Business Foundations 1203 Exam 2

product placement

Advertisers pay to put their products into TV shows and movies where the audience will see them.

Intermediaries

Businesses involved in selling the goods and services of producers to consumers and other businesses.

Two examples of product promotion to consumers

Rebates and coupons

Staffing

Recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.

The web allows companies to communicate with their customers to assist in cultivating customer _______, as people interact with the company.

Relationships

Qualifying

Selection process

secondary data

information that already exists somewhere, having been collected for another purpose

cash-and-carry wholesalers

wholesalers that serve mostly smaller retailers with a limited assortment of products

corporate distribution system

one firm owns all the organizations in the channel of distribution

exclusive distribution

The use of only one retail outlet in a given geographic area.

Customer Relationship Management (CRM)

a business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers

establish corporate value

these include concern for employees, for customers, for the environment, and the quality of the company's product.

core competencies

those functions that the organization can do as well as or better than any other organization in the world

A nonprofit organization looking to increase charitable donations will:

use promotional techniques to those used by business.

selective distribution

uses only a preferred group of the available retailers in an area

Job Specialization

The process by which a division of labor occurs as different workers specialize in different tasks over time

Market research is a continuous process responding to:

changes in consumer preferences and the marketplace

Integrated Marketing Communications

combines promotional tools into one comprehensive, unified promotional strategy.

online retailing

consists of selling foods and service to ultimate customers online

Department managers are needed to ________ the whole process

control

Public Relations

the function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance

A focus group is a group of people who meet under the direction of a discussion leader and:

express their opinions about an organization or product

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

primary data

facts and figures that are newly collected for the project

rack jobbers

finish racks or shelves full of merchandise to retailers

Empowerment

giving employees the authority to correct a problem without first checking with management

enabling

giving workers the education and tools they need to make decisions

self-managed teams

groups of employees with the authority and skills to manage themselves

place utility

having a product where customers can buy it

centralized authority

important decisions are made by higher-level managers

follow up

in business to consumer sales the ______ step is important but is often neglected.

utility

in enocomics, is the want-satisfying ability, or value, that organizations add to goods or services by making them more useful or accessible to consumers than they were before.

merchant wholesalers

independently owned firms that take title to the merchandise they handle

internal customers

individuals and units within the firm that receive services from other individuals or units

Digital Video Recording

is a technology that makes tv advertising less attractive

decentralized authority disadvantages

less efficiency, complex distribution system, less top-management control, weakened corporate image

the marketing environment

social, economic, technological, competitive, regulatory factors

The greatest of money spent on advertising is

television

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Promotional Mix

the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals

top management

chief executive officer, president, vice president, division heads

Trial close

"When would be the best time to train your staff to use the new software" or "would you like me to put this on hold"

Demographics Segmentation

- age - income - education

Standards in control process

- attainable - measurable - specific

The broad, long term accomplishments an organization wishes to attain are its __________.

Goals

Publicity

is the talking arm of public relations

tall organization structure

- many layers of management - smaller control span

central authority disadvantages

-Less responsiveness to customers -less empowerment - interorganizational conflict - lower morale away from headquarters

Line managers have the authority to:

-issue orders -enforce discipline - adjust to changing conditions

When a team comes up with as many solutions to a problem without censoring each other's ideas.

Brainstorming

Choosing among two or more alternatives.

Decision making

__________ ________ are the ability to perform tasks in specific discipline.

Technical Skills

product

a physical good, service, or idea that satisfies a want or a need

Benchmarking

a process by which a company compares its performance with that of high-performing organizations

trial close

a question or statement that moves the selling process toward the actual purchase

administered distribution system

a system in which producers manage all the marketing functions at the retail level

supply chain

consists of all parties involved, directly or indirectly, in obtaining raw materials or a product to ultimate customers

Leading

creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives

Bureacrat

describes a middle manager whose function was to implement top managements orders.

full-service wholesalers

perform all the distribution functions

Flat Organizational Structure

- fewer layers of mangers - broad span of control

centralized authority advantages

- greater top-management control -more efficiency - simpler distribution system - stronger brand/corporate image

decentralized authority advantages

-better adaption to customer wants -more empowerment to workers -faster decision making -higher morale

