Definitions Flashcards
Involves a business or person who uses, without permission, another person’s name, likeness, and other unique characteristics for the benefit or gain of the user
Appropriation (Tort)
Civil wrongdoings that cause harm or injury to another party
Torts
Predatory behavior undertaken by a business to draw either customers or employees away from a competitor
Wrongful Interference (Tort)
Making false, malicious statements about a person or organization
Defamation (Tort)
When personal property is taken from the owner and given to someone else to use
Conversion (Tort)
A type of business that is operated by several people and owned by stockholders
Corporation
A form of business ownership in which the business is owned by two or more persons
Partnership
Form of business ownership in which the business is owned by one person
Sole Proprietorship
Owned and operated by its user-owners to supply goods and services to its members
Cooperative
Involves understanding the concepts and processes needed to identify, select, monitor, and evaluate sales channels
Channel Management
Involves understanding the concepts and strategies needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome
Promotion
The marketing function that involves determining and adjusting prices to maximize return and meet customers’ perceptions of value
Pricing
The marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities
Product/Service Management
Middlemen and include sales agents, wholesalers, and retailers who perform specific functions in the movement of goods form producers to consumers
Intermediaries
Involve producers and either industrial or ultimate consumers
Direct Channels of Distribution
Practice of pricing, promoting, and distributing products in such a way that they do not harm the natural environment
Green Marketing
Deals with safety features and product labeling standards that protect the consumer
Consumer Protection
The practice of enlightening the community of business actions to promote social welfare
Social Awareness
Marketing goods and services in foreign countries
International Marketing
Conceal the real complaint a customer has by stating another believable but secondary complaint for their dissatisfaction
Hidden Complaint
A complaint when the customer expresses an honest dissatisfaction
Sincere Complaint
A complaint which results from poor service
Service Complaint
A complaint in which the customer is dissatisfied with the business in general
Business Complaint
A business’s agreement (spoken or unspoken) with customers that will consistently meet their expectations and deliver on its brand characteristics and values
Brand Promise
When products are available at the time they are needed or wanted by customers
Time Utility
Usefulness created by altering or changing the form or shape of a good to make it more useful to customers
Form Utility
Usefulness created by making sure that goods and services are available at the place where they are needed or wanted by customers.
Place Utility
Usefulness created when ownership of a product is transferred from the seller to the user
Possession Utility
Ensuring that products met predetermined standards for excellence; also part of operations
Quality Control
Acquiring necessary goods and services; part of operations
Purchasing
Supervising inventory levels to make sure there is an appropriate balance; part of operations
Inventory Management
Rivalry between two or more business to attract scarce (limited) customer dollars
Competition
Desire to make profit, which moves people to invest in business
Profit Motive
Rapid rise in prices usually occurring when demand exceeds supply
Inflation
A special government tax on certain items, such as gasoline, certain businesses, cars, etc.
Excise Tax
Government financial help given to a business
Subsidy
A piece of paper (real or virtual) that says the governing body or corporation will borrow your money at a particular interest rate for a particular period of time; Interest-bearing certificates issued by government that promise to pay bond owners a certain sum at a specified time
Bonds
the amount by which the price of something is reduced
Discount
Union members elected by their peers to handle any grievances or problems members might have with management
Union Stewards
Responsibilities include leading the union as a whole rather than assisting individuals
Union President
Involved in union negotiations, clarifying issues, and making suggestions concerning the contract
Mediator
Assists with (union) negotiations; In binding arbitration, this person’s decisions regarding the contract are final and cannot be changed
Arbitrator
The ability to put yourself in another person’s place
Empathy
Comprehending one’s personal needs interests, values, and motives and recognizing their effects on one’s behavior
Self-Understanding
The amount and value of goods and services produced (outputs) from set amounts of resources (inputs)
Productivity
Decision-making outcome that requires the substantial agreement of each group member
Consensus
Few people in the group make the decision
Minority Rule
A desire for the future that is achieved over time with determination and hard work
Vision
When money is saved rather than spent
Store of Value
When money is used to obtain goods and services
Medium of Exchange
Trading one good or service for another good or service
Bartering
When money functions as this, the individual holding the money assesses what s/he is willing to pay for a good or service
Measure of Value
Provides a variety of financial services to individuals and business. Besides providing savings accounts and other saving options, banks also make loans and offer credit cards. Many large banks have trust departments and help individuals plan for retirement. It may be possible to obtain all necessary financial services from that institution
