marketing cluster exam notecards part 2
A boat rental company (#35, FI)
A boat rental company, which is likely to have more business during the spring, summer, and fall, is most likely to rely on a cash surplus to continue to meet expenses during the winter months.
Business planning (#53, MP)
A business uses the projected sales income to make major business decisions such as scheduling production, setting prices, purchasing materials and equipment, and hiring staff.
Cooling-off law (#98, SE)
A cooling-off law protects consumers who purchase products as a result of high- pressure or fear-based sales tactics.
A business 'score values identify the beliefs that the business stands for (#84, PM)
A corporate brand consists of all of the combined customer impressions and experiences associated with a particular company. Many different elements, including the company's core values, brand cues, brand personality, brand promise, and touch points, make up a corporate brand's identity. A business's core values, also known as its brand values, are the beliefs or qualities that a brand stands for and is built around.
Value (#44, PM)
A corporate brand is all of the impressions and images associated with a company in the minds of the consumers. To create these impressions and images, the company uses a series of activities; it positions the brand. This involves the company communicating its value to the target markets. The value is the amount of satisfaction that the good or service will provide the target markets. Slogans and logos are brand elements or touchpoints that marketers use to position the corporate brand. The brand's size is not usually a relevant factor.
Customer touchpoint (#84, PM)
A customer touchpoint is any encounter in which a business and a customer engage. In this example, Marcy's live chat with a service representative would be considered a customer touchpoint to VaccuFresh—not a marketing strategy, customer analysis, or advertising success.
Decision-making (#70, PD)
A decision-making skill is an ability to choose among alternatives. Marketers need to be independent thinkers who can make decisions and solve problems without always asking their supervisors for direction. Marketers who have good decision-making skills often are able to resolve customers' complaints quickly and satisfactorily. They are able to identify possible alternatives and choose the one that best solves the customer's problem.
Defined contribution plan (#34, FI)
A defined contribution plan involves people funding their retirement savings with their own money, sometimes with additional contributions from employers. A 401(k) plan is an example of this type of plan because tax-free contributions are deducted from an employee's payroll and invested in securities. They are also sometimes matched by employers. In contrast, a defined benefits plan defines the amount of retirement income that will be paid, regardless of the success of the investments made.
Specific (#32, FI)
A financial goal is a short- or long-term objective that is measured in terms of money. To accomplish financial goals, they must be specific, measurable, realistic (attainable), results-oriented, and time-bound. Financial goals are not general or durable, and they do not need to be conservative.
The same percentage, no matter how much profit they make (#19, EC)
A flat tax uses a consistent rate for all income brackets. Although some states do not charge income taxes, Maryland's flat rate is not one of them. When tax rates increase as profits increase, the state is using a graduated scale. In rare instances, profits over a certain amount are taxed at a lower rate. Any rates that change depending on the amount of profit are not flat rates.
Fiscal (#18,EC)
A government's fiscal policy sets levels of government spending and taxation. To control inflation, the government might implement a contractionary fiscal policy, which often involves decreasing government spending and increasing taxes.
Coworkers (#37, HR)
A new employee's coworkers often are instrumental in orienting the person by answering routine questions. Coworkers are able to explain the day-to-day activities on the job and answer general questions about where supplies are kept and when to take breaks. Coworkers help new employees feel a part of the group and make them comfortable with their new surroundings. Top-level managers may welcome new employees on their first day but usually do not have direct contact with them while they learn their jobs.
Create a personal balance sheet (#33, FI)
A personal balance sheet reveals an individual's personal net worth at a point in time by subtracting personal liabilities from personal assets. Net worth cannot be determined simply by looking at liquid assets or stock investments. A personal budget is a tool used to manage monthly income and expenses.
A need or want is unmet (#77, PM)
A product opportunity is a favorable circumstance that presents itself to provide a good or service that consumers are willing to buy. If consumers are willing to buy something, they have unmet needs or wants. When a good or service can be produced quickly, some needs and wants are more likely to be fulfilled, depending on the availability of the resources needed to produce the goods or services. Product opportunities do not always exist when a situation requires evaluation or economic resources are abundant.
The size of the group it intends to survey (#42, IM)
A sampling plan is the course of action or blue print for gathering marketing information from a section of a target market. When a business designs its sampling plan, it must determine the size of the group that it intends to survey and the process that it intends to use to select the participants.
