BUAD 101 Final Exam

Define product

a bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants

Define convenience products.

items the consumer seeks to purchase frequently, immediately, and with little effort

Define shopping products.

typically purchased only after the buyer has compared competing products in competing stores

Define specialty products.

a purchaser is willing to make a special effort to obtain; already familiar with no reasonable substitute

Define business products.

goods and services used in operating an organization; classified by usage and characteristics

Define services.

intended for consumer or business market - intangible, perishable, difficult to standardize

Name the stages in the product life cycle.

introduction, growth, maturity, and decline

List the stages in the new product development process

generating ideas, screening, concept development and business analysis phase, product development, test marketing, commercialization

Define brand equity.

added value that a respected and successful name gives to a product (awareness, loyalty, perceived quality, associated feelings)

Define distribution channels.

path through which products and legal ownership of them - follow from producer to consumers or business users

Define wholesaler.

distribution channel member that sells primarily to retailers, other wholesalers, or business users

Define retailer.

channel member that sells goods and services to individuals for their own use rather than for resale

What are the two types of retail?

store and nonstore

Define supply chain.

complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers

Define logistics

process of coordinating the flow of goods, services, and information among members of the supply chain

What is the objective of an integrated marketing communications program?

To produce a unified, customer-focused message and
to identify consumer needs and show how products meet them

Name the five most common objectives of promotional strategy?

Differentiate Product
Provide Information
Stabilize Sales
Increase Sales
Accentuate Product Value

Define positioning.

the act of establishing a product in the minds of customers by communicating meaningful distinctions about the attributes, price, quality, or use

Define pushing strategy.

personal selling to market an item to wholesalers and retailers in a company's distribution channels

Define pulling strategy.

promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals

What are the two main types of advertising?

product advertising and institutional advertisements

What is the leading advertising medium in the United States?

Television

In what two major ways do firms benefit from sponsorships?

providing funds in an exchange for a direct association

Under what four conditions is a firm more likely to use personal selling rather than advertising or sales promo?

1. customers are relatively few in number and are geographically concentrated
2. the product is technically complex, involves trade-ins, or requires special handling
3. the product carries a relatively high price
4. the product moves through direct-distribution channels

Name the three basic tasks of personal selling

order processing, creative selling, and missionary selling

What are the seven steps in the sales process?

prospecting and qualifying, approach, presentation, demonstration, handling objectives, closing, and follow-up

Why do retailers and manufacturers use sales promotion tactics?

to offer consumers extra incentives to buy (samples, coupons, contests, displays, trade shows, and dealer incentives)

What are consumer-oriented promotions?

getting new and existing customers to try and buy products and encourage repeat purchases by rewarding current users

What are trade-oriented promotions?

sales promotion geared to marketing intermediaries rather than to final consumers

How does public relations serve a marketing purpose?

improve their prestige and image with the public by distributing messages or ideas to audience

How does a firm use publicity to enhance their image?

can help investors grow a business and receive coverage of events / raise money, profit, and sales

Define volume objective.

pricing strategy that bases a pricing decision on the attainment of market share

Define prestige pricing.

strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness

Define EDLP.

everyday low pricing - maintaining continuous low prices rather than relying on price-cutting

Define skimming pricing.

sets an intentionally high price relative to the prices of competing products

Define penetration pricing.

strategy that sets a low price to enter competitive markets

Define cost-based pricing

calculating total costs per unit and adding markups to cover overhead costs and generate profits

Why do marketers use breakeven analysis in pricing their good or service?

to determine the minimum sales volume a product must generate at a certain price level to cover all costs

Define data.

raw facts and figures

Define information.

knowledge gained from processing data

What is an information system?

organized method for collecting, storing, and communication information on operations

List the four components of a computer-based information system

computer hardware, computer software, telecommunications and computer networks, data resource management

What is a database?

centralized integrated collection of data resources

Name the two general types of information systems

operational support systems and management support systems

Define computer hardware.

the tangible elements of a computer system that store and process data / perform calculations

Define software.

all the programs, routines, and computer languages that control a computer and tell it how to operate

List two input and two output devices.

Keyboard & Joystick - Speakers & Printer

What accounts for the increasing popularity of notebook computers?

their improved displays, faster processing speeds, and ability to handle more intense graphics, store larger capacities, durable design

What is a LAN?

local area network that connects machines within limited areas

Define intranet.

computer network that is similar to the internet but limits access to authorized users

Define VPN

virtual private network that secures connection between two points on the internet using firewalls

How does VoIP work?

an alternative version of telecommunication connected to a personal computer with any type of broadband connection

What types of disasters are information systems vulnerable?

natural disaster, power failure, equipment malfunction, software glitches, human error, terrorist attacks

What is a disaster recovery plan?

deciding how to prevent system failures and continue operations if computer systems fail

What is an application service provider?

outside supplier that provides computers and application support

Define on-demand computing

rental of software time from application providers, paying only for software usage

Define accounting.

the process of measuring, interpreting, and communicating financial info to enable people inside and outside the form to make informed decisions

Define GAAP

generally accepted accounting principles: guidelines on the conventions, rules, and procedures for determining acceptable accounting and financial reporting practices

Define FASB

financial accounting standards board: an organization responsible for evaluating, setting, or modifying GAAP in the US

Define foreign corrupt practices act

federal law that prohibits US citizens and companies from bribing foreign officials in order to win or continue business

What is the accounting equation?

Assets = Liabilities + Owners' Equity

Define balance sheet

statement of a firm's financial position on a particular date

Define IASB

international accounting standards board: organization established in 1973 to promote worldwide consistency in financial reporting practices

Define IFRS

international financial reporting standards: standards and interpretations adopted by the IASB