Theme 1

Percentage Change in price Market share

Price new – Price old The % of a market that a business, product

Price old x 100 or service has

Added value Market size

Value added is when a business chooses to Measured by volume of sales or value

enhance the quality of a core product by
providing extras to improve a customer’s
utility/experience

Above the line promotion Marketing

Placing adverts using the media A management process involved in

identifying, anticipating and satisfying
consumer requirements profitably

Advertising Marketing mix

Communication between a business and its Price, place, promotion and product, how a
customers where images are placed in the business uses these 4 elements strategically
media to encourage the purchase of
products

Aesthetics Marketing Strategy

What the item looks like A Set of plans that aim to achieve a specific
marketing objective.

Agent or broker Mark-up

Foreign sales agent is a business which The amount above cost added to a product
represents products from another business before it is placed for sale
in a new country
Theme 1
Aims Maslow’s Hierarchy of Needs

What a business tries to achieve in the long The order of people’s needs starting with
term the basic human requirements.

Articles of Association Mass market

A document that provides details of the Products or services that are sold or
internal running of a limited company advertised to everyone at the same time in
the same way

Authority Matrix structure

This is the power or right to give orders in an This is a hierarchy design which groups by
organisation project and function

Autocratic Leadership Mechanisation

Leader makes all the decisions Method of operating or controlling

processes using machinery

Automation Merchandising

Method of operating or controlling processes A promotion specifically at the point of sale

by automatic means using devices. Reduces of a product
need for human interaction.

Below the line promotion Memorandum of Association

Any promotion that does not involve using A document that sets out the constitution
the media and states key external details about a
limited company
Theme 1
Bonus Motivated

A payment in addition to the basic wage for The desire to take action to achieve a goal
reaching targets or in recognition for service.

Brand Name Motivators (Hertzberg)

A name, term, symbol, sign, design or other Things at work that result in satisfaction.
feature that allows consumers to identify
the goods and services of a business and to
differentiate them from those of
competitors.
Boston Matrix Multi-skilling

A 2x2 matrix model that analyses a product An employee is trained to do more than
portfolio according to the growth rate of the one job, for example an electrician is
market and the relative market share of trained to plaster walls
products within the market.

Breaking – bulk Mutual Organisation

Dividing a large quantity of goods received A business owned by its members, who are
from a supplier before selling them on in customers not shareholders.
smaller quantities to customers.

Business Choices Niche market

Deciding between alternative uses of A subset of a normal market that caters for
resources. specific consumer needs and wants

Certification of incorporation Normal good

A document that declares a business is Products where an increase in consumer’s

allowed to trade as a limited company income means an increase in demand
Theme 1
Centralisation Objectives

A type of business organisation where major The goals or targets set by a business to
decisions are made at the centre or core of help achieve its long-term purpose
the organisation and then passed down the
chain of command.

Chain of command Off the job training

This is the route that orders travel down in Training that takes place away from the
an organisation and complaints travel up area of work.

Collective bargaining Online retailing or etailing

A union representative will speak to the The retailing of goods online.

management on behalf of all the workers in
a business, usually about working conditions
or pay

Co-operative Online Business

A business organisation owned by its A business that uses the global

members, who have equal voting rights. communications infrastructure of the
internet as a trading base

Commission On the job training

Percentage payment on a sale made to the Training that takes place while doing the job
salesperson.

Competitive advantage Opportunity cost

An advantage a business has over its The cost of the loss of the item not chosen,
competitors, allowing it to generate larger or the profit from the goods not produced
than average turnover for the industry
Theme 1
Competitive pricing Organisational chart

To charge a similar amount for goods as are A diagram that shows the different job roles
charged elsewhere in a business and how they relate to each
other.

Complimentary products Outsourcing

Products that need to be used together, for Getting other people or businesses to
example a printer will need ink undertake work that was originally done in
house.

Consumer Durables Own – label, distributer or private brand

Goods that can be used repeatedly over a Products that are manufactured for
period of time, such as cars and household wholesalers or retailers by other businesses
appliances.

