BIZ Ch 1-4

T/F: A nonprofit's main objective is to make money for owners or shareholders?

False

T/F: Interviewing people is not usually effective way because they will be afraid that you want to blame them for the problem.

False; When done properly, interviews can provide lots of insights into a problem

What are the differences between a for-profit organization and nonprofit organization?

Non-profit organizations typically fall into one of two categories: public and private. While a public non-profit organization receives the majority of its funding from the general public, a private non-profit organization receives most of its funds from only a few private sources, such as through donations from a single family or corporation.

The Fundamental Question Companies Must Ask Themselves

Of All the Choices... Why Should Customers Choose US?

Business

Organization or activity that provides goods and services to earn a profit

Quality of life

Overall sense of well-being experienced by an individual or a group

Entrepreneurs

People who risk their resources to start and manage a business

Brand positioning

Process of positioning your brand in the mind of customers Craft a story around a brand so the customer has a distinct profile in their mind of your product and how it is different from competitors.

People marketing

Protecting and creating personal brand. Can be sports, politics, celebrities (ex. Jennifer Lopez, Tiger Woods, Obama, Martha Steward, Paris Hilton)

Standard of living

Quality and quantity of goods and services available to a population

Value

Relationship between the price of a good or a service and the benefits that it offers its customers.

systematic problem solving

Requires data collection; Methodical and organized; Response depends on time required to collect and analyze data; Ideal for complicated problems and those involving risk

Henry ford's famous quote, "You can have your Model T in any color you want as long as it's black." best reflects marketing attitudes during the _____ era.

Selling

Crowdsourcing

Soliciting contributions from a large group of people, especially an online community, rather than from just employees or suppliers.

Nonprofits

Business-like establishments that employ people and produce goods and services. Goal - To contribute to the community. Produce goods and services to support economic stability and growth in a region

What does it mean to say "Made in America"?

- American Marketing Association - Honesty - Fairness

Guidelines for quantitative analysis

- Assign numeric values to your data - Compare apples to apples - Rate subjective variables - Use a decision model

Data collection process

- Define your data needs - Do not overestimate what you know - Document data and its sources - Examine existing information first - Rely on organizational resources

Essentials in implanting the solution

- Get approval from the problem owner - Develop a plan - Notify stakeholders - Anticipate opposition - Test the solution plan a worst-case scenario - Take action

Keys to monitoring & managing effectively

- Identify key variables - Select an appropriate level of monitoring - Involve others - Make corrections promptly

Key reasons to launch a small business

- greater financial success - independence - flexibility - challenge - survival

Essentials in evaluating options

-Choose an evaluation method - Select the criteria -Evaluation criteria - Weigh your criteria - Rate the alternatives - Make a decision - Impact to others both long & short term - Ethical?

5 Business eras

1) Industrial Revolution 2) Entrepreneurship Era 3) Production Era 4) Marketing Era 5) Relationship Era

The 5 environmental forces that affects business

1) Social 2) Economic 3) Technological 4) Competitive 5) Regulatory

5 core steps of marketing strategy

1) analyze the environment 2) segment market 3) Define the target market 4) Define marketing mix 5) evaluate and adjust

Four general basis to segment markets

1) behavioral- product features, usage rate 2) demographic- household size, income 3) psychographic- lifestyle 4) geographic- region

Levels of monitoring

1) close 2) regular 3) occasional

What is a Business?

A business is an organization that provides goods and/or services in an effort to earn a profit.

What is a core goal for successful business?

A core goal for successful businesses is to deliver value to customers while generating long-term profits

Customer value

A customer perception that a product has a better relationship than its competitors between the cost and the benefits

Problem statement

A problem statement is a clear, concise description of the problem and the effect you expect from the solution.The purpose of the problem statement is to describe a single problem objectively

What gives a product value?

A product has value when its benefits to the customer are equal to or greater than the price that the customer pays.

What does "Public" mean?

A public company is a company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or the over-the-counter market.

idea marketing

A whole range of public and private organizations market ideas that are designed to impact how people think or act. Blood drive, recycle, don't drink & drive

event marketing

Attracting attention of a group of people gathered together for an experience (athletic, music, cultural, charitable events, etc.) Sponsorships and partnerships between public & private sectors, e.g., Olympics, Cancer Telethons, Marathons

Who employs more people? A. Employers with >500 employees B. Employers with <500 employees

B. Employers with <500 employees

What does the action plan summarize?

The action plan summarizes the activities the group and other members of the organization agree to perform to make sure the project succeeds

Marketing Research

The process of gathering, interpreting, and applying information to uncover marketing opportunities and challenges and to make better marketing decisions.

types of data to gather

financial, task or process, product or service, general advice

What are considered high risk businesses?

independent restaurants, retail stores, direct sales

Goal

is to generate long-term profits by delivering unsurpassed "value" to the customers

A business incurs a _____ when expenses are higher than revenue.

loss

environmental scanning

process of continually collecting information form the external environment

collective wisdom

shared knowledge and experience from a group of people

Market niche

small segment of the market

Marketing mix

the blend of marketing strategies, aka the 4Ps (Product, Price, Place, Promotion)

Entrepreneurial characteristics

vision, self-reliance, energy, confidence, tolerance of uncertainty, tolerance of failure

social demographics

"Measurable" characteristics of a population

What is a marketing strategy?

Elements of marketing strategy includes product, price, distribution, and promotion.

How do businesses raise the standard of living?

Businesses raise the standard of living through the payment of taxes, which can be used by the government to pay for socially desirable projects

Cognitive Dissonance

Consumer discomfort with a purchase decision, typically for a higher-priced item.

Where does Customer satisfaction come from?

Customer satisfaction comes in large part from delivering unsurpassed value.

Sustainability

Doing business today without harming the ability of future generations to meet their needs

place marketing

Drawing people to a particular place (Cities, States & Nations). Market locations to start businesses, hold conferences, vacation

target market

Group of people who are most likely to buy the product

How does a business survive and maintain a profit?

In order to survive and maintain a profit, a business must efficiently product goods and services that satisfy the needs of the customers. Thus the firm must be aware of changes in consumer attitudes and preferences that represent new opportunities. It must also be aware of new and innovative ways to lower costs and/or improve quality.

Which of the business era began using a consumer-centered business approach?

Marketing Era

Marketing

Marketing is an exchange relationship between a firm and its customers.

Marketing

Marketing is 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.

Modeling decisions quantitatively means . . .

Modeling decisions quantitatively means you represent the decision and its factors using numbers.

T/F: Even if you've been in constant contact throughout the process, you should still seek final approval from the problem owner before implementing a solution.

True; Up to this point much of your activities have been exploration and analysis. Now you are making changes and need to communicate this clearly.

Intuitive problem solving

Uses current knowledge; Has no particular procedure; Is immediate or quick response; Ideal for routine problem

Problem

Variance between a current state and where you want to be