Commercial Bank
Collects various types of taxes
Taxation Department
A business condition that can create economic risks
High Interest Rates
The process of keeping and interpreting financial records
Accounting
Financial obligations a business has
Liability
Cash or any asset that can quickly be converted into cash
Liquid Asset
Money owed to the business for purchases made by customers
Accounts Receivable
Sums of money paid to investors or stockholders as earnings on investments
Dividends
The ratio that reflects the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials
Cash Conversion Cycle
The amount of money that a business earns on sales after expenses; expressed as a ratio
Profit Margin
The process of planning, staffing, leading, and organizing the employees of a business
Human Resources Management
Paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user
Distribution Channels
The systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern
Marketing Research
Any factor that is subject to change
Variable
An in-depth analysis of a person, group, or event
Case Study
A marketing research method that tests cause and effect by testing marketing new products or comparing test groups with control groups
Experiment
Proposed explanation for something
Hypothesis
Measure attitude
Semantic-Differential Rating Scales
A method of collecting information about customers’ buying habits and inventory status because the scanning system can track large volumes of goods
Volume-Tracking Scanner
Information that have been collected for purposes other than the project at hand.
Secondary Data
This function involves gathering, accessing, synthesizing, evaluating, and disseminating information to aid in making marketing decisions
Marketing-Information Management
This function involves determining customer needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunity
Selling
The things the business want to attain
Objectives
The combination of marketing communication channels that a business uses to send its messages to consumers
Promotional Mix
Dividing the market into groups that have similar characteristics
Market Segmentation
The market divided on the basis of a lifestyle choice
Psychographic Segmentation
Dividing a market on the basis of location
Geographic Segmentation
The physical and social characteristics of a population
Demographics
A type of behavioral segmentation, which involves dividing customers into groups according to their response to a product
Rate of Usage
The way in which the information is communicated
Presentation
Presenting unbiased information
Objectivity
A method of gathering, storing, and analyzing data for the purpose of making business decisions
Information System
An economic system in which individuals and groups, rather than government, own or control the means of production. Considered a mixed economy because individuals and business are the primary economic decision makers, while the government helps to regulate and control the system
Private Enterprise
An analysis of external forces that influence a business’s success; Collecting information about the environment (e.g. competitors and economic decisions) surrounding the business
Environmental Scan
An economic factor that may be a threat or an opportunity
Consumer Spending Habits
Checking a sample item for defects after it has already been produced
Quality Inspection
The process businesses use to prevent defective products from being created
Quality Assurance
One that creates something entirely new
Platform Project
Relies on the use of new technology
Breakthrough Project
Takes on new visions or pursuits for the business
R&D Project
A focus on how things are done, rather than just outcomes
Process Orientation
Maximizing customer value while minimizing waste
Lean Production
A focus on increasing efficiency and effectiveness in all areas of the organization
Continual Improvement
Performing the stages of product design and development simultaneously, instead of one after another
Concurrent Engineering
Involves the development of totally new or improved products
Product Innovation
Changing the way that a product is produced or delivered
Process Innovation
Involves identifying new, different ways to position a product or a company
Positioning Innovation
A shift in the way of thinking that causes a change
Paradigm Innovation
When a company prices its products below cost, making it difficult for other companies to complete with the low prices causing the other companies to possibly go out of business
Below-Cost Pricing
When a business charges one price for all items it sells
One-Price Policy
A pricing strategy that involves setting prices higher than those of the competition
Price Skimming
The difference between the cost of a product and its selling price
Markup
A creative-thinking process that involves generating ideas by making associations
Mind-Mapping Process
Warranties that are in writing or expressed verbally
Express Warranties
A product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers
Positioning (Product-Mix Strategy)
A product mix-strategy in which a business removes, or deletes, product items or product lines from its product mix
Contraction
A product mix-strategy in which a business makes changes to its products or product lines
Alteration
A product mix-strategy in which a business expands its product mix by adding additional product items or product lines
Expansion
Adds information to that expressed in the headline
Subheadline
A slogan used in an advertisement
Tag Line
The interactions that customers have with the business; can be divided into three categories: pre-purchase, purchase, and post-purchase experiences
