Flashcards in Learning Objectives - Chptrs 7-13 Deck (36):
7.5 Describe the two major types of major business decisions and the steps in the decision making process
Programmed Decision Making - involves simple, common and frequently occurring problems that already have solutions ex. ordering office supplies, renewing a lease, etc
Non programmed decision making involves a complex and unique problem or opportunity and has important results for the organization. Ex. Entering a new market, dealing a product from a line, or developing a new product
1. See problem or opportunity
2. Develop possible ways to take action
3. Evaluate options
4. Select and carry out option
5. Assess outcome
7.6 Define leadership and compare different leadership styles
The ability to direct or inspire people to reach goals.
Leaders need to demonstrate empathy, self awareness and objectivity.
Leadership involves the use of power and influence.
Autocratic - centered on the boss. Makes decisions on their own
Democratic - includes employees in the decision making process
Free-reign leadership - believe in minimal supervision. Allow employees to make the most of their own decisions (Like at NASA!!!! - not)
7.7 Discuss the meaning and importance of corporate culture
A corporate culture is a collection of principles, beliefs and values. It is influenced by leadership styles, the way it communicates and overall work environment.
Sometimes corporate cultures need to change to need new demands in the business world.
7.8 Identify the five major forms of departmentalization and the main types of organization structure
Departmentalization is the process of dividing work activities into units within the organization.
1. Product departmentalization - organized based on goods and service the company offers
2. Geographical departmentalization - organized by geographical regions
3. Customer departmentalization - organized by the customers they support
4. Functional departmentalization - organized by business function eg. Finance, HR, Quality
5. Process departmentalization - organized by process eg. Cutting material, heating material
1. Line Organizations - Direct flow of authority from the chief executive to the employees
2. Line and staff - Direct flow of authority with support line departments (HR, Finance)
3. Committee organization - places authority and responsibility in a group of individuals, not a manger
4. Matrix organization - linked employees from different parts of the organization who work together on specific projects (Boeing)
10.1 Explain the Importance of Production
Production - the use of resources such as workers and machinery to convert materials in to finished goods ands services
Without products to sell, companies cannot generate money to pay their employees, lenders and shareholders. Without profits from products, firms quickly fail. When production and management are effective, they can lower a firm’s cost of production and increase the quality of goods and services.
10.2 Describe the four main categories of production processes
1. Analytic production system - reduces raw material to into component or individual parts to extract one or more marketable products. Ex - petroleum refining creates gas, oil, plane fuel
2. Synthetic production system - reverse of analytic. Combines two or more materials or parts to produce finished goods. Ex. Drugs, chemicals, computer chips, canned soup.
3. Continuous production - creates finished goods over a long period of time. Doesn’t shut down because it can damage sensitive equipment. Ex. Petroleum refineries, nuclear power facilities
4. Intermittent production - creates products in short production runs. Machines are shut down often or changed to create different products
10.3 Explain the role of technology in the production process
Company’s can run more efficient and cheaper with the use of technology. It can be used to aid employees in performing a job or to the job of a human.
Company’s can be more environmentally friendly through the of technology
10.4 Identify the factors involved in a plant location decision
Transportation - closeness to markets and raw materials. Availability of transportation options
Physical Factors - water supply, energy, hazardous wastes
Human Factors - labour supply, local zoning regulations, community living conditions, taxes
10.5 Outline the job of production managers
1. Planning the overall production process
2. Selecting the best layout for the firm’s facilities
3. Carrying out the production plan
4. Controlling the manufacturing process to maintain the highest possible quality
10.6 Identify the steps in the production control process
Production control process - creating well-defined procedures for coordinating people, materials and machinery to provide the greatest production efficiency
5. Follow up
10.7 Discuss the importance of quality control
Quality control - measuring output against quality standards
It allows a company to spot defective or imperfect product and to avoid delivering poor quality goods to a customer.
11.1 Explain what marketing is and how it creates utility
Marketing - an organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefits the organization and its stakeholders
Time utility - making a good or service available when customers want to purchase it
Place utility - making a product available in location convenient for customers
Ownership utility - transfer of goods and services from the seller to the buyer
11.2 Discuss the evolution of the marketing concept
Marketing concept refers to a company wide customer focus with the goal of achieving long term success.
Marketplace success begins with the customer. Firm should analyst each customer’s needs and then work backward to offer products that fulfil those needs. It is the shift from a seller’s market to a buyer’s market.
