Performance Indicators
Explain the nature of marketing plans.
A marketing plan is a detailed file that guides marketing strategy for a period of time. Elements of a marketing plan include an executive summary, situation analysis, objectives, marketing strategies, implementation decisions, evaluation measures and appendices.
Explain the importance of coordinating elements in advertisements.
Each element of an advertisement needs to work together as a cohesive message for a product, service or business. Before placement, marketers check to ensure that the ad stands out on a page, the layout is clean, the text is easy to read and understand, the signature can be distinguished and that the message relates to the target market.
Discuss motivational theories that impact buying behavior.
Abraham Maslow's Hierarchy of Needs assists marketers to understand how consumers make decisions about their wants and needs. The Hierarchy of Needs identifies five areas of needs including physiological, security, social, esteem and self-actualization. It is important for marketers to understand what level of needs a customer is trying to meet so they can deliver the appropriate product.
Explain the nature of balance sheets.
A balance sheet is a summary of a business' assets, liabilities, and owners' equity. Assets are anything of monetary value that you own and are classified as current or fixed. A current asset is cash or anything that can be converted into cash in a year. A fixed asset is something used over a period of time to operate your business, like property and equipment. Liabilities are the amounts that a business owes and are classified as current or long-term. A current liability is a debt the business must pay back during the upcoming year. A long-term liability is a debt that is due after 12 months' time, such as a long-term loan. Owners' equity (or net worth) is the amount of ownership interest in the business. The difference between assets and liabilities equals the owners' equity.
Describe the nature of budgets.
A budget is a formal, written statement of expected revenue and expenses for a future period of time. To be effective, a budget should be evaluated periodically with actual income and expenses. Revenues may include cash sales, collections on accounts receivable, and other income. Expenses include purchases, insurance, taxes, payroll, and many other things. As part of budgeting, one should follow the following steps. Set goals and prioritize them. Estimate your income. Budget for unexpected events, fixed expenses, and for variable expenses. Record what you spend. Review your spending patterns and revise your goals as needed.
Describe the nature of cash flow statements.
A cash flow statement is a monthly plan that tracks when you anticipate that cash will come into a business and when you expect to pay out cash. One purpose of a cash flow statement is to determine whether you will have enough money to pay your bills on time. Another purpose is to secure a business loan, as most lenders will request at least a firstyear cash flow statement. A cash flow statement itemizes how much cash you started with, what your projected cash expenditures are, and how and when you plan to receive cash. It also shows when you will need to seek out additional funds or when you will have additional cash remaining.
Explain the use of consensus building skills.
A consensus is a decision upon which each member of a group agrees. It is a critical component of teamwork as well as negotiation. To achieve a consensus, it is helpful to allow all members to state their opinions. It will often require members of the group to be flexible and accept a compromise. Allowing team members to be involved in setting and achieving the team's goals is important and often results in increased company loyalty and a stronger team spirit. Consensus building is also beneficial in that it leads to extra motivation and a sense of ownership among team members.
Explain the nature and scope of purchasing.
A person who purchases goods for business purposes is called an organizational buyer. The types of purchasing situations include: new task purchase, in which a purchase is made for the first time; modified rebuy, where the buyer has had experience buying the good or service but some aspect of the purchase has changed; and straight rebuy, when a buyer routinely orders the goods or services from the same vendor(s) as in the past. Suppliers should be selected using the following criteria: production capabilities, past experiences, special buying arrangements, and special services. Purchasing also involves the skill of negotiation. Items to be negotiated include prices, dating terms, delivery arrangements, and discounts.
Explain the nature of a promotional plan.
A promotional plan is a description of the promotional mix decisions for a business. The promotional plan includes relevant market information, details about the target market, identifies promotional objectives and budget and defines the mix of promotional tools. The promotional plan has a common theme and takes a purposeful planning approach.
Explain the nature of sales forecasts.
A sales forecast makes an effort to predict future sales for an existing product. To conduct a sales forecast, a marketer must determine the size of the market and analyze competitor information.
Explain how businesses can use trade-show/exposition participation to communicate with targeted audiences.