Scatter chart (#9, CO)
A scatter chart is a visual aid that involves placing points on a graph to indicate relationships or patterns among two or more variables
Intangible outputs (#63, OP)
A service business produces an intangible output. Outputs are goods or services produced as the result of combining inputs. Coral's outputs are intangible because they have no physical presence. Coral does not produce tangible outputs, retail goods, or industrial services.
Slotting allowance (#5, CM)
A slotting allowance, or a slotting fee, is a sum paid by a manufacturer to a retail store for making room for its products on the store shelves. Many individuals consider charging a slotting allowance unethical, although it is usually legally permissible. This arrangement is not referred to as a product placement fee, a distribution charge, or a supermarket fee.
Trademark (#2, 2022 area marketing cluster, BL)
A trademark is a symbol, design, or word used by a business to identify a good or service and is registered with the government to prevent its use by others. A trademark is an example of intangible business property. Federal law protects a business's intangible property from being used by competitors. A business's inventory, acreage, and equipment are types of tangible property.
Affinity marketing (#7, CM)
Affinity marketing is a partnership between multiple businesses to provide goods in exchange for access to a new market.
Primary (#41, IM)
After determining which research problems to pursue, managers and researchers must decide what kind(s) of data they need to collect. Sometimes, there are enough secondary data available to complete the study. Secondary data are data that already exist and have been used for another purpose (e.g., sales invoices, expense reports). If there are not enough secondary data available, researchers may have to uncover primary data, or new data obtained through surveys, focus groups, etc
Small businesses are the building blocks of large corporations (#20, EC)
All small businesses consume supplies and services which provides business opportunities for large corporations. Many small businesses control their operating costs (which can increase profits) without directly strengthening a national economy.
Alteration (#80, PM)
Alteration is a product mix strategy in which a business makes changes to its products or product lines. Examples of alteration include changing the product's color, changing the appearance of the product's packaging, and changing the product's pricing.
Implementing a automatic identification system (#4, 2018 state marketing cluster, CM)
An automatic identification system uses electronic bar coding symbols to transmit information. Businesses often use bar coding as a way to keep track of their inventory and reorder stock.
Another currency (#20, EC)
An exchange rate is the rate at which one currency can be exchanged for another, or a measure of one currency's value in relation to another currency. Exchange rates do not measure a currency's value in relation to an average of world currencies, in relation to its prior value from any time, or in relation to the U.S. dollar.
Unethical (#71, PI)
An unethical pricing tactic is one that is dish ones to immoral. Developing a pricing structure that encourages customers to buy additional services that they don't need in order to obtain the original product may be unethical. If customers are led to believe that they need the additional services even though they don't, the business is deceiving customers, which is an unethical tactic
Brand extension (#81, PM)
Brand extension is the strategy of using successful brand names to introduce new products. Brand repositioning attempts to change the way consumers see a brand. Brand licensing allows another company to use the brand name. Brand positioning creates a certain image or impression of a brand as compared to those of competitors' brands.
Competitive advantage (#80, PM)
Businesses often gain a competitive advantage over competitors by offering customers a value or benefit that their competitors do not provide. If a business offers the best quality and service at a reasonable price, it has a competitive advantage over competitors that provide lower quality or higher prices. When businesses position themselves as providers of quality and service, customers often think of them in those terms and prefer to buy from those businesses.
Coding (#45, IM)
Coding is the process of assigning a numeric value to the various responses on a marketing questionnaire or survey.
Conceptual skills (#100, SM)
Conceptual skills involve the ability to see the" big picture" and think about how things will work together. The ability to see the big picture and how things fit together facilitates sound decision- making, idea generation, and creative problem-solving activities because the manager understands how various changes can impact other departments and employees. Interpersonal skills involve the ability to communicate, interact, and build relationships with others. Technical skills or competence is the ability to understand the specialized aspects of jobs.
Common characteristics (#51, MP)
Demographic segmentation focuses on the characteristics people have in common that affect their purchasing power. These include age, gender, income level, education level, race, life stage, or occupation. The characteristics that are important to businesses will depend upon the type of product being sold. Demographic segmentation divides a market by people's commonalities, not their differences. Consumers' lifestyles and personalities are the basis for psychographic segmentation.