Touch Points
Enhances, adds to, or extends an existing project
Derivative Project
Used to stimulate consumer purchases of goods or services
Product Promotion
Any paid form of nonpersonal presentation of ideas, images, goods, or services
Advertising
Includes promotional activities other than advertising
Sales Promotion
Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from it
Publicity
The form of promotion that uses planned, personalized communication in order to influence purchase decisions and enhance future business opportunities
Personal Selling
An advertising medium that utilizes telephone service to promote a product either by phoning prospective customers or providing a number for them to call
Telemarketing
Allow consumers to register their phone numbers with a “do not call” registry
“Do Not Call” Laws
A promotional medium that comes to consumers’ homes in the form of letters, catalogs, postcards, and folders
Direct Mail
A promotional tactic that involves sending or forwarding promotional messages over the Internet (e.g. email, social-media websites, and blogs) to generate buzz about a brand, company, or product
Viral Marketing
Involves establishing good relationships between the business and the public
Public Relations
Consists of a body of customers upon which the organization can rely for significant repeat business
Clientele
Deals with the rules and regulations that have been established by governmental agencies.
Administrative Law
Involves selling a product through just one middleman in a geographic area and allows the manufacturer to maintain tight control over the product
Exclusive Distribution
Involves selling a product through every available wholesaler and retailer in a geographic area where consumers might look for it
Intensive Distribution
Involves selling a product through a limited number of wholesalers and retailers in a geographical area
Selective Distribution
Intermediaries who help move goods between producers and retailers
Wholesalers
Intermediaries who assist in the sale and/or promotion of goods and services but do not take title to them
Agents
Intermediaries that sell products to industrial users (businesses)
Industrial Distributors
A small computer chip that is attached to the item. The tag contains product information such as price, style, model number, etc., and allows channel members to track the item’s movement from the time it leaves the production line to the point of purchase
Radio Frequency Identification (RFID)
Bar-coded tag that are read by a scanner
Universal Product Codes
A method to measure and evaluate a channel member’s performance
Supplier Performance Index
Provides an overview of the entire report and contains the most important information included in the body of the report
Executive Summary
An effort to build loyal, trusting, personal, and long-term associations with the clients or customers that have the potential to generate profit for the business
Customer Relationship Management
The marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities
Product/Service Management
The process of planning, controlling, and monitoring the day-to-day activities required for continued business functioning
Operations Management
An economic principle stating that after a certain point, hiring additional employees will result in a decrease in the overall level of production
Law of Diminishing Returns
Currency
Bank Notes
Bonds issued by corporations to fund operating expenses
Corporate Bonds
A collection of shareholders’ money that invested by professional fund managers in an assortment of different securities, such as stocks and bonds
Mutual Fund
Issued by local governments
Municipal Bonds
A fee that the government charges on retail products
Sales Tax
A tax on land and buildings
Property Tax
A tax on the income a person earns, such as wages earned by performing work for an employer
Income Tax
A psychological phenomenon that evolves when conformity and the cohesiveness of the group become more important than the group’s objective, purpose, or problem
Groupthink
An unethical and, in some jurisdictions, an illegal practice in which a researcher pretends to conduct research but is really trying to solicit a donation for a group or organization
FRUGGING (Fund-Raising Under the Guise of Research)
The process of introducing a new product to a limited market to determine what its acceptance will be
Test Marketing
Involves gathering data by watching consumers
Observation
Involve asking consumers questions to learn their opinions and the reasons behind those opinions
Surveys
A group of consumers formed for the purpose of discussing a specific topic, usually a good or service
Consumer Panel
Data from within the business that has been collected for purposes other than the project at hand
Internal Secondary Data
Outline condition under which the seller will repair or replace a product
Warranty Agreements
Involves collecting information to help the business define its issue, situation, or concern, and decide how to proceed with its research
Exploratory Research
The course of action for gathering marketing information from a section or portion of a target market
Sampling Plan
A type of comparative rating scale that requires the respondent to assign a value (e.g., percentage or points) to the options provided on the questionnaire
Constant Sum
Rates respondents’ attitudes or feelings according to a degree
Likert Scale
Provides seven spaces, which are bounded by descriptive antonyms at each end, such as durable and fragile. The respondent places an “X” at the point or space on the continuum that best describes his/her feelings about the object or idea s/he is rating.