Problem solving is different than decision making

-less formal -Requires faster action

States use marketing to attract many groups. Two main groups they try to attract is:

-tourists -new businesses

Four Steps of Marketing Research

1. Defining the question or problem 2. Collecting research data 3. Analyzing the research data 4. Choosing the best solution and implementing it

Control Process

1. Establish performance objectives and standards 2. Measure actual performance 3. Compare actual performance with objectives and standards 4. Communicate results 5. Take necessary action

Steps in a Promotional Campaign

1. Identify a target market 2. Define objectives 3. Determine a promotional budget 4. Develop a unifying message 5. Implement the plan 6. Evaluate effectiveness

Public Relations (PR)

1. Listen to the public 2. Change policies and procedures 3. Inform people you're responsive to their needs

Disadvantages of publicity

1. Marketers have no control how, or if the media will use the story. 2. Media may alter the story 3. It can be good or bad publicity

selling process

1. prospecting and qualifying - reaching potential customers 2. preapproach - you learn as much about the customers and their wants and needs 3. approach - first impression of friendly professionalism, create rapport, build credibility, and start a business relationship 4. presentation and demonstration - match the benefits to the customers needs 5. handling objections - think of questions as opportunities for creating better relationships 6. closing - a questions or statement that moves the selling process toward the actual purchase 7. follow-up - handles customer complaints, making sure the customer's questions are answered, and quickly supplying what the customer wants.

One of the fastest segments of the US population is people over:

65

infomercial

A full-length TV program devoted exclusively to promoting goods or services.

Prospect

A person who needs a product and is willing and has the authority to purchase it is considered a ________.

focus group

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

False

Agents carry product

publicity

Any information about an individual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller.

Agents do not

Carry product, provide credit, or assume risks

True

Changes in an individuals behavior likely from learning.

Agents are paid on:

Commission based on sales revenues

Information Utility

Communication with consumer

____________ _______ let the manager picture the organization as a whole and see the relationships among the various parts.

Conceptual Skills

Television Advertising

Desirable but costly to produce and expensive to buy time

division of labor

Division of work into a number of separate tasks to be performed by different workers

Possession Utility

Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.

Max Weber

Father of sociology. Argued that in a capitalist society inequalities would lead to conflict, but that there would be more than one source of conflict. Argued that there were several factors that moderated people's reaction to inequality.

Hybrid

Firms may use a combination of departmentalization techniques to create _______ forms.

Remaining ___ is the key to an organization's success in changing times

Flexible

three forms of contractual distribution system:

Franchise (Mcdonalds), Wholesaler-sponsored (Ace hardware), and Retail cooperatives (Associated Grocers)

Advantages of Publicity

Free Reaches people who would not look at an advertisement More believable than advertising

Henri Fayol

French engineer and industrialist first to identify the major functions of management

Middle management includes

General manager Division managers Plant managers

Many college students today part of Generation _______, also known as the Millennials.

Generation Y

__ _______ include communication and motivation, enable managers to work through and with people.

HR Skills

Niche Marketing

Identifies small but profitable market segments and designs or finds products for them.

Business-to-business (B2B)

Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.

Service Orientation

Making sure everyone in an organization is committed to customer satisfaction.

Dividing the market into groups who members have similar characteristics is:

Market segmentation

State government use ________ to compete with other states and countries to locate businesses in their areas.

Marketing

Today's ___________ is about helping buyers buys.

Marketing

A _________ ____________ is an outline of the fundamental purpose and basic philosophy of an organization.

Mission statement

______________ short term statements detailing how to achieve the organizations goals.

Objectives

___ _____ managers are slowly disappearing ad being replaced by leaders.

Old type managers

Marketing intermediaries (middlemen)

Organizations that assist in moving goods and services from producers to businesses and from businesses to consumers.

Solving everyday problems that occurs

Problem solving

Four Factors in the Marketing Mix

Product, price, place, and promotion

word-of-mouth promotion

Telling people through the internet about a product you've purchased and people sharing a clever commercial with other people

Selling

The face to face presentation and promotion of goods and services is known as personal ________.

Supply Chain Management

The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate.

incentives

To get the right kind of people to staff an organization, the firm has to offer the right kind of ______.