Descriptive statistics (#46, IM)
Descriptive statistics include measurements such as mean, mode, median, range, and standard deviation. These types of measurements help researchers to summarize numeric information in terms of number of responses, frequency of use, average distribution, and various other relationships.
Promotional tool (#26, PR)
Direct marketing involves the use of one or more advertising media to communicate with the consumer. It is considered an effective promotional tool because it reaches the specific customer, or group of customers, that the business wants to target. For example, a business can send a catalog to a customer and follow it up with an email to the same customer. The direct contact promotes the business and its products.
Contraction (#19, EC)
During the 10-year "Great Depression" of the 1930s, the United States experienced a contraction in the business cycle. A contraction is the phase of the business cycle characterized by decreased demand for goods and services, rising unemployment, increased saving by consumers, and reduced sales and profits for businesses. When a contraction continues for a long period of time and is severe, a depression exists.
Number of customer self-checkout stations (#72, PI)
Electronic bar codes contain product price information. At the point of sale, the item is scanned into the cash-register terminal where the price is read and recorded. Today, more retailers are installing self-checkout stations. This allows customers to scan, bag, and pay for the items without the assistance of a cashier.
Determining what will put it in reach of its goals (#16, EC)
Establishing a system for retrieving information is part of information management. Promoting a new service to potential customers is part of marketing. While organizing the business to meet business objectives is part of strategic management, it is not what Stacey's Coffee House demonstrated in this example. Organizing would involve setting up the business to be successful in providing the new laundromat service.
Excise (#31, FI)
Excise taxes are specific, targeted taxes that are applied to specific goods and use a flat rate.
Exclusive agreements (#5, CM)
Exclusive agreements are a supplier's requirements for its customer to handle only its products or to agree to not handle other companies' products
The finance field is full of temptations and pressures to be unethical (#36, FI)
Financial professionals are confronted with a wide range of ethical dilemmas. Most financial professionals are not greedy and singularly concerned with making money.
Employee turnover (#28, EI)
Finding, interviewing, and hiring employees is a costly and time-consuming process, so most employers want to avoid it as much as possible.
Insurance (#73, PI)
Fixed costs are those costs of doing business that do not change with changes in sales volume. They also include rent, mortgage payments, and utilities. Shipping charges, sales commissions, and cost of goods sold fluctuate directly with fluctuations in sales and are considered variable costs.
sometimes isn't enough in difficult ethical dilemmas (#98, EI)
Following rules and guidelines will usually lead you in the right direction. It might not be enough, however, to make sure that you are ethical in all situations. You will need to use your judgment and check in with your own ethical principles from time to time. Following the code of conduct or code of ethics does not always guarantee that you will behave ethically. Following the code of conduct or code of ethics does not necessarily tempt people to act unethically or include attending ethics training.
Formal, Horizontal (#11, CO)
Formal communications include regularly schedules reports or meetings. A weekly team meeting would fall under this category because it has been planned and is a regular part of a project process. In contrast, informal communications might be impromptu or immediate conversations that are not planned in advance. Furthermore, horizontal discussions are those that take place among peers rather than up or down through the organization. Team members are considered peers, so this would be an example of horizontal communication
Business defamation (#97, SE)
Governments regulate selling practices to protect buyers and sellers. Many jurisdictions have business-defamation laws that prohibit untrue or unsubstantiated statements that intend to damage the reputation of another business.
easy access to natural resources (#17, EC)
Having easy access to natural resources would encourage a business to open in a specific location. Strict government regulations, high unemployment rates, and easy access to competitors' products would discourage businesses from opening in a certain location.
A vendor with prices that are consistently higher than the competition's bids (#62, OP)
If a vendor's prices are consistently higher than industry standards, Maurice should think twice about continuing to do business with that company.
Avoid jargon and use clear language (#48, IM)
If your questionnaire uses technical terms or jargon, you run the risk of respondents not understanding your questions. Concise questions and clear language make it easier for everyone to understand what you're asking.
