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114 Cards in this Set
- Front
- Back
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The 4 Steps to Providing Value Through Product or Service Development
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1. Learn about the customer.
2. Develop the product or service. 3. Ensure quality. 4. Deliver the product or service. |
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Market Research
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The tasks of collecting and analyzing information about the market or potential market for a product or service.
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Research Design
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A plan for determining whom to study and how to collect and analyze information.
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Secondary Data
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Any data that have already been published
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primary data
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data that a business collects directly from customers and potential customers
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focus groups
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small groups of people who are asked to respond to a researcher's questions
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qualitative research
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research whose results are not subjecte to quantification or quantitative analysis
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quantitative research
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research that uses mathematical or statistical analysis to reach conclusions
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data analysis
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the study of information to help a manager reach a conclusion about some aspect of the company
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market segmentation
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an identifiable group of customers or potential customers that have common characteristics
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Types of Market Segmentation
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Demographic variables
Psychographic variables Relationship variables Benefit variables |
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demographics
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demographic segmentation identifies groups of potential customers on the basis of age, education, income, gender, family size, ethnicity, religion, etc.
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psychographic variables
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based on attitudes, interests, opinions, and lifestyle activities
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relationship variables
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market segmentation based on the level of loyalty customers have to a product
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benefit variables
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market segmentation based on the reasons why customers purchase a product (eg. image, safety, cost, etc.)
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product or service development
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the creation of a product or service that provides greater value to customers than previously existed
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The 5 Types of New Products
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1. new-to-the-world product
2. new category entry 3. new product added to an existing line 4. improved product 5. repositioned product |
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new-to-the-world product
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refers to totally new products never before seen by customers
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new category entries
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products developed by a company that did not produce them before, even though other companies did
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new product added to an existing product line
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it's like when General Mills added Multi-Grain Cheerios to its Cheerios line of cereals
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improved product
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when a company makes a significant improvement on an existing product or product line
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product repositioning
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taking an existing product and finding ways to market it to new customer groups
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product or service differentiation
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the development of a product or service that differs enough from existing products or services so that customers can disginguish the new product or service from existing ones
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The 5 Stages of the Development Process
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1. Concept Evaluation Stage
2. Business Analysis Stage 3. Development Stage 4. Test Marketing Stage 5. Commercialization Stage |
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concept evaluation
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an analysis to determing if the overall idea fits with the firm's strategy and existing product or service mix
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business analysis
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a comparison of projected demand for a product with the firm's ability and cost to produce it
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development team
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a group of people from various parts of a company who have interest in the product or service and are selected to develop it into a profitable activity
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test marketing
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selling a product or service in certain select markets to find out what customers think
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quality
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the ability of a product or service to consistently meet or exceed customer expectations
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total quality management (TQM)
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a systematic approach to addressing quality issues that involves a total integrated, companywide commitment to quality
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continuous improvement
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a process in which a firm and all its people continually look for ways to change and improve all facets of the business
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benchmarking
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comparing one's practices with those of recognized leaders to determine where and how improvements can be made
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six sigma
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a program that uses provem quality principles and techniques to make business operations as efficient and error free as possible
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Baldridge Award
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the highest quality governing recognition that a US business can receive
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ISO 9000
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Quality management and assurance standards published by the International Standards Organization; a common denominator of business quaity accepted around the world.
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Supply-chain management
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Management of the movement of products or components through all the stages involved in the production and delivery of final products to an end user
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3 Key Elements of Providing Value Through Distribution
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timeliness
location form |
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form
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the specific design, size, or model of a product that a customer needs
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integrated marketing communications (IMC)
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the process of developing and implementing various forms of persuasive communications that send a consistent message over time
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relationship marketing
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a situation in which the business gets to know its customers, establishes rapport, and develops long-term relationships with them
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brand
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a name, term, symbol, design, or image that identifies the products or service of a business
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brand equity
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the value attached to a brand
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advertising
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any paid form of presentation and promotion of ideas, goods, and services by an identified sponsor to a targeted audience
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institutional advertising
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a communication about the company itself, not its products
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product advertising
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advertising that encourages customers to buy specific products or services
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direct marketing
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any attempt to sell a product directly to customers without going through intermediaries such as dealers or other retailers
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direct mail
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the use of catalogs and other materials sent to the homes or businesses of potential customers
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internet marketing
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the communicating of product information through a company's website, encouraging customers to order online
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bricks-and-clicks retailers
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companies that have both facilities or stores and a significant online business
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personal selling
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the face-to-face communication between a company representative and the customer
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qualifying the customer
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determining whether the customer is likely to purchase the product or service
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sales promotions
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additional incentives provided to encourage customer response
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sponsorships
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investments in special events or causes for the purpose of building awareness of the company and its products
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publicity
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communication to a mass audience that is not paid for by the company
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cost-based pricing
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a method of pricing in which a company figures all of the costs involved in producing and selling a product and sets a price high enough to cover these costs plus a reasonable profit
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value-based pricing
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a situation where a company determines what customers are willing to pay
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image pricing
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a situation where a business sets prices very high to indicate the exclusive or high status nature of the product or service
