All Chapters Flashcards
Etching of plastic layers into different shapes by laying down successive layers of material to form a 3D
solid
3D printing
Process of measuring, interpreting, and communicating financial information to support internal and external business decision making
Accounting
Set of activities involved in converting information and individual transactions into financial statements.
Accounting cycle
Formula that states that assets must always equal the sum of liabilities and owners’ equity.
Accounting equation
Accounting method that records revenues and expenses when they occur, not necessarily when cash actually changes hands
Accrual accounting
Paid nonpersonal communication, usually targeted at large numbers of potential buyers.
Advertising
Marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities
Affinity program
Outside supplier that provides both the computers and the application support for managing an
information system.
Application service provider (ASP)
Anything of value owned by a company.
Asset
Statement of a company’s financial position—what it owns and claims against its assets—at a particular point in time.
Balance sheet
Situation in which total revenues raised by taxes equal the total proposed spending for the year.
Balanced budget
Process of determining how well other companies perform business functions or tasks.
Benchmarking
Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making.
Big data
A network of PCs that have been infected with one or more data-stealing viruses.
Botnet
Added value that a respected and successful name gives to a product.
Brand equity
Part of the brand consisting of words or letters included in a name used to identify and distinguish the
company’s offerings from those of competitors.
Brand name
Breakeven analysis
Pricing technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.
Situation in which the government spends more than the amount of money it raises through taxes.
Budget deficit
Excess funding that occurs when government spends less than the amount of funds raised through taxes and fees.
Budget surplus
Good or service purchased to be used, either directly or indirectly, in the production of other goods for resale
Business (B2B) product
Activities and technologies for gathering, storing, and analyzing data to make better competitive
decisions.
Business intelligence
Mix of a company’s debt and equity capital.
Capital structure
Vendor that is designated by the business customer as the major supplier to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer
Category advisor
Form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process
Cause advertising
Marketing that promotes a cause or social issue, such as preventing child abuse, anti-littering efforts, and stop-smoking campaigns
Cause marketing
Executive responsible for managing a company’s information system and related computer technologies
Chief information officer (CIO)
Powerful servers store applications software and databases for users to access via the web using anything from a PC to a smart phone
Cloud computing
Cooperative arrangement in which two or more businesses team up to closely link their names on a single product.
Cobranding
Cooperative arrangement in which two businesses jointly market each other’s products.
Comarketing
Economic system in which all property would be shared equally by the people of a community under the direction of a strong central government.
Communism
Strategy that tries to reduce the emphasis on price competition by matching other companies’ prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of
the marketing mix
Competitive pricing
Process that allows engineers to design components as well as entire products on computer screens faster and with fewer mistakes than they could achieve working with traditional drafting systems
Computer-aided design (CAD)
Computer tools to analyze CAD output and enable a manufacturer to analyze the steps that a machine must take to produce a needed product or part
Computer-aided manufacturing (CAM)
Information systems that rely on computer and related technologies to store information electronically in
Computer-based information systems
Production system in which computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion
Computer-integrated manufacturing (CIM)
Good or service that is purchased by end users.
Consumer (B2C) product
Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions
Consumer behavior
Measurement of the monthly average change in prices of goods and services.
Consumer Price Index (CPI)
Function of evaluating an organization’s performance against its objectives.
Controlling
Allowances provided by marketers in which they share the cost of local advertising of their company’s product or product line with channel partners
Cooperative advertising
Inflation rate of an economy after energy and food prices are removed.
Core inflation rate
Organization’s system of principles, beliefs, and values.
Corporate culture
Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits
Cost-based pricing
Persuasive type of promotional presentation.
Creative selling
People who are out of work because of a cyclical contraction in the economy.
Cyclical unemployment
Raw facts and figures that may or may not be relevant to a business decision.
Data
The task of using computer-based technology to evaluate data in a database and identify useful trends.
Data mining
Customer database that allows managers to combine data from several different organizational
functions.
Data warehouse
Process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results
Decision making
Centralized integrated collection of data resources.
Database
Gives direct support to business-people during the decision-making process
Decision support system (DSS)
Opposite of inflation, occurs when prices continue to fall.
Deflation
Managerial process of assigning work to employees.
Delegation
Willingness and ability of buyers to purchase goods and services.
Demand
Graph of the amount of a product that buyers will purchase at different prices.
Demand curve
Distinguishes markets on the basis of various demographic or socioeconomic characteristics.
Demographic segmentation
Process of dividing work activities into units within the organization.
Departmentalization
Guiding and motivating employees to accomplish organizational objectives.
Directing
Less expensive and simpler versions of existing products and services that target an entirely new group
of customers
Disruptive innovations
Path that products—and legal ownership of them—follow from producer to consumers or business user.
