Final Exam Flashcards
(165 cards)
1
Q
Marketing
A
activities designed to expedite transactions by creating, distributing, pricing and promoting goods/services
2
Q
exchange Relationship
A
The act of giving up one thing (money) in exchange for something else (good/service)
3
Q
Value
A
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product
4
Q
customer value equation
A
customer value = customer benefits - customer costs
5
Q
benefits
A
anything a buyer receives in an exchange
6
Q
costs
A
anything a buyer gives up to obtain a products benefits
7
Q
marketing concept
A
the idea that an organization should try to satisfy customers needs thru coordinated activities that also allow it to achieve its own goals
8
Q
difference between production orientation and sales orientation
A
production orientation = 19th century (manufacturing efficiency)
sales orientation = early 20th century (need to sell)
9
Q
market orientation
A
approach requiring organizations to gather information about customer needs and share/use information to help build long term relationships with customers
10
Q
market strategy
A
plan of action for developing, pricing, distributing and promoting products that meet the needs of specific customers
11
Q
2 major components of market strategy
A
1) select a target market
2) developing an appropriate marketing mix
12
Q
market
A
group of people who have a need, purchasing power and desire to spend money on goods/services
13
Q
target market
A
specific group of consumers whose needs and wants a company focuses its marketing efforts on
14
Q
total-market approach
A
approach whereby a firm tries to appeal to everyone and assumes all buyers have similar needs
15
Q
market segmentation
A
strategy whereby a firm divides the total market into groups of people who have relatively similar product needs
16
Q
market segment
A
collection of individuals, groups or organizations who share one or more characteristics and thus have relatively similar product needs and desires
17
Q
total market approach
A
when a company markets to everyone
18
Q
concentration approach
A
market segmentation approach where a company develops one marketing strategy for a single market segment
19
Q
multi-segment approach
A
market segmentation approach where the company aims its efforts at 2 or more segments, developing a separate market strategy for each
20
Q
niche marketing
A
a narrow market segment focus when efforts are on one small, well-defined group that has a unique, specific set of needs
21
Q
Reasons why companies segment markets
A
- demographics (race, ethnicity, gender, age)
- geographic (climate, terrain, population, resources)
- pyschographic (personality characteristics, motives, lifestyles)
- behavioristic (consumer’s behavior to product)
22
Q
4 marketing activities
A
1) Product
2) Price
3) Promotion
4) Distribution
23
Q
what is at the center of all marketing activities
A
the buyer or target market
24
Q
good
A
physical thing you can touch (car or computer)
25
service
Application of human/mechanical efforts to people or objects to provide intangible benefits to customers
26
idea
concept, philosophy, image or issue (attorney advice/politics)
27
price
a value placed on an object exchanged between a buyer and a seller
28
distribution
making products available to customers in the quantity desired
29
promotion
persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups and organizations
30
marketing research
systematic/objective process of gathering information about potential customers to guide market decisions
31
information systems
framework for accessing information about customers from sources both inside (prices/sales/expenses) and outside (census/public stats) the organization
32
primary data
data that is observed, recorded or collected directly from respondents (surveys)
33
Secondary Data
data that is compiled for a purpose other than changing a company's current situation (census bureau or government agency)
34
buying behavior
the decision processes and actions of people who purchase and use products
35
psychological Variables of Buying behavior
- Perception
- motivation
- learning
- attitude
- personality
36
Social Variables of Buying Behavior
- Social Roles
- Reference Groups
- Social Classes
- Culture
37
6 steps to developing a new product
1) Idea Development
2) New Idea Screening
3) Business Analysis
4) Product Development
5) Test Marketing
6) Commercialization
38
Idea Development
New ideas come up internally from market research/employees or thru external sources like consultants or customers
39
New Idea Screening
Management looks at resources and ability to produce products (most ideas are rejected in this phase)
40
Business Analysis
analyze the products effects on sales, costs and profits
41
product development
prototypes and market strategy are created in this stage
42
test marketing
trial "mini-launch" of the product in limited areas
43
commercialization
full intro of a complete product and marketing strategy
44
consumer products
- convenience product
- shopping products
- specialty products
45
convenience product
item brought frequently with no planning (eggs, bread or milk)
46
shopping product
purchased after consumer has "shopped around"
47
specialty product
require greater research and shopping effort; the consumer is unwilling to accept a substitute
48
business product
a product used directly or indirectly in the operation or manufacturing process of business
49
product line
group of closely related products that are treated as a unit because of similar market strategy
50
product mix
all the products offered by an organization
51
raw materials
natural resources
52
major equipment
large, expensive machinery used in production
53
accessory equipment
items not part of the final product but used in creation of a product (computers, fax machines, tools)
