business final

Functions of Marketing

Functions of Marketing

distribution, financing, marketing information management, pricing, product/service management, promotion, selling

Distribution

• Process of getting goods to customers

• Includes purchasing, stock handling, inventory control, and physical distribution

• Involves tracking products

Marketing Information Management

gathering and analyzing information about consumers, trends, and competitors' products

requires good research and development

focus groups - listening to what consumers say about your products

Product/Service Management

Obtaining, developing, maintaining, and improving a product or a product mix in response to market opportunities

Financing

Getting necessary money to set up and run business

Includes protecting investment through risk management

Selling

providing customers with the goods and services they choose to buy

relationship marketing: build and maintain relationships with customers

Marketing Mix

Product, Price, Place, Promotion

channel of distribution

a pathway to direct products to consumers

Promotion

Any effort to inform, persuade or remind potential customers about a business' products or services

Direct Distribution

goods or services are sold from the producer directly to the customer

Indirect Distribution

involves one or more intermediaries

break-even point

the point at which the costs of producing a product equal the revenue made from selling the product

marketing concept

determining wants and needs of customers

Target Marketing

helps companies focus on the people most likely to buy their goods or services.

market research

the gathering and analysis of information on the size, location, and makeup of a product market

Market Segmentation

the division of a market for a product into groups of customers who have the same needs and traits

Steps in Product Development

1. Generate Ideas - Brainstorm

2. Screen Ideas - Evaluate

3. Develop a Business Plan - Written Proposal

4. Develop the Product - Prototype

5. Test Market the Product - Collect customer feedback

6. Introduce the Product - Put it on the market

7. Evaluate Customer Acceptance - Assess

Why companies advertise?

Advertising is the public promotion of something such as a product, service, business, or event, to attract or increase interest within it

Types of Media

Newspapers Magazines Television Direct Mail Advertising Directory Advertising Radio Advertising Online Media Other Types of Media

media planning

the process of selecting the best mediums to use to reach the intended target audience

advertising agency

a business that specializes in developing advertising campaigns

ad campaign

a series of ad messages that share a single idea and theme

media measurement

Deals with how to measure an ads effectiveness

Audience - a number of people exposed to an ad Impression - a single exposure to an ad Frequency - number of times the audience see/hears an ad Cost per Thousand (CPM) - media cost per exposure 1,000 people to an ad

Motivation

• Inspiration

• Initiative

• Ability to act and make decisions without the help of others

• Goal

Confidence

Self-confident

Decisive

Communication

• Good Human Relations

• Conflict Resolution

• Mentor

• Good Listeners

Integrity

Adherence to a code of ethical values

Most highly valued quality in a leader

autocratic leadership

one person runs everything and makes all decisions

gives orders and expects them to be obeyed

firefighters, combat troops, police officers

democratic leadership

work with employees to make decisions

new ideas are encouraged

democratic leaders still make final decisions but may explain reasoning

free-rein leadership

Requires leader to set goals and leave staff to do job

Trust placed on employees

Hands Off Approach

Delegation

Why Delegate?

-Managers don't have time to do everything

-Managers can focus on more important work

-Employees have more ownership of the production process

-Employees have a chance to develop their own potential

leadership qualities

motivation, inspire, confidence, communication, integrity

Three levels of government

federal, state, local

interstate commerce

trade between states

intrastate commerce

commerce conducted wholly within one state

Protecting Competition

-antitrust laws allows the federal government to break up monopolies, regulate them, or take control

Monopoly

When company controls industruy or the only one to offer a product

Oligopoly

When small number of companies control a given industry

Current Day Excample of Oligopoly

90% of the U.S. media outlets are owned by six corporations: Disney, CBS, NBC (To name a few)

antitrust laws

allows government to break up monopolies, regulate them, or take control

Copyright

• Legal right to own creations

• Protects photographs, music, painting, books, plays, and other written material

• Lasts 70 years after death

Patent

• Legal grant for sole right to own invention

• Granted by federal government

• No one can use without permission for over 20 years after application with U.S. patent and trademark office

Trademark

Symbol or characteristic identifying product

Government's Role in Society

Provides key services to public

• Public goods and services

• Parks, Libraries, Defense

• Paid for by taxes

• Gives business incentives

Revenue

Income the government gets from sources

Contract

A legally enforceable agreement (Written, verbal, handshake)

Breach of Contract

• Party fails to live up to terms of contract

• Easier to prove if written

Privatization

Business offers public good or service and government pays for it

Ex: Cafe in Govt. Building

Public goods and services

Parks, libararies, defense (paid for by taxes)

transfer payments

Benefits at the government's expense:

