Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

114 Cards in this Set

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