One

Today, most americans are active on at least ______ social media platform.

cognitive dissonance

Type of psychological conflict that can occur after a purchase

An organization's ________ gives it a sense of purpose and a set of values that unites workers in a common destiny.

Vision

Target Marketing

When a business selects groups or segments that they can serve most profitability.

Prospecting

When a salesperson first identifies a potential buyer, the salesperson is _________.

objections

When answering _________, a salesperson should think of questions as opportunities for creating better relationships rather than challenges.

decentralized authority

When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.

hierarchy

a system or organization in which people or groups are ranked one above the other according to status or authority.

virtual corporation

a temporary networked organization made up of replaceable firms that join and leave as needed

Production Era

a time when a company focuses on production of a few specific products - perhaps because few of these products are available in the market

promotion

a vital component of marketing, which involves letting customers know the benefits of the product/service, where you can buy it, and describing the value proposition of the product/service.

channel of distribution

a whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path from producers to consumers.

brand name

a word, letter, or groups of words or letters that differentiates one seller's goods and services from those of competitors

cross-functional team

a work team composed of individuals from various functional specialties

Consumer Market

all the individuals and households that buy or acquire goods and services for personal consumption

interactive promotion

allows marketers to go beyond a monologue, in which sellers try to persuade buyers to buy things, to a dialogue, in which buyers and sellers work together to create mutually beneficial exchange relationships

direct marketing

any activity that directly links manufacturers or intermediaries with the ultimate consumer

viral marketing

any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands, to millions

External customers

dealers who buy products to sell to others

one-to-one marketing

developing a unique mix of goods and services for each individual customer

Mass Marketing

developing products and promotions to please large groups of people

mass marking

developing products and promotions to please large groups pf people

Podcast marketing

distribution of audio and video feeds over the internet to subscribers

volume segmentation

dividing the market by usage

psychographic

dividing the market using groups' values, attitudes, and interests

Selling Era of Marketing

emphasized selling and advertising in an effort to persuade consumers to buy an existing product

Controlling

establishes clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not

To appeal to diverse groups, marketers must:

listen better and be more responsive to unique ethnic needs.

Time ultility

making the product available when consumers need them

Public relations is a good alternative to advertising because

many news organizations are searching for new stories

agent/broker

marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods

Consumer Behavior

marketing researchers investigate these consumer thought processes and behavior at each stage in a purchase to determine the best way to help the buyer buy

contractual distribution system

members are bound to cooperate through contractual agreements

Steps in the consumer decision making process

need recognition, information search, evaluation of alternatives, purchase, post purchase behavior

retailer

organization that sells to ultimate consumers

Advertising

paid non personal communication about an organization and its products transmitted to a target audience through mass media

4 eras of marketing

production (1860 - 1940) selling (1920-1970) marketing concept (1950-1990) customer relationship (1990-present) New: mobile/on-demand (2010 to present)

service utility

providing fast, friendly, personalized service

intensive distribution

puts products into as many retail outlets as possible

limited-function wholesalers

rack jobbers, cash-and-carry wholesalers, and drop shippers

manufacturer's agents

represent producers

Flat Organizational Structure

responds to customer demands faster because its lower-level employees have authority and responsibility for making decisions

The internet helps buyers in the purchasing process because customers are able to:

search and compare to find the best price

Marketing Concept

the idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

marketing strategy

the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships

ultimate customers

the people who use the products and services purchased for a household

real time

the present moment or the actual time in which something takes place

Transparency

the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

benefit segmentation

the process of grouping customers into market segments according to the benefits they seek from the product

enviromental scanning

the process of identifying the factors that can affect marketing success

testing marketing

the process of testing products among potential users

Subculture

the set of values, attitudes, and ways of doing things that differentiate a group of belonging to a certain ethnic, racial, or other group.

True

the trend today is to expand the span of control as organizations adopt empowerment, reduce the number of muddle managers, and hire more talented and better educated lower-level employees.

telemarketing

the use of the telephone to sell directly to consumers

ethical behavior

unfailing demand for honesty and insistence that everyone in the company gets treated fairly.

drop shippers

wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer