of the market specialising in expensive products |
| Non financial motives | Non monetary incentives designed to motivate staff to work |
| Organisational structure | How a firm organises the chain of command and lines of authority |
| Off the job training g | Employees are trained before performing the job not whilst |
| On the job training | Employees being trained whilst they're doing the job |
| Opportunity cost | The cost of next best alternative |
| Outsourcing | An organisation bringing in a service from an external firm |
| Part time worker | A member of staff who words less hours than a full time worker |
| Market | Where buyers and sellers come to complete sales |
| Paternalistic | Leadership style where the manager takes the employees best interest into account before making a decision |
| Price elasticity of demand | A measure of the responsiveness of demand to a change in price |
| Performance related pay | A financial reward for achieving a target |
| Piece work | Financial incentive where a worker is paid per unit produced |
| Product portfolio | The range of products sold by a business |
| Profit maximisation | The difference between sales revenue and costs. The attempt to make as much profit as possible |
| Profit satisficing | When businesses settle for the right profit rather than the most |
| Qualitative data | Thoughts and opinions |
| Quantitative date | Numerical and statistical data |
| Competitive pricing | Pricing to compete directly with rival brands |
| Partnership | An organisation sun by 2-20 owners |
| Price inelastic demand | When change in demand is smaller than change in price e.g. PED UNDER 1 |
| Price penetration | Charging a low price when entering a market then increasing it |
| Private limited company | Company who can sell shares to who they choose |
| Predatory pricing | Charging a price so low to force out competitors from the market |
| Psychological pricing | Influencing a customer to perceive the product as a better deal |
| Premium pricing | Charging high price for high quality |
| Price skimming | Charging a high price to take advantage of customers willing to pay |
| Pricing statergues (5) | Price skimming Penetration pricing Premium pricing Psychological pricing Cost based pricing |
| Primary research | New or original data that has been collected first hand |
| Profit sharing | Providing staff with a percentage of the firms annual profit |
| Promotional mix | Publicising a product to increase sales or awareness |
| Public limited company | A company owned by shareholders who can buy shares on the stock market |
| Recruitment | The process of hiring staff |
| Redundancy | When a employee is no longer needed as their position no longer exists |
| Resource depletion | The worlds natural resources that are of limited supply |
| Sample | Selecting a group for market research that represents the overall population |
| Seasonality | Seasonal trend factors that affect demand |
| Secondary research | Market research that was originally collected for another purpose |
| Social enterprise | A business set up for the good of the community rather than profit |
| Social objectives | Businesses who aim to do good for the community |
| Social trends | Changes in attitudes and lifestyles of a population over time |
| Sole trader | Someone who individually runs a business |
| Spam of control | The number of subordinates directly reporting to a superior |
| Sponsorship | Paying for the right to be featured at an event |
| Stock market flotation | Selling shares public ally on the stock market |
| Substitutes | Products a customer may turn to for better price |
| Supply | The quantity of product a provider is willing and able to sell at a given price at a given time |
| The product life | The pattern of sales of a product over a time: Development Introduction Growth Maturity Decline |
| Target market | Segment of the market that the firm is trying to capture sales from |
| Taylor's scientific management | Seeking to improve productivity by the manager showing staff for each task should be performed |
| Team work | Employees being encourages to work in groups to share ideas and feel motivated |
| Temporary worker | A worker who's contract has a set end date |
| Trade off | Accepting less of one thing to achieve more of another |
| Training | The process where employees gain new skills |
| USP | adding a unique feature to a product that differentiates it |
| Viral marketing | The idea brands can be spread quickly through the use of social media |
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