A trade show is an exhibit of products of interest to a specific industry. By participating in a trade show, a business can target a specific target market who has self-selected their interest in the industry. When you participate in a trade show you have the ability to have direct interaction with consumers, demonstrate your product and gather contact information.
Explain considerations used to evaluate whether to participate in trade-shows/expositions.
A tradeshow may be a cost effective form of promotion and market research. It is important to evaluate previous attendee lists, size of the show and other vendors to determine whether participation is a wise budget choice.
Explain methods for motivating team members.
A variety of methods can be useful for management to motivate team members. Factors that motivate employees are achievement, recognition, responsibility, advancement, growth, and the reward from doing the work itself. The use of rewards for good work can be effective. When giving rewards, identify those workers who are effective and efficient, and not those who simply get the work done. Also, reward and recognize longterm employees for their loyalty to the company. Employees are also motivated by the freedom to be creative. Encouraging them to show creativity without risk of penalty often yields positive and ingenious results.
Explain the need for accounting standards.
All accountants follow the same set of rules to prepare financial reports. The Financial Accounting Standards Board issues rules referred to as generally accepted accounting principles (GAAP). These principles provide a way to communicate financial information in a form understood by those interested in the operations and financial condition of a business. Accounting reports are used by individuals outside the business as well as inside. Outside the business, investors, lenders, consumers, competitors, and government may be interested. Workers, union leaders, and management all may have a need to see and clearly understand a business' financial situation.
Explain procedures for handling accidents.
Always survey an accident scene before you do anything. Do not make any assumptions. Figure out what has already happened, and determine what may happen next. If someone is injured, administer first aid and get help if needed. Do not move a victim who may have a back or neck injury. Clear the victim's airway and check to see if he/she is breathing. Check for a pulse or severe bleeding. In the event of a fire, leave the building immediately using the stairs or a window. If you cannot leave, stay close to the floor to avoid smoke. Before opening a door, put your hand on it to feel if it is hot. If your clothes catch fire, stop, drop to the floor, and roll to put the fire out. Do not try to put out the flames yourself. During an earthquake, stay inside and move to a doorway or under a table. If you are outside, stand out in the open away from things that may fall. If a tornado threatens, go indoors and stay away from windows. Cover yourself with a mattress or blanket. If you are outside and cannot get inside, dive into a ditch or other low ground area and stay down.
Explain how to conduct an environmental scan to obtain business information.
An environmental scan is an analysis of outside influences that may have an impact on an organization. It is a methodical look at the world that includes political, economic, sociocultural, and technological areas. It is important to understand how each of these areas may be changing in order to determine the potential for opportunity or threat to a business. Political factors include the stability of a government and its laws and regulations that affect business. Economic factors include infrastructure, quality and cost of labor, employee wages and benefits, taxes, the standard of living, and possibly foreign exchange rates. In international business, socio-cultural factors include understanding another country's language, values, traditions, and social/business etiquette. Keeping up to date with technology and using it properly are other factors of an environmental scan.
Explain the role of ethics in human resources management.
An ethics policy for employees may discuss working hours, wages and benefits. incentives, flexibility, safety and health issues, and termination procedures. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably. Train your employees in safety and emergency procedures, then reinforce the training with signage in the workspace. Ethical behavior must be maintained in employee evaluation, as well as when giving consideration for promotions, transfers, and bonuses.
Describe the nature of income statements.
An income statement is a summary of a business' income and expenses during a specific period of time. Often called a profit and loss statement, it is used to calculate revenue, costs and expenses, and profit/loss. Income statements have several major parts: total sales, net sales, cost of goods sold, gross profit, operating expenses, other income/expenses, net profit/loss before taxes, and net profit/loss after taxes. Some of these figures must be estimated or projected, such as total sales and business expenses.
Explain the role of information systems.
An information system is a set of procedures and methods that generate, store, analyze, and distribute information for use in making business decisions. Such systems organize, collect, and store data for current use or future decisions. Most information systems rely on data about current customers, sales reports, and inventory levels. Businesses use this information to make decisions about advertising, product planning, and pricing. Information can be secured through the use of primary data, including company records or government data, or secondary data, such as customer surveys.
Describe current business trends.
