Business principles test 3 (Frank Reid) – Flashcards
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marketing
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activity and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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utility
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ability of a good or service to satisfy a human need
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form utility
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utility created by converting production inputs into finished goods
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place utility
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utility created by making a product available at a location where customers with to purchase it
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time utility
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utility created by making a product available when customers wish to purchase it
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possession utility
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utility created by transferring title of a product to a buyer
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market concept
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business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives
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production orientation
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increased output and production efficiency, take orders and distribute goods.
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sales orientation
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increased advertising and enlarged sales force, and high-pressure sales techniques
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customer orientation
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first determine what the customer needs then they develop goods and services to to fill the needs
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market
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a group of individuals or organizations, or both, that need products in a given category and that have the ability and authority to purchase them
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consumer markets
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consist of purchasers or/or household members who intend to consume or benefit from the product. make zero profit
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business-to-business markets (industrial market)
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grouped broadly into producer, reseller, governmental, and institutional categories. for resale or day to day use
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target market
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group of indv. or organizations for which a firm develops and maintains a marketing mix suitable for the specific needs and preference of that group
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market segment
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a group of individuals or organizations within a market that share one or more common characteristics
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market segmentation
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process of dividing a market into segments and directing a marketing mix at a particular segment rather then at the total market
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concentrated market segmentation
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single marking mix is directed at a single market segment
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differentiated market segmentation
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multiple marketing mixes are focused on multiple market segments
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marketing mix
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4 elements of marketing that it combines that reaches the target market. the product itself, the price of the product, chosen for its distribution, and the promotion of the product.
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product ingredient
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includes decisions about the products design, brand name, packaging and warranties
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pricing ingredient
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concerned with both base prices and discounts. pricing is intended to maximize profits
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distribution ingredient
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involves not only transportation and storage but also selecting intermediaries
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promotion ingredient
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focuses on providing info to target markets. major forms are advertising, personal selling, sales promotion, and public relations
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marketing environment
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a firms marketing activities can be affected by external forces, which are generally uncontrollable. the following forces make up the marketing env.
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sales forecast
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estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specific level of marketing effort
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marketing information system
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system for managing marketing info that is gathered continually from external and internal sources
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marketing research
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process of systematically gathering, recording, and analyzing data concerning a particular marketing problem
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consumer buying behavior
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purchasing of products for personal or household use not for business purposes
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business buying behavior
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purchasing of products by producers, resellers, governmental units, and institutions
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product
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everything one receives in an exchange, including all tangible and intangible attributes and expected benefits. good, service or idea
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raw material
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basic material that actually becomes part of a physical product; comes from mines,oceans, forests, recycled waste
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major equipment
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large tools and machines used for production purposes
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accessory equipment
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standardized equipment used in a firms production or office activities
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component part
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an item that becomes part of a physical product and its either a finished item ready for assembly or a product that needs little processing before assembly.
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process material
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material that is used directly in the production of another product but its not readily identifiable in the finished product
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supply
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an item that facilitates production and operations but does not become part of a finished product
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product life-cycle
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series of stages in which a products sales revenue and profit increases, reach a peak, and then decline
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introduction stage
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customer awareness and acceptance of the product are low
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growth stage
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sales increase rapidly as consumers gain awareness of the product
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maturity stage
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rate of increase has slowed. later on sales peak and start to decline.
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decline stage
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sales volume decreases sharply and profits continue to fall
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product line
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group of similar products that differ only in relatively minor characteristics
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product mix
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consists of all the products the firm offers for sale
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innovations
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are entirely new products
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brand mark
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part of a brand that is a symbol or distinctive design
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trademark
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brand name or brand mark that is registered with the U.S patent and trademark office and thus is legally protected by use of anyone else
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trade name
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the complete and legal name of an organization
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packaging
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all the activities involved in developing and providing a container with graphics for a product
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labelling
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presentation of information on a product or its package
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price
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the amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances
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cost-based pricing
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simplest method; the seller first determines the total cost of producing one unit of the product
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markup
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amount a seller adds to the cost of a product to determine its basic selling price
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breakeven quantity
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number of units that must be sold for the total revenue to equal the total cost
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total revenue
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total amount received from the sales of a product
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fixed cost
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cost incurred no matter how many units of a product are produced or sold
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variable cost
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cost that depends on the number of units produced
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total cost
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sum of the fixed costs and the variable costs attributed to a product
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price skimming
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strategy of charging the highest possible price for a product during the introduction stage of its life cycle
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penetration pricing
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strategy of setting a low price for a new product
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differential pricing
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charging different prices to different buyers for the same quality and quantity of a product
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distribution (marketing) channel
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sequence of marketing organizations that directs a product from the producer to the ultimate user
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retailer
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middleman that buys from producers or other middleman and sells to consumers
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wholesaler
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middleman that sells products to other firms
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intensive distribution
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the use of all available outlets for a product
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selective distribution
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the use of only a portion of the available outlets for a product in each geographic area
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exclusive distribution
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the use of only a single retail outlet for a product in a large geographic area
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transportation
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shipment of products to customers
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carrier
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firm that offers transportation services
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modes of transportation
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railroads, trucks, airplanes, waterways, pipelines
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integrated marking communications
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coordination of promotion efforts to ensure maximal information and persuasive impact on customers
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advertising
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a paid non personal message communicated to a select audience through a mass medium
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primary demand advertising
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advertising whose purpose is to increase the demand for all brands of a product within a specific industry
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institutional advertising
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advertising designed to enhance a firms image or reputation
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order getter
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salesperson who is responsible for selling a firms products to new customers and increasing sales to present customers
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order taker
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salesperson who handles repeat sales in ways that maintain positive relationships with customers
