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