Assessing current business trends is important to both business and professional growth. Business owners and entrepreneurs should keep up-to-date through a variety of means. Classes are offered at vocational/technical schools, two- and four-year colleges, and online. Joining a professional association or club is an excellent way to stay current with trends and knowledge relevant to an industry. Another way to stay up-to-date is by reading journals, professional trade publications, news sources, websites, and blogs. Attend professional conferences, meetings, seminars, and speakers. These activities also provide the opportunity for networking, wherein you can learn from colleagues by sharing insight and experience.
Explain the nature of product/service branding.
Branding of a product or service is focused on creating a consumer identification using a name, term, design, symbol or combination of those factors. The use of a brand name or mark allows a consumer to recognize a product easily. There are several types of brands including national, private distributor, and generic. National brands are owned by national manufacturers, such as Hershey. Private distributor brands are also known as "store brands". Generic brands do not have any company's identity on the packaging.
Explain business ethics in product/service management.
Business ethics that relate to product/service management relate to making customers aware of product information that can affect safety and health when the product is used. This can include product recalls, allergy information and labeling, and clear instructions on how to use the good or service.
Describe health and safety regulations in business.
Businesses must adhere to health and safety regulations established by the U.S. Department of Labor. Workplace safety regulations are enforced by the Occupational Safety and Health Administration (OSHA) through inspections and fines. Employers must maintain health and safety records and provide safety training. They must stay upto-date on OSHA standards and resolve violations promptly.
Explain the role of ethics in information management.
Businesses that maintain databases of personal customer information have a responsibility to keep that information private. Many companies that collect information about their customers often sell that information to others. This exchange of customers' personal information among businesses has led to invasion of privacy complaints. Many businesses now also offer clients the choice of being added to mailing lists. Confidentiality must be maintained with regard to employees' and clients' personal information. Accountants must refrain from misrepresenting the facts to achieve shortterm goals that are contrary to a business' long-term objectives.
Identify consumer protection provisions of appropriate agencies.
Consumers are protected by both federal and state provisions. The Federal Trade Commission enforces the Magnuson-Moss Consumer Product Warranty Act that sets minimum standards for warranties. The Consumer Product Safety Commission monitors product safety by issuing standards for constructions, testing, packaging and performance. The Food and Drug Administration enforces the Food, Drug and Cosmetics Act which sets standards for pure, wholesome and effective products in these categories. States have various forms of lemon laws and Better Business Bureaus to protect consumers.
Describe connections between company actions and results. (e.g., influence buying behavior, etc.)
Company actions that affect consumers include: advertising, pricing, product mix, supply of goods, sales and promotions, product development and improvement, product safety, payment options, etc. Company actions that affect the competition include: advertising, pricing, product mix, supply of goods, sales and promotions, distribution methods and locations, etc. Company actions that affect employees include: the use of technology in production and record keeping, managerial ethics, human resources management, production planning and scheduling, risk management, investing, etc. Other actions to be considered include company actions that affect things like the environment, the global economy, etc.
Explain company selling policies.
Company selling policies guide the rules for training, compensation, legal and ethical issues and sales quotas. Company policies for training ensure that sales representatives know the product or service they are selling and present those in a way reflective of the business. Compensation and sales quotas of a company are communicated through various policies to ensure clear expectations for the sales force. Company sales policies also instruct sales representatives on how to conduct legal contracts and ethical sales practices.
Explain the role of customer service as a component of selling relationships.
Customer relationship management (CRM) is an important part of selling relationships. Companies use CRM as a method to develop customers and their loyalty and maintain those relationships. Actions taken through the customer service process will impact future sales as well.
Explain how to maintain customer records.
Data about customers and their buying habits is kept in a computer program called a database. Data can be about customers' contact or other personal information, or it can be about their purchase/account history. This data can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, website visits, customer comment cards, or they can be purchased from a third party. Database programs act like filing cabinets that allow you to sort, find, choose, and organize information.
Explain the nature of direct marketing channels.
Direct marketing channels include those methods targeting a specific group of consumers. This usually means delivering a message via direct mail to a home or business or by e-mail. Direct marketing channels are guided by the CAN-SPAM Act of 2003 which requires marketers to provide opt-out options and creates standards for delivering electronic promotion information.
