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autocratic leaders

Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates.

coercive power

Power that is derived from an individual’s ability to threaten negative outcomes.

conceptual skills

A manager’s ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment.

consensual leaders

Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.

consultative leaders

Leaders who confer with subordinates before making a decision but who retain the final decision-making authority.

contingency plans

Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.

controlling

The process of assessing the organization’s progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan.

corporate culture

The set of attitudes, values, and standards that distinguishes one organization from another.

decisional roles

A manager’s activities as an entrepreneur, resource allocator, conflict resolver, or negotiator.

democratic leaders

Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.

effectiveness

The ability to produce the desired result or good.

efficiency

Using the least amount of resources to accomplish the organization’s goals.

empowerment

The process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions.

expert power

Power that is derived from an individual’s extensive knowledge in one or more areas.

free-rein (laissez-faire) leadership

A leadership style in which the leader turns over all authority and control to subordinates.

global management skills

A manager’s ability to operate in diverse cultural environments.

human relations skills

A manager’s interpersonal skills that are used to accomplish goals through the use of human resources.

informational roles

A manager’s activities as an information gatherer, an information disseminator, or a spokesperson for the company.

interpersonal roles

A manager’s activities as a figurehead, company leader, or liaison.

leadership

The process of guiding and motivating others toward the achievement of organizational goals.

leadership style

The relatively consistent way that individuals in leadership positions attempt to influence the behavior of others.

legitimate power

Power that is derived from an individual’s position in an organization.

management

The process of guiding the development, maintenance, and allocation of resources to attain organizational goals.

middle management

Managers who design and carry out tactical plans in specific areas of the company.

mission

An organization’s purpose and reason for existing; its long-term goals.

mission statement

A formal document that states an organization’s purpose and reason for existing and describes its basic philosophy.

nonprogrammed decisions

Responses to infrequent, unforeseen, or very unusual problems and opportunities where the manager does not have a precedent to follow in decision-making.

operational planning

The process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization; helps guide and control the implementation of tactical plans.

organizing

The process of coordinating and allocating a firm’s resources in order to carry out its plans.

participative leaders

Leaders who share decision-making with group members and encourage discussion of issues and alternatives; includes democratic, consensual, and consultative styles.

planning

The process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done; and determining who should do it.

power

The ability to influence others to behave in a particular way.

programmed decisions

Decisions made in response to frequently occurring routine situations.

referent power

Power that is derived from an individual’s personal charisma and the respect and/or admiration the individual inspires.

reward power

Power that is derived from an individual’s control over rewards.

situational leadership

Selecting a leadership style based on the maturity and competency level of those who will complete the task.

strategic planning

The process of creating long-range (one to five years), broad goals for the organization and determining what resources will be needed to accomplish those goals.

supervisory (first-line) management

Managers who design and carry out operation plans for the ongoing daily activities of the firm.

tactical planning

The process of beginning to implement a strategic plan by addressing issues of coordination and allocating resources to different parts of the organization; has a shorter time frame (less than one year) and more specific objectives than strategic planning.

technical skills

A manager’s specialized areas of knowledge and expertise, as well as the ability to apply that knowledge.

top management

The highest level of managers; includes CEOs, presidents, and vice presidents, who develop strategic plans.

benefit segmentation

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

big data

Large data sets and systems developed to manage and analyze massive accumulations of information.

brainstorming

A method of generating ideas where group members suggest numerous possibilities without criticism.

bundling

The strategy of grouping related products together and pricing them as a single product.

buyer behavior

The actions individuals take in purchasing and using goods and services.

capital products

Large, expensive items purchased by businesses for producing other goods or services.

competitive advantage

Unique features of a company and its products perceived as significant and superior by the target market.

convenience products

Inexpensive items that require little shopping effort and are purchased routinely.

cost competitive advantage

A firm's ability to produce goods or services at a lower cost than competitors, maintaining profit margins.

culture

The set of values, ideas, attitudes, and symbols shaping human behavior.

customer satisfaction

The feeling that a product has met or exceeded customer expectations.

customer value

The ratio of benefits to sacrifices necessary to obtain those benefits, reflecting customer willingness to purchase.

demographic segmentation

Market differentiation using categories like age, education, gender, income, and household size.

differential competitive advantage

Providing a unique product or service perceived as better by the target market.

distribution strategy

Creating methods for products to flow from producers to consumers.

dynamic pricing

Computer algorithms used to change prices based on demand.

environmental scanning

The ongoing collection and evaluation of information about the external environment.

exchange

The process where two parties provide something of value to satisfy their needs.

expense items

Less expensive business purchases that typically have a life span of less than one year.

experiment

A marketing research method altering variables to observe their impact on sales.

five Ps

The marketing mix includes product, price, promotion, place, and people.

focus group

A group discussion led by a moderator to explore specific topics in depth.

geographic segmentation

Differentiation of markets by factors like region, city size, density, or climate.

leader pricing

Pricing products below normal markup to attract customers.

line extension

Introducing a new flavor, size, or model under an existing brand name.

loss leader

A product priced below cost as part of a pricing strategy to draw customers.

market segmentation

The process of identifying and evaluating different layers of a market for targeting.

marketing

The process of understanding and fulfilling consumer needs and wants effectively.

marketing concept

Producing goods and services that satisfy consumer needs while ensuring organizational profit.

marketing database

A computerized file containing customer profiles and purchase patterns.

marketing mix

The blend of product, price, promotion, distribution, and people strategies to create value.

marketing research

The planning, collection, and analysis of data relevant to marketing decisions.

niche competitive advantage

Effectively targeting and serving a single market segment within a limited area.

observation research

Monitoring respondents' actions without direct interaction to gather data.

odd-even (psychological) pricing

Setting prices at odd numbers to suggest bargains and even numbers for quality.

one-to-one marketing

Creating unique marketing mixes tailored for individual customers.

penetration pricing

Selling new products at low introductory prices to achieve high sales volume.

pricing strategy

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

product

A good, service, or idea, along with its perceived attributes and benefits, that creates value for the customer.

product life cycle

The pattern of sales and profits over time for a product, consisting of introductory, growth, maturity, and decline stages.

product manager

The person who develops and implements a complete strategy and marketing program for a specific product or brand.

product strategy

Selecting a brand name, packaging, colors, warranties, accessories, and service programs for a product.

promotion strategy

The unique combination of personal selling, advertising, publicity, sales promotion, social media, and e-commerce to stimulate buying.

psychographic segmentation

The differentiation of markets by personality or lifestyle.

reference groups

Formal and informal groups that influence buyer behavior.

relationship marketing

A strategy focusing on forging long-term partnerships with customers by offering value and ensuring satisfaction.

shopping products

Items bought after considerable planning, including brand and store comparisons.

specialty products

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

survey research

A marketing research method where data is gathered from respondents to obtain facts, opinions, and attitudes.

target market

The specific group of consumers targeted by a firm's marketing efforts, often divided into segments.

test marketing

The process of testing a new product among potential users.

unsought products

Products not planned for purchase or known but not actively sought by buyers.

volume segmentation

Market differentiation based on the amount of the product purchased.

absolute advantage

When a country can produce and sell a product at a lower cost than any other country.

balance of payments

A summary of a country’s international financial transactions, showing total payments and receipts.

balance of trade

The difference between the value of a country’s exports and imports during a specific time.

buy-national regulations

Government rules that give special privileges to domestic manufacturers and retailers.

contract manufacturing

A practice in which a foreign firm manufactures private-label goods for a domestic firm.

countertrade

A form of international trade where payment is made in goods or services instead of cash.