Semantic Differential Scale
A type of category scale and provides respondents with options such as very often, often, sometimes, rarely, and never
Frequency
HTML codes that display information about web pages
Meta Tags
A list of items that a business needs to purchase for inventory
Stock Plan
A financial summary that shows how much money the business has made or has lost over a period of time
Income Statement
The process of detecting incorrect or insufficient data
Data Cleansing
When interviewers survey an inappropriate sample of the population
Respondent-Selection Error
When people provide false information on purpose
Deliberate-Falsification Error
When respondents forget the answer to a question (e.g. What did you have for lunch last Tuesday)
Respondent-Inability Error
Provide options from which the respondent can chose
Structured Questions
Open-ended questions that allow respondents to provide qualitative information and in-depth responses
Unstructured Questions
A group that gathers to discuss a specific topic
Focus Group
Involves a face-to-face discussion between the research interviewer and a respondent
In-Depth Personal Interview
Buying inexpensive goods on a frequent basis, such as computer printer paper
Habitual/Routine Buying Behavior
Involves much customer involvement because the items are expensive and purchased infrequently, such as cars, laptop computers, and homes
Complex Buying Behavior
Involves designing products and directing marketing activities to appeal to the whole market
Mass Marketing
A determination of a business’s current situation and the direction in which the business is headed
Situation Analysis
A prediction of future sales over a specific period of time
Sales Forecast
Based on expert opinions and feedback, as well as personal experience
Qualitative Methods
A symbol, design, or word used by a producer to identify a good or service
Trademark
A formal charge in which the judicial system accuses an individual with a crime of withholding critical evidence that can affect the outcome of a trial
Obstruction of Justice
An order issued by a judge that instructs law-enforcement officers to bring to jail an individual who has been charged with a crime
Arrest Warrant
Consist of two or more related computer programs that work together to record information or perform specific business tasks or functions
Integrated Software Applications
Summarizes the details about the business’s needs, bid requirements, and deadlines
Request For Quotation (RFQ)
When businesses optimize their resources and productivity levels and reduce wasted resources, including time, materials, money, etc.
Lean Operations
A deliberate action that involves overcharging customers, usually for smaller goods, with the expectation that the customer will not notice or fuss about it.
Scanner Fraud
The practice of pricing goods extremely low with the goal of driving the competition out of business
Predatory Pricing
Involves producers pressuring retailers to sell goods at the suggested retail price
Retail Price Maintenance
An illegal agreement in which businesses agree on prices of their goods or services, resulting in little choice for customers
Price Fixing
Makes calculations using a variety of product and pricing data
Optimal Pricing Software
The benefit that is lost when you decide to use scarce resources for one purpose rather than another
Opportunity Cost
When sales of a product peak and then slowly start to decline
Maturity Phase
When sales of a product drop sharply, and businesses then tend to reduce advertising
Decline Phase
A general direction in which people or events are moving
Trend
An indication of how changes in price will affect changes in the amounts demanded and supplied
Elasticity
Agreements among two or more parties stating that one party is to do something in return for something provided by another party
Contract
A form of business ownership in which the business is owned by two or more persons
Partnership
A promise to the consumer that a product’s purchase price will be refunded if the product is not satisfactory
Guarantee
Delivery, Installation, and Price
Consumer Channel Activities
Takes place through one or more channel members, such as supermarkets
Distribution
Refers to a computer network that connects certain businesses, and allows the members of a distribution channel to efficiently communicate
Extranet
Currency
Bank Notes
Refers to the computer network that allows employees to collaborate and exchange information within the business
Intranet
Involves customers returning used products to the manufacturer
Reverse Distribution
A short report that presents facts without analysis
Informal Report
A report that is more complex, has several different parts, and provides an analysis of the facts int he report
Formal Report
An account of sales calls or other business activities carried out by staff
Activity Report
Refers to the usefulness of a product
Product Utility
The process of planning, mThe process of planning, controlling, and organizing an organization or departmentaintaining, monitoring, controlling, and reporting the use of financial resources
Financial Analysis
The process of planning, controlling, and organizing an organization or department
Strategic Management
The process of creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organizations and its stakeholders
