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