Limited partnership (2021 State Marketing Cluster, #2, BL)
In a limited partnership, one or more partners has limited liability in terms of the amount of financial responsibility or the amount of involvement in the business
Initiative and assertiveness (#21, EI)
Initiative is the willingness to act without having to be told to do so and often includes seeking additional responsibilities. Assertiveness refers to your ability to express yourself and stand up for your beliefs, rights, and principles. Jerry looks for additional work and stands up for his actions. Integrity is avoiding falsehood in all forms. Dependability is honoring your commitments and obligations. Receptivity is being open to input from other people.
Premiums (#34, FI)
Insurance premiums are the fees that the insured pays to the insurer to obtain insurance coverage.
$22,750 (#35, FI)
It includes all assets, debts, and the owner's equity. Total assets include items such as cash, accounts receivable, inventory, machinery and equipment, buildings, land, investments, and interest. Total assets do not include accounts payable, which are considered debts. To calculate the business's total assets, add the figures for cash, accounts receivable, inventory, and machinery and equipment ($2,500 + $6,125 + $3,775 + $10,350 = $22,750). SOURCE: FI:093 Explain the natu
Early adopter (#75, PM)
Kevin is known as an early adopter, someone who buys a product before most others do. Early adopters buy during the introduction or growth stage, not the maturity stage. Product bundling refers to selling packages of products rather than individual products. Price skimming is a strategy in which marketers set prices high to recover costs.
Lobbyists (#69, PD)
Lobbyists are paid by organizations/associations to attempt to influence legislative bodies to enact laws that are in the best interests of the group. Although secretaries, consultants, and assistants may be hired by organizations/associations, influencing legislative decisions is not their responsibility.
Obtaining referrals from loyal customers (#97, SE)
Loyal customers often provide salespeople with leads for locating and gaining access to new clients. This can greatly increase the salesperson's opportunities for making sales.
Firewalls (#59, OP)
Malware (malicious software) is an illegal computer program that is used to disrupt computer processes, destroy computer programs, and access confidential business information.
newspaper advertisements (#97, SE)
Many businesses place advertisements in newspapers that promote their goods and services. These advertisements are a good source of information for selling because they usually contain information about the business's goods and services. The advertisements may describe the goods and services, explain any warranties or guarantees, or list the price and availability.
Using tamper-resistant packaging (#75, PM)
Many businesses produce products that might be harmful to consumers if the products are tampered with or become contaminated.
An advertisement disguised as an editorial (#86, PR)
Many people view stealth marketing as unethical, especially in cases where ads are made to look like unbiased articles or editorials. Online banner advertisements, search engine optimization, and legitimate customer reviews are not instances of stealth marketing because they are not done secretly.
Maslow's Hierarchy of Needs Theory (#100, SE)
Maslow's Hierarchy of Needs Theory suggests that motivation is related to five levels of needs—from basic to complex. Maslow's theory states that basic needs must first be met before a person is motivated to fulfill the next level of needs.
Mode (#47, IM)
Mode is one measure of central tendency. The mode is the answer to a question that is given most often by respondents. Mean refers to the mathematical average of all responses. A median is the middle value of the established sample criteria; half of the data or responses are below the median value, and half are above the median value. Scope is not a measure of central tendency.
Anger (#10, CO)
Nonverbal cues are the elements of communication that use gestures and facial expressions rather than words. Nonverbal behavior can indicate what the sender and/or the receiver think about a message. If the recipient responds to a message by frowning and clenching his/her fists, it is likely that the message has made the recipient angry
mass customization (#75, PM)
On going technological advancements are helping businesses take their standard products and customize them for many people or businesses in an efficient, cost-effective way.
Hire more workers (#53, MP)
One of the ways businesses use sales forecasts is in determining whether or not to hire more workers. A projected sales increase would support the hiring of additional employees. A forecast for increased sales would tell a business not to raise its prices, lower inventory levels, or borrow operating funds.
Pooled (#60, OP)
Pooled task interdependence involves several employees working independently on different tasks at the same time. When the employees finish their tasks, they combine or pool their individual outputs to create the final output.
Frederick's Furniture Store offers installment credit plans to its customers (#15, EC)
Possession utility is the usefulness created when ownership of a product is transferred from the seller to the user.
Prescriptive analytics (#56, NF)
Prescriptive analysis is a form of predictive analysis. Predictive analysis attempts to predict possible future outcomes.