Distribution channels
Deals with the marketing activities and institutions involved in getting the right good or service to the
company’s customers
Distribution strategy
Sale of assets by a company.
Divestiture
Process by which accounting transactions are entered; each individual transaction always has an offsetting transaction
Double-entry bookkeeping
Social science that analyzes the choices people and governments make in allocating scarce resources.
Economics
Giving employees authority and responsibility to make decisions about their work.
Empowerment
Marketing strategy that focuses on the precise way a B2B purchaser will use a product.
End-use segmentation
Many different types of hardware networked together to create a seamless data flow between organizations
Enterprise computing
Analysis of external environmental factors by marketers to understand how they impact business and
marketing decisions
Environmental scanning
Prevailing market price at which you can buy an item.
Equilibrium price
Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances
Event marketing
Is a strategy devoted to maintaining continuous low prices rather than relying on short-term price-cutting
tactics such as cents-off coupons, rebates, and special sales
Everyday low pricing (EDLP)
Activity in which two or more parties give something of value to each other to satisfy perceived needs.
Exchange process
Infrastructure that facilitates the trading of equity securities and stocks.
Exchanges
Lets senior executives access the company’s primary databases, often by touching the computer screen, pointing and clicking a mouse, or using voice recognition.
Executive support system (ESS)
Government actions to increase the money supply in an effort to cut the cost of borrowing, which
encourages business decision makers to make new investments, in turn stimulating employment and economic growth
Expansionary monetary policy
Federal agency that insures deposits at commercial and savings banks.
Federal Deposit Insurance Corporation (FDIC)
Computer program that imitates human thinking through complicated sets of if-then rules.
Expert system
Central bank of the United States.
Federal Reserve System (Fed)
Planning, obtaining, and managing a company’s funds to accomplish its objectives as effectively and efficiently as possible
Finance
Organization responsible for evaluating, setting, or modifying GAAP in the United States.
Financial Accounting Standards Board (FASB)
Executives who develop and implement the firm’s financial plan and determine the most appropriate sources and uses of funds.
Financial managers
Markets in which securities are bought and sold.
Financial markets
Document that specifies the funds needed by a company for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds
Financial plan
Process by which money flows from savers to users.
Financial system
Limits data transfers to certain locations and log system use so that managers can identify attempts to log on with invalid passwords and other threats to a system’s security
Firewall
Government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth.
Fiscal policy
Production facility that can be quickly modified to manufacture different products
Flexible manufacturing system (FMS)
Marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other
premiums
Frequency marketing
Applies to members of the workforce who are temporarily not working but are looking for jobs.
Frictional unemployment
Principles that encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time
Generally accepted accounting principles (GAAP)
Dividing a market into homogeneous groups on the basis of their locations.
Geographical segmentation
Sum of all goods and services produced within a country’s boundaries during a specific time period, such as a year
Gross domestic product (GDP)
Innovative, low-cost marketing efforts designed to get consumers’ attention in unusual ways.
Guerrilla marketing
All tangible elements of a computer system.
Hardware
Economic situation characterized by soaring prices.
Hyperinflation
Financial record of a company’s revenues, expenses, and profits over a period of time.
Income statement
Economic situation characterized by rising prices caused by a combination of excess consumer demand
and increases in the costs of raw materials, component parts, human resources, and other factors of production
Inflation
Form of broadcast direct marketing; 30-minute programs that resemble regular TV programs, but are devoted to selling goods or services
Infomercials
Knowledge gained from processing data.
Information
Organized method for collecting, storing, and communicating past, present, and projected information
on internal operations and external intelligence.
Information system
Use of material nonpublic information about a company to make investment profits.
Insider trading
Involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities
Institutional advertising
Coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message
Integrated marketing communications (IMC)
Organization established in 1973 to promote worldwide consistency in financial reporting practices.
International Accounting Standards Board (IASB)
Standards and interpretations adopted by the IASB.
International Financial Reporting Standards (IFRS)
Organization whose mission is to develop and promote international standards for business, government, and society to facilitate global trade and cooperation
International Organization for Standardization (ISO)
A web-connected ecosystem of everyday objects with network connectivity, including TVs, cars,
household appliances, and wearable tech devices
Internet of Things
Computer network that is similar to the Internet but limits access to authorized users.
Intranet
Function requiring production and operations managers to balance the need to keep stock on hand to meet demand against the costs of carrying inventory
Inventory control
Assist companies in raising capital and provide merger and acquisition services.
Investment banker
Broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management
Just-in-time (JIT) system
Ability to direct or inspire people to attain certain goals.
