BUSINESS EXAM #3

computer virus

A computer program that copies itself into other software and can spread to other computer systems.

personal selling

A face-to-face sales presentation to a prospective customer.

knowledge workers

A worker who develops or uses knowledge, contributing to and benefiting from information used to perform planning, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions.

Maturity

After the growth stage, sales continue to mount—but at a decreasing rate. This is the maturity stage. Most products that have been on the market for a long time are in this stage. Thus, most marketing strategies are designed for mature products. One such strategy is to bring out several variations of a basic product (line extension). Kool-Aid, for instance, was originally offered in six flavors. Today there are more than 50, as well as sweetened and unsweetened varieties.

database

An electronic filing system that collects and organizes data and information.

intranet

An internal corporate-wide area network that uses internet technology to connect computers and link employees in many locations and with different types of computers.

Traditional Advertising

Any paid form of nonpersonal promotion by an identified sponsor that is delivered through traditional media channels.

the shift to a distributed workforce

Companies adopting the distributed workforce model gain many benefits, such as cost savings, more satisfied and productive employees, and increased employee retention.

Product Strategy

Creating a product strategy involves choosing a brand name, packaging, colors, a warranty, accessories, and a service program.

Place or distribution strategy

Creating the means by which products flow from the producer to the consumer.

Distribution

Efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer to industrial users and consumers.

Wholesalers

Firms that sell finished goods to retailers, manufacturers, and institutions.

Types of Store Retailing

IN STORE -Department store -convenience store -supermarket -discount store -off price retailer -factory outlet -catalog store NON-STORE RETAILING -vending machine -direct selling -direct response marketing -home shipping networks

network

Networks include clients and servers. The client is the application that runs on a personal computer or workstation. It relies on a server that manages network resources or performs special tasks such as storing files, managing one or more printers, or processing database queries. Any user on the network can access the server's capabilities.

marketing intermediaries

Organizations that assist in moving goods and services from producers to end users.

the increasing use of grid computing.

Outsourcing a portion of the company's computing needs provides additional flexibility and cost advantages. Companies can also set up internal grids.

unsought products

Products that either are not planned as a purchase by a potential buyer or are known but the buyer does not actively seek them, such as funeral services.

product placement

Putting products into TV shows and movies where they will be seen

convenience products

Relatively inexpensive items that require little shopping effort and are purchased routinely without planning.

Pricing strategy

Setting a price based upon the demand for and cost of a good or service.

Promotion Strategy

The unique combination of personal selling, traditional advertising, publicity, sales promotion, social media, and e-commerce to stimulate the target market to buy a product. Sometimes referred to as the promotion mix.

Digital forensics

With digital forensics techniques, corporations, government agencies, attorneys, and lawmakers can obtain evidence from computers and corporate networks—web pages, pictures, documents, and e-mails

Computer viruses

computer virus can destroy the contents of a computer's hard drive or damage files. Another form is called a worm because it spreads itself automatically from computer to computer.

The four types of consumer products

convenience, shopping, specialty, and unsought products

Atmosphere and retail image

-Atmosphere refers to the physical layout and décor of the store. They can create a relaxed or busy feeling, a sense of luxury, a friendly or cold attitude, and a sense of organization or clutter. -Marketers combine the store's merchandise mix, service level, and atmosphere to make up a retail image.

Steps in the new product development process

1. Idea Generation 2. Screening 3. Business Analysis 4. Development 5. Test Marketing 6. Commercialization

Stages of Product Life Cycle

1. Introduction 2. Growth 3. Maturity 4. Decline

Growth

If a product survives the introductory stage, it advances to the growth stage of the life cycle. In this stage, sales grow at an increasing rate, profits are healthy, and many competitors enter the market. Large companies may start to acquire small pioneering firms that have reached this stage. Emphasis switches from primary demand promotion to aggressive brand advertising and communicating the differences between brands. For example, the goal changes from convincing people to buy flat-screen TVs to convincing them to buy Sony versus Panasonic or Sharp.

Publicity

Information about a company or product that appears in the news media and is not directly paid for by the company

specialty products

Items for which consumers search long and hard and for which they refuse to accept substitutes.

shopping products

Items that are bought after considerable planning, including brand-to-brand and store-

Integrated Marketing Communications

The careful coordination of all promotional activities—media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging, and other forms of promotion—to produce a consistent, unified message that is customer focused.

advertising media .

The channels through which advertising is carried to prospective customers; includes newspapers, magazines, radio, television, outdoor advertising, direct mail, social media, and the internet.

Promotional mix

The combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

volume segmentation

The differentiation of markets based on the amount of the product purchased.

benefit segmentation

The differentiation of markets based on what a product will do rather than on customer characteristics.

psychographic segmentation

The differentiation of markets by personality or lifestyle.

geographic segmentation

The differentiation of markets by region of the country, city or county size, market density, or climate.

demographic segmentation

The differentiation of markets through the use of categories such as age, education, gender, income, and household size.

reach

The number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

frequency

The number of times an individual is exposed to an advertising message.

knowledge management

The process of researching, gathering, organizing, and sharing an organization's collective knowledge to improve productivity, foster innovation, and gain competitive advantage.

Market segmentation

The process of separating, identifying, and evaluating the layers of a market in order to identify a target market.

distribution channel

The series of marketing entities through which goods and services pass on their way from producers to end users.

Target Market

The target market is the specific group of customers (which could be organizations or individual consumers) toward which a firm directs its marketing efforts.

Introduction

When a product enters the life cycle, it faces many obstacles. Although competition may be light, the introductory stage usually features frequent product modifications, limited distribution, and heavy promotion. The failure rate is high. Production and marketing costs are also high, and sales volume is low. Hence, profits are usually small or negative.

Decline (and death):

When sales and profits fall, the product has reached the decline stage. The rate of decline is governed by two factors: the rate of change in consumer tastes and the rate at which new products enter the market. Sony VCRs are an example of a product in the decline stage. The demand for VCRs has now been surpassed by the demand for DVDs and online streaming of content. Sometimes companies can improve a product by implementing changes to the product, such as new ingredients or new services. If the changes are accepted by customers, it can lead to a product moving out of the decline stage and back into the introduction stage.

Three IT trends

digital forensics the shift to a distributed workforce the increasing use of grid computing.