MGTA02 MIDTERM

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Mission

The reason why a business exists, and the goals that it is trying to accomplish

Managing

the process of planning, organising, leading, and controlling resources in order to accomplish a task

Managers

individuals responsible for planning, organising, leading and controlling resources in order to accomplish a task

Planning

determining what needs to be done to accomplish a task, and the best way to accomplish it.

organising

assembling and preparing the resources necessary to complete a task

leading

the art of guiding or inspiring others to follow

standard

the goal or the intended result for the performance of an activity

Value Chain

the system of activities which a business must manage in order to transform factors of production into finished goods and services

Primary activities

activities in a value chain that are directly involved with making the good or service that the business provides to its customers

Support activities

activities in a value chain that don't directly involve customers or the making of the product, but are necessary for the organization to function.

Human resource managment

all activities related to recruiting, hiring, training, developing, and compensating employees.

Financial Management

planning the businesses' capital needs, locating sources of capital, negotiating the terms and conditions for its use, and managing the organization's relationship with financial intermediaries

Business function

a process or activity that is routinely carried out by a business

Major business functions

marketing, operations, information management, accounting, strategic management, financial management, human resource management

marketing

the activities involve with interacting with customers and potential customers

operations

the activities involved with transforming factors of production into the goods or services that consumers want.

information management

the development of systems for collecting data that can be organised in such a way that it produces information of use to the managers of a business

accounting

the system for collecting, analysing and communicating financial information

strategic management

the activities undertaken by an organization's senior leadership to determine the organisation's long-term goals and objectives.

Marketing

the business function concerned with planning and organising the creation of a product, determining a price people will pay, making the product known and making it available to customers.

product focus

an orientation toward producing improved goods and services for which an organisation has proven expertise.

customer focus

an orientation toward determining the needs and wants of customers in the market and developing the goods and services that meet those needs.

marketing concept

a business philosophy that stresses that the businesses' resources should primarily be focused on serving customer needs

target market

a group of similar people who have similar needs and wants, and are most likely to buy a product

market segmentation

dividing a total population into groups or categories of people who share common characteristics, habits or behaviours which give them common needs

demographic segmentation

identifying people based on some external characteristics that they share such as age, gender, race or ethnicity.

phycographic segmentation

identifying people based on their internal traits, such as attitude, beliefs, values, and motivations.

geographic segmentation

distinguishing people based on where they live.

Market research

the systematic study of what buyers need and how best to meet those needs

secondary market research

collecting information from already published sources

primary market research

original research conducted or commissioned by the business itself.

observation

a research method that involves viewing or otherwise monitoring consumers' behavior.

interviewer bias

the risk that an investment will plead with, flatter, or intimidate a respondent thus influencing the response to a question

communication

asking consumers directly about their needs and preferences.

census

research that involves collecting data from a selected number of the members of a larger population

Sample

research that involves collecting data from a selected number of the members of a larger population

random sample

a sample took from a larger population where each person has an equal chance of being selected

quantitative data

data that consists of facts and numbers which can be analyzed statistically

qualitative datat

data that consists of opinions, ideas, and impressions.

survey

an investigation about the chararcteristics of a given population by means of collecting data from a sample of that population

in-depth interview

a method of collecting qualitative data, in which the researcher sits down for an extended, open-ended discussion with the respondent

focus group

a small group of people brought together to discuss selected issues in depth.

Marketing mix

the specific combination of product features and benefits, price, promotional and distribution methods used to sell a product to a target market

product

a good or service that fills a buyer's need or satisfies a want

function

what a product is intended to do

features

additional attributes or offerings which contributes improved usefulness or experience to a product

benefits

the advantages that are derived from purchasing a product

value

the regard with which a product is held by potential buyers, expressed as its financial worth.

value package

the bundle of tangible and intanglible functions, features, and benefits that a business offers to buyers of a product.

