BSAD 112 Final Exam

all BSAD 112 topics

what is marketing?

a set of business practices designed to plan and present an organization's products and services in ways that build effective consumer relationships

what is a market?

a group of people with unsatisfied wants and needs who have the resources and willingness to buy

the production era

In the early 1900s, businesses refined production process and created greater efficiencies

the sales era

a time when a company emphasizes selling because of increased competition

marketing concept era

requires philosophical orientation to the customer, the service, and the profit

market orientation era

firms focus on collecting information about customers and competitors, sharing said information throughout the organization, and using it towards value creation, customer satisfaction and relationships.

social media marketing era

consumer generated content to promote or detract from brands and companies, use by marketers of online tools and platforms to promote their brands and organizations.

mobile marketing era

digital technology increasing consumer power, trending towards "on demand" rather than "always on".

the marketing mix

the ingredients that go into a marketing program; the "controllable" parts of the marketing process-product, price, promotion, place

product

design a product to meet the need based on research, do concept testing that includes determining a brand name, design, and package

place

select a distribution system

promotion

design a promotional program, build a relationship with customers

marketing research

the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions

marketing research process

define the question, collect research data, analyze the data, choose the best solution and implement it

Economic Forces

key economic measures-aggregate output, GDP, GNP, business cycle, inflation, unemployment, balance of trade, national debt

political/legal forces

reflects the relationship between business and government-pro or anti business sentiment, political stability, international relations

technological forces

all the ways a company creates value for its customers-knowledge, work methods, physical equipment

socio-cultural forces

customs, values, attitudes, and demographic characteristics of the society in which an organization functions, customer preferences and tastes, ethical compliance and responsible business behaviour

consumer

all individuals or households that want goods and services for personal consumption and use

business to business

all individuals and organizations that want goods and services to use in producing other goods and services to sell, rent, or supply goods to others

market segmentation

the process of dividing the market into categories of customer types of "segments"

target market

a group of people who have similar wants and needs and can be expected to show interest in the same products

positioning

the process of fixing, adapting, and communicating the nature of a product, the place an offering occupies in customers' minds on important attributes relative to competitive products

relationship marketing

marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements

decision making process

1. problem/need recognition
2. information seeking
3. evaluation of alternatives
4. purchase decision
5. postpurchase evaluation

factors influencing consumer behaviour

marketing mix, sociocultural, situational, psychological

value

good quality at a fair price, changes over time

total product offer

-core product/offer
-value enhancers
-tangible elements
-intangible elements

product differentiation

real or perceived product differences

product lines and the product mix

a group of products that a firm makes available for sale, may include one or several product lines

packaging changes the product

attracts the buyer's attention, protect goods inside, tamperproof, easy to open and use, explain benefits and value

branding

-a combination of name, symbol, and or deisgn
-that identifies the services of a seller or a group of sellers
-distinguishes it from the goods and services of the competition

product life cycle

a theoretical model of what happens to sales and profits for a product class over time

introduction

using advertising and publicity to Make buyers aware of products

growth/maturity

using personal selling to demonstrate product quality, features and benefits, and advantages over competitors

new product development

product idea generation, screening, concept testing, business analysis, prototype development, product testing and test marketing, commercialization

cost-based pricing

pricing based on costs and profit margins

demand based pricing (target costing)

designing a product so it not only satisfies customers, but it also meets set profit margins

competition based pricing

pricing strategy based on what other competitors are doing. the prices can be set at, above, or below competitors' prices

price leadership

the procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow

price skimming

setting an initially high price to cover product costs and generate a profit

penetration pricing

setting an initially low price to establish the product and gain market share

non price competition

marketers tend to stress product images and consumer benefits such as comfort, style, convenience, and durability
-service becoming a major tool in differentiating the product

breakeven analysis

an assessment of how many units must be sold at a given price before the company begins to make a profit

break even point

the number of units that must be sold at a given price before the company covers all of its variable and fixed costs

marketing intermediaries

organizations that assist in moving goods and services from producers to business and consumer users

channel of distribution

a set of marketing intermediaries that join together to transport and store goods in their path from producers to consumers (agents, brokers, wholesalers, and retailers)

wholesaler

a marketing intermediary that sells to other organizations

retailer

an organization that sells to ultimate customers

agent/broker

marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods

intensive distribution

readily available in the marketplace

selective distribution

use of a limited number of intermediaries in a market area

exclusive distribution

use of only one intermediary in a market area

supply chain

a sequence of firms that perform activities to create and deliver a good or service to consumers of industrial users

