Business Management Final Exam

Front 1

What is marketing?

Back 1

an organizational function and set of processes for creating, communicating, and delivering value to customers.

Front 2

What are the five eras of marketing?

Back 2

Production- A good product will sell itself

Sales- Creative advertising and selling will overcome consumers resistance and convince them to buy

Marketing- The consumer is king! Find a need and fill it!

relationship- long term relationships lead to success
Social- Connecting to consumers via internet and social media is an effective tool

Front 3

Target market

Back 3

group of potential customers toward whom it directs its marketing efforts

Front 4

What is market segmentation?

Back 4

process of dividing a market into several relatively homogeneous groups.

Front 5

What is geographical segmentation?

Back 5

Dividing a market into homogenous groups on the basis of their location.

Front 6

What is demographic segmentation?

Back 6

distinguishes markets on the basis of various demographic or socioeconomic characterizers. Common demographic measures include gender, income, age, occupation, household, stage in family life cycle, education, and racial or ethnic group

Front 7

What is secondary data?

Back 7

Low cost and easy to obtain. Include census data, which contain population's age, gender, education level, household size and composition, occupation,employement status and income data.

Front 8

What is primary data?

Back 8

produced by companies own performance including changes in unpaid bills; inventory levels; sales generated by different categories of customers or product lines

Front 9

Developing a marketing mix

Back 9

Adaptation allows marketers to vary marketing mix to suit local competitive conditions, consumer preferences, and government regulations.

Front 10

Relationship marketing

Back 10

goes beyond an effort toward making the sale. Instead, it develops and maintains long-term, cost-effective exchange relationships with partners.

Front 11

Convenience Products

Back 11

Items that consumers to purchase frequently, immediately, and with little effort.

Front 12

Shopping prodcuts

Back 12

purchased only after the buyer has compared competiting products in competiting stores.

Example: new sofa or a dining room table

Front 13

Specialty products

Back 13

Third category of consumer products

those that a purchaser is willing to make a special effort to obtain

Purchaser is familiar with the item and considers it to have no reasonable substitute.

lexus, if you want one you have to drive to get it

Front 14

Introduction stage

Back 14

- firm tries to promote demand for its new offering; inform the market about it; give free samples to entice consumers to make a trial and explains features

Front 15

Growth stage

Back 15

sales climb quickly as new customers join early users who now are repurchasing the item. Word-of-mouth referrals and continued advertising and other special promotions by the firm induce others to make trial purchases

Front 16

Maturity stage

Back 16

industry sales climb quickly, eventually reach a saturation level at which further expansion is difficult. competition intensifies, increasing availability of product.

Front 17

decline stage

Back 17

sales continue to fall. Profits decline and may become losses as further price cutting occurs in overall market for item.

Front 18

Steps in new product development

Back 18

1. Generate new ideas

2. Screening eliminates ideas that do not mesh with overall company objectives or cannot be developed given company's resources

concept testing and focus groups

3. actual product developed, subject to to tests and revised.

the product is test marketed

4. commercialization product is made readily available

Front 19

Product Identification

Back 19

brand is name, term, symbol, design used to identify company

trademark- brand that has been given legal protection

Front 20

Branding categories

Back 20

brand offered by a manufacturer is known as a manufactures brand

Private or store brand- identifies product that is not linked to manufactures but instead carries a wholesalers or retailers label.

family brand- single brand used for several products

ex: KitchenAid, Johnson & Johnson, Hewlett- Packard, and Arm and Hammer

Individual branding- giving each product within a line a different name

Front 21

Brand loyalty

Back 21

measure brand loyalty in three stages: recognition, preference, and insistense

Front 22

Packaging and labeling

Back 22

-affects durability, image, and convience of an item one of biggest costs in a consumer item

-Labels must meet federal laws requiring companies to allow consumers to make value comparisons among competitive poructs

universal product code- bar code ready by optical scanners that print on receipt

Front 23

distribution channels

Back 23

direct distribution channels- carries goods directly from producer to consumer

marketing intermediary- business firm that moves goods between producers and consumers

Front 24

promotion

Back 24

informing, persuading, and influencing a purchase decision

Front 25

what is personal selling

Back 25

direct person to person promotional

Front 26

non personal selling

Back 26

consists of advertising, sales promotion, direct marketing, and public relations

Front 27

sales promotion

Back 27

attracts attention and creates awareness

effectiveness is easily measured/ produces short term sales increase

Front 28

Public relations

Back 28

enhances product or firm credibility

creates a positive attitude about product

Front 29

seven steps to sales

Back 29

1. Prospecting and qualifying

2. Approach

3. Presentation

4. Demonstration

5. Handling questions

6. Closing

7. Follow- Up

Front 30

Breakeven analysis

Back 30

determine minimum sales volume a product must generate at a certain price level to cover all costs

Front 31

cost plus pricing

Back 31

absolute percentage or percentage mark up on cost price to determine selling price

Front 32

skimming price

Back 32

strategy sets an intentionally high price relative to the prices of competitive products

Front 33

Penetration pricing

Back 33

strategy sets a low price as a marketing weapon

Front 34

accounting

Back 34

process of measuring, interpreting, and communicating financial information to enable people inside and outside firm to make informed decisions

Front 35

users of account information

Back 35

managers with a business are major users of accounting information, because it helps them plan and control daily and long-range operations

potential investors evaluate accounting info to help them decide whether to buy a firm's stock.

accounts play fundamental roles not only in business but also other aspects of society.

Front 36

business activities involving accoutning

Back 36

1. Financing activities provide necessary funds to start a business and expand it after it begins operating.

2. Investing activities provide valuable assets required to run a business.

3. Operating activities focus on selling goods and services, but they also consider expenses as important elements of financial management

Front 37

generally accepted accounting principles

Back 37

principles encompass, convention, rules, and procedures for determining acceptable accounting and financial reporting practices at a particular time.

Front 38

accounting cycle:

Back 38

transactions- record, classify, summarize- financial statements- balance sheet, income statement, statement of owners equity, statement of clash flow.

Front 39

accounting equation

Back 39

assets= liabilities + Owners equity

Front 40

Balance sheet

Back 40

shows financial position on a particular date

Front 41

income statement

Back 41

indicates flow of resources that reveal performance of the organization over a specific time period

Front 42

liquidation ratio

Back 42

= current assets/ current liabilities

Front 43

what is the acid test?

Back 43

current assets- inventory/ current liabilities