Exam 3 Flashcards
human resource management (HRM)
set of organizational activities directed at attracting, developing, and maintaining an effective workforce
human capital
reflects the organization’s investment in attracting, retaining, and motivating an effective workforce
- tangible indicator of the value of the people who comprise an organization
job analysis
systematic analysis of jobs within an organization
job description
description of a job, its working conditions, and the tools, materials, equipment, and information used to perform it
job specification
description of the skills, abilities, and other credentials and qualifications required by a job
replacement chart
list of each management position, who occupies it, how long that person will likely stay in the job, and who is qualified as a replacement
employee information system (skills inventory)
computerized system containing information on each employee’s education, skills, work experiences, and career aspirations
Title VII of the Civil Rights Act of 1964
forbids discrimination in all areas of the employment relationship
adverse impact
when minorities and women meet or pass the requirement for a job at a rate less than 80% of the rate of majority group members
Equal Employment Opportunity Commission (EEOC)
federal agency enforcing several discrimination related laws
Age Discrimination in Employment Act
outlaws discrimination against people older than 40 years
equal employment opportunity
legally mandated nondiscrimination in employment on the basis of race, creed, sex, or national origin
affirmative action
intentionally seeking and hiring employees from groups that are underrepresented in the organization
affirmative action plan
written statement of how the organization intends to actively recruit, hire, and develop members of relevant protected classes
Americans with Disabilities Act
forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees
Civil Rights Act of 1991
amended the original Civil Rights Act, and other related laws, by making it easier to bring discrimination lawsuits and limiting the amount of punitive damages that can be awarded in those lawsuits
Fair Labor Standards Act
sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week
Equal Pay Act of 1963
requires that men and women be paid the same amount for doing the same job
Employee Retirement Income Security Act (ERISA) of 1974
ensures the financial security of pension funds by regulating how they can be invested
Family and Medical Leave Act (FMLA) of 1993
requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies
National Labor Relations Act (aka the Wagner Act)
sets up a procedure for employees to vote on whether to have a union
National Labor Relations Board (NLRB)
established by the Wagner Act to enforce its provisions
Labor-Management Relations Act (aka Taft-Hartley Act)
passed to limit union power
Occupational Safety and Health Act (OSHA) of 1970
federal law setting and enforcing guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace
sexual harassment
making unwelcome sexual advances in the workplace
quid pro quo harassment
form of sexual harassment in which sexual favors are requested in return for job-related benefits
hostile work environment
Subtler form of sexual harassment deriving from off-color jokes, lewd comments, and so forth
employment at will
principle, increasingly modified by legislation and judicial decision, that organizations should be able to retain or dismiss employees at their discretion
Patriot Act
legislation that increased U.S. government’s power to investigate and prosecute suspected terrorists
recruiting
process of attracting qualified persons to apply for jobs an organization is seeking to fill
internal recruiting
considering present employees as candidates for openings
external recruiting
attracting persons outside the organization to apply for jobs
realistic job preview (RJP)
providing the applicant with a real picture of what performing the job that the organization is trying to fill would be like
compensation system
total package of rewards that organizations provide to individuals in return for their labor
wages
compensation in the form of money paid for time worked
salary
compensation in the form of money paid for discharging the responsibilities of a job
incentive program
special compensation program designed to motivate high performance
bonus
individual performance incentive in the form of a special payment made over and above the employee’s salary
merit salary system
individual incentive linking compensation to perfomance in non-sales jobs
pay for performance (variable pay)
individual incentive that rewards a manager for especially productive output
profit-sharing plan
incentive plan for distributing bonuses to employees when company profits rise above a certain level
gainsharing plan
incentive plan that rewards groups for productivity improvements
pay-for-knowledge plan
incentive plan to encourage employees to learn new skills or become proficient at different jobs
benefits
compensation other than wages and salaries
workers’ compensation insurance
legally required insurance for compensating workers injured on the job
cafeteria benefits plan
benefit plan that sets limits on benefits per employee, each of whom may choose from a variety of alternative benefits
training
usually refers to teaching operational or technical employees how to do the job for which they were hired
development
usually refers to teaching managers and professionals the skills needed for both present and future jobs
on-the-job training
training, sometimes informal, conducted while an employee is at work
vestibule training
off-the-job training conducted in a simulated environment
performance appraisal
evaluation of an employee’s job performance to determine the degree to which the employee is performing effectively
360-degree feedback
performance appraisal technique in which managers are evaluated by everyone around them-their boss, their peers, and their subordinates
workforce diversity
the range of workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics
knowledge workers
employees who are of value because of the knowledge they possess
contingent worker
employee hired on something other than a full-time basis to supplement an organization’s permanent workforce
labor union
group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions
labor relations
process of dealing with employees who are represented by a union
collective bargaining
process by which labor and management negotiate conditions of employment for union-represented workers
cost-of-living adjustment (COLA)
