Business Final Exam

Coaching

- "coach" or develop people for the future - Works best when helping people and building long term relationships

Promotion includes:

- Advertising - Personal selling - Public relations - Publicity - Word of mouth - Sales promotions

Sole proprietorship

A business owned, and usually managed, by one person

Acquisition

One company's purchase of the property and obligations of another company.

What are the Corporate Culture?

Shared values Beliefs Traditions Philosophies Rules Role models for behavior

Two Aspects of Assigning Tasks

Specialization, Departmentalization

Informational Power

The leader suggest to the subordinate How the job could be done differently or more effective

Horizontal merger

The joining of two firms in the same industry. Across, doesn't matter if there in different stages, they both want something from another. Ex: Disney and ESPN

Key Benefits of Marketing Research

- Analyze customer needs and satisfaction. - Analyze current markets and opportunities. - Analyze the effectiveness of marketing strategies. - Analyze marketing process and tactics currently used. - Analyze the reasons for goal achievement or failure.

Types of Leadership Style

- Autocratic - Democratic - Pacesetting - Paternalistic - Visionary - Coaching - Affiliative

Setting an Appropriate Price Pricing products depends on many factors:

- Competitors' prices - Production costs - Distribution - Promotion

Nonprofit marketing strategies include

- Determine the firm's goals and objectives - Focus on long-term marketing - Find a competent board of directors - Exercise strategic planning - Train and develop long-term volunteers - Carefully segment the target market

The pacesetting leader

- Expects and models excellence and self-direction. - If this style were summed up in one phrase, it would be "Do as I do, now."

Determination

- Focused & attentive to tasks - Know where to go & how to get there - Includes initiative, persistence & drive

Nonprofit Organizations and Marketing Nonprofit marketing tactics include:

- Fundraising - Obtaining resources - Promotion of ecologically safe technologies - Attracting new members - Creation of awareness for social issues

Integrity

- Honest & trustworthy with strong principles - Inspire confidence because it creates trust - Loyal, dependable & not deceptive

Disadvantages of Corporations

- Initial cost - Extensive paperwork - Double taxation - Two tax returns - Size - Difficulty of termination

6 Traits for Effective Leadership

- Intelligence - Confidence - Charisma - Determination - Sociability - Integrity

Home-Based Franchises Main Disadvantages

- Isolation - Long hours

Advantages of Corporations

- Limited liability - Ability to raise more money for investment - Size - Perpetual life - Ease of ownership change - Ease of attracting talented employees - Separation of ownership from management

Charisma

- Magnetic charm and appeal that gives leaders exceptional powers of influence - Charisma is not a common personality trait

Advantages of Franchises

- Management and marketing assistance - Personal ownership - Nationally recognized name - Financial advice and assistance - Lower failure rate

Democratic:

- May help motivation and involvement - Workers feel ownership of the firm and its ideas

Visionary:

- Mobilize people towards a vision - Works best when a clear direction or change is needed - Creates a positive environment

Advantages of Partnerships

- More financial resources - Shared management and pooled/complementary skills and knowledge - Longer survival - No special taxes

Legitimate Power

- Organizational charts or a hierarchy* - Having status or formal job authority of others *

The four Ps

- Product - Price - Place - Promotion

Home-Based Franchises Advantages:

- Relief from commuting stress - Extra family time - Low overhead expenses

Sociability

- The capacity to establish pleasant social relationships - Friendly, outgoing, courteous & diplomatic

Implies leadership styles need to change as the situation changes

- Type of staff* - History of the business* - Culture of the business* - Quality of the relationships* - Nature of the changes needed* - Accepted norms within the institution*

How do we build confidence?

- Understanding what is required from us - Have a mentor to show the way & provide constructive feedback

Disadvantages of Partnerships

- Unlimited liability - Division of profits - Disagreements among partners - Difficulty of termination

Defining the Question and Determining the Present Situation

- What's the present situation? - What are the problems or opportunities? - What are the alternatives? - What information is needed? - How should the information be gathered?

Forms of Organizational Structure

-Line -Line-and-staff -Multidivisional -Matrix

The Marketing Research Process

1.) Defining the problem or opportunity and determining the present situation. 2.) Collecting research data. 3.) Analyzing the data. 4.) Choosing the best solution and implementing it.

Advantages of Sole Proprietorships

1.) Ease of starting and ending the business 2.) Being your own boss 3.) Pride of ownership 4.) Leaving a legacy 5.) Retention of company profits 6.) No special taxes

Disadvantages of Franchises

1.) Large start-up costs 2.) Shared profit 3.) Management regulation 4.) Coattail effects 5.) Restrictions on selling 6.) Fraudulent Frachisors

The Evolution of Marketing Four eras

1.) Production Era 2.) Selling Era 3.) Marketing Concept Era 4.) Customer Relationship Era

Disadvantages of Sole Proprietorships

1.) Unlimited liability — The responsibility of business owners for all of the debts of the business. 2.) Limited financial resources 3.) Management difficulties 4.) Overwhelming time commitment 5.) Few fringe benefits 6.) Limited growth 7.) Limited life span

Corporation

A legal entity with authority to act and have liability separate from its owners.

Partnership

A legal form of business with two or more owners.

Focus group

A small group of people who meet under the direction of a discussion leader to communicate opinions.