Give an example of coordinating activities in the promotional mix.
Each type of promotion serves a specific purpose and marketers need to consider the objectives of the product or service to determine how the mix should be used effectively. For example, if a soda company was coordinating the promotional mix, they may decide to use broadcast media (advertising), sponsor a sporting event (public relations) and give away product samples and coupons (sales promotion). Personal selling would not be a part of the promotional mix since soda is a low cost product.
Discuss the role of ethics in operations.
Ethical considerations include those that deal with employees and those that deal with customers. An ethics policy for employees may discuss working hours, overtime pay, flexibility, safety, and health issues. Regarding customers, operational ethics deals with product and consumer safety, credit concerns, delivery policies, hours of operation, customer service policies, and return policies. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably.
Describe the role of business ethics in pricing.
Ethical practices as it relates to pricing include understanding price fixing, price discrimination, and unit pricing. Price fixing happens when competitors agree to sell their product at a certain price. Price discrimination occurs when different customers in similar situations are charged different prices. Unit measure lets consumers determine the unit cost of items. All these situations require a business to make fair decisions for the consumer and not work with other businesses to take advantage of the market.
Discuss the role of ethics in finance.
Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law. Companies and their executives can now be held accountable for misinformation or improper recording of a company's financial situation. A company must keep an accurate, honest, and complete record of its accounting transactions. Finance professionals should be educated about insider trading and other unethical practices. They must refrain from misrepresenting the facts to achieve short-term goals. Confidentiality must be maintained with regard to clients' personal information as well as company information. Efforts must also be made to avoid conflicts of interest between employees and customers.
Explain business ethics in selling.
Ethics in selling are related to sales representatives not engaging in high-pressure tactics in order to get a sale. The sales force also needs to use ethical boundaries to deliver correct information about deliveries, what products can safely do and promotion rules.
Explain key factors in building a clientele.
Factors involved with building a clientele include knowing who makes purchase decisions, industry trends, and customer referrals. When developing a group of prospective clients, a sales representative needs to know who will ultimately make a decision so that the right customer is targeted with information. Industry trends can affect whether purchases are able to be made. Customer referrals can significantly impact a business's ability to grow the market.
Describe factors used by marketers to position products/services.
Factors used by marketers to position a product or service include price, quality, features, benefits, competition and relation to another product. Positioning based on price and quality demonstrates a connection between a high price and high quality and a low price as an example of value. Positioning based on features and benefits focuses on the customer benefit that is valued. Positioning based on competition is based on creating an advantage over the other business. Positioning based on another product allows a consumer to distinguish between goods and services.
Describe factors used by businesses to position corporate brands.
Factors used to position corporate brands include price, quality, features and benefits and relationship to the competition.
Explain the concept of accounting.
Financial information for a business can be recorded, summarized, and reported in a variety of ways. The way in which information is kept and reported is determined by the size, type, and complexity of a business. Businesses should also consider the types of decisions that will be made when designing an accounting system. Types of information to be gathered include purchases, sales, expenses, and payroll. There are two basic types of accounting methods: cash and accrual. In the cash accounting method, income and expenses are recorded at the time the money changes hands. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. Accounting records show changes and the current account balance of each asset, liability, and owners' equity account. The recording of debit and credit parts of a transaction is called double-entry accounting. A record summarizing the information relevant to a single item in the accounting equation is called an account. With every action, at least two accounts will change. A group of accounts is called a ledger. A form for recording transactions is called a journal.
What are some methods/techniques to generate a product idea?
Ideas can be generated during the market research process through both customers and competitive analysis. Internal teams may be put together to evaluate new product decisions including all departments of the business.
Describe the use of technology in the selling function.
Information is a necessary tool for a sales person and technology now makes this available at all times. Technology also reduces the amount of time a sales representative uses for research and makes them a more effective resource for business. Examples of technology used in sales include Bluetooth technology, laptops, PDA's, CRM software, e-mail, text messages, social media, etc.
How can one identify product opportunities.