labor contract clause tying future raises to changes in consumer purchasing power
wage reopener clause
clause allowing wage rates to be renegotiated at preset times during the life of a labor contract
strike
labor action in which employees temporarily walk off the job and refuse to work
picketing
labor action in which workers publicize their grievances at the entrance to an employer’s facility
boycott
labor action in which workers refuse to buy the products of a targeted employer
work slowdown
labor action in which workers perform jobs at a slower than normal pace
lockout
management tactic whereby workers are denied access to the employer’s workplace
strikebreaker
worker hired as a permanent or temporary replacement for a striking employee
mediation
method of resolving a labor dispute in which a third party suggests, but does not impose, a settlement
arbitration
method of resolving a labor dispute in which both parties agree to submit to the judgment of a neutral party
marketing
activities, a set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
value
relative comparison of a product’s benefits versus its costs
value = benefits/costs
utility
ability of a product to satisfy a human want or need
4 Kinds of Utility
- form
- time
- place
- possession
place utility
providing products where customers will want them
time utility
providing products when customers will want them
form utility
providing products with features that customers want
possession utility
transferring product ownership to customers by setting selling prices, setting terms for customer credit payments, and providing ownership documents
consumer goods
physical products purchased by consumers for personal use
industrial goods
physical products purchased by companies to produce other products
services
products having nonphysical features, such as information, expertise, or an activity that can be purchased
relationship marketing
marketing strategy that emphasizes building lasting relationships with customers and suppliers
customer relationship management (CRM)
organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed
data warehousing
the collection, storage, and retrieval of data in electronic files
data mining
the application of electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information
political-legal environment
the relationship between business and government, usually in the form of government regulation of business
sociocultural environment
the customs, mores, values, and demographic characteristics of the society in which an organization functions
technological environment
all the ways by which firms create value for their constituents
economic environment
relevant conditions that exist in the economic system in which a company operates
competitive environment
the competitive system in which businesses compete
5 factors of external marketing environment
- political-legal environment
- sociocultural environment
- technological environment
- economic environment
- competitive environment
substitute product
product that is dissimilar from those of competitors, but that can fulfill the same need
brand competition
competitive marketing that appeals to consumer perceptions of benefits of products offered by particular companies
international competition
competitive marketing of domestic products against foreign products
marketing plan
detailed strategy for focusing marketing efforts on consumers’ needs and wants
marketing objectives
the things marketing intends to accomplish in its marketing plan
marketing strategy
all the marketing programs and activities that will be used to achieve the marketing goals
marketing manager
manager who plans and implements the marketing activities that result in the transfer of products from producer to consumer
marketing mix
combination of product, pricing, promotion, and place (distribution) strategies used to market products
product
good, service, or idea that is marketed to fill consumers’ needs and wants
product differentiation
creation of a product feature or product image that differs enough from existing products to attract customers
pricing
process of determining the beat price at which to sell a product
place (distribution)
part of the marketing mix concerned with getting products from producers to consumers
promotion
aspect of the marketing mix concerned with the most effective techniques for communicating information about products
advertising
any form of paid non personal communication used by an identified sponsor to persuade or info potential buyers about a product
personal selling
person-to-person sales
sales promotion
direct inducements such as premiums, coupons, and package inserts to tempt consumers to buy products
public relations
communication efforts directed at building goodwill and favorable attitudes in the minds of the public toward the organization and its products
integrated marketing strategy
strategy that blends together the Four Ps of marketing to ensure their compatibility with one another and with the company’s non marketing activities as well
target market
the particular group of people or organizations on which a firm’s marketing efforts are focused
market segmentation
process of dividing a market into categories of customer types, or “segments” having similar wants and needs and who can be expected to show interest in the same products
product positioning
process of fixing, adapting, and communicating the nature of a product
geographic variables
geographic units that may be considered in developing a segmentation strategy
geographic segmentation
geographic units, from countries to neighborhoods, that may be considered in identifying different market segments in a segmentation strategy
demographic segmentation
a segmentation strategy that uses demographic characteristics to identify different market segments
demographic variables
characteristics of populations that may be considered in developing a segmentation strategy
geo-demographic segmentation
using a combination of geographic and demographic traits for identifying different market segments in a segmentation strategy
geo-demographic variables
combination of geographic and demographic traits used in developing a segmentation strategy
psychographic segmentation
a segmentation strategy that uses psychographic characteristics to identify different market segments
psychographic variables
consumer characteristics, such as lifestyles, opinions, interests, and attitudes, that may be considered in developing a segmentation strategy
behavioral segmentation
a segmentation strategy that uses behavioral variables to identify different market segments
behavioral variables