54
component parts
finished items ready to be assembled into the final product
55
processed materials
things used in production that cannot be classified as component parts
56
supplies
materials that make operations possible (pens, papers, pencils, paint)
57
industrial services
financial legal, security or janitorial services
58
what is the product life cycle order
introduction -> growth -> maturity -> decline
59
introductory stage
making consumers aware of the product and its benefits
60
growth stage
firm tries to strengthen market position by emphasizing benefits
61
Maturity stage
severe competition and heavy costs
62
decline stage
firms may eliminate models, cut costs and phase out products
63
branding
process of naming and identifying products
64
parts of product identification
- brand
- brand name
- brand mark
65
brand
term, symbol or design that identifies a product
66
brand name
part that can be put into words and consists of letters, numbers or words
67
brand mark
distinctive sign (logo)
68
trademark
brand registered with the U.S patent and trademark office and is legally protected
69
manufacturer brands
initiated and owned by the manufacturer to identify products from the point of production to the point of purchase (examples = tide, coke, lays)
70
private distributer brands
may cost less than manufacturer brands, owned/controlled by wholesaler or retailer (examples = great value, kirkland or archer farms)
71
generic products
products with no brand name that come in simple packages and only carry their generic name (example = medicine)
72
packaging
external containers that hold and describe the product that is inside ... they influence consumers and provide promotion
73
Labeling
presentation of important information on a package (ingredients, nutrition facts, warnings, instructions)
74
quality
the degree to which a good/service/idea meets the demands and requirements of customers
75
Marketing channel
- group who moves products from producer to consumer
- also referred to as the channel of distribution
- makes sure products are available to customers
76
middleman
- bridge the gap between the manufacturer and consumer
- also called intermediaries
- create time, place and ownership utility
77
retailer
intermediaries who buy products from manufacturers and sell them to consumers for their use, rather than further retail sale
78
wholesaler
people who buy from manufacturers and sell to retailers (buy in large quantities)
79
intensive distribution
- product made available in as many outlets as possible
| - used for frequently purchased items
80
selective distribution
- small # of all available outlets are used to expose products
- used mostly after consumers shop around
81
exclusive distribution
transfer of sole right to sell a product from manufacturer to intermediary based on geographic territory (high quality merchandise)
82
transportation
shipment of product to buyers (railways, truck, waterways, pipeline, airway)
83
promotion strategy
encourages consumers to accept product and influence their opinions/attitudes
84
advertising
paid form of communication transmitted thru a mass medium (TV/Magazine)
85
advertising campaign
designing a series of advertisements and placing them in various media outlets to reach a target market
86
personal selling
direct, 2 way communication with potential or real buyers
87
3 Categories of Salespeople
1) order takers (retail sales clerk)
2) creative salesperson ( automobile sales)
3) support salesperson (customer educator)
88
6 step process of personal selling
1) prospecting
2) approaching
3) presenting
4) handling objections
5) closing
6) follow up
89
publicity
Non-Personal Communication transmitted thru mass media (public relations department)
90
buzz marketing
variation of traditional advertising where marketers attempt to create a trend
91
sales promotion
direct inducements offering added value or some other incentive for buyers to enter an exchange
92
push strategy
attempt to motivate intermediaries to push the product down to their customers
93
pull strategy
uses promotion to create consumer demand so consumers create pressure on marketing channel members to make it available
94
objectives of promotion
- stimulate demand
- stabilize sales
- inform/remind
95
promotional positioning
use promotion to create and maintain an image of a product in a buyers mind
96
how to calculate the value of a product
1) identify target customers
2) identify their best alternative
3) determine products difference
4) calculate value based on its differentiation
97
price
- key element in marketing mix
| - most flexible variable in the marketing mix
98
Pricing Objectives
- specify role of price on companies strategy
| - companies try to maximize on pricing objectives
99
4 common pricing objectives
1) maximizing profits
2) boosting market share
3) maintaining status quo
4) survival
100
price skimming
charging the highest possible price buyers will pay
101
penetration price
low price designed to help a product enter the market and gain market share rapidly
102
psychological pricing
encourages purchasing based on emotional rather than rational responses to price
103
Even/Odd Pricing
Assume people will buy at $9.99 instead of $10.00 because it seems to be a bargain
104
symbolic/prestige Pricing
Assumes that high prices show high quality
105
reference pricing
lower priced item is compared to a higher priced brand so consumers will compare
106
discounts
temporary price reduction used to boost sales, quantity, seasonal or promotional discounts
107
Place Utility
when producers have a convenient retail establishment/place
108
time utility
when producers maintain hours of operation
109
types of channels of distribution
- Channel A = Direct
- Channel B = Retailer
- Channel C = Wholesaler
