2285282
Description
Flashcards by Helen Rennie, updated more than 1 year ago
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Created by Helen Rennie
over 10 years ago
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| Question | Answer |
| Primary Research (Field) | collecting information that did not exist before. This is first-hand contact with customers/suppliers etc. |
| Secondary Research (Desk) | is the process of gathering secondary data, which is information that already exists. |
| Qualitative data | information about opinions, judgments and attitudes. Is is not as easily analysed. |
| Quantitative | data that can be expressed as numbers and can easily be statistically analysed. |
| Market Segments | A group of buyers with similar characteristics and buying habits. e.g Age and gender. |
| Market Map | This is a diagram that allows a business to position and compare products in a market, and identify opportunities where customers needs are not being met. |
| 'Gap in the Market' | Where customer needs are not being met |
| brand | A brand is a named product that customers see as being different from other products, and that they can associate or identify with. |
| USP | Unique selling point (this adds value to a product/service) |
| Differentiate | Making a product or service different in some way from their competition to stand out and reach customers. |
| added value | increasing the worth that a business creates for a product (the difference between what the business pays a supplier and the price they sell it at). |
| Franchise | the right given by one business to other businesses to sell goods or services using its name. |
| Franchisor | The business that gives franchisees the right to sell its products of service. |
| Franchisee | a business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor. |
| Entrepreneur | A person who owns and runs their own business and takes risks. |
| deliberate creativity | the intentional creation of new ideas through recognised and accepted techniques i.e. creating a list or mind mapping. |
| Blue skies thinking | coming up with as many ideas as possible to solve a problem. |
| Lateral thinking | thinking differently to try and find new and unexpected ideas (outside the box). e.g. De Bonos 6 thinking hats |
| Patents | right of ownership of an invention, design or process when it is registered with the government. |
| Copyright | legal ownership of material such as books, music and films which prevent these being copied by others. |
| trademarks | the logo, symbol, sign or other features of a product or business that cannot be copied by others. |
| Calculated risk | putting a numerical value or probability on a risk and the likelihood of it coming true. |
| Name 4 qualities of an entrepreneur | planning, initiative, taking risks, determination, making decisions, persuasion, leadership, luck |
| Sales Revenue (turnover) | the amount of income received from selling goods or services PRICE X QUANTITY = TOTAL REVENUE |
| FIXED COSTS | do not vary with the output produced by the business |
| VARIABLE COSTS | change directly with the number of products made |
| TOTAL COSTS | FIXED COSTS + VARIABLE COSTS = |
| PROFIT/ LOSS | TOTAL REVENUE - TOTAL COSTS |
| PROFIT | when revenue is greater than a businesses total costs. |
| Loss | when a businesses costs are greater than its total revenue |
| Cash flow forecast | a document showing the predicted flow of cash coming into and out of a business over a period of time. |
| Inflows or Receipts | money coming into the business e.g. loan, personal savings and sales |
| Outflows or payments | money flowing out of the businesses e.g wages, raw materials, interest or bills. |
| Net Cash Flow | RECEIPTS - PAYMENTS or TOTAL INFLOWS - TOTAL OUTFLOWS |
| OPENING BALANCE | the amount of money in a business at the start of the month. |
| CLOSING BALANCE | the amount of money in a business at the end of the month NET CASH FLOW + OPENING BALANCE |
| CUMULATIVE CASH FLOW | the sum of money that flows into a business over time. |
| Insolvent | without sufficient funds or cash within the business |
| Business Plan | a plan for the development of a business, giving forecasts of items such as sales, costs and cash flow. |
| source of finance | a means for a business to get capital to start up a business (long or short!) |
| Shareholder | A person who owns a percentage of a business. they are entitled to share the profits. |
| collateral (security) | when borrowing money, the lender will be given some collateral against the loan. i.e property or interest. |
| 3 steps to be customer focused are... | 1) identify needs 2) anticipate needs 3) meet customer needs |
| The marketing mix | to ensure successful marketing a business must get the right mix of the following things : PRICE, PRODUCT, PLACE, PROMOTION |
| LIMITED LIABILITY | the owner and the business are separate legal entities (Ltd and PLC) |
| UNLIMITED LIABILTY | the owner is legally responsible for any debts of the business. (soletrader) |
| 4 main differences between sole traders and Ltds | 1) RISK 2) CONTROL 3) PROFITS 4)PRIVACY |
| CORPORATION TAX | a tax paid by limited companies on profits of the company. |
| INCOME TAX | a tax on the income earned by workers and sole traders |
| VAT | value added tax on the value of sales of a business. Businesses that sell more than a certain amount will register to pay VAT |
| National Insurance Contributions | a tax on earnings of workers and sole traders linked to state benefits. |
| repeat purchase | when customers keep returning back to a business to buy a product or service. |
| product trial | a customer tries a product or service for the first time and if they like it this could lead to repeat purchase. |
| customer loyalty | a customer would continue to repeat purchase your brand or product over competition. |
| SUPPLY | the amount that sellers are willing and able to sell at any given price |
| DEMAND | the amount that buyers are willing and able to purchase at a given price. |
| A Market | A place where buyers and sellers meet to exchange products and services |
| COMMODITY MARKETS | markets for raw materials, such as oil, steel and wheat, used for the production of other goods. |
| Goods Markets | (normal markets) markets for everyday products, such as clothes and food. |
| Costs | The money going out of a business. It is what a business has to pay for e.g raw materials, bills, labour. |
| Price | this is the amount of money or value of money that a businesses places on a product or service they sell. e.g. a hair cut is priced at £20 |
| EXCHANGE RATES | is the price of buying foreign currency. |
| The business cycle | the fluctuations in the level of economic activity over time. |
| Stakeholders | an individual or group of individuals that has an interest and is affected by the activities of a business. |
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