Consumer Panels Partnership

Groups of customers are asked for feedback Two to 20 people who set up a business
about products over a period of time. together as joint owners e.g. vets, solicitors,
dentists

Consultation Part-time

Listening to the views of employees before Employees work less than 35 hours a week
making key decisions that affect them but still get sick pay and work benefits

Cost-plus pricing Paternalistic Leadership

To set the price of a product or service by Leader makes decisions but takes
calculating the cost then adding a set employees point of view into consideration
amount or % to it.
Theme 1
Payment by results
Curriculum Vitae
A document that lists personal details, Payment methods that rewards workers for
qualifications, work experience, referees and the quantity and quality of work they
other information about the jobseeker. produce.

Database PED:
% change in Q demanded
An organised collection of data stored __________________________________
electronically with instant access, searching % change in price
and sorting facilities.

Deed of partnership Penetration pricing

Binding legal document that states the Setting a low price when launching a new
formal rights of partners. product in order to get established in the
market.

Decentralisation PPP (Performance Related Pay)

A type of business organisation where A payment system designed for non-manual

decision making is pushed down the chain of workers where pay increases are given if
command and away from the centre of the performance targets are met.
organisation.

Delayering Person Specification

Removing layers of management from the The characteristics the candidate both
hierarchy of an organisation needs to have and those which are desired,
for example skills and qualifications

Delegation Piece rate

The act of asking a worker to perform a task A payment system where employees are
paid an agreed rate for every item produced
Theme 1
Demand PLC

Amount customers willing to buy Stands for public limited company, shares
are floated on the stock market and can be
bought by anyone

Demand Curve Point of sale

A line to plot relationship between price and Any point where a consumer buys a
quantity demanded product

Democratic Leadership Predatory Pricing or destroyer pricing

Leaders encourage participation in decision Setting a low price forcing rivals out of
making business

Demographics Price elastic demand

The statistical data relating to population - The change in price results in a greater
used to describe a group in marketing e.g. change in demand
UK’s aging population demographics

Design Mix Price elasticity of demand

How much demand for a good or service is likely

The range of features that are important
to fluctuate with a change in price e.g. petrol will
when designing a product still be demanded no matter what the price is,
Aesthetics, Economics and Function therefore it is inelastic in that demand doesn’t
change by much with a price increase

Differentiation Price inelastic demand

A change in price results in a proportionally
How well a business can change the product smaller change in demand
so that a consumer recognises it as superior
e.g. Audi / BMW German technology engines
Theme 1
Direct Selling Price Skimming

Producers selling their products directly to Setting a high price initially and then
consumers lowering it later.

Discretionary expenditure Pricing Strategy

Non – essential spending or spending that is The pricing policies or methods used by a
not automatic. business when deciding what to charge for
its products.

Distribution channel (place) Primary research

Where a product is sold and how many The gathering of new information which
stages it takes to get to a customer e.g. does not already exist
factory outlet = 2 stages: manufacturer >
customer

Dynamic market Primary Sector

A market that is constantly changing to suit Production involving the extraction of raw
customers needs and wants materials from earth

E Commerce Private Equity Company

Conducting business transactions online A business usually owned by private

individuals backed by financial institutions

Economies of Scale Product Design

The reductions in average costs enjoyed by a The process of creating a new product or
business as output increases service
Theme 1
Emotional branding Product differentiation

The practice of using the emotions of a How a business differentiates its products;
consumer to build a brand through reputation, service, features or
value

Empowerment Product life Cycle

Giving official authority to employees to The stages that a product moves through
make decisions and control their own work over time
activities.

Entrepreneur Product Lines

A person who sets up a business, taking A group of products that are very similar.
financial risks in the hope of making a profit

Equilibrium price Product orientation

The price where supply and demand are To sell products and services that the
equal business wants to produce

Ergonomics Product Portfolio

The study of how people interact with their The collection of products a business
environment and the equipment they use – currently marketing.
often in the workplace

Ethical sourcing Productivity

Buying from sustainable sources, for The rate at which goods or services are
example trees from forest suppliers who produced
replant
Theme 1
Ethical stance Profit maximisation

To trade in a way that is respectful of people, The aim of the business is to make as high
animals, or the environment. profits as is possible in the time frame