behavioral patterns displayed by groups of consumers and that are used in developing a segmentation strategy
marketing research
the study of what customers need and want and how best to meet those needs and wants
5 steps in the research process
- study the current situation
- select a research method
- collect data - secondary & primary
- analyze the data
- prepare a report
secondary data
data that are already available from previous research
primary data
new data that are collected from newly performed research
observation
research method that obtains data by watching and recording consumer behavior
survey
research method of collecting consumer data using questionnaires, telephone calls, and face-to-face interviews
focus group
research method using a group of people from larger population who are asked their attitudes, opinions, and beliefs about a product in an open discussion
experimentation
research method using a sample of potential consumers to obtain reactions to test versions of new products or variations of existing products
4 basic methods of market research
- observation
- surveys
- focus group
- experimentation
consumer behavior
study of the decision process by which people buy and consume products
4 major influences on consumer behavior
- psychological influences
- personal influences
- social influences
- cultural influences
psychological influences
include an individual’s motivations, perceptions, ability to learn, and attitudes that marketers use to study buying behavior
personal influences
include lifestyles, personality, and economic status that marketers use to study buying behavior
brand loyalty
pattern of repeated consumer purchasing based on satisfaction with a product’s performance
5 stages of the consumer buying process
- problem or need recognition
- information seeking
- evaluation of alternatives
- purchase decision
- post-purchase evaluation
evoked set (or consideration set)
group of products consumers will consider buying as a result of information search
rational motives
reasons for purchasing a product that are based on a logical evaluation of product attributes
emotional motives
reasons for purchasing a product that are based on nonobjective factors
4 business-to-business (B2B) categories of business marketing
- services market
- industrial market
- reseller market
- institutional market
services companies market
firms engaged in the business of providing services to the purchasing public
industrial market
organizational market consisting of firms that buy goods that are either converted into products or used during production
reseller market
organizational market consisting of intermediaries that buy and resell finished goods
institutional market
organizational market consisting of such non-govermnental buyers of goods and services as hospitals, churches, museums, and charitable organizations
social networking
network of communications that flow among people and organizations interacting through an online platform
social networking media
websites or access channels, such as Facebook, Twitter, LinkedIn, and YouTube, to which consumers go for information and discussions
viral marketing
type of marketing that relies on the Internet to spread information like a “virus” from person to person about products and ideas
corporate blogs
comments and opinions published on the Web by or for an organization to promote its activities
product features
tangible and intangible qualities that a company builds into its products
value package
a product is marketed as a bundle of value-adding attributes, including reasonable cost
consumer
person who purchases products for personal use
industrial buyer
a company or other organization that buys products for use in producing other products (goods or services)
convenience goods
inexpensive physical goods that are consumed rapidly and regularly
convenience services
inexpensive services that are consumed rapidly and regularly
shopping goods
moderately expensive, infrequently purchased services
specialty goods
expensive, rarely purchased physical goods
specialty services
expensive, rarely purchased services
3 categories of consumer products
- convenience goods
- shopping goods
- specialty goods
production items
goods or services that are used in the conversion (production) process to make other products
expense items
industrial products purchased and consumed within a year by firms producing other products
capital items
expensive, long-lasting, infrequently purchased industrial products, such as a building, or industrial services, such as a long-term agreement for data warehousing services
3 categories of organizational products
- production items
- expense items
- capital items
product mix
the group of products that a firm makes available for sale
product line
group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
speed to market
strategy of introducing new products to respond quickly to customer or market changes
7 step development process
- product ideas
- screening
- concept testing
- business analysis
- prototype development
- product testing and test marketing
- commercialization
product life cycle (PLC)
series of stages in a product’s commercial life
product extension
marketing an existing product globally instead of just domestically
product adaptation
modifying an existing product for greater appeal in different countries
reintroduction
reviving obsolete or older products for new markets
branding
process of using symbols to communicate the qualities of a product made by a particular producer
brand awareness
extent to which a brand name comes to mind when a consumer considers a particular product category
product placement
promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers
national brands
brand-name product produced by, widely distributed by, and carrying the name of a manufacturer
licensed brands
brand-name product for whose name the seller has purchased the right from an organization or individual
private brand (or private label)
brand-name product that a wholesaler or retailer has commissioned from a manufacturer
packaging
physical container in which a product is sold, advertised, or protected
pricing
process of determining what a company will receive in exchange for its products
pricing objectives
the goals that sellers hope to achieve in pricing products for sale
market share (or market penetration)
company’s percentage of the total industry sales for a specific product type
cost-oriented pricing
pricing that considers the firm’s desire to make a profit and its need to cover operating costs
markup
amount added to an item’s purchase cost to sell it at a profit
variable cost
