Consumer good

the physical and tangible goods sold to
the general public – they include durable consumer
goods like cars and washing machines, and non durable
consumer goods like food, drinks and sweets that can be
used only once.

consumer service

– the non-tangible products sold to
the general public – they include hotel accommodation,
insurance services and train journeys

capital goods

the physical goods used by the industry
to aid in production of other goods and services, such as,
machines and commercial vehicles

creating value

– increasing the difference between the
cost of purchasing bought-in materials and the price of the
finished goods are sold

added value

the difference between the costs of
purchasing bought-in materials and the price the finished
goods are sold for.

opportunity cost

the benefit of the next most desired option which is given up

entreprenuer

someone who takes the financial risk of starting and managing a new venture.

social enterprise

– a business with mainly social
objectives that reinvest most of its profits into benefiting society rather than maximizing returns to owners

triple bottom line

the three objectives of social
enterprises: economic, social, and environmental

holding company

– a business organization that owns
and controls several separate businesses, but does
not unite them into one unified company.

market share

sales of the business as a proportion of
total market sales.

mission statment

a statement of the business’s core
aims, phrased in a way to motivate employees and to
stimulate interest by outside groups

corporate social responsiblities

– this concept applies to those businesses that consider the interests of society by taking responsibility for the impact of their
decisions of customers, employees, communities, and the envionment

internal growth

expansion of a business by opening new branches, hops, or factories (also known as organic growth).

management by objectives

a method of coordinating and motivating all staff in an organization by dividing its overall aim into specific targets for each department
manager and employee.

ethical code/code of conduct

a document detailing a company’s rules and guidelines on staff behavior that must be followed by all employees

commision

– a payment to a sales person for each sale
made.

laisser faire leadership

– a leadership style that leaves
much of the business decision-making to the workforce –
a ‘hands-off’ style approach and the reverse of the
autocratic style

informal leadership

a person who has no formal authority but has the respect of colleagues and some power over them.

emotional inteligence

the ability of managers to understand their own emotions, and those of the people they work with, to achieve better business performance.Motivation – the internal and external factors that stimulate people to take actions that lead to achieving a
goal.

human resource management

the strategic approach to the effective management of an
organization’s workers so that they help the business gain
a competitive advantage.

recruitment

the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, and attracting suitable
candidate for the job.

selection

involves the series of steps by which the
candidates are interviewed, tested, and screened for
choosing the most suitable person for the vacant post.
Job description – a detailed list of the key points about the job to be filled-stating all of its key tasks and
responsibilities.

marketing

the management tasks that link business to the customer by identifying and meeting the needs of the customers' profitability-it does this by getting the right product to the right place at the right time

marketing objectives

the goals set for the marketing department to help the business achieve its overall objectives

marketing stratergy

long-term plan established for achieving marketing objectives

market orientation

an outward-looking approach basing product decisions on consumer demand, as established by market research

asset led marketing

an approach to marketing that
bases strategy on the firm’s existing strengths and assets
instead of purely on what the customer wants.

product orientation

an inward-looking approach that
focuses on making products that can be made-or have
been made for a long time-and then trying to sell them.Social marketing – this approach considers not only the demands of consumers but also the effects on all members of the public (society) involved in some way
when firms meet these demands.

equilibrium price

the market price that equates supply and demand for a product

market size

the total level of sales of all producers within a market

market growth

the percentage change in the total size of the market (volume or value) over a period of time.

market share

the percentage of total sales in the total market sold by one business. this is calculated by the following formula :(sales in time period/total market sales in time)*100

direct competitor

– a business that provides the same or
very similar goods or services.

USP(unique selling price)

the special feature of a product that differentiates it from competitors’ products.

product diffrenciation

– making a product distinctive so that it stands out from competitors’ products in consumers’ perception.

niche marketing

identifying and exploiting a small segment of a larger market by developing products to suit it.

mass marketing

selling the same products to the whole market with no attempt to target groups within it.

consumer profile

a quantified picture of consumers of a firm’s products, showing proportions of age groups, income levels, location, gender and social class.

market segment

a sub-group of a whole market in which consumers have similar characteristics.

market segmentation

identifying of different segments within a market and targeting different products or services to them

qualitative research

– research into the in-depth motivations behind consumer buying behaviour or opinions.

quantitative research

research that leads to numerical results that can be statistically analysed.

focus group

– a group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging

random sampling

every member of the target population has an equal chance of being selected.

systematic sampling

every nth item in the target population is selected

stratified sampling

this draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum.

quota sampling

– when the population has been stratified and the interviewer selects an appropriate number from each stratum.

marketing mix

the four key decisions that must be taken to effectively market a product.

customer relationship management

using marketing activities to establish successful customer relationships to maintain existing customer loyalty.

brand

an identifying symbol, image or trademark that distinguishes a product from its competitors.

intangible attributes of a product

– subjective opinions of customers about a product that cannot be measured or compared easily.

product positioning

– the consumer perception of a product or service as compared to its competitors.

product portfolio analysis

analysing the range of existing products of a business to help allocate resources effectively between them

product life cycle

– the pattern of sales recorded by a product from launch to withdrawal from the market and is one of the main forms of product portfolio analysis.

Extention strategy

these are marketing plans to extend the maturity stage of the product before a brand new one is needed.

consumer durable

manufactured process that can be reused and is expected to have a reasonably long life, such as a car or washing machine.

price elasticity of demand

measures of demand responsiveness following a price change.

markup pricing

adding a fixed markup for profit to the unit price of a product.

target pricing

setting a price that will give a required rate of return at a certain level of output/sales.

full cost pricing

setting a price by calculating a unit cost for the product (allocated fixed and variable costs) and then adding a fixed profit margin

competition based pricing

a firm will base its price upon the price set by its competitors.

above-the-line promotion

– a form of promotion that is undertaken by a business by paying for communication with consumers.

branding

– the strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product.

marketing or promotional budget

the financial amount made available by a business for spending on marketing/promotion during a certain time period.

adverse variances

where actual income is less than budget, or actual expenditure is more than budget.

favourable variances

go through each line item in your budget and subtract the actual spend from the original budget. Then do up the total.

budget

a plan you write down to decide how you will spend your money each month