promotion

an attempt by marketers to inform people about products and to persuade them to participate in an exchange

promotion mix

the combination of promotional tools an organization uses

integrated marketing communication

combines all the promotional tools into one comprehensive and unified promotional strategy

advertising

paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message

public relations

management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance

public relations vs advertising

-advertising space is paid
-public relations results are earned through providing the media with information

personal selling

face to face presentation and promotion of goods and services

steps in the business to consumer sales process

approach, ask questions, make presentation, close sale, follow up

direct marketing

directly links manufacturers or intermediaries with the ultimate consumer

sales promotion

stimulates consumer purchasing and dealer interest through short term activities

push strategy

the producer uses advertising, personal selling, sales promotion and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

pull strategy

heavy advertising and sale promotion efforts are directed toward consumer so they'll request the products from retailers

accounting

the recording, classifying, summarizing, and interpreting of financial events to provide management and other interested parties the financial information they need to make good decisions

financial transactions

include buying and selling goods and services, acquiring insurance, paying employees, and using supplies

accounting system

the method used to record and summarize data into reports

managerial vs financial accounting

-managerial used to prepare information and analysis to managers inside the organization to assist them with decision making
-financial accounting is information and analysis prepared for people outside the organization, which includes the annual report

annual report (non-financial)

- a letter to shareholders from the chairperson and CEO
-descriptions of the company's management and philosophy
-products, successes, failures
-exciting prospects and challenges for the future

annual report (financial)

-summarized financial data
-management's discussion and analysis, covering financial condition and results of operations
-the basic financial statements
-report of independent accountants (auditors's opinion

auditing

reviewing and evaluating records used to produce a company's financial statements

private vs public accountants

-private work for a single organization
-public provides accounting services for individuals or businesses

accounting cycle

a six step procedure that results in the preparation and analysis of the two major financial statements

steps in the accounting cycle

1. analyze source documents
2. record transactions in journals
3. transfer journal entries to ledger
4. take a trial balance
5. prepare financial statements
6. analyze financial statements

statement of financial position

reports a firm's financial condition at a specific time and is composed of three major types of accounts: assets, liabilities, and owners equity

statement of income

reports a firm's profit over a period of time after subtracting costs, expenses, and taxes from revenues

statement of cash flows

reports cash receipts and disbursements related to the three major activities of a firm
-operations
-investing
-financing

asset

anything of economic value owned by the firm or individual

liability

any debts owed by the firm or individual to others

owners equity

any positive difference between a firm's assets and its liabilities

assets\=liabilities+owners equity

current assets

-assets that can be converted into cash within a year
-listed on the balance sheet in order of liquidity
-cash, marketable securities, accounts receivable, inventory

fixed assets

-have long term use or value to the firm
-land, buildings, machinery

intangible assets

long term assets that have no real physical form but do have value
e.g patents, trademarks, copyrights and goodwill

current liabilities

-debts that must be paid within one year
-accounts payable, wages payable

long term liabilities

debts owed by the firm that are not due for at least one year

equity

the amount of the business that belongs to the owners
\=assets-liabilities

vertical analysis

-costs and expenses as a proportion of sales
-assessing the firm's many activities towards effective use of assets to generate profitable revenues
-means of comparison with other firms

horizontal analysis

-calculates the percent change of each line item on the statement of financial position and income
-assessing change over time

ratio analysis

the assessment of a firm's financial condition and performance through calculations and interpretations of financial ratios developed from the firm's financial statements
-liquidity
-debt (leverage)
-profitability
-activity

solvency ratios

measure financial risk
-short term measure a firm's ability to meet immediate obligations
-long term measure the degree to which a firm relies on borrowed funds in its operations

current ratio

current assets/current liabilities
-the higher the ratio, the better the firm's ability to pay

debt to equity

debt/owners equity
-any number greater than 1 shows that a firm has more debt than equity

profitability ratios

-measures overall profitability for potential investors, a measure of the returns investors can expect

return on sales

-measures how well the company generates income from sales
net income/sales revenue

return on equity

-measures how much was earned for each dollar invested by owners
net income/shareholders' equity

earnings per share

-measures profitability compared to the number of shares outstanding
net income/\# of common shares outstanding

comparative analysis

looks at the ratios we have calculated and considers how the firm is performing...
-the generally accepted standard
-competitor
-overall industry average

finance

the function in a business that acquires funds for the firm and manages them within the firm