Unit 1

kuyomawa's version from 2015-05-15 20:26


Question Answer
adding valuemaking the product worth more in the eyes of the customer
business 2 business marketingthis is when a business sells goods to another business also known as industrial marketting
bank loadthis is where an amount is borrowed from a bank over a set period of time and interest is paid on top of the amount borrowed, normally monthly
break even the point at which revenue and total cost are the same so no profit or loss is made
budgetthis is a financial target for the future
business planthis is a document that contains the marketing, production, resource and financial implications for a business.
cash flowthis is the movment of cash in and out of a business
cash flow forecast this is a detailed estimate of a business's future cash inflows and outflows monthly for future months
consumer marketthis is where products are sold to individual customers
contribution this is the total revenue minus total variable cost therefore contribution minus fixed cost is profit
copyrightwhere a author has the rights to the work produced and nobody can copy the work without permission
demandthis is the number of customers who can afford and are willing to pay for a product at a given price
electronic marketthis is a market where there is no physical interaction between buyers and sellers and is done through a virtual market such as ebay
enterprise the ability to identify a business opportunity and then act upon it
entrepreneursomebody who takes the risk to start up a business or project
franchiseis the licence to use a business format
franchiseesomeone who pays to use another businesses format or concent and also pays a share of the revenue
franchisorsomeone who sells the rights to the business format in exchange for a % of the revenue and a buy in fees
full time workers are contracted to work for the whole week
historical budgetingsetting budgets based on last years figures
infrastructurethis is the entire network of communication, transport, rail and road systems in a country.
loanthis is when a firm borrows money and pays it back with interest
margin of safetythis is the number of unit sales that can be lost before a business begins to make a loss and is calculated by current output-breakeven output
market this a situation where buyers and sellers come together
market analysisthis is investigating if a market is growing, and to see other conditions such as segments and who owns the largest slice
market growththis is where the nummber of sales are increasing in percentge terms.
market researchthis is the process of gathering primary or secondary data on buying habits and attitudes of potential customers.
market segmentationthis is splitting a market into groups of customers with similar tastes or socioeconomic groups or gender.
marketsharethis is the percentage of a market that a firm owns or controls
marketsizethe total number of sales in volume terms or number sold x volume in value terms
mass market this is where a product is sold to a large number of groups of consumers
net cash flow difference between cash receipt and cash payments
niche marketthis is targetting a small segment of a market that has customers with specific tastes
opportunity costthis is the next best alternative lost in making a decision
ordinary sharethis is where owners are given a vote for every share they own and is the most common type of share.
overdraftthis is an agreement with a bank whereby a firm can withdraw (upto a previously agreed amount) or borrow money that is paid back with interest and only for the months that it is borrowed.
part time workersworkers that are contracted to work set number of days or hours comapared to the whole week.
partnershipis a business owned by 2-20 people who all have unlimited liability unless they are a sleeping partner.
patenta legal form of protection for a inovative invention, this is usually given for 20 years and requires a fee and registration at the patent office
permanent workersomeone who is contracted to work indefinaly
primary researchresearch that a company carries out itself for itself or hires a specialist company to carry out this research for it.
private limiteda company that does not sell its shares on the stock market and any share holder has limited liability
public limited company plcthis is a company that sells its shares on the stock market and its share holders have limited liability
qualitative researchthis is research that is carried out that does not yield numerical data but does yield opinion, attitudes and answers to why. and motivations
quantitave researchthis is research that is numerical and produces statistically valid data
quota samplethis sampling based on the make up of a market e. 100 buyers 10 women 90 men, in a sample 9 interview would be men and only 1 woman would be interviewed.
random samplethis is where everyone in the target population has and equal chance of being picked.
secondary researchthis is research that was already pre existing and can be government surveys or yellow pages (can be out of date but cheap)
sole traderwhere one person owns a business
stratified samplethis is where the main strata of a target population are used as the the research group
temporary workers are employed for a set (short) period of time before
trademarkthis is legal protection for a logo, slogan or colour that distinguishes a company from its competitors.
venture capitalthis is capital that is provided by a business angel who takes in return a share of the business.
zero budgeting this is setting budgets from scratch so managers will have to justify their requirments.