Marketing
Occurs when a salesperson gains an agreement to purchase from a customer
Closing the Sale
A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand
Competition Oriented Pricing
This type of pricing includes the variable costs associated with goods, as well as a portion of the fixed costs of operating the business
Cost-Plus Pricing
The process of helping a customer purchase a product or service and/or providing assistance after a purchase has been made
Customer Service
To gather information; surveys, interviews, observations, federal and state government agencies, research companies, business publications, trade association publication
Data Collection Instrument
A pricing method in which the price of the product is changed according to its demand
Demand Oriented Pricing
Advertising that sends a promotional message to a targeted group of prospects and customers rather than a mass audience
Direct Marketing Channels
Selling technique in which the seller matches a feature with an advantage or benefit that the customer wants or thinks is desirable
Feature Benefit Selling
When a salesperson first interacts with a customer by welcoming them to the store and saying that they are available for questions
Greeting Approach
A phrase in an advertisement that grabs the consumer’s attention, creates interest and encourages them to read a promotional message
Headline
A photograph, drawing, or other graphic that is used in a promotional message
Illustration
Identifying the most profitable areas to offer a new product or service
Market Identification
The process and methods that generates, stores, analyzes, and distributes information to promote good decision making for a business
Marketing Information Management
A formal document that specifies a company’s activities for a determined amount of time
Marketing Plan
Adding a constant percentage to the price of an item to determine its selling price
Mark-up Pricing
Concerns or doubts that a customer has for not making a purchase
Objections
Data that is gathered for the first time
Primary Research
Information about a good/service; can include its application, function, features, use
Product Knowledge
Stages that product goes through: Introduction, Growth, Maturity, Decline
Product Life Cycle
The different goods/services that a company provides
Product Mix
Creating and changing the information about a company’s catalog of offerings
Product Service Management
An outline of the marketing tools, strategies, and resources that a company tends to use to promote a product or service
Promotional Plan
Return on Marketing Investment; the profitability returned to the business based on funds spent on marketing
ROMI
Data that has been previously collected for a non marketing activity and is now available for the business’s use
Secondary Research
A business’s decisions regarding forms of payment, returns and exchanges, sales quotas, sales commission, and ethical issues
Selling Policy
When a salesperson encourages a customer to purchase with information regarding services available
Service Close
The study of internal and external factors that affect marketing strategy
Situation Analysis
A catchy phrase or words that identify a product or business
Slogan
Numbers that represent a fact or presents a view of a situation
Statistics
The process of communicating with a particular group who is most likely to become customers
Target Marketing
A promise that is given to a customer that a product will meet certain standards
Warranty
Money that is backed by the government and has value determined by that government (ex. $20 bill).
Fiat money
Inflation can distort GDP by making it higher, not because production has increased, but because prices are higher. This is an economic metric that converts prices to a base dollar value and allows GDP to be accurately compared over time.
Price Deflator
This causes banks to raise interest rates.
Tight money supply
An explanation of the specific responsibilities associated with a certain job.
Job description
An explanation of the skills, knowledge, and characteristics required for a job (ex. Having 10-15 years of experience, being able to work closely with others, and possessing an associate’s degree or higher).
Job specification
The study of the factors that influence people’s behavior within a specific market. For example, in a commercial market, the aim of qualitative research might be to understand shoppers’ motivations when they buy things, such as what they think of a product and why they think that way.
Qualitative market research
This is all about numbers. It uses mathematical analysis and data to shed light on important statistics about your business and market. This type of data, found via tactics such as multiple-choice questionnaires, can help you gauge interest in your company and its offerings.
Quantitative market research
Focuses on cause and effect and tests “what if” theories.
Causal or conclusive research
Conversations in which a researcher surveys an individual to obtain research data.
Interviews
Personal or emotional connections forged between consumers and a particular brand or business.
Affinity marketing
These characteristics include working in teams, involving employees and allowing them to make decisions, and actively seeking customer input to use to improve quality.
Quality Culture