Positioning (#82, PM)
Product positioning is the consumer's image or impression of a product as compared to that of competitive products.
Theo attends a seminar about product-standard changes that are affecting his industry (#70, PD)
Professional development consists of steps that an individual takes to enhance or improve skills or traits that are needed to excel in her/his career or profession.
So that the data gathered are not influenced by researchers' opinions (#41, IM)
Researchers must be very careful not to express their own opinions or try to sway consumers' responses. Revealing their biases could influence what respondents say, reducing the objectivity of the data collected. Objective data give the business valid information to use in decision-making. Data that are not objective can be analyzed using statistical software, but the data would not benefit the business.
Include key words that will catch an employers eyes (#68, PD)
Résumés should be concise, neat, and strategically written. It's a good idea to include key words associated with the position or company you are applying to. For example, if you are applying for a position as an office assistant, it would be wise to include words such as "organized," "professional," and "punctual" (provided that those words accurately describe you!). In most cases, résumés should be no longer than one page and should be as concise and to-the-point as possible.
Income, family status, and education level (#26, EI)
Secondary dimensions of diversity are differences that may change at various points throughout one's lifetime and include such characteristics as language, religion, income, geographic location, family status, communication style, and education level.
Selling (#52, SE)
Selling policies are general rules established by management to guide the personal selling effort and outline how things must be done. Salespeople may encounter problems when they are not knowledgeable about their company's selling policies and are unable to explain them to potential customers.
Software (#55, NF)
Software instructs computers to perform specific operations. The various types of software are important components of computer systems because they allow computers to do the work that businesses want them to do. For example, spreadsheet software programs enable computers to analyze financial data, calculate budget information, and create charts and graphs of numeric data. The internet, websites, and e-commerce are not components of computer systems.
Acquisition (#74, PM)
Some firms acquire new products by taking over a company that is already making a product in which they are interested. These businesses are constantly on the lookout for such opportunities. In many cases, acquisition of other firms can be less expensive than developing and producing a new product.
Collecting the source documents (#33, FI)
The accounting cycle is the process that a business uses to maintain its financial records. The first step involves collecting all of the necessary financial records or source documents—checks, receipts, invoices, purchase orders, etc.
Assets = Liabilities + Owners' Equity (#35, FI)
The accounting equation states that a business's assets are equal to its liabilities plus owners' equity. This means that a business obtains all of its assets through two sources—borrowing and investment.
Communicated (#85, PR)
The basic purpose of promotion is communication. Those who prepare promotional material may gather opinions, research data, or organize their information; but the purpose of their efforts is to communicate information to achieve a desired outcome.
Obtaining a loan from a bank (#1, 2020 State Marketing Cluster, BL)
The debtor is the individual or business that owes money to another individual or business, which is the creditor. A business that obtains a loan from a bank is entering into a voluntary debtor-creditor relationship.
Exchange price (#71, PI)
The exchange price is the amount that both customers and sellers are willing to accept. Value is the amount of satisfaction a product will provide the customer. Markdowns are reductions in prices used to sell slow-moving or clearance items. Demand is the quantity of a good or service that buyers are ready and willing to buy at a given price at a particular time.
Medium that delivers more memorable, believable ads (#90, PR)
The experience of color, sound, and action makes television ads easy to remember and believe. However, these qualities also make the ads more expensive to produce.
Slack resources (#16,EC)
The extra $4,000 are known as slack resources—resources that go above and beyond what is needed to run the business.
Inaccurate (#53, MP)
The further into the future a sales forecast reaches, the more inaccurate it is. And, the less accurate a forecast is, the less useful it is. Long-range sales forecasts may or may not be more detailed or less expensive than short-range forecasts.
Marketing strategies and programs (#95, MP)
The goal of obtaining a bigger market share is known as growth strategy and is a general marketing strategy that should be detailed in the marketing strategies and programs section. The performance and implementation section explains expected results and how progress will be measured. The desired target market section includes demographic information on the target market that the company desires to reach. The situation analysis provides a "snapshot" of the current marketing situation.
Protecting the environment (#58, NF)
The growing concern over the condition of the environment is influencing the way that many companies do business. Businesses that once ignored the damage they did to the environment are now spending billions of dollars to correct the problems and to change the way they operate. Public sentiment is forcing these companies to address environmental issues, such as pollution. The businesses that fail to do their part to protect the environment often anger consumers, which may lead to a loss of sales.