Excess Demand Profit satisficing

The position where demand is greater than The aim of the business is to make just
supply at a given price and there are enough profit to satisfy the owners but with
shortages in the market other managers objectives

Excess Supply Profit sharing

The position where supply is greater than Where workers are given a share of the
demand at a given price and there are profits, usually as part of their pay.
unsold goods in the market

Extension strategy Promotion

A plan to extend the maturity stage of a An attempt to obtain and retain customers
product life cycle of a product, either by drawing their attention to a firm or its
through changes to the product or products
promotions to boost sales

External recruitment Psychological pricing

Appointing workers from outside of the Setting the price slightly below a round
business figure

Flat structure Public relations

This is a hierarchy design which has few An organisation’s attempt to communicate

layers and short chain of command but a with interested parties
wide span of control
Theme 1
Flexible Workforce Qualitative data

A workforce that can respond, in quantity Non numerical data such as how customers
and type, to changes in market demand. use the product

Flexitime Quantitative data

Employees can start and finish when they Data gathered that is numerical such as %
need to as long as their work their 35 hours of customers who buy more than once a
and the job gets done week

Focus Groups Recruitment

Where a number of customers are invited to Process by which a job vacancy is identified
attend a discussion about a product led by & potential employees are notified
market researchers.

Formal organisation Recycling

The internal structure of a business as shown Making use of materials that have been
by an organisational chart. discarded as waste

Franchise Reposition

A business idea in a box which is sold to Change the view consumers have about a
other owners who run it under a licence and product by altering some of its
pay royalties, in return they get branding and characteristics.
marketing support e.g. Subway

Franchisee Responsibility

The person who buys the franchise The duty to complete a task
Theme 1
Franchisor Resource depletion

The person who sells the franchise The use up of natural resources

Function Respondents

What the item is used for A person or organisation that answers

question in a survey

Generic Brands Retailer

Products that only contain the name of the
product category rather than the company A business that sells goods to consumers
or product name

Government subsidy Risk

A grant or gift of money from the The possibility of financial loss

government to encourage supply of certain
goods e.g. milk subsidies

Hawthorne Effect
Sales maximisation
The idea that workers are motivated by An attempt to sell as much as possible in a
recognition given to them as a group. given time period (or an attempt to
generate as much sales revenue as possible
in a given time period)

Hierarchy Sales promotion

A system in an organisation where people Methods of promoting products in the

are ranked according to the authority that short term to boost sales
they have
Theme 1
Home working Sample

To work from home, for example an eBay A small group of people who must
business represent a proportion of a total market
when carrying out market research.

Hygiene Factors (Hertzberg) Secondary sector

Things at work that result in dissatisfaction. Production involving the conversion of raw
materials into finished and semi-finished
goods.

Income elasticity of demand Scientific Management

How much demand changes when the A theory that suggests there is a ‘best way’
consumer has a change in income to perform work tasks.

Income elastic demand Secondary market research

The percentage change in demand for a Information which already exists

product is proportionately greater than the
percentage change in income.

Income inelastic demand Selection

Where the percentage change in demand is Process of assessing candidates and

proportionately less than the percentage appointing a post holder
change in income

Independence Self actualisation

To trade in a way which meets the A level in Maslow’s hierarchy where people
entrepreneur's own goals and allows them realise their full potential.
to be their own boss
Theme 1
Indirect tax Social entrepreneurship

Taxes levied on products or services before To trade with the goal of helping the
they reach the consumer e.g. VAT and excise community in some way

Induction Training Sleeping Partner

Training given to new employees when they A partner that contributes capital and
first start their new job enjoys a share of the profit but takes no
active role in running the business

Industrial Action Socio Economic Groups

Disruptive measures taken by workers to Division of people according to social class.

apply pressure on employers when
disagreements cannot be resolved.