Brand name

A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors.

The Evolution of Marketing continued The Marketing Concept Era

After WWII, a consumer spending boom developed. Businesses knew they needed to be responsive to consumers if they wanted their business. Marketing concept — A three-part business philosophy. 1.) Customer orientation 2.) Service orientation 3.) Profit orientation

Promotion

All the techniques sellers use to inform people about and motivate them to buy their products or services.

Franchise agreement

An arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory.

Product

Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers

Individuals Can Incorporate

Anyone—truckers, doctors, plumbers, athletes, and small business owners—can incorporate

The Evolution of Marketing continued The Emerging Mobile/On-Demand Marketing Era

As digital technology continues to grow, consumer demands are expected to rise in: 1.) Now: Consumers want to interact anywhere, anytime. 2.) Can I?: They want to use information in new ways that create value for them. 3.) For me: Consumers expect personalized experiences. 4.) Simple: Consumers expect all interactions to be easy.

Degree of Centralization -Centralized

Centralized organizations- Authority is concentrated at the top level, From the top*

Confidence

Confidence is a trait that has to do with feeling positive about one's self & one's ability to succeed

Affiliative

Creates an emotional bond a harmony in the workplace

The Evolution of Marketing continued The Customer Relationship Era

Customer relationship management (CRM) — Learning as much as possible about customers and doing everything you can to satisfy or exceed their expectations.

Primary data

Data that you gather yourself (not from secondary sources).

Degree of Centralization -Decentralized

Decentralized organizations- Decision-making authority is delegated as far down the chain of command as possible, Spread throughout the organization*

Assigning Responsibility and Delegating Authority

Delegation of authority, Assigning responsibility, Employee accountability

Departmentalization

Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions

One-to-one marketing —

Developing a unique mix of goods and services for each individual consumer

Diversity in Franchising continued

DiversityFran is an initiative to build awareness of franchising opportunities within minority communities.

Demographic segmentation

Dividing the market by age, income, and education level.

Geographic segmentation

Dividing the market by cities, counties, states, or regions.

Benefit segmentation

Dividing the market by determining which benefits of the product to talk about.

Volume or usage segmentation

Dividing the market usage (volume of use).

Psychographic segmentation

Dividing the market using the group's values, attitudes, and interests

Market segmentation

Dividing the total market into groups whose members have similar characteristics.

How is Corporate Culture Expressed? -Informally

Dress codes (or the lack thereof) Work habits Extracurricular activities Stories

Democratic:

Encourages decision making from different perspectives - leadership may be emphasised throughout the organisation

Niche marketing

Finding small but profitable market segments and designing or finding products for them.

Types of Partners

General partner — An owner (partner) who has unlimited liability and is active in managing the firm.

Major Types of Partnerships

General partnership — A partnership in which all owners share in operating the business and in assuming liability for the business's debts. Ex: it doesn't have to be this way but a 50 50 split

Behavioral Theory

Imply that leaders can be trained - focus on the way of doing things

Secondary data

Information that has already been compiled by others and published in journals and books or made available online.

Intelligence

Intelligence includes having good language skills, perceptual skills & reasoning ability

Paternalistic

Leader acts as a 'father figure' Paternalistic leader makes decision but may consult

Coercive Power

Leader has the ability to give something but this time it is punishment

Autocratic

Leader makes decisions without reference to anyone else

Situational Theory

Leadership as being more flexible - different leadership styles used at different times depending on the situation

Types of Partners

Limited liability — The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.

Types of Partners

Limited partner — An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.

Major Types of Partnerships

Limited partnership — A partnership with one or more general partners and one or more limited partners. Ex: give money to a business to help the business out, all you did was give money.

Analyzing the Research Data

Marketers must turn data into useful information through careful, honest interpretation.

Target marketing

Marketing directed toward those groups an organization decides it can serve profitably.

How is Corporate Culture Expressed? -Formally

Mission statement Codes of ethics Memos, manuals Ceremonies

The Evolution of Marketing continued The Selling Era

Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products

Referent Power

Often compared to charisma, referent power deals with the relationship between the leader and the subordinate

Organizational layer

Organizational layers are the levels of management in an organization

Power

Power enables the leader to influence a group to achieve a common goal

Expert Power

Power that is derived from having great knowledge, skill, or expertise in an area.

Developing Organizational Structure

Structure is the arrangement or relationship of positions within an organization, and developed

Test marketing

Testing products among potential users.

What Is Marketing?

The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large.

Marketing research

The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

Specialization

The division of labor into small, specialized tasks and the assignment of single tasks to employees, Efficiency

The Evolution of Marketing continued The Production Era

The general philosophy was "Produce as much as you can, because there is a limitless market for it."

Marketing mix —

The ingredients that go into a marketing program;

Conglomerate merger

The joining of firms in completely unrelated industries. Ex: Ford putting engines in boats

Vertical merger

The joining of two companies in different stages of related businesses. Up and down, 2 companies that are similar in business, ones more advance than the other.

Span of Management

The number of subordinates who report to a particular manager

Merger

The result of two firms forming one company

Reward Power

The state or condition in which a leader has the ability or authority to provide rewards to subordinates

Diversity in Franchising

Women own about half of U.S. companies, yet ownership of franchises is about 21 percent.