- Channel D = agent
110
broker
buys inventory from a manufacturer and takes on risk (agent does this but does not take on risk)
111
integrated marketing communications (IMC)
coordinating the promotion mix to give the customer a cohesive view of the product
112
E-Business
carrying out the goals of business thru the internet
113
Digital media
electronic media that function using digital codes thru computers
114
digital marketing
uses digital media to develop communications and exchanges with customers
115
Characteristics of digital marketing
- address-ability
- Interactivity
- accessibility
- connectivity
- control
116
address-ability
the ability of the marketer to identify customers before they make a purchase
117
interactivity
the ability of customers to express their needs and wants directly to the firm in response to its marketing communications
118
accessibility
the ability for marketers to obtain digital info
119
connectivity
ability for consumers to be connected with marketers and other consumers
120
control
customer's ability to regulate the information they view as well as the rate and exposure to that information
121
product considerations
digital media connectivity creates opportunities to add services and benefits to products
122
distribution considerations
the internet is a new distribution channel for making products available at the right time, place and in the right quantity
123
promotion considerations
- increase brand awareness
- connecting with consumers
- form relationships and generate positive publicity
124
social networking
website where users can create a profile and interact with other users to engage in communication
125
viral marketing
a marketing tool that usually uses social networking sites to spread a message and create brand awareness
126
roles of social media users
- creator (bloggers)
- conversationalist (status updates)
- critics (people who comment)
- collectors
- joiners (all people who join social media)
- spectators (read but don't post)
127
cookies
where companies offer to collect personal information from social networking sites
128
Intellectual Property
songs, movies, books and software protected by copy rights and patents
129
accounting
recording, measurement and interpretation of financial information
130
Certified Public Accountant (CPA)
an individual who is certified by the state to provide accounting services
131
Sarbans-Oxley Act
required firms to be more rigorous in their accounting and reporting practices
132
Dodd Frank Act
strengthens the financial oversight of institutions
133
Private Accountant
employed by companies to prepare/analyze their financial statements
134
Certified Management Accountants (CMAs)
Private accountants who are certified by the national association of accountants and have some managerial responsibility
135
Uses of financial statements
1) aid in internal planning
2) reporting to the IRS and stockholders
3) organizational use
4) stockholder use
136
cash flow
the movement of money thru an organization over a daily, weekly, monthly or yearly basis
137
budget
an internal financial plan that forecasts expenses and income over a set period of time
138
Annual Report
summary of a firms financial products, info and growth plans for owners and potential investors
139
Accounting Equation
Assets = Liabilities + owner's equity
140
The Accounting Cycle
1) examining source documents
2) recording transactions in accounting journal
3) posting recording transactions
4) preparing financial statements
141
journal
a time ordered list of account transactions
142
ledger
a book/computer file with separate sections for each account
143
income statement
a financial report that shows an organizations profitability over a period of time
144
cost of goods sold
amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies
145
gross income
revenues - cost of goods sold
146
net income
total profit or loss after all expenses and taxes have been deducted
147
balance sheet
a "snap shot" of an organizations financial position at a given moment
148
liquidity
how fast assets can be turned in to cash
149
current assets
assets used or converted into cash within the course of a calendar year (cash, inventory, accounts)
150
accounts receivable
money owed a company by its clients or customers who have promised to pay at a later date
151
current liabilities
a firm's financial obligation to short term creditors, which must be repaid in a year
152
accounts payable
the amount a company owes to suppliers for goods/services purchased with credit
153
Accrued Expenses
an account representing all unpaid financial obligations incurred by the organization
154
statement of cash flows
explains how the company's cash changed from the beginning of the accounting period to the end
155
cash from operating activities
Calculated by the combination of the changes in revenue, expense, current assets and current liability of accounts
156
cash from investing activities
calculated from changes in the long-term or fixed asset accounts
157
cash from financing activities
calculated from changes in the long-term liability accounts and the contributed capital accounts in owners equity
158
ratio analysis
calculations that measure an organizations financial health
159
profitability ratios
ratios measuring the net income of an organization is able to generate relative to its assets, owners equity and sales
160
profit margin
net income divided by sales (shows how much money you make per dollar of sales)
161
return on assets
net income divided by assets
162
return on equity
net income divided by owners equity (also called Return on investment)
163
current ratio
current assets divided by current liabilities
164
Revenue
sales divided by goods or services sold
165
gross profit
gross income divided by gross earnings