New product opportunities can come from a variety of sources including consumers, competitors, manufacturers, wholesalers, and internal research and development teams. The use of creativity is an inherent part of this process. Ideas can be generated during the market research process through both customers and competitive analysis. Internal teams may be put together to evaluate new product decisions including all departments of the business.
Describe the use of business ethics in promotion.
Marketers have a responsibility for ethical behavior in promotion as it relates to advertising and sales. Marketers should avoid false or misleading advertising for products and services as well as pressure or misleading sales tactics and promotions.
Describe the nature of product bundling.
Marketers may use product bundling to package two or more complementary goods and services, usually for a lower price than had the products been purchased separately. For example, if customer goes to the spa for a manicure and pedicure the price may be lower than if that customer purchased a manicure and pedicure separately.
Explain marketing and its importance in a global economy.
Marketing is the process of planning, pricing, promoting, and distributing ideas, goods, and services to create exchanges that satisfy customers. The benefits of marketing are numerous. It provides the means for competition in the marketplace, leading to lower prices and higher quality goods and services. Marketing generates new and improved products and adds value (or utility) to existing products. The global marketplace benefits from marketing because of the need to trade with each other.
Explain the use of technology in accounting.
Most businesses use some type of accounting software to record and report their business transactions. Even when using an automated system, you still need to collect and keep your source documents and each business transaction must be separated into its debit and credit parts. Computerized posting to accounts is faster and eliminates accounting errors that a person might make doing it manually. Daily, weekly, monthly, and annual reports can be generated quickly and accurately. Software is also available for tax collection and reporting.
Explain legal considerations for pricing.
Pricing decisions are impacted by the Robinson-Patman Act (1936), the Consumer Goods Pricing Act (1975), Federal Trade Commission guidelines and minimum price laws (these vary by state). The Robinson-Patman Act regulates businesses ability to change prices on consumers purchasing similar products in similar situations. The Consumer Goods Pricing Act controls the pricing relationship between manufacturers and retailers.
What are some ways to acquire product information for use in selling?
Product information can be found through four channels: direct experience, written publications, other people, and formal training. In addition, product demonstrations or product manufacturing can help a salesperson acquire product information. Printed materials can include user guides, warranties, catalogs and labels. Formal training is considered the method for information gathering about a product.
Discuss why it is important to analyze product information to identify product features and benefits.
Product information provides detailed information that allows a sales representative to understand how a product will benefit a customer through a feature. A feature is a physical attribute of the product. Benefits are the advantages or satisfaction a customer receives from the product. Knowledge of product information allows a salesperson to match the appropriate product to fill a customer's needs. For example, a t-shirt may be made of brushed cotton (feature) which means it will be extra soft to the touch (benefit).
Explain the concept of product mix.
Product mix includes all of the goods and services that are produced and sold by a business. The type and number of products a business sells should meet the businesses objectives, image and market. Within a product mix a business will have product lines and product items. Product width describes the number of product lines a business has and product depth describes how many items are offered in each product line.
Explain the concept of production.
Production is the process of creating, expanding, manufacturing, or improving on goods and services. It is a function of business found in all industries and service-related operations. There are three main forms of production: extraction and cultivation, processing, and manufacturing. The three categories of products used by businesses and consumers are natural resources, agricultural products, and processed goods. Four types of businesses that are responsible for production are producers, extractors, farmers, and manufacturers. Company leaders focus on efficient production and consider the many situations that may affect it. Companies that want to be industry leaders strive to produce the most innovative products as efficiently as possible.
Explain the role of promotion as a marketing function.
Promotion as a marketing function includes all the activities to inform, persuade, and/or remind consumers about products and services. Promotion is persuasive communication that prompts a target market to take action.
Discuss internal and external audiences for public-relations activities.
Public relations activities are designed to influence the perceptions of a specific group of people. For example, an internal audience is a company's employees. A business may choose to create a public relations campaign to change attitudes or create awareness of policies for employees. For example, an external audience is a market of consumers who live near a new sports stadium. A business may choose to create a public relations campaign to increase awareness for game day traffic.
Explain communication channels used in public-relations activities.
Public relations can use a variety of tools to develop media coverage. A main tool is a press release that is sent to appropriate media for the company and/or product. Other channels of communication include press kits and press conferences.