Leadership
Voluntary certification program administered by the U.S. Green Building Council, aimed at promoting the most sustainable construction processes available
LEED (Leadership in Energy and Environmental Design)
Increasing the rate of return on funds invested by borrowing funds.
Leverage
Transaction in which public shareholders are bought out and the company reverts to private status.
Leveraged buyouts (LBO)
Anything owed to creditors—the claims of a company’s creditors.
Liability
Revenues and intangible benefits (referrals and customer feedback) from a customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer.
Lifetime value of a customer
Computer networks that connect machines within limited areas, such as a building or several nearby buildings
Local area networks (LANs)
Process of coordinating the flow of goods, services, and information among members of the supply chain
Logistics
Study of a nation’s overall economic issues, such as how an economy maintains and allocates resources
and how a government’s policies affect the standards of living of its citizens.
Macroeconomics
Choosing whether to manufacture a needed product or component in-house, purchase it from an outside supplier, or lease it
Make, buy, or lease decision
Any malicious software program designed to infect computer systems.
Malware
Process of achieving organizational objectives through people and other resources.
Management
Information system that is designed to produce reports for managers and others within the organization.
Management information system (MIS)
Information systems that are designed to provide support for effective decision making.
Management support systems
Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing
Process of dividing a total market into several relatively homogeneous groups.
Market segmentation
Company-wide consumer orientation to promote long-run success.
Marketing concept
Blending of the four elements of marketing strategy—product, distribution, promotion, and pricing—to fit the needs and preferences of a specific target market
Marketing mix
Collecting and evaluating information to help marketers make effective decisions.
Marketing research
A system for manufacturing products in large quantities through effective combinations of employees,
with specialized skills, mechanization, and standardization
Mass production
Computer-based production planning system that lets a company ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts
Materials requirement planning (MRP)
Study of small economic units, such as individual consumers, families, and businesses.
Microeconomics
Written explanation of an organization’s business intentions and aims.
Mission statement
Indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer
Missionary selling
Economic system that draws from both types of economies, to different degrees.
Mixed market economies
Government actions to increase or decrease the money supply and change banking requirements and
interest rates to influence bankers’ willingness to make loans
Monetary policy
Market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price
Monopolistic competition
Market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes
Monopoly
Money owed by government to individuals, businesses, and government agencies who purchase Treasury bills, Treasury notes, and Treasury bonds sold to cover expenditures
National debt
Consists of advertising, sales promotion, direct marketing, and public relations.
Nonpersonal selling
Guideposts by which managers define the organization’s desired performance in such areas as new-product development, sales, customer service, growth, environmental and social responsibility, and
employee satisfaction
Objectives
Pricing method using uneven amounts, which sometimes appear smaller than they really are to consumers.
Odd pricing
Market structure in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors
Oligopoly
Information systems designed to produce a variety of information on an organization’s activities for both
internal and external users.
Operational support systems
Form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.
Order processing
Structured group of people working together to achieve common goals.
Organization
Marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization
Organization marketing
Process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives.
Organizing
Funds contributed by owners plus profits not distributed to owners in the form of cash dividends.
Owners’ equity
Strategy that sets a low price as a major marketing weapon.
Penetration pricing
Use of efforts designed to attract the attention, interest, and preference of a target market toward a person.
Person marketing
The most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer
Personal selling
Actual movement of products from producer to consumers or business users.
Physical distribution
Attempt to attract people to a particular area, such as a city, state, or nation.
Place marketing
Economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms
Planned economy
Process of anticipating future events and conditions and determining courses of action for achieving organizational objectives
Planning
Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores
Point-of-purchase (POP) advertising
Form of promotion in which marketers attempt to establish their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or
service.
Positioning
Strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness.
Prestige pricing
Exchange value of a good or service.
Price
Financial markets in which corporations and governments issue securities and sell them initially to the general public
Primary markets
Conversion of government-owned and operated companies into privately held businesses.
Privatization
Operational support system to monitor and control physical processes.
Process control systems
Bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants.
Product
Consists of messages designed to sell a particular good or service.
Product advertising
Four basic stages—introduction, growth, maturity, and decline—through which a successful product progresses
Product life cycle
Group of related products marked by physical similarities or intended for a similar market.
Product line
The assortment of product lines and individual goods and services that a firm offers to consumers and business users
Product mix
Dividing consumer markets into groups based on buyers’ relationships to the good or service.
Product-related segmentation
Form of promotion in which marketers pay placement fees to have their products showcased in various
media, ranging from newspapers and magazines to original online television and movies.
Product placement
Use of resources, such as workers and machinery, to convert materials into finished goods and services.
Production
Oversee the production process by managing people and machinery in converting materials and resources into finished goods and services.
