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drexel busn101 part2
drexel busn101
Question | Answer |
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nature of marketing | to create value by allowing people and organizations to obtain what they need and want |
marketing | a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services and ideas |
exchange | the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas) |
functions of marketing | buying, selling, transporting, storing, grading, financing, market research, risk taking |
the marketing concept | the idea that an organization should try to satisfy customer's needs through coordinated activities that allow it to achieve its own goals (profit) |
marketing strategy | a plan of action for developing pricing, distributing and promoting products that meet. |
two major components of marketing strategy | selecting a target market, developing the appropriate marketing mix |
market | a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services and ideas |
target market | a more specific group of consumers on whose needs and wants a company focuses its marketing effort |
total market approach | an approach whereby a firm tried to appeal to everyone and assumes that all buyers have similar needs |
segmentation | a strategy to divide the total market into groups of people who have relatively similar product needs |
segment | a collection of individuals, groups, or organizations who share one or more characteristics and have similar product needs and desires |
niche market | narrow market segment focus when efforts are on one small, well-defined segment that has a unique, specific set of needs |
bases for segmenting markers | demographic, geographic, psychographic, behavioristic |
distribution | making products available to consumers in the quantities and locations desired |
promotion | a persuasive prom of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas. |
market research | a systematic, objective process of getting customer information to guide marketing decisions |
marketing information system | a framework for assessing information about customers from internal and external sources |
primary data | marketing information that is observed, recorded or collected directly from respondents |
secondary data | information that is compiled or outside an organization for some purpose other than changing the current situation |
buying behavior | the decision processes and actions of people who purchase and use products |
psychological variables of buying behavior | perception, motivation, learning, attitude, personality |
social variables of buying behavior | social roles, reference groups, social classes, culture |
the marketing environment | external forces that directly or indirectly influence the development of marketing strategies. ex. political, legal and regulatory, social, competitive, economic and technological |
echo boomers | the age group from late 80's to early 90's that were born in the generation that parents loved them, technology was booming and research needs to be done hands on by having them tell you what is up and coming |
Test marketing | A trial mini-launch of a product in limited areas that represent the potential market. |
Important Aspects that should be checked with new ideas | Consumer desires, the competition, technological advances, social trends, with political, economical, and environmental consideration. |
Business Analysis | A basic assessment of a product's compatibility in the marketplace and its potential profitability. |
Commercialization | Full introduction of a complete marketing strategy and the launch of the product for commercial success. |
Consumer Products | Products intended for household or family use. |
Types of Consumer Products | Convenience Products, Shopping Products, Specialty Products. |
Business Products | Products that are used directly or indirectly in the operation or manufacturing processes of businesses |
Industrial services | Business Product that includes financial, legal, marketing research, security, janitorial, and exterminating services. |
Product Line | group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations. |
Product Mix | all the products offered by an organization. |
Product Life Cycle | Introductory Stage, Growth Stage, Maturity Stage, Decline Stage |
Branding | Process of naming and identifying products |
Trademark | Brand that is registered with the US Patent and Trademark Office and is thus legally protected from use by any other firm |
Manufacturing Brands | Brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase. |
Private Distributor Brands | Brands, which may cost less than manufacturer, that are owned and controlled by a wholesaler or retailer |
Generic Product | Products with no brand name that often come in simple packages and carry only their generic name. |
Packaging | The external container that holds and describes the product. |
Labeling | the presentation of important info on a package. |
Quality | the degree to which a good, service, or idea meets the demands and requirements of customers. |
Pricing Skimming | Charging the highest possible price that buyers who want the product will pay |
Penetration Price | A low price designed to help a product enter the market and gain market share rapidly. |
Psychological Pricing | Encouraging purchases based on emotional rather than rational responses to the price |
Discounts | Temporary price reductions, often employed to boost sales |
Marketing channel | A group of organizations that moves products from their producer to customers; also called a channel of distribution |
Retailers | Intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products. |
Wholesalers | Intermediaries who buy from producers or from other wholesalers and sell to retailers |
Supply Chain Management | Creating long term partnerships among channel members |
Intensive Distribution | A form of market coverage whereby a product is made available in as many outlets as possible. |
