Enterprise and marketing

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  • Created by: Sabaa_A
  • Created on: 11-11-20 09:16
Break - Even point
The point at which the income received from selling a unit covers the cost of supplying it. This is often described as the point at which total revenue equals total costs. No profit or loss is made at this level of sales
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Business Angel
An entrepreneur or investor that provides capital to a business in return for a share of the ownership
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Business Plan
A document that outlines the aims of a business and how it intends to achieve those aims. It is a plan which details the physical, human and financial planning, and the intended operations
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Capital
The amount of money invested into a company at the beginning of a business venture
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Cash flow
The amount of money into (inflows) and our of (outflows a business
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Competitive pricing
A pricing strategy that takes into account of the prices charged by competitors in the same industry. For example, this strategy may be used by a toothpaste manufacturer where there are large number of brands available to consumers but the features of the
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Consumer trials
A method of research where a business will test/sample a product with a group of selected consumers.
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Crowdfunding
A source of finance where a project is funded through contributions from a large number of people who invest relatively small amounts of money
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Dividends
The share of profits given to the shareholders of a business
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Extension strategies
A strategy used by a business to try and extend the product lifecycle when a product reaches the maturity stage. For example, a business may re-design their packaging to make it more appealing to consumers.
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Fixed cost
A cost that does not vary with output. For example, rent.
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Focus group
A method of research where a group of people are asked their views and opinions on a particular topic. For example, a drinks company launching a new drink may ask consumers about their views on the flavour and packaging of the product.
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Franchise
An agreement where a franchisor grants another party (the franchisee) the right to use its trade-name. For example, most petrol stations use a franchise agreement.
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Franchisor
The business allowing another business or individual franchisee) to use its trade name.
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Franchisee
The business using the trade name of a bigger business (franchisor).
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Human Resources
The functional area of a business which is concerned with the welfare of employees.
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Liability
The legally binding responsibility to pay a debt.
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Logistics
The functional area of a business which involves the planning and movement of resources to achieve an objective.
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Marketing
The functional area of a business which is concerned with identifying and satisfying customer needs.
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Market Segmentation
The method of separating a market into smaller customer segments. For example, separating the clothing market into gender and/or age groups.
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Operations
The functional area of a business which is concerned with the process of turning inputs into outputs.
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Patent
An intellectual property which gives the owner the rights to a new idea or invention.
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Partnership
A business owned by 2 or more people who share the profits.
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Point if sales advertising
A method of sales promotion at or near the place where a customer purchases products.
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Primary Market Research
A method of research where a business will gather data from its source for its own specific reasons. For example, a business may use focus groups or customer trials to gain information about a product that is about to be launched.
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Price Penetration
A pricing strategy where a business decides to set a low price initially in order to maximise the number of customers and then increases it over time. The strategy is often used to attract customers away from their normal brand.
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Price Skimming
A pricing strategy where a business decides to set a high price in order to maximise profits. The strategy is often used when a new, innovative product is launched
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Product differentiation
A strategy used by a business to try and make a product stand out against competitors. It is an attempt to make the product look unique. For example, having a strong brand image is a method of product differentiation.
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Product lifestyle
The period of time in the life of a product - from its initial launch until it is eventually taken off the market.
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Profit
The difference between income and expenditure – the remaining money once all the costs of running a business have been paid.
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Psychological pricing
A pricing strategy which is designed to cause an emotional reaction by consumers. Often a business decides to set the price at just below a rounded number in order to make it feel more attractive to consumers. For example, charging £299 instead of £300.
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Revenue
The income generated by a business. For example, sales, interest on savings, rent received.
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Secondary Market Research
A method of research where a business uses information that has already been gathered. For example, the use of sales data, government publications, purchased research material.
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Social Media
Methods by which people and organisations can create and share information. For example, social media websites.
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Sole Trader
A form of business ownership where the firm is owned by one person.
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Total Costs
The sum of all the costs involved in the business operation (fixed costs plus variable costs)
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Variable Cost
A cost that does vary with output. For example, the purchase of raw materials or parts.
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USP(Unique Selling Point)
An exclusive aspect of a product that differentiates it from its rivals. For example, a business may guarantee next day delivery.
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Other cards in this set

Card 2

Front

An entrepreneur or investor that provides capital to a business in return for a share of the ownership

Back

Business Angel

Card 3

Front

A document that outlines the aims of a business and how it intends to achieve those aims. It is a plan which details the physical, human and financial planning, and the intended operations

Back

Preview of the back of card 3

Card 4

Front

The amount of money invested into a company at the beginning of a business venture

Back

Preview of the back of card 4

Card 5

Front

The amount of money into (inflows) and our of (outflows a business

Back

Preview of the back of card 5
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