Identify communication channels used in sales promotion.
Sales promotion channels are divided in to trade and consumer promotion categories. Trade promotions include promotional allowances, cooperative advertising, slotting allowances, sales force promotions and trade shows and conventions. Consumer promotions include coupons, premiums, deals, incentives, product samples, sponsorship, product placement, promotional tie-ins, loyalty programs and point-of-purchase displays,
Describe the nature of selling regulations.
Selling regulations are growing in local and state governments. Regulations can include guidelines related to sales tax, where products may be sold and how promotions can be communicated.
Explain the role of situation analysis in the marketing planning process.
Situation analysis helps marketers to understand influences on marketing strategy both within the business and in the marketplace. Two common tools used in situation analysis are the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis and an environmental scan. Both provide a business with an opportunity understand how they can react effectively to changes in the market.
Assess personal interests and skills needed for success in business.
Skills needed for success in business include: verbal communication skills, written communication skills,bdiversity/cultural awareness, interpersonal communication and ability to work on a team, leadership ability, critical thinking skills, technical skills, and business knowledge
Describe how to interpret statistical findings.
Statistics are used to describe and summarize data in order to make the date more meaningful and easier to understand. Commonly used statistics in business include distribution, central tendency, and dispersion. Distribution is a summary of the frequency of values for a variable. The central tendency is an estimate of the center of a distribution of values, including mean, median, and mode. Dispersion is the spread of values around the central tendency, measured with the range.
Explain the use of technology in the pricing function.
Technology allows marketers access to a wealth of information that can affect the price of a product using both internal data and competitor data in the marketplace. Technology can provide real-time prices to consumers online or by scanning bar codes in retail stores. Retailers can also change prices for products using technology effectively.
Describe the use of technology in the product/service management function.
Technology has a direct impact on the product/service management function. Technology can create opportunities for new products, make production of products more efficient, make products easier to use, and make products obsolete.
Describe the nature of business records.
Technology has made it easier and more efficient to maintain business records through management information systems (MIS). The functions of an MIS are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Data sources may be external, such as from financial institutions or government agencies; or they may be internal, including data from accounting, inventory, and sales figures. Business record keeping requires one to: identify the information needs of the organization, obtain the data, process and analyze the data, organize the data in a useful manner, distribute information to those who need it to make decisions, and update the data and records as needed.
Discuss the role of ethics in accounting.
The AICPA Code of Professional Conduct outlines a number of rules regarding ethics in accounting. A company must keep an accurate, honest, and complete record of its accounting transactions. Company audits should be carried out by an independent party. Confidentiality must be maintained with regard to clients' personal information as well as company information. Efforts must be made to avoid conflicts of interest between employees and customers. Ethical accountants exercise due care in the performance of their professional services. They should also be educated about insider trading as an unethical practice. Accountants must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business' long-term objectives. Internal auditors work independently within a business to review and improve the company's operations. They use strict standards to ensure the business sticks to its agreements, to design plans to protect assets, and to make the best use of company resources.
Describe the regulation of promotion.
The Federal Trade Commission is the main regulator of promotional practices overseeing issues related to advertising and endorsements. Trade associations and consumers also play a role in regulating promotion strategies. The primary topics that are discussed are deceptive advertising practices including advertising to children, privacy, contests, false testimonials, bait and switch advertising, free offers, and misleading demonstrations.
Explain the need for ongoing education as a worker.
The average American has at least seven jobs before he/she reaches age thirty. People can expect to change employers several more times before they retire. While some people end up losing their jobs due to downsizing, everyone is affected by it. If managers are cut, individual workers may acquire more responsibilities. The skills you will need to manage new responsibilities may require more education. You may need to update your skills or learn new ones to keep pace with employment trends, as job opportunities shift from one industry to another. The competitive global market puts added demands on workers, as businesses try to stay up-to-date with technology and ways of doing business.
Identify methods for evaluating vendor performance.