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penetration pricing
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temporarily pricing below competition to gain market share
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competitive pricing
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pricing based on competitor's prices for similar products
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discount pricing
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a strategy of pricing low to increase sales volume
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feedback
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communications from customers that tell a company how it is doing
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organization design
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the way the various parts of a business are coordinated
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organization structure
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a framework that prescribes how a business organizes, arranges, and groups the work that needs to be done
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chain of command
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the line of authority in a business, which identifies who reports to whom
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span of control
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the number of employees who report to a given manager
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specialization
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the process of placing employees in specific jobs and asking them to perform only those jobs
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departmentalization
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the process of grouping similar jobs together in any of several ways (among them, function, markets, or geography)
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suboptimization
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a situation in which one department of a business, acting in its own self-interest, hurts or inhibits the performance of another department, leading to less effective outcomes for the business overall
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bureaucratization
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when an organization has many levels of hierarchy that separate the thinkers from the doers
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empowerment
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the act of giving more decision-making authority and responsibility to workers throughout the organization
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virtual teams
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teams that combine the talents and ideas of people worldwide who use technology to communicate in addressing business problems and opportunities
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project organization
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a structural approach that uses teams drawn from various areas of the business to accomplish high-profile tasks
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matrix organization
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a structural approach that combines the project structure with the functional structure
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business units
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unique product or market groupings that are treated as self-contained businesses
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virtual organization
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a combination of parties (people or organizations) who, although geographically disperesed, are electronically linked so that each can contribute its unique competency in achieving a common goal
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motivation
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a person's willingness to work hard and expend great effort for the business
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Maslow's Hierarchy of Needs, going upwards
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Physiological needs, Safety and security needs, Social needs, Esteem needs, Self-actualization
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What does a business do to satisfy physiological needs?
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pay them
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What does a business do to satisfy Safety and Security needs?
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Benefit plans, safe working environment
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What does a business do to satisfy social needs?
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teamwork, managerial concern and support
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What does a business do to satisfy esteem needs?
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formal recognition awards, bonuses
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What does a business do to satisfy Self-actualization needs?
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offer challenging assignment requiring independent thinking and creativity
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The 2 factors in Herzberg's Two-factor Theory
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Hygiene Factors
Motivators |
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hygiene factors
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context of the job, including company policies, salary, job security, working conditions, relations with co-workers, supervisory style
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motivators (from the two-factor theory)
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content of the job, including achievement, recognition, responsibility, advancement, opportunities for growth, the work itself
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Model of Expectancy Theory (of Motivation)
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1. Organizational task or desired performance.
2. Perception of the probability that personal efforts will lead to performance of the task. 3. Value placed on rewards that are contingent on desired performance. 4. Perception of the probability that rewards will actually follow performance. |
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Explain Douglas McGregor's "Theory X" and "Theory Y" Managers
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Theory X- the belief that workers are naturally lazy, dislike work, shirk responsibility, and will do as little as they can in most work situations
Theory Y- the belief that workers enjoy their work, desire responsibility, and want challenges |
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employer of choice
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a situation in which a business displays such a unique culture that it is able to attract, motivate, and retain the high-quality people it needs
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performance-based pay
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wages that are tied directly to performance
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flexible benefits plan
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a plan in which workers can select from a menu of benefits the ones they wish to receive
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teamwork
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a situation where employees are treated as key players in the business and where employees want to pull together to help the company succeed
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job sharing
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a work arrangement in which two or more employees share one job and split all the duties, responsibilities, and compensation of that job
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intranet
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a computer communications network within a single company
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flexible manufacturing
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manufacturing with highly automated machinery that can be changed quickly and can perform multiple tasks
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mass customization
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the design of products and processes with the goal of delivering highly customized products to different customers around the world
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integrated assessment
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the simultaneous measurement of variables in different parts of an organization
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effectiveness
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a measure of the degree to which a business achieves its goals
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efficiency
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a measure of the relationship between inputs and outputs
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dynamic measurements
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measures that include some time element, often comparing results in different time periods
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return on equity (ROE)
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the amount of profit a firm makes for each dollar of equity invested
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earnings per share (EPS)
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a company's earning divided by the number of shares of stock outstanding
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net worth
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the value of a business: for a publicly held firm, its stock price times the number of shares outstanding; for a private firm, its assets minus liabilities (or its future income in today's dollars)
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income statement
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a financial statement that shows a firm's performance over the course of a specific time period, such as a quarter or a year
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balance sheet
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a financial statement that shows a company's assets (what it owns), liabilities (what it owes), and net worth (owner's equity) at a specific point in time
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debt ratio
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the percentage of the company's total assets that are underwritten with debt
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current ratio
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a measure of a firm's ability to pay its bills
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inventory turnover ratio
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a measure of how fast a firm is selling its inventory
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gap analysis
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the study of customers' satisfaction with a firm's product or service compared with their expectations
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second-level communications
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communication that customers make only when their first attempt to gain satisfaction provides fruitless, although first-level communications are important too.
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performance appraisal
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the process a company uses to measure employee effectiveness
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absenteeism
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a situation in which employees do not show up at work when scheduled to be there
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turnover
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a situation in which employees voluntarily leave a company
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360-degree appraisal
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empoyees are assessed by everyone with whom they have key interactions
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exit interviews
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employee feedback after that employee is fired
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