Key Business & Marketing Terms: Definitions & Concepts

Key Business and Marketing Terms

Marketing Mix

The four key decisions that must be taken in the effective marketing of a product.

Random Sampling

Every member of the target population has an equal chance of being 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 of respondents from each stratum.

Cluster Sampling

Using one or a number of specific groups to draw samples from and not selecting from the whole population.

Stakeholders

People or groups who can be affected by and therefore have an interest in any action by an organisation.

Corporate Social Responsibility

The concept that accepts that the business should consider the interests of society in its activities and decisions beyond the legal obligations that it has.

Leadership

The art of motivating a group of people towards achieving a common objective.

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Job Enrichment

Aims to use the full capabilities of workers by giving the opportunity to do more challenging and fulfilling work.

Profit Sharing

A bonus for staff based on the profits of the business, usually paid as a proportion of basic salary.

On-the-Job Training

Instruction at the place of work on how a job should be carried out.

Off-the-Job Training

All training undertaken away from the business, e.g., work-related college courses.

Consumer Markets

Markets for goods and services bought by the final user of them.

Industrial Markets

Markets for goods and services bought by businesses to be used in the production process of other products.

Marketing Strategy

Long-term plan established for achieving marketing objectives.

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.

Above-the-Line Promotion

A form of promotion that is undertaken by a business by paying for communications with consumers.

Job Production

Producing a one-off item specially designed for the customer.

Batch Production

Producing a limited number of identical products – each item in the batch passes through one stage of production before passing on to the next stage.

Flow Production

Producing products or items in a continually moving process.