Production and operations management
Creates a well-defined set of procedures for coordinating people, materials, and machinery to provide
maximum production efficiency
Production control
Common objectives included in the strategic plans of most companies.
Profitability objectives
Relationship between the number of units produced and the number of human and other production inputs necessary to produce them.
Productivity
Function of informing, persuading, and influencing a purchase decision.
Promotion
Combination of personal and nonpersonal selling components designed to meet the needs of a company’s target customers and effectively and efficiently communicate its message to them
Promotional mix
Dividing consumer markets into groups with similar psychological characteristics, values, and lifestyles.
Public accountant
Organization’s communications and relationships with its various public audiences.
Public relations
Promoting a product by generating consumer demand for it, primarily through advertising and sales
promotion appeals.
Pulling strategy
Nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by
unpaid placement of information in print or broadcast media.
Publicity
Market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price
Pure competition
Personal selling to market an item to wholesalers and retailers in a company’s distribution channels.
Pushing strategy
Good or service that is free of deficiencies.
Quality
Measuring output against established quality standards.
Quality control
Cyclical economic contraction that lasts for six months or longer.
Recession
Market situations in which local, state, or federal government grants exclusive rights in a certain market to a single firm.
Regulated monopolies
Developing and maintaining long-term, cost-effective exchange relationships with partners.
Relationship marketing
Government actions to reduce the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth
Restrictive monetary policy
Process of maximizing the wealth of a company’s shareholders by striking the optimal balance between
risk and return
Risk-return trade-off
Distribution channel member that sells goods and services to individuals for their own use rather than for resale.
Retailer
Consists of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling
Sales promotion
Joblessness of workers in a seasonal industry.
Seasonal unemployment
Collection of financial markets in which previously issued securities are traded among investors.
Secondary market
Financial instruments that represent obligations on the part of the issuers to provide the purchasers with expected stated returns on the funds invested or loaned
Securities
The heart of a midrange computer network.
Server
Strategy that sets an intentionally high price relative to the prices of competing products.
Skimming pricing
Economic system characterized by government ownership and operation of major industries such as communications
Socialism
All the programs, routines, and computer languages that control a computer and tell it how to operate.
Software
Promotional items that prominently display a company’s name, logo, or business slogan.
Specialty advertising
Involves providing funds for a sporting or cultural event in exchange for a direct association with the
event
Sponsorship
Software that secretly gathers user information through the user’s Internet connection without his or her
knowledge, usually for advertising purposes
Spyware
Statement showing the sources and uses of cash during a period of time.
Statement of cash flows
Record of the change in owners’ equity from the end of one fiscal period to the end of the next.
Statement of owners’ equity
Companies that list stocks for public investors to buy and sell.
Stock markets
Price of a specific stock and performance information.
Stock quote
Occurs when a company decides to divide its existing shares of stock into multiple shares.
Stock split
People who remain unemployed for long periods of time, often with little hope of finding new jobs like their old ones.
Structural unemployment
Willingness and ability of sellers to provide goods and services.
Supply
Complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers
Supply chain
Graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.
Supply curve
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. By systematically evaluating all four of these factors, a firm can then develop the best strategies for gaining a competitive advantage.
SWOT analysis
Group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences
Target market
Personal selling conducted entirely by telephone, which provides a company’s marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two-way
conversation
Telemarketing
Offer made by a company to the target company’s shareholders specifying a price and the form of payment.
Tender offer
Introduction of a new product supported by a complete marketing campaign to a selected city or geographic area
Test marketing
Sales promotion geared to marketing intermediaries rather than to final consumers.
Trade promotion
Brand that has been given legal protection.
Trademark
Operational support system to record and process data from business transactions.
Transaction processing systems
Program that claims to do one thing but in reality does something else, usually something malicious.
Trojan horse
Percentage of the total workforce actively seeking work but currently unemployed.
Unemployment rate
Power of a good or service to satisfy a want or need.
Utility
Process in which the producer and the retailer agree that the producer (or the wholesaler) will determine how much of a product a buyer needs and automatically ship new supplies when needed.
Vendor-managed inventory
Common type of technology infrastructure, which consists of links that are not wired connections.
Virtual network
Secure connections between two points on the Internet.
Virtual private networks
Programs that secretly attach themselves to other programs (called hosts) and change them or destroy data
Viruses
Ability to perceive marketplace needs and what an organization must do to satisfy them.
Vision
Objects based on pricing decisions on market share, the percentage of a market controlled by a certain
company or product
Volume objectives
Distribution channel member that sells primarily to retailers, other wholesalers, or business users.
Wholesaler
Wireless network that connects various devices and allows them to communicate with one another through radio waves
Wi-Fi
Tie larger geographical regions together by using telephone lines and microwave and satellite transmission
Wide area networks (WAN)
