Business Foundations University of Arkansas Exam 3 Halvorsen-Ganepola

marketing-

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

Value-

a customer's estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other

products-

relationship marketing; establishing long-term, mutually satisfying buyer-seller relationships

Customer relationship management (CRM)-

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

customer lifetime value (CLV)-

a measure of a customer's worth (sales minus costs) to a business over one's lifetime

Place utility-

utility created by making a product available at a location where customers wish to purchase it

Time utility-

utility created by making a product available when customers wish to purchase it

Possession utility-

utility created by transferring title (or ownership) of a product to a buyer

marketing concept-

a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives

market-

a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them

marketing strategy-

a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

marketing mix-

a combination of product, price, distribution, and promotion developed to satisfy a particular target market

target market-

a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

undifferentiated approach-

directing a single marketing mix at the entire market for a particular product

market segment-

a group of individuals or organizations within a market that share one or more common characteristics

market segmentation-

the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market

marketing plan-

a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

sales forecast-

an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort

marketing information system-

a system for managing marketing information that is gathered continually from internal and external sources

Marketing research-

the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

Buying behavior-

the decisions and actions of people involved in buying and using products

Consumer buying behavior-

the purchasing of products for personal or household use, not for business purposes

Business buying behavior-

the purchasing of products by producers, resellers, governmental units, and institutions

Personal income-

the income an individual receives from all sources less the Social Security taxes the individual must pay

Disposable income-

personal income less all additional personal taxes

Discretionary income-

disposable income less savings and expenditures on food, clothing, and housing

motivation-

the individual internal process that energizes, directs, and sustains behavior; the personal "force" that causes you or me to behave in a particular way

Morale-

an employee's feelings about the job, about superiors, and about the firm itself

scientific management-

the application of scientific principles to management of work and workers

piece-rate system-

a compensation system under which employees are paid a certain amount for each unit of output they produce

need-

a personal requirement

Maslow's hierarchy of needs-

a sequence of human needs in the order of their importance

physiological needs-

the things we require for survival

safety needs-

the things we require for survival

social needs-

the human requirements for love and affection and a sense of belonging

esteem needs-

our need for respect, recognition, and a sense of our own accomplishment and worth

self-actualization needs-

the need to grow and develop and to become all that we are capable of being

motivation-hygiene theory-

the idea that satisfaction and dissatisfaction are separate and distinct dimensions

motivation factors-

job factors that increase motivation, although their absence does not necessarily result in dissatisfaction

hygiene factors-

job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation

Theory X-

a concept of employee motivation generally consistent with Taylor's scientific management; assumes that employees dislike work and will function only in a highly controlled work environment

Theory Y-

a concept of employee motivation generally consistent with the ideas of the human relations movement; assumes responsibility and work toward organizational goals, and by doing so they also achieve personal rewards

Theory Z-

the belief that some middle ground between type A and type J practices is best for American business

Reinforcement theory-

a theory of motivation based on the premise that rewarded behavior is likely to be repeated, whereas punished behavior is less likely to recur

equity theory-

a theory of motivation based on the premise that people are motivated to obtain and preserve equitable treatment for themselves

Expectancy theory-

a model of motivation based on the assumption that motivation depends on how much we want something and on how likely we think we are to get it

Goal-setting theory-

a theory of motivation suggesting that employees are motivated to achieve goals that they and their managers establish together

Management by objectives (MBO)-

a motivation technique in which managers and employees collaborate in setting goals

Job enrichment-

a motivation technique that provides employees with more variety and responsibility in their jobs

job enlargement-

expanding a worker's assignments to include additional but similar tasks

Job redesign-

a type of job enrichment in which work is restructured to cultivate the worker-job match

Behavior modification-

a systematic program of reinforcement to encourage desirable behavior

Flextime-

a system in which employees set their own work hours within employer-determined limits

compressed workweek-

allows employees to work a 40-hour work week in four days instead of five

Part-time work-

permanent employment in which individuals work less than a standard work week

Job sharing-

an arrangement whereby two people share one full-time position

telecommuting-

working at home all the time or for a portion of the work week

Empowerment-

making employees more involved in their jobs by increasing their participation in decision making

employee ownership-

a situation in which employees own the company they work for by virtue of being stockholders

team-

two or more workers operating as a coordinated unit to accomplish a specific task or goal

problem-solving team-

a team of knowledgeable employees brought together to tackle a specific problem

Self-managed teams-

groups of employees with the authority and skills to manage themselves

virtual team-

a team consisting of members who are geographically dispersed but communicate electronically

Data-

numerical or verbal descriptions that usually result from some sort of measurement

Information-

data presented in a form that is useful for a specific purpose

database-

a single collection of data and information stored in one place that can be used by people throughout an organization to make decisions

knowledge management (KM)-

a firm's procedures for generating, using, and sharing important data and information

decision-support system (DSS)-

a type of software program that provides relevant data and information to help a firm's employees make decisions

expert system-

a type of computer program that uses artificial intelligence to imitate a human's ability to think

management information system (MIS)-

a system that provides managers and employees with the information they need to perform their jobs as effectively as possible

Data processing-

the transformation of data into a form that is useful for a specific purpose

statistic-

a measure that summarizes a particular characteristic of an entire group of numbers

Accounting-

he process of systematically collecting, analyzing, and reporting financial information

audit-

an examination of a company's financial statements and the accounting practices that produced them

generally accepted accounting principles (GAAPs)-

an accepted set of guidelines and practices for U.S. companies reporting financial information and for the accounting profession

Managerial accounting-

provides managers and employees with the information needed to make decisions about a firm's financing, investing, marketing, and operating activities

Financial accounting-

generates financial statements and reports for interested people outside an organization

certified public accountant (CPA)-

an individual who has met state requirements for accounting education and experience and has passed a rigorous accounting examination

Assets-

the resources that a business owns

Liabilities-

a firm's debts and obligations

Owners' equity-

the difference between a firm's assets and its liabilities

accounting equation-

the basis for the accounting process: Assets = Liabilities + Owners' equity

double-entry bookkeeping system-

a system in which each financial transaction is recorded as two separate accounting entries to maintain the balance shown in the accounting equation

annual report-

a report distributed to stockholders and other interested parties that describes the firm's operating activities and its financial condition

balance sheet-

a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period

statement of financial position-

a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period

liquidity-

the ease with which an asset can be converted into cash

Current assets-

assets that can be converted quickly into cash or that will be used in one year or less

Fixed assets-

assets that will be held or used for a period longer than one year

Depreciation-

the process of apportioning the cost of a fixed asset over the period during which it will be used

Intangible assets-

assets that do not exist physically but that have a value based on the rights or privileges they confer on a firm

current liabilities-

debts that will be repaid in one year or less

Long-term liabilities-

debts that need not be repaid for at least one year

Retained earnings-

the portion of a business's profits not distributed to stockholders

income statement-

a summary of a firm's revenues and expenses during a specified accounting period

Revenues-

the dollar amounts earned by a firm from selling goods, providing services, or performing business activities

Gross sales-

the total dollar amount of all goods and services sold during the accounting period

Net sales-

the actual dollar amounts received by a firm for the goods and services it has sold after adjustment for returns, allowances, and discounts

cost of goods sold-

the dollar amount equal to beginning inventory plus net purchases less ending inventory

gross profit-

a firm's net sales less the cost of goods sold