cost that changes with the quantity of a product produced and sold
fixed cost
cost that is incurred regardless of the quantity of a product produced and sold
breakeven analysis
identifies the sales volume where total costs equal total revenues by assessing costs versus revenues at various sales volumes and showing, at any particular selling price, the amount of loss or profit for each volume of sales
breakeven point
sales volume at which the seller’s total revenue form sales equals total costs (variable and fixed) with neither profit nor loss
price skimming
setting an initially high price to cover new product costs and generate a profit
penetration pricing
setting an initially low price to establish a new product in the market
bundling strategy
grouping several products together to be sold as a single unit at a reduced price, rather than individually
price lining
setting a limited number of prices for certain categories of products
psychological pricing
pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices
odd-even pricing
psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts
discounts
price reduction offered as an incentive to purchase
distribution mix
combination of distribution channels by which a firm gets its products to end users
intermediary
individual or firm that helps to distribute a product
wholesaler
intermediary who sells products to other businesses for resale to final consumers
retailer
intermediary who sells products directly to consumers
distribution channel
network of interdependent companies through which a product passes from producer to end user
direct channel
distribution channel in which a product travels from producer to consumer without intermediaries
sales agent
independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers
broker
independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be
4 distribution channels
Channel 1: direct distribution
Channel 2: retail distribution
Channel 3: wholesale distribution
Channel 4: distribution by agents or brokers
intensive distribution
strategy by which a product is distributed through as many channels as possible
exclusive distribution
strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area
selective distribution
strategy by which a company uses only wholesalers and retailers who give special attention in sales effort to specific products
channel conflict
conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive
channel captain
channel member who is most powerful in determining the roles and rewards of other members
merchant wholesalers
independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and then resells them to other organizations
full-service merchant wholesalers
merchant wholesaler that provides credit, marketing, and merchandising services in addition to traditional buying and selling services
limited-function merchant wholesaler
merchant wholesaler that provides a limited range of services
drop shippers
limited-function merchant wholesaler that receives customer orders, negotiates with producers, takes title to goods, and arranges for shipment to customers
e-intermediary
Internet distribution channel member that assists in delivering products to customers or that collects information about various sellers to be presented to consumers, or they help deliver online products to buyers
syndicated selling
e-commerce practice whereby a website offers other websites commissions for referring customers
shopping agent (e-agent)
e-interediary (middleman) in the Internet distribution channel that assists users in finding products and prices but does not take possession of products
3 types of e-intermediaries
- syndicated sellers
- shopping agents
- business-to-business (B2B) brokers
department store
large product-line retailer characterized by organization into specialized department
supermarket
large product-line retailer offering a variety of food and food-related items in specialized departments
specialty store
retail store carrying on product line or category of related products
bargain retailer
retailer carrying a wide range f products at bargain prices
discount house
bargain retailer that generates large sales volume by offering goods at substantial price reductions
catalog showroom
bargain retailer in which customers place orders for catalog items to be picked up at on-premises warehouses
factory outlet
bargain retailer owned by the manufacturer whose products it sells
wholesale club
bargain retailer offering large discounts on brand-name merchandise to customers who have paid annual membership fees
convenience store
retail store offering easy accessibility, extended hours, and fast service
3 types of brick-and-mortar retail outlets
- product-line retailers
- department stores
- supermarkets
- specialty stores
- bargain retailers
- discount houses
- catalog showrooms
- factory outlets
- wholesale clubs
- convenience stores
direct-response retailing
form of non-store retailing in which firms directly interact with customers to inform them of products and to receive sales orders
mail order (catalog marketing)
form of non-store retailing in which customers place order catalog merchandise received through the mail
telemarketing
form of non-store retailing in which the telephone is used to sell directly to consumers
direct selling
form of non-store retailing typified by door-to-door sales
online retailing
non-store retailing in which information about the seller’s products and services is connected to consumers’ computers, allowing consumers to receive the information and purchase the products in the home
e-catalog
non-store retailing in which the Internet is used to display products
electronic storefront
commercial website at which customers gather information about products and buying opportunities, place orders and pay for purchases
cybermail
collection of virtual storefronts (business websites) representing a variety of products and product lines on the Internet
video retailing
non-store retailing to consumers via home television
physical distribution
activities needed to move a product efficiently from manufacturer to consumer
warehousing
physical distribution operation concerned with the storage of goods
private warehouse
warehouse owned by and providing storage for a single company
promotion
aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product
positioning
process of establishing an identifiable product image in the minds of consumers
pull strategy
promotional strategy designed to appeal directly to consumers who will demand a product from retailers
push strategy
promotional strategy designed to encourage wholesalers or retailers to market