Outputs (#21, EI)
The law of diminishing returns is an economic principle stating that after a certain point, hiring additional employees will result in a decrease in the overall level of production.
Public relations department (#92, PR)
The public relations department is a division of the business that is responsible for establishing good relations between the business and the public. The department often works with several small groups of the public (constituencies), such as the business's customers, shareholders, board of directors, employees, local residents, local businesses, civic organizations, employees, and the media. Some activities that the public relations department is responsible for include preparing press kits for the media, coordinating special events, and lobbying government officials.
Federal Trade Commission (#79, PM)
The regulatory agency established by the federal government and given the authority to enforce consumer-protection laws is the Federal Trade Commission.
Securities and investments (#66, PD)
The securities and investments industry includes brokerage firms and stock exchanges. Professional selling, corporate finance, and business information management are all career areas that might deal with brokerage firms or stock exchanges in some way, but they are not the main industry where these securities and investments transactions take place.
Indicate why the change is necessary (#27,EI)
To effectively lead change, you must be able to guide others and persuade them to alter their opinions or actions. Because some individuals have a difficult time accepting and making changes, change leaders must be able to explain why the change is necessary and how the change will benefit them.
Push money (#90, PR)
To increase market visibility, manufacturers often use incentive programs to motivate their independent sales consultants or distributors. These incentives, which are often called push money, may include cash bonuses, prizes, gift cards, or vacations.
Trade publications (#8, CO)
Trade publications are reliable sources of information for various professions (e.g., human resources) and industries (e.g., restaurant). Many professions and industries publish magazines and periodicals on a weekly or quarterly basis. Online articles are often available on a trade or professional organization's website. Online message boards and mailing lists may not provide the most relevant, accurate, or up-to-date information. Government periodicals may provide relevant information; however, archived information is usually older rather than up to date.
Visiting RST's website (#39, IM)
Visiting the competitor's website is a quick, inexpensive way to learn about a competitor's activities. The website is likely to post photos of its products and list product specifications, customer testimonials, and other information that the business can use to evaluate the competitor's activities.
The sample might be biased by people with extreme views (#47, IM)
When a survey uses a phone-in method, the sample might be biased because only those with extreme views will be inclined to call in. This could make the survey sample inaccurate.
Elastic (#16, EC)
When demand is elastic, consumers adjust demand for products based on price. This means that demand changes when prices change. When prices go up, consumers often cut back and buy less.
Avoid questions that result in "yes/no" answers (#6, IM)
When writing qualitative survey questions, researchers should be sure to write questions that provoke a thoughtful, insightful response. Qualitative questions that ask a "yes" or "no" question do not tend to provide enough detail. Writing as many questions as possible is not necessarily a good strategy. Researchers will get more thorough responses from a few well-written questions, and participants might get tired of answering questions thoughtfully if there are too many.
Beginning and end (#40, OP)
While business operations are ongoing, projects have a definite beginning and end. Both projects and business operations can have a plan, a business advantage, and a schedule.
Use sampling methods (#42, IM)
Why do marketers use samples for research purposes? The main reason for sampling is that contacting every single member of a target population (a process called a census) is often unrealistic or impossible. If a company has millions of potential customers, marketers cannot reasonably be expected to get in touch with every single one of them. Using a representative sample is a much quicker and much less expensive method of gathering data. Gathering data about employees does not necessarily help a company gain insight into customer preferences. Companies do not purposely ignore parts of a target market.
Providing information to activists to share with others (#91, PR)
Word-of-mouth promotion involves customers who tell others about their satisfaction with the business. Amplified word-of-mouth promotion involves the use of proactive efforts (campaigns) in which the business provides specific information to customers (activists) to pass along to their friends, family, and business contacts. On the other hand, organic word- of-mouth promotion occurs naturally.
Control of supply (#2, BL)
administrative law is a branch that one function is to control the supply for specific activities.
Responding with exasperation (#13, CR)
instead, you should talk in a calm voice and avoid getting excited. Attempting to take action as quickly as possible, listening attentively and courteously, and asking the customer to explain the complaint fully are all helpful in handling customer complaints.