Selective Distribution | A form of market coverage whereby a small number of all available outlets are used to expose products |
Exclusive distribution | The awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory |
Physical Distribution | All the activities necessary to move products from producers to customers- inventory control, transportation, warehousing, and materials handling |
Transportation | The shipment of products to buyers |
Warehousing | The design and operation of facilities to receive, store, and ship products |
Materials Handling | The physical handling and movement of products in warehousing and transportation |
Personal Selling | Direct, 2-way communication with buyers and potential buyers |
Publicity | Nonpersonal communication transmitted through the mass media but not paid for directly by the firm |
Sales Promotion | direct inducements offering added value or some other incentive for buyers to enter into an exchange |
Push Strategy | the use of promotion to create consumer demand for a product so the consumers exert pressure on marketing channel members to make it available. |
Pull Strategy | An attempt to motivate intermediaries to push the product down to their customers |
Promotional Positioning | The use of promotion to create and maintain an image of a product in buyers' minds |
Finance | The study of money--how it’s made, lost, and why |
Money | Anything generally accepted in exchange for goods and services |
Money's function | Payment for products & resources, Single standard for comparing values of products and resources, Retaining & accumulating wealth |
Money's Characteristics | Acceptability,Divisibility,Portability,Stability,Durability,Difficulty to counterfeit |
Types of money | Checking account,Savings account,Money market account,Certificate of deposit,Credit card,Debit card,Traveler’s check,Money order,Cashier’s check |
Credit Cards | Means of access to preapproved lines of credit granted by a bank of finance |
Debit Card | A card that looks like a credit card but works like a check;using it results in a direct, immediate, electronic payment from the cardholder's checking account to a merchant or third party |
Federal Reserve Board | An independent agency of the federal government established in 1913 to regulate the nation's banking & financial industry. |
Banking Institutions | Businesses whose objective is to earn money by managing, safeguarding, and lending money to others. |
Federal Reserve Board Functions | Control the money supply with monetary policy, regulate financial institutions, manage regional and national check-clearing procedures, supervise the federal deposit insurance of commercial banks in the Federal Reserve system |
Buy/Sell Government Securities | Increase/Decrease Money Supply & Economic Activities |
Relax/Raise Credit Controls | More/Less Purchases, INcreases/DEcreases economic activity |
Raise/Lower Discount Rate | Interest rates Increase/Decrease, causes Money Supply & Economic activities to DEcrease/INcrease |
Increase/Decrease Reserve Requirements | Banks make fewer/more loans, Money Supply & Economic activities DEcrease/INcrease |
Major Banking Institutions | Commercial banks, Savings and loan associations, Credit unions, Mutual savings banks |
Insurance for Banks | FDIC give money up $100,000. NCUA regulates and charters credit unions |
Electronic Banking | ETF-Electronic funds transfer,ATM-Automated teller machines,ACHs-Automated clearinghouses,Online banking |
Gramm-Leach-Billey Bill | Banks were allowed to offer insurance, brokerage, and investment banking services. |
Current assets | Cash,Investments,Accounts receivable,Inventory |
Current liabilities | Accounts payable,Accrued salaries,Accrued taxes,Short-term bank loans |
Managing Cash | Effectively managing the firm’s cash flow is crucial Ex.Transaction balances,Lockbox systems,Electronic funds transfer |
Investing Idle Cash | Marketable securities,US Treasury bills (T-bills), Commercial certificates of deposit (CDs),Commercial paper,International investments – the Eurodollar |
Maximizing Accounts Receivable | Each credit sale represents an account receivable-money owed to a business by credit customers |
Optimizing Inventory | The objective is to maximize inventory investment without production cutbacks because of materials shortfalls/lost sales due to insufficient finished goods inventories. |
Accounts Payable | Money an organization owes to suppliers for goods and services |
Line of Credit | An arrangement by which a bank agrees to lend a specified amount of money to an organization upon request |
Secured Loans | Loans backed by collateral that the bank can claim if the borrowers do not repay the debt |
Unsecured Loans | Loans backed only by the borrowers’ good reputation and previous credit rating |
Prime Rate | Interest rates commercial banks charge their best customers (usually large corporations) for short-term loans |
Long-term (fixed) assets | Plants,Offices,Equipment,Heavy machinery,Automobiles. |
Capital budgeting | Process of analyzing the needs of business and selecting the assets that will maximize its value. |
Bonds | Debt instruments that larger companies sell to raise long-term funds. |
Indenture | The bond contract specifying all terms of agreement between bondholder and the issuing organization |
Unsecured Bonds | Debentures, or bonds, that are not backed by specific collateral |
Secured Bonds | Bonds that are backed by specific collateral that must be forfeited in the event the issuing firm defaults |
Serial Bonds | A sequence of small bond issues of progressively longer maturity |
Floating-rate Bonds | Bonds with interest rates that change with current interest rates otherwise available in the economy |
Junk Bonds | Special type of high interest rate bond that carries higher inherent risks |
Investment Banking | The sale of stocks and bonds for corporations |
The Securities Market | Securities markets provide a mechanism for buying and selling securities |
Measuring Market Performance | Indexes,Averages,Bull market,Bear market |