The criteria for selecting and evaluating vendors include production capabilities, past experience, product quality, the availability of special buying arrangements or services, and pricing. When dealing with a vendor for the first time, buyers might solicit references to determine the vendor's reputation. Many businesses maintain resource files and journals that document past experience with vendors. Such a journal may include an evaluation of product quality, delivery performance, and customer service. Returns relating to the quality of products may cause a vendor to be dropped.
Explain the components of advertising.
The elements of an advertisement are the headline, copy, illustrations, signature and slogan. The headline is a sentence that gets a consumers attention. The copy explains the product or service. The illustrations use graphic elements to demonstrate the product or service. The illustrations may also grab the consumer's attention to the advertisement. The signature is an identification symbol of the business. The slogan is a quick message about the product or company.
Identify the elements of the promotional mix.
The elements of the promotion mix are personal selling, advertising, public relations, and sales promotion. Personal selling is direct contact between a salesperson and customer. Advertising is a form of nonpersonal promotion. Public relations is the development of a favorable image for a company, its products or its policies. Sales promotion includes activities that are used to create purchases and sales not related to the other types of promotion.
Explain legal considerations for finance.
The federal government regulates interstate commerce through the commerce clause of the U.S. Constitution. Securities regulation, especially the Securities Act of 1933 and the Securities Exchange Act of 1934, have been enacted to protect investors. These laws ensure that purchasers can learn the true nature of the securities they buy and provide a way to discover fraud and unfair practices. Included in the definition of securities are corporate stocks, interests in savings and loans, interests in racehorses or sports teams, and sales of coins. The Securities and Exchange Commission administers the laws regulating securities sales, brokers, dealers, and bankers who sell securities. The Federal Trade Commission was created in 1914 to protect businesses from the wrongful acts of other firms, especially referring to competitive practices. The Sherman Antitrust Act of 1890 was passed to stop the formation of monopolies. The Sarbanes Oxley Act of 2002 contains important rules affecting the reporting and corporate governance of public companies and their officers.
Describe how to monitor internal records for business information.
The functions of an information system are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Internal data includes accounting records, inventory information, company sales figures, and more. A company's balance sheet, cash flow statement, and income statement are records that are monitored during a specific period of time. They are used to calculate revenue, evaluate costs and expenses, and measure profit/loss.
Explain legal issues associated with information management.
The government has regulations regarding protecting the privacy of consumers. Businesses of all types offer detailed privacy policies to their customers that ensure the protection of their customers' personal information. Businesses must not share personal information they collect with anyone unless you give them permission to do so, according to law.
Explain legal considerations for accounting.
The most significant changes to corporate governance and accounting practice came with the Sarbanes-Oxley Act of 2002. The act requires that CEOs, financial officers, accountants, and auditors comply with regulations and procedures designed to ensure accurate representation of companies' financial positions. It prohibits most loans to directors and executive officers, and forces company insiders to report changes in ownership within two days after a transaction has been executed. Securities regulation ensures that purchasers can learn the true nature of the securities they buy by providing a way to uncover fraud and unfair practices.
Explain the nature and scope of the pricing function.
The pricing function includes all activities that determine how much to charge for a good or service. This is an important business activity as it directly impacts the financial success for the company. The price of a good or service can affect brand image, market share and profits. The goal of pricing a product is to earn a return on investment (ROI), gain market share, and face competition.
Identify the impact of product life cycles on marketing decisions.
The product life cycle affects various marketing decisions as it relates to the product mix of a business. When a product is in the introduction phase, a company must create awareness through promotion. When a product is in the growth stage, a company may need to focus on customer service and adapting the product to the needs of the consumer. When a product is in the maturity stage, a company may need to monitor competition more frequently. When a product is in the decline stage, a company has to make product decisions that affect its continued viability.
Explain the nature and scope of the product/service management function.
The product/service management function relates to all decision affecting the product mix of a business including developing, maintaining, and improving the product mix. Commonly referred to as product planning, this is a constant activity of a business to ensure that they are providing a good or service that meets the needs and wants of a consumer.
Explain the nature and scope of the selling function.
The selling function provides consumers with the products or services that they want or need. This includes all members of the distribution channel. The selling process is a personalized communication and influences the purchase of a product or service and future sales.
Explain the selling process.
