Mngt-Final Chapters 11-15

Front 1

List three of the four objectives of market segmentation identified in the textbook.

Back 1

1. Differences within the segment the firm chooses should be small.
2. The segment should be distint enough so that its members can be easily identified.
3. The size of the market should be measureable, so as to determine feasibility.

Front 2

List three circumstances identified in the textbook that must be present in order for an enterpreneur to charge a premium price.

Back 2

1. A new technology is being introduced.
2. Demand for the product is inelastic.
3. The product is positioned as a luxury product.

Front 3

List and define the two common pricing methods identified in Ch. 11.

Back 3

1. Cost-based pricing: the list price is determined by adding a markup percentage to a product's cost.
2. Value- based pricing: the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

Front 4

List an advantage AND disadvantage of Selling direct.

Back 4

Advantage: Ability to control the process of moving instead of relying on third parties.
Disadvantage: The firm has more of its capital tied up in fixed assets because it must own or rent retail outlets or must field a sales force to sell its products.

Front 5

List an advantage AND disadvantage of and Selling Through Direct.

Back 5

Advantage: The firm does not need to own as much of the distribution channel.
Disadvantage: Loss (less) control of its product.

Front 6

List three reasons why it is important to recognize and protect intellectual property.

Back 6

1st- The intellectual property of a business often represents it's most valuable assets.
2nd-- To avoid unintentional violations of intellectual property laws.
3rd- Intellectual property can be licensed or sold providing valuable licensing income.

Front 7

List the four key forms of intellectual property.

Back 7

1. Copyrights
2. Patents
3. Trade marks
4. Trade secrets

Front 8

List the three types of patents. Which of the three is the most common?

Back 8

1. Design Patents
2. Plant Patents
3. Utility Patents
Utility Patent is the common 1

Front 9

List and briefly describe the four types of trademarks.

Back 9

1. Cerficiation marks: marks, words, names, symbols, or devices used byu a person other than its owner to ceritify a particular quality about a product or service (Good HouseKeeping Seal of Approval)
2. Collective marks: trademarks or service marks used by the mebers of a cooperative, association, or other collective group. (The American Bar Association)
3. Service marks: used to identify the services or intangible activities of a business rather than a business's physical product. (eBay for online auctions)
Trademarks: any, word, name, symbol, or device used to identify the origin of products/services and to distinguish those products/ervices from others. (Quicken for software and Electronic Arts for electronic games)

Front 10

What are the two guidelines for determining what intellectual property to legally protect?

Back 10

1. Does the intellectual property have value in the marketplace?
2. Is the interellectual property directly related to one's competitive advantage?

Front 11

List and briefly discuss three of the six reasons identified in Ch. 13 as to why firms deliberately pursue growth.

Back 11

1. Ability to attract and retain talented employees: allows a firm to, for example: retain key employees through promotional.
2. Capturing Economies of Scale: when increasing production lowers the average cost of each unit produced.
3. Market leadership: a firm that is the number one or the number two firm in an industry or niche market in terms of sales volume.

Front 12

List three of the challenges of growth indentified in Ch. 13.

Back 12

Adverse selection
Moral hazard
Managerial Capacity Problem

Front 13

List and briefly discuss three of the four attributes of successful growth firms identified in CH. 13.

Back 13

Growth-oriented vision: by clearing articulating ( in writing and dissemination) a growth-orientation to stakeholders a firm an help ensure that decisons are made with growth in mind.
Commitment to growth: a deliberate choice to purse sustained growth.
Business Growth Planning: setting growth-related goals and objectives, and then mapping out a plan to achieve those goals and objectives.

Front 14

List three internal growth strategies identified in CH. 14.

Back 14

1. Intenational expansion
2. New Product Development
3. Other Product-Related strategies

Front 15

List four of the five external growth strategies identified in CH. 14.

Back 15

1. Joint Ventures
2. Licensing
3. Merger and Acquisitions
4. Strategic Alliances

Front 16

List two advantages and two disadvantages of strategic alliances

Back 16

Advantage:
-gain access to a particular resource
- economies of scale
Disadvantage:
-loss of proprietary information
-management complexities

Front 17

List two advantages and two disadvantages of joint ventures

Back 17

Advantages:
- learning
-speed to market
Disadvantages:
-partial loss of decision autonomy
-loss of organizational flexibility

Front 18

Describe the differences between a product and trademark franchise and a business format franchise. Give an example of each.

Back 18

*Product/trademark franchise: is an arrangement under which the franchisor grants to the franchisee the right to buy its product and use its trade name. EXAMPLE: General Motors has established a network of dealers that sells GM cars and use the GM trademark in their advertising and promotions.
*Busines format franchise: by far the most popular approach to franchising in which the franchisor provides a formula for doing business to the franchisee along with training, advertising, and other forms of assistance. EXAMPLE: Fast-food restaurants such as McDonalds and Burger King teach their franchisees every detail fo how to run their restaurants, from how much seconds to cook French fries to the exact words their employees should use when they greet customers (such as " Will this be dining in or carry out?)

Front 19

List and briefly describe the differences among the three types of franchise agreements.

Back 19

1. Area franchise agreement: agreement that allows a franchisee to own and operate a specific number of outlets in a particular geographic area.
2. Individual franchise agreement: the most common type of franchise agreement, which involves the sale of a single franchise for a specific location.
3. Master franchise agreement: similar to an area franchise agreement, but in addition to having the right to operate a specific number of locations in a particular area, the franchisee also has the right to offer and sell the franchise to other people in the area.

Front 20

List two advantages and two disadvantages of being a franchisor.

Back 20

Advantages:
1. rapid, low cost market expansion
2. Income from franchisee fees and royalities
Disadvantages:
1. Loss of control
2. Friction with franchisees

Front 21

List two advantages and two disadvantages of being a franchisee.

Back 21

Advantages:
1. Franchisee motivation
2. Cost sharing
Disadvantages:
1. Capital requirments
2. Continuing royalty payment