Exploring Business by Karen Collins (Test 1: Chapters 5, 9, 10 Vocab)
Flashcard maker : Lily Taylor
Individual who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.
Small Business Administration (SBA)
Government agency that helps prospective owners set up the businesses, obtain financing, and manage ongoing operation.
According to the SBA, a business that is independently owned and operated, is organized for profit, and is not dominant in its field.
All businesses whose primary purpose is to produce tangible goods.
All businesses whose primary purpose is to produce service rather than a tangible good.
Formal document describing a proposed business concept, description of the proposed business, industry analysis, mission statement and core values, a management plan, a description of goods or services, a description of production processes, and marketing and financial plans.
From a business ownership in which a franchiser (a seller) grants a franchisee (a buyer) the right to use a brand name and to sell its products or services.
Overview emphasizing the key points of a business plan to get the reader excited about the business (it is a hook).
Statement describing an organizations purpose or mission-its reason for existence-and telling stockholders what the organization is committed to doing.
Statement of fundamental beliefs describing what is appropriate and important in conducting organizational activities and providing a guide for the behavior of organization members.
Small Business Development Center (SBDC)
SBA program in which centers housed at colleges and other locations provide free training and technical information to current and prospective small business owners.
Service Corps of Retired Executives (SCORE)
SBA program in which a businessperson needing advice is matched with a member of a team of retired executives working as volunteers.
Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.
Basic philosophy of satisfying customer needs while meeting organizational goals.
Plan for selecting a target market and creating, pricing, promoting, and distributing products that satisfy customers.
Specific group of customers who should be interested in your product, have access to it, and have the means to buy it.
Buyers who want a product for personal use
Buyers who want a product for use in making other products.
Group of potential customers with common characteristics that influence their buying decisions
Process of dividing the market into groups based on such variables as age and income
Process of dividing a market according to such variables as climate, region and population density
Process of dividing consumers by behavioral variables, such as attitude toward the product, user status, or usage rate.
Process of classifying consumers on the basis of individual lifestyles as reflected in peoples interests, activities, attitudes, and values
Combination of product, price, place, and promotion used to market products
Process of collecting and analyzing data that is relevant to a specific market situation
information used in marketing decisions that has already been collected for other purposes.
newly collected marketing information that addresses specific questions about the target market
Group of individuals brought together for the purpose of asking them questions about a product or marketing strategy
Word, letter, sound or symbol that differentiates a product from similar products on the market.
Word, symbol, or other mark used to identify and legally protect a product from being copied.
Product made by a manufacturer and sold to a retailer who in turn resells it under its own name.
Product with no branding information attached to it except a description of its contents.
Branding strategy in which a manufacturer sells on or more products under its own brand names
Value of a bran generated by a favorable consumer experience with a product.
consumer preference for a particular brand that develops over time based on satisfaction with a company´s products
Container that holds a product and can influence a consumer´s decision to buy or pass it up.
information on the package of a product that identifies the product and provides details of the package contents.
Pricing strategy in which a seller generates early profits by starting off charging the highest price that customers will pay.
Pricing strategy in which the seller changes a low price on a new product to discourage competition and gain market share
Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit
Pricing strategy that bases the price of product on how much people are willing to pay for it.
Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.
Practice of setting a price artificially high to foster the impression that it is a product of high quality.
Practice of pricing products a few cents (or dollars) under an even number
All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.
Wholesaler or retailer who helps move products from their original source to the end user
Intermediaries who buy goods from producers and sell them to consumers
Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them
Amount that a company earns on each unit sold
Activities needed to get a product from where it was manufactured to the customer
Building used for the temporary storage of goods.
Location where products are received from multiple suppliers, stored temporarily, and then shipped to their final destinations.
Process of physically moving or carrying goods during production, warehousing, and distrubiton
System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process
Flow that begins with the purchase of raw materials and ends in the sale of a finished product to an end user
Supply chain management (SCM)
Process of integrating all the activities in the supply chain.
Customer value triad
Three factors that customers consider in determining the value of a product: quality, service, and price.
Entire range of activities involved in delivering value to customers
Various ways to communicate with customers, including advertising, personal selling, sales promotion, and publicity
Paid, non personal communication designed to create an awareness of a product or company.
One-on-one communication with customers or potential customers
Sales approach in which a company provides an incentive for potential customers to buy something
Form of promotion that focuses on getting a company or product mentioned in a newspaper, on TV, or in some other news media
Communication activities undertaken by companies to garner favorable publicity for themselves and their products
Customer relationship management
Strategy for retaining customers by gathering information about them, understanding them, and treating them well.
Form of marketing in which companies ask customers or potential customers for permission to contact them or send them marketing materials.
the practice of sending out messages to vast audience of anonymous people.
Marketing the interrupts people to get their attention (TV, Radio, Movies)
Social media marketing
The practice of including social media as part of a companys marketing program
Product Life cycle
Four stages that a product foes through over its life: introduction, growth, maturity, and decline
External marketing environment
Factors external to the firm that present threats and opportunities and that require shifts in marketing plans.
Decision process that individuals go through when purchasing or using products.
Marketing consulting firm that develops and executes promotional campaigns for clients
Something that can be marketed to customers because it provided a benefit and satisfies a need,
Group of businesses that compete with one another to market products that are the same or similar
Group of buyers or potential buyers who share a common need that can be met by a certain product.
Narrowly defined group of potential customers with a fairly specific set of needs
Company´s portion of the market that is has targeted.
method of determining the level of sales at which the company will break even (have no profit or loss).
Costs that don´t change when the amount of goods sold changes
Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis
Contribution margin per unit
Excess of revenue per unit over variable cost per unit
Breakeven point in units
Number of sales units at which net income is zero
Individuals from different functional areas assigned to work together throughout the product development process.
Product development process
Series of activities by which a product idea is transformed into a final product.
Description of what a new product will look like and how it will work
Physical model of a new product
Stage in the product development process during which employees are trained in necessary production processes and new products are tested
Grant of the exclusive right to produce or sell a product, process, or invention