BUS 292 Exam 3

nepotism

a management philosophy of selecting and promoting people based on family ties.

direct exporting

exporting using no intermediaries

long-term value

a marketing concept that refers to the revenue (or profit) generated by one customer over his/her lifetime dealing with one firm. higher long-term value is usually preferred

wholesaler

an intermediary business which buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers

tangibility

an item's capability of being touched, seen, tasted, or felt

perishability

describes a service that if not used when offered, it cannot be saved for later use

influencer impact

a customer who buys your product or service and likes it is good, but one who spreads his or her message of happiness to the rest of the world, through word of mouth or social media

micro inventory

a set of goods or services that consists of only one or a few items

virtual recruiting

independent contractors who provide specialized business services or support from a distance, through the internet, telephone, fax, or another method of communication

total product approach

-Your product means more to the consumer than just the core component -Can help you get inside your customers' heads and figure out the most cost-effective "bundle" of value and cost benefits -Knowing what your product "means" to consumers will help you set an appropriate price

what industry/business is typically a high customer contact business?

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employee referral

An underused, low-cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit.

on the job training

Employee training at the place of work while he or she is doing the actual job.

indirect exporting

Exporting using intermediaries such as agents, export management companies, or export trading companies.

end user

a customer role that describes the person who eventually makes actual use of a product/service in his or her personal/work life

fulfillment center

a company that will warehouse your products and fill your customers orders for you

influencer

a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choice

decision-maker

a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

purchaser

a customer role that describes an individual or institution that pays for or obtains a product/service

direct mail

a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers from which they can mail, call, or e-mail an order

agent

a middleman business which represents a manufacturer's products or service to other business-to-business middleman firms

internet recruiting

allows you to search a resume database or post a job description to the web. mostly used by small business owners who know exactly what they want

bundling

combining two or more products in one unit and pricing it less than if the units were sold separately

telemarketing

connect via telephone for the express purpose of selling a product or service. can either be inbound (customer calls company) or outbound (company calls customer).

sales promotion

form of communication that encourages the customer to act immediately towards a purchase, such as coupons, sales, or contests

just-in-time inventory

having just enough product on your shelves to meet the immediate purchases. usually requires frequent shipment from your supplier

Off-the-job training

includes lectures, special study, videos, television, conferences, case studies, role-playing, simulation, program instructed, and laboratory training

client's location

locations here services such as cleaning, pest control, remodeling, lawn & gardening services, etc. must be performed at the client's house

meritocracy

management philosophy of selecting and promoting people based solely on their being the most capable person for the job

what industry/business is typically a low customer contact business?

manufacturing business; commercial space may be appropriate

direct sales

methods of going directly to your customer in order to sell your product. ex: vending machines, door-to-door salespeople, leasing space at a craft fair

direct response advertising

placing an ad in a magazine or newspaper on television or radio, or in any other media. contains an order blank with a phone number and email or regular mail address with the intent of having the customer place an immediate order

heterogeneity

quality of service in which each time it is provided it will be slightly different from the previous time

skimming

setting a price at the highest level in the market will bear, usually because there is no competition at the time

captive pricing

setting the price for an item relatively low and then charging much higher prices for the expendable uses

total product

the entire bundle of products, services, and meanings of your offering (includes extras like service, warranty, delivery, etc.)

price elasticity

the idea that the market's demand for a product or service is sensitive to changes in its price

employee fit

the match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee

benefit matching

the more closely customers' needs/pains/gains align with the features or benefits of your product or service, the happier they will be

guerilla marketing

the use of creative and relatively inexpensive ways to reach your customer. ex: door-knob hangers, flyers under windshield wipers, t-shirts, balloons

mutually accessible location

too much specialized equipment to be readily transported. services such as barbershops, dentist offices, & restuarants

probationary period

trial period in which an employee has a temporary state before a formal offer to work full time is presented