Business Dynamics Final

3: Marketing 14: Product/Pricing 15: Marketing Intermediaries 16: Promotion Mix 17: Accounting 18: Corporate Finance 19: Capital Markets 22: Information Technology

Marketing (3)

Activity for creating/communicating/delivering/exchanging offers that have value for consumers

Production Marketing Era (3)

Produce as much as you can, limitless market

Selling Marketing Era (3)

Companies emphasized selling/advertising existing products

Customer Orientation (3)

Find out what customers want, provide it

Service Orientation (3)

Organization’s objective is customer satisfaction

Profit Orientation (3)

Focus on products earning most profit

Customer Relationship Marketing Era (3)

Customer relationship management

Mobile/On-demand Marketing Era (3)

Consumers want on-demand, personalized, simple services

Marketing Mix (3)

Product, price, place, promotion

Marketing Research (3)

Analyze markets to determine opportunities/challenges

Secondary Data (3)

Existing information, inexpensive

Primary Data (3)

New research, expensive

Enviromental Scanning (3)

Identifying global, technological, social, competitive, economic

Markets (3)

B2B/B2C; Determined by end use of product

Consumer Market Segmentation (3)

Geographic, demographic, psychographic, benefit, volume

Mass Marketing (3)

Developing products/promotions to appeal to large group

Value (14)

Good quality at fair price

Distributed Product Development (14)

Outsourcing parts of innovation process

Product Line (14)

Groups of products who are physically similar/intended for similar market

Product Mix (14)

Combination of all products lines

Product Differentiation (14)

Creation of real/perceived product differenced

Convenience Goods (14)

Products customer wants to purchase frequently with little effort; location, brand awareness, image are important

Shopping Goods (14)

Customer buys after comparing value, quality, price; emphasize price/quality differences

Specialty Goods (14)

Products with unique characteristics/brand identity

Unsought (14)

Products customers are unaware of/need to solve problem

Packaging (14)

Attract attention, protect good inside, give information

Bundling (14)

Combines goods/services for single price

Brand (14)

Name, symbol, design that identifies goods/services of seller

Trademark (14)

Brand with exclusive legal protections for name/design

Brand Categories (14)

Manufacturers (national brands), dealer (private label), generic goods, knockoff

Brand Equity (14)

Value of brand name/symbols

Brand Loyalty (14)

Degree to which customers like brand, committed to it

Brand Awareness (14)

How quickly brand name comes to mind when mentioning product category

Brand Association (14)

Linking of brand to favorable images

Brand Manager (14)

Direct responsibility for brand/product line, manages its marketing mix

Product Screening (14)

Determines if product fits well with present products, profit potential, marketable

Product Analysis (14)

Making cost estimates, sales forecasts to determine profitability

Concept Testing (14)

Takes product to consumers to test their reactions

Product Life Cycle (14)

Introduction, growth, maturity, decline, graph

Cost-Based Pricing (14)

Costs used as primary basis for price; In long-run, market determines price

Demand-Based Pricing (14)

Design product to satisfy consumers, meet profit margins (price determines product)

Competition-Based Pricing (14)

Setting price relative to competitors

Break-Even Analysis (14)

Determine profits at various levels of sales

Skimming Pricing (14)

Setting price high to recover R&D costs, make profit with little competition

Penetration Pricing (14)

Setting price low to capture large market share

Demand-oriented Pricing (14)

Price on basis of consumer demand (different rates for different customers)

Marketing Intermediaries (15)

Organizations that assist in moving products from producers to businesses/consumers

Channel of Distribution (15)

Whole set of intermediaries

Agents/brokers (15)

Bringing buyers/sellers together, don’t take title to goods

Merchant Wholesalers (15)

Sells to other organizations, takes title to goods

Retailer (15)

Sells to ultimate consumers

Why Intermediaries? (15)

Faster/cheaper at certain marketing tasks

Utility (15)

Want-satisfying ability/value

Form Utility (15)

Changing raw materials into useful products

Time Utility (15)

Making products available when consumers need them

Place Utility (15)

Placing products where people want them

Possession Utility (15)

Help transfer ownership, including providing credit

Information Utility (15)

Open 2-way flows of information between participants

Service Utility (15)

Provide fast, friendly service during/after sale

Intensive Distribution (15)

Puts products everywhere (convenience goods)

Selective Distribution (15)

Uses preferred groups of retailers (clothing)

Exclusive Distribution (15)

One retail outlet in geographic area (cars)

Telemarketing (15)

Sale by phone

Direct Selling (15)

Reaches customers in home/workplace (human-based)

Direct Marketing (15)

Links manufactures/intermediaries with consumers

Corporate Distribution System (15)

One firm owns all organizations in distribution contracts

Contractual Distribution System (15)

Retail members are bound to cooperate through contracts

Administered Distribution System (15)

Producers manage all marketing functions at retail level

Supply Chain (15)

All linked activities organizations perform to move products

Logistics (15)

Planning/controlling/implementing of physical flow of goods/information from origin to consumption

Intermodal Shipping (15)

Multiple modes of transportation used

Promotion Mix (16)

Advertising, personal selling, public relations, sales promotion

Advertising (16)

Paid, nonpersonal communication by identified organizations

TV Advertising (16)

Wide reach, expensive

Infomercial (16)

Online Advertising (16)

Lots of data on potential customers

Social Media Advertising (16)

Data on promotion’s success

Global Advertising (16)

Face-to-face presentation of products

Selling Process (16)

Prospecting, qualifying, preapproach, approach, presentation, answer objections, close sale, follow up

Prospecting (16)

Researching potential buyers, choosing who is most likely to buy

Qualifying (16)

Ensure need for product, authority to buy, willingness to listen to sales message

Preapproach (16)

Learn about customer wants/needs

Approach (16)

First impression

Presentation (16)

Match benefits to client needs

Answer Objections (16)

Respond to prospect’s objectives

Public Relations (16)

Evaluates public attitudes, changes policies in response to public request, executes program to earn public acceptance

Publicity (16)

Information about product/organization distributed to public through media, not paid for/controlled by seller

Sales Promotion (16)

Stimulated consumer purchasing/dealer interest through short-term activities (displays, trade show, event sponsorships)

Push Promotional Strategy (16)

Use promotional tools to convince wholesalers/retailers to sell product

Pull Promotional Strategy (16)

Directs ads/sales promotion towards consumers

Accounting (17)

Recording, classifying, summarizing, interpreting of financial events/transactions

Accounting System (17)

Method to record/summarize accounting data

Accounting Cycle (17)

Analyze source documents, record transactions in journals, transfer journal entries to ledger, take trial balance (summary of ledges to ensure figures are correct), prepare financial statements, analyze financial statements

Bookeeping (17)

Recording business transactions

Financial Statements (17)

Summary of financial transactions over period

Accounting Equation (17)

Assets=Liabilities+Owner’s Equity

Balance Sheet (17)

Reports firm’s financial condition at given time; assets balanced with liabilities, owner’s equity

Assets (17)

Economic resources owner by firm

Goodwill (17)

Value attached to reputation, location; included on balance sheet when firm acquires company, pays more than value of tangible assets

Liabilities (17)

Debts