bsm 100 final Flashcards
What is a market?
potential customers who have the willingness and resources to buy a product
What is marketing?
A way to build a relationship between a customer and a product
What is every business goal?
long term profits
Timeline of the evolution of marketing
- production era
- sales era
- marketing concept era
- marketing orientation era
- social media marketing era
marketing strategy definition
where are you going and how will you get there?
marketing plan definition
who is your audience and how will you reach them?
STP Plan (Marketing)
segmentation, targeting, positioning
Consumer Markets (B2C)
products for personal consumption
Business Markets (B2B)
products used to produce other products
B2C Segmentation
GooDPUB:
geography, demographic, psychological, usage, benefits desires
B2B Segmentation
- geographic
- customer
- size/type
- product use
- needs buying situation
4 P’s of Marketing
product, price, place, promotion
B2C Target Market Considerations
size, affordability, profitability, accessibility, limited competition
Product life cycle definition
evolution of sales and profits of a category of products
product life cycle negatives
- is a theoretical model so the predictive power is limited
- decision making can be flawed if the model is flaws
Product life cycle positives
reliable, provides information about the market, decision making is based on market data
Four stages of the product life cycle
- introduction
- growth
- maturity
- decline
What comes before the first stage of the product life cycle
development and research
Product adoption life cycle definition
customers self-segregate based on level of risk aversion. follows the product life cycle
5 communities of production adoption life cycle
- innovators (risk-immune)
- early adopters
- early majority
- late majority
- laggards (risk-averse)
who is apart of the early market
innovators and early adopters
who is apart of the mainstream market
early and late majority
what is cost-based pricing based on
profit margin desired
what is value pricing based on
value perception of customers
what is competition based pricing based on
price competitors or alternatives
what is the skimming prices strategy
prices a new product high in order to recover research and development costs and make as much profit while there is little competition
penetration price strategy
to get as much market share as possible
4 types of promotion
- advertising
- public relations
- direct marketing
- personal selling
push strategy
convince wholesalers and retailers to stock and sell the product
pull strategy
promotions to encourage consumers to request the product
accounting definition
a system for recognizing, organizing, analyzing, and reporting information about financial transactions that affect an organization
basic financial statements
income statement and balance sheet
what is an income statement
summarizes a firm’s operations over a given period of time in terms of profit and loss
what is revenue
sales of products and services
what is cost of sales
the expense of making the product
what are operating expenses
the costs involved in operating a business
gross profit equation
revenue minus cost of sales
balance sheet definition
statement of financial position, shows what the company owns, owes, and what is leftover for shareholders equity. assets and liabilities must balance
what are assets
what a company owns
what is accounts receivable
sold on credit but have not been paid yet
inventory of finished goods
can be quickly converted to cash. inventory is ready to be sold
current assets
cash, accounts receivable, inventory of finished goods
long term assets
equipment, patents, accumulated depreciation. anything the company OWNS for more than a year
accumulated depreciation
money accumulated overtime and kept in a depreciation fund then used to buy new equipment
liabilities
what a company owes
current liabilities
debts that the firm will pay within a year
long term liabilities
debts that the firm will pay in more than a year
what is shareholders equity
shares and stocks, retained earnings
accused expenses
expenses accumulated overtime. included on the liabilities side of balance sheet
debt financing
borrowing with periodic repayment
equity financing
selling a stake in your company
crowd funding
unknown individuals who believe in you and want to pre-purchase your products/services
what is social responsibility
the obligation of a business to contribute to society
what is social entrepreneurship
when entrepreneurs take action to create a new social equilibrium by improving social conditions
two approaches behind corporate responsibility
strategic and pluralist approach
what is a strategic approach
management’s primary orientation be toward shareholder profits
pluralist approach
management has the responsibility to optimize profits without affecting employees, supplies, or community
sustainable operations
meeting today’s needs without compromising the ability to meet tomorrow’s needs
what is the triple bottom line
people, profits, and planet
3 forms of business ownership
sole proprietorship, partnership, corporation
types of partnerships
general, limited, and limited liability
what is a general partnership
all partners have the right to participate equally and have shared unlimited liability
what is a limited partnership
one general partner ad one limited partner, who has limited liability
limited liability partnership
all partners are actively involved but they have varied limited liability
3 launch business options
- starting from scratch
- buying an established business
- buying a franchise
what is franchising
operation option. uses the brand name, trademark, and practices of the business