Inferior good Sole trader

Products where an increase in consumers Person who sets up business on their own,
income means a decrease in demand they can have employees but there is only
one owner

Innovation Span of control

An invention taken to market and sold This is the number of subordinates that a
supervisor or manager is in charge of

Intermediaries Sponsorship

Links between the producer and the Making a financial contribution to an event
consumer in return for publicity
Theme 1
Internal Recruitment Strong brand

Appointing workers from inside the business. A brand that is recognised by everyone, e.g.
Rolls Royce, Rolex, Ford, Chanel

Intrapreneur Subordinates

An employee who works for a large business People in the hierarchy who work under the
but thinks like an entrepreneur control of a senior worker.

Job Analysis Stock market

Investigating the requirements of a job to A market for second hand shares

identify the tasks and skills required

Job Description Stock market flotation

Identifies tasks and responsibilities involved The process of a company ‘going public’ –
in the job making shares available to the public for the
first time.

Job enlargement Subsidy

Giving an employee work of a similar A grant given to producers, usually to

responsibility to do encourage production of a certain good.

Job enrichment Substitute products

Giving an employee more responsible tasks Products that can be used in place of each
other, for example if no tea is available a
substitute hot beverage is coffee or hot
chocolate
Theme 1
Job rotation Supply

Moving an employee round similar tasks Amount businesses willing to supply

Laissez-faire Leadership Supply curve

Leaders allow employees to make their own A line to plot the relationship between price
decisions and quantity supplied

Leader Tall Structure

A person who has vision and followers This is a hierarchy design which is the
opposite to a flat structure, it has a long
chain of command but a short span of
control

Leadership Team working

Same as management plus is a visionary who Employees in small groups with a similar
motivates their workers, a strategist and a aim
problem solver

Lifestyle Business Tertiary sector

A business that aims to make enough money The production of services in the economy
and provide the flexibility needed to support
a particular lifestyle for the owner

Limited Liability Temporary Staff

A legal status which means that a business Employees are hired on a fixed term
owner is only liable for the original amount contract, to finish building a housing estate
of money invested in the business for example
Theme 1
Limited Company Total Revenue or Total Expenditure

A business organisation that has a separate The amount of revenue generated from the
legal entity from that of its owners. sale of goods calculated by multiplying
price by quantity in given period of time.

Limited Partnership Trade Union

A partnership where some members Organisations of workers that exist to

contribute capital and enjoy a share of the promote the interests of their members
profits, but do not participate in the running
of the business. At least one partner must
have unlimited liability
LTD Trade offs
In business, where a decision maker faces a
Stands for private limited company, shares compromise between two different
can only be sold to friends and family alternatives, for example between paying
dividends to shareholders and reinvesting
profits in the business

Management Training

Authority to make decisions in the best A process that involves increasing the
interest of the business knowledge and skills of a worker to enable
them to do their job effectively.

Manufactured brands Uncertainty

Brands created by the producers of good Something in the future which is not
and services known, for example a world recession

Mark up Unit costs

The percentage added to unit costs that
makes a profit for a business when setting The same as average costs – total costs
the price. divided by output
Theme 1
Market Unlimited Liability

A set of arrangements that allows buyers A legal status which means that the owner
and sellers to communicate and trade in a of a business is personally liable for all
particular range of goods and services. business debts

Market mapping USP

The aspect or feature of a product that
Market mapping is about positioning the clearly distinguishes it from its rivals.
products/service a business plans to provide

Market orientation Viral Marketing

To sell products or services based on Any strategy that encourages people to

customer needs and wants pass on messages to others about a product
or a business electronically

Market Positioning Waste minimisation

The view consumers have about the quality, Business way of making sure that there is
value for money and image of a product in no waste in the production process, for
relation to those of competitors. example making other goods from offcuts

Market Research Waste minimisation

The collection, presentation and analysis of Reducing the quantity of resources that are
information relating to the marketing and discarded in the production process
consumption of good and services.

Market segmentation Wholesaler

A whole market can be divided into sections A business that sells goods to retailers
called segments
Theme 1
Zero Hours Contracts YED
Income elastic demand (we use Y because
Employees are called into work only when the letter I is reserved for the word
they are needed, they get no work benefits investment)
and cannot be guaranteed work

Create your own! Create your own!

Create your own! Create your own!

Create your own! Create your own!

Create your own! Create your own!

Create your own! Create your own!

Theme 1