The selling process includes the following steps: Approaching the customer Determining the customer's needs Presenting the product to the customer Overcoming customer objections Closing the sale Suggestion selling Relationship building
Explain the types of promotion.
The types of promotion are personal selling, advertising, public relations, and sales promotion. Personal selling is direct contact between a salesperson and customer. Advertising is a form of nonpersonal promotion. Public relations is the development of a favorable image for a company, its products or its policies. Sales promotion includes activities that are used to create purchases and sales not related to the other types of promotion.
Describe the use of technology in the promotion function.
The use of technology in promotion changes constantly. Technology creates new platforms for distributing information to consumers. Recently we have seen online sales, new media outlets including the Internet develop, creation of social media, and delivery of sales promotions via cell phones.
Explain factors affecting pricing decisions.
There are four market factors that affect pricing decisions: costs and expenses, supply and demand, consumer perceptions, and competition. When costs to produce a good or service change, so can the price of that product. The economic conditions in a marketplace can also affect price; if demand for a product is high then a retailer has a choice to increase price. Consumer perceptions of the business and product can affect how much a customer is willing to pay for a good or service. Competition influences pricing decisions depending on how price conscious consumers are regarding the product.
Explain types of investments.
There are several main types of investment vehicles. Common stock is a unit of ownership of a company that entities the owner to voting privileges. Preferred stock is a type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive them. Stocks are attractive as an investment because owners share in the success of the company. A corporate bond is a corporation's written pledge to repay a specific amount of money, plus interest. Similarly, a government bond is the written pledge of a government or municipality to repay a specific amount of money, plus interest. When you buy a bond, you are lending money to a corporation or government entity for a period of time. Mutual funds are investments in which investors pool their money to buy stock, bonds, and/or other securities. The investments are selected by professional managers who work for an investment company. Their expertise can be beneficial to inexperienced investors. A final form of investment is to own real estate. The goal of this is to own property that increases in value so you can sell it at a profit or receive rental income.
Evaluate quality and source of information.
To evaluate source data, consider the following: Is the subject matter consistent with the defined problem or issue? Do the data apply to the population and/or time period of interest? Do the data appear in the correct units of measurement? Do the data cover the subject in adequate detail? Is the data accurate and timely? Can the accuracy of the data be verified? Is/are the data source(s) reputable? Is the cost of data acquisition worth it? Is there a possibility of bias?
How can someone generate product ideas?
Tools used to generate product ideas can include brainstorming, creative thinking processes and problem solving sessions. A company can generate product ideas by conducting consumer and sales force focus groups.
Explain the nature of corporate branding.
Trade names or corporate branding are used to identify and promote an entire company or department in a business. A trade name is the legal name of the business and is used to promote its various activities as an organization.
Explain types of advertising media.
Types of advertising media include print, broadcast, online, specialty and social. Print media include newspaper, magazine, direct mail, directory, outdoor, and transit. Broadcast media include television and radio advertising. Online advertising are all forms of that use the Internet or e-mail including banner and pop-up ads. Specialty media are items used for distribution with the company's branding message. Social media includes platforms including Facebook, Twitter, and mobile media applications.
Explain types of public-relations activities.
Types of public relations activities include sponsoring product, sports, cultural or charitable events, awarding scholarships, and donations. Another aspect of public relations is creating news releases, an announcement that a company sends to the news media.
Explain warranties and guarantees.
Warranties are a promise to the consumer that a good or service will meet certain expectations that relate to materials, quality and performance. An express warranty is in writing or communicated verbally to convince the buyer to purchase a product. A full warranty guarantees that if a product is found defective it will be repaired or replaced with no charge to the customer. Limited warranties may exclude certain parts of a product from the warranty. Implied warranties are those that protect consumers based on state laws. Guarantees are used in promotional strategies including money-back guarantee, results guaranteed, guaranteed for time of use, or satisfaction guaranteed.
Describe word-of-mouth channels used to communicate with targeted audiences.
Word-of-mouth channels allow consumers to promote a product or service. Channels of communication for this method include after-sale follow-up, recognition of purchase in media, incentive programs, buzz marketing, providing samples, and interactive promotions such as e-mails, entertainment, Youtube videos, and social media interactions.