• Social Security

• Unemployment

• Veteran's Benefits

Providing Employment

More than 3 million people work for the federal government, state & local governments

Ex: President, Firefighters, Mayor

consuming goods and services (largest)

government (the government buys tools directly from companies that make equipment specially to occupy schools, military personnel, offices, and blue-collar jobs)

Small Business Administration (SBA)

U.S. government agency that encourages small businesses

Subsidies

Financial support from the government

tax

Some goods have taxes built into price such as gasoline

Income tax comes right out of your paycheck

Each level of government collects taxes

tax incentive

temporary reduction or elimination of tax to encourage or discourage activity

Purpose of money

Money allows people and businesses to buy and sell goods around the world (coins, currency, checks, and debit cards)

monetary system

Today we use coins, currency, checks, and debit cards

Functions of Money

1. medium of exchange

2. standard of value

3. store of value

Characteristics of money

• Must be stable in value

• Must be relatively scarce

• Must be accepted for goods and services

• Should be divisible into parts

• Has to be portable and durable

• Hard to counterfeit

Financial Institution

a firm that manages money

Storing Money

to place or leave money for preservation or later use

• bank account used for recording the amount of money that has been deposited or withdrawn

Bank account

a record of the amount of money a customer has deposited into or withdrawn from a bank

checking account

• Short term storage

• Banks charge a fee

savings account

• Long term storage

• Earns more interest

deposit

to put money into an account

withdrawal

to take money out of an account

interest

a rate that the bank pays customers for keeping their money

transferring money

banks use checks and electronic fund transfers to move money

EFT

allows money to transfer from one bank to another through a network

Direct Deposit

electronic transfer of a payment directly from the payer's bank account to that of the party being paid

lending money

• The primary way banks generate profits

• Most banks require collateral

collateral

property or goods pledged by a borrower to use as security against a loan if it is not repaid

mortgage

a specific type of loan that is used to buy real estate

safe deposit box

a secure box in a bank's vault used for the safe storage of a customer's valuables

Financial Institutions

• Banks operate on state, national, and international levels

• There are strict rules to start a bank

• The owner must apply for a charter from the government

(Commercial banks, Savings and Loan Associates, Credit Union)

commercial bank

• Majority of banks in the United States

• Full service banks

• Authorized to conduct business through a charter, or license issued by state or federal government

Products: checking, savings, loans, debit cards

Services: commercial lending, trust services, asset management, cash management, financial services

savings and loan associations

financial institutions that hold customers' funds in interest-bearing accounts and invest mainly in mortgage loans

functions similar to a credit union or retail bank but does not offer the full range of services - lending is geared towards residential mortgages

Credit Union

not-for-profit banks/cooperatives set up by organizations for their customers to use

operated for the benefits of its members

offers credit cards, checking accounts, low-interest loans, high-interest savings accounts

mortgage companies

provide loans for buying a home or business

finance companies

short-term loans to businesses and consumers

insurance companies

provide protection against problems and also offer loans to businesses

brokerage firms

sell stocks and bonds and also offer a wide range of financial services

asset management firms

provide investors with more diversified invest and sophisticated options including management services

investment banks

financial consultants that specialize in large and complex financial transactions

Glass-Steagall Act of 1933

separated commercial banking from investment banking

Federal Reserve

The central bank of the United States

• Woodrow Wilson signed the Federal Reserve Act on 12/23/1913 12 Federal Reserve Districts, 25 Branch Banks, 5,000 member banks

Management

Helps businesses focus on setting and meeting goals efficiently and effectively so that profit can be made

Four Functions of Management

planning, organizing, leading, controlling

Planning

creates a detailed plan aimed at an organization's goal

Organizing

getting resources arranged in a practical way to accomplish goals & objectives

leading

Delegate work, oversee time management, and provide feedback while inspiring others with a vision.

controlling

A manager monitoring the progress towards achievement of the company's goal. In summary, they ensure goals are met.

Levels of Management

top managers, middle managers, front-line managers

Top-level managers

managers responsible for setting goals and planning the future for a company.

Middle Managers

responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving these objectives.

frontline managers

Lower-level managers who execute the operational activities of the organization.

Management Structures

Line Authority

Line and Staff Authority

Centralized Organization

Decentralized Organization

line authority

Managers on one level are responsible for those beneath them. Common in small companies

line and staff authority

shows direct line of authority

Used for middle and large size companies