consumer products

products purchased by the end user, for personal use

industrial products

the parts, ingredients materials, and supplies that are bought by one business from another in the process of making consumer products

convenience products

inexpensive consumer goods or services which are frequently and with little expenditure of time and effort. FAST MOVING CONSUMER GOODS(FMGG)

shopping products

products that are moderately expensive and purchased infrequently casuing consumers to spend time comparing features, benefits and price.

specialty products

products to which consumers will attach a great deal of importance and for which they will spend a good deal of both time and effort to find exactly what they want

diffusion of innovations theory

explains how an idea of product gains momentum and spreads through a population

product life cycle

the introduction, growth, maturity , decline and ultimate demise of products and industreis, as technologies and tastes change

introduction

the stage of the product lifecycle when the product or technology is first created and little is known

growth

the second stage of the life cycle, when demand for a product expands rapidly as many new consumers enter the market

Maturity

the third stage of the life cycle, when sales peak

Saturation

when a market can absorb no more products

product extentsion

by re-packaging, re-launching, or slightly updating a well-known product, marketers try to keep products in the maturity stage as long as they can

barriers to exit

characteristics which make an industry difficult, time-consuming or expensive for a business to leave

research and development

looking for innovations and ideas whcih will lead to the next generation of products

branding

the use of logos, colours, or symbols to identify a product and differenetaite it in the mind of target consumers

brand loyalty

customer's recognition of, preference for, and insistence on buying a product with a certain brand name

brand awareness

a consumer being able to recognise a product's name, logo, colors or design, so that when they need a particular good or service, they will look for any of these.

brand preferecnce

consumers develop a favourable attitude toward a product, and chooses it over competetive offerings

brand insistence

consumers demand a product, and are willing to go out of their way to get it

intellectual property

ideas, inventions, and other creations that belong to a business

trademark

the exclusive right to the use of a name

patent

the exclusive right to the use of an invention or technological innovation

copyright

the exclusive right to the use of words, design, illustrations, photos, films and music that are the tangible expression fo an idea

market price

at any particular time, the prevailing price to which buyers and sellers agree

cost of sales/cost of goods sold

the cost of the ingredients, parts, and materials that go directly into making a product

variable costs

costs that increase in direct proportion to every additional unit of product that is made

operating cost/operating expense

the cost of operating a business organisation

fixed costs

the costs of operating the business, which do not change as the volume of production increases

markup

the amount that a business adds to the variable cost of making a product, in order to set its selling price

contribution margin

the markup expressed as the percentage of the selling price (markup/selling price)

skimming

the strategy of charging a high price, expecting a small volume of sales, but making a large contribution margin from each

price sensitivity

the degree to which the price of a product affects the consumer's willingness to buy

penetration pricing

the strategy of charging a low price, and relying on a large volume of sales, making a small contribution from each.

break even analysis

a tool that helps managers understand the relationship between their costs, their chosen price, and the number of units that the business must sell in order to make a profit

break even quantity

the minimum number of units a business must sell at a given price point to make a positive profit.

psychological pricing

a range of tactics designed to appeal to consumers' emotions

odd-even pricing

a strategy of setting the price of a product just below the whole dollar amount

bundle pricing

packaging several products together and offering the combined package at a single price that is less than the sum of the parts

promotion

any technique used to inform, educate and excite potential customers about a business and its products, and induce them to buy

the buyer decision process

a five stage process that most consumers go through before and after buying a good or service.

promotional mix

the combination of advertising, personal selling, sales promotion, publicity, and public relations

advertising

paid, non-personal communication used to raise awareness about the business and its products

advertising media

the specific communication devices or channel used to carry a seller's message to the target market

personal selling

a promotional tool in which a salesperson communicates one one one with potential customers

sales promotion

a variety of short-term incentives intended to stimulate immediate interest and excitement in a product, and to stimulate sales

publicity

any activity that generate news coverage about a business

public relations

public service activities designed to create goodwill and to enhance the business's image

distribution

the area of marketing mix concerned with getting products from the producer to buyer

distribution channel

the path a product follows from the producer to end user

direct selling or direct distribution

a business sells its products directly to the consumer without passing through any intermediary

indirect selling

distribution of a product by selling to intermediary, as opposed to the end user