11.3 Describe not profit marketing and non traditional marketing
Not for profit marketing - Marketing typically for charities. Trying to fundraiser. Will often use celebrities for their campaigns. Tend to do marketing through non traditional marketing
Non traditional marketing
1. Cause marketing - Humane society “protecting animals and the earth”
2. Place marketing - British Columbia “super natural”
3. Event marketing - The Montreal Jazz Festival “the biggest jazz festival in the world”
4. Person marketing - Sidney Crosby “connects us to our love of hockey” Tim Hortons
5. Organization marketing - University of British Columbia “a place of mind”
11.4 Outline the basic steps in developing a marketing strategy
1. Study and analyze all possible target markets and chose the most suitable market
2. Create a marketing mix to satisfy that market
11.5 Describe the marketing research function
The process of collecting and evaluating information to help marketers make effective decisions. It links business decision makers to the market place by providing data about potential target markets that help them design effective marketing mixes
11.6 Discuss the methods used to segment consumer and business markets
Market segmentation - the process of dividing total market into several relatively similar groups
Consumer markets are broken into four groups
1. Geographical - Region, population, postal code
2. Demographic - Age, gender, income
3. Psychographic - lifestyles, attitudes, behaviour patters
4. Product related - Comfort, safety, luxury
Business markets are broken into three groups
2. End-use - Design, price
11.7 Outline the determinants of consumer behaviour
Consumer behaviour - end consumer activities that are directly involved in obtaining, consuming and disposing of products and the decision processes before and after these activities
Personal influences - include individual needs and motives, perceptions, attitudes.
Interpersonal influences - cultural, social and family influences
External events - because of the recession, some consumers permanently changed spending habits
Discuss the benefits of, and tools for, relationship marketing
Relationship marketing - developing and maintaining long-term, cost effective exchange relationships with partners
Benefits - cost less to keep current customers than to attract new customers, tend to spend more money, require less service, refer other customers and provide valuable feedback. 20 percent of customers account for 80% of profits
Frequency marketing - programs that reward purchasers with cash, rebates, merchandise or other premiums ex. Air miles, hotel rewards
Affinity programs - tools for building emotional links. Ex. MNBA credit cards with charity logos, sports teams, universities
12.1 Explain product strategy and how to classify goods and services
Product strategy - the marketing conception of a product includes decisions about package design, brand name, trademarks, warranties, product image, new product development and customer service.
Goods and services are classified based on if they are items for a consumer or a business
Convenience products are items that consumers purchase frequently with , immediately and with little effort. Ex - newspaper, snacks, candy, coffee and bread are usually for sale in gas stations and vending machines
Shopping products are items that are usually purchased only after the buyer has compared competing products in competing stores. Ex - new sofas or dining room set.
Specialty products are items the purchaser is already familiar with and believes there is no reasonable substitute. Ex. Specific kind of car.
12.3 Describe the four stages of the product life cycle and their marketing implications
1. Introduction - Google glass, mobile payment systems, smart phone apps
2. Growth - Tablets, wearable tech, cloud computing, 4K TVs
3. Maturity - Laptops, DVDs, video games, consoles
4. Decline - Landline and flip phones, USB flash drives, CD’s, watches
12.3 Explain how firms identify their products
Through brands, brand names and trademarks.
A brand is a name, term, sign, symbol, design or some combination that identifies the products of one firm and shows how they differ from competitors products.
A brand name is that part of the brand that is made up of works or letters that form a name. It is used to identify a firm’s products and show how they differ from the products of competitors
Trademark is a brand that has been given legal protection
12.4 Outline the major components of an effective distribution strategy
Distribution strategy - a plan that deals with the marketing activities and institutions that get the right good or service to the firm’s consumer
1. Distribution channels - paths that products and their legal ownership follow from producer to consumer or business user.
2. Physical distribution - the actual movement of products from producers to consumers or business users
(Think this answer might be weak)
12.5 Explain the concept of wholesaling
A wholesaler is a a distribution that sells primarily to retailers, other wholesalers or business units.
12.6 Describe the types of retailers and retail strategies used
Retailers, in contrast to wholesalers, sell their goods and services directly to consumers for their own use. Consumers usually buy their food, clothing, shampoo, furniture and appliances from some sort of retailer.
There are two types of retailers:
- Nonstore retailers - Internet, Automatic Merchandising (vending machines), Direct selling (door to door), Direct response (catalogues).
- Store retailers
Strategies - offering sales or events to encourage customers to visit their stores.
-Identifying target market
- Selecting a product strategy
- Shaping a customer service strategy
- Selecting a customer service strategy
- Selecting a pricing strategy
- Choosing a location
- Building a promotional strategy
- Creating a Store atmosphere
12.7 Discuss distribution channel decisions and logistics
Business managers must consider four factors in order to determine the most efficient
- The market
- The product
- The producer
- The competition
Most standardized products or items with low value use relatively long distribution channels. Products that are more complex, expensive, custom made or perishable move through shorter distribution channels involving few or no intermediaries
Intensive distribution - placing a product in every available outlet - milk, Coke, newspaper
Selective distribution - selecting a limited number of retailers
Exclusive distribution - limits market coverage in a specific geographical region - Rolex
Logistics - the process of coordinating the flow of goods, services and information among members of the supply chain
13.1 Discuss how integrated marketing communications relates to a firm’s overall promotional strategy
Integrated marketing communications is the coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified customer focused promotional strategy
Involves the use of multiple platforms - packaging, store displays, sales promotions, sales presentations and online and interactive media.
Objectives of Promotional Strategy
1. Provide information - print ads describing features and availability of a new cereal
2. Stabilize sales - Even out sales patterns by promoting low weekend rates for hotels
3. Increase sales - End of aisle grocery displays
4. Highlight product value - Warranty programs and guarantees
5. Differentiate product - Television ad comparing performance of two products
13.2 Summarize the different types of advertising (hint there are three)
1. Product advertising - messages designed to sell a particular good or service
2. Institution - involves message that promote concepts, ideas or philosophies. Can promote goodwill toward industries, companies, organizations
3. Cause advertising - a form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the political process
13.3 Outline sales promotion
Answer also includes the three types of sales promotion
Sales promotion consists of forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling
Types of sales promotion
1. Consumer oriented promotions
- Premiums, coupons, rebates and samples
- Games, contests, and Sweepstakes
- Speciality advertising (free pens or T-shirts)
2. Trade oriented promotion
- Sales promotion geared towards an intermediaries, not to final consumers
3. Personal selling
- Person to person
13.4 Describe pushing and pulling promotional strategies
Pushing strategy - personal selling an item to wholesalers and retailers in a company’s distribution channels.
Pulling strategy - promotion of a product by generating consumer demand for it, mainly through advertising and sales promotion appeals. Consumers will then request that their suppliers or retails supply the product.
13.5 Outline the different types of pricing objectives in the marketing mix (there are four)
1. Profitability Objectives - common goals that are included in the strategic plans of most firms eg. We want profits to increase by 10% a year through 2020
2. Volume Objectives - pricing decisions that are based on market share, the percentage of a market controlled by a certain company or product eg. By 2020 we plan to achieve a 28% share of the personal watercraft market
3. Meeting Competition - meeting the competitors pricing so that price becomes a non issue eg. We will meet their prices and achieve profit and volume growth by offering better customer service.
4. Prestige - setting a relatively high price to develop and maintain an image of quality and exclusiveness eg. The new perfume has an exquisite package, a beautiful label and of the highest retail prices
13.6 Describe how firms set prices in the marketplace and the four alternative pricing strategies
Firms use two strategies to set prices in the market
1. Cost based pricing - calculating total costs per unit and then adding markups to cover the overhead costs and generate profit
2. Breakeven analysis - the pricing related technique used to calculate the minimum sales volume a product must generate at a certain level to cover all costs
Alternative Pricing Strategies
1. Skimming pricing - a strategy that sets an intentionally high price relative to the prices of competing products (used for high end products)
2. Penetration pricing - a strategy that sets a low price as a major marketing strategy. Once the product has achieved sales, price of the product tends to rise
3. Everyday Low Pricing and Discount pricing - strategy of maintaining continuous low prices instead of using short term price cutting tactics such as cents off coupons, rebates and special sales
4. Competitive pricing - a strategy that tries to reduce the emphasis on price competition by matching other firm’s prices and by focusing on their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.
13.7 Discuss consumer perceptions of price
Marketers consider two things when determine consumer perceptions of price
1. Price-quality relationships - research shows that a consumer’s perception of a product is closely related to an item’s price. Consumers associate prestige, quality and high price as being related. Consumers also associate low price with cutting corners.
2. Odd pricing - using odd or uneven numbers to make prices appear to be less than really are. Ex $9.99 instead of $10.
7. 1 Describe Management
Management is the process of achieving organizational goals through people and other resources. The manager’s job is to combine human and technical resources in the best way possible to to achieve the company’s goal.
7.2 Explain the role of vision and ethical standards in business
Vision - the founders ability to perceive marketplace needs and what an organization must do to satisfy them. Vision helps to clarify a firm’s purpose and the actions it can take to make the most of opportunities.
Hight ethical standards can help build success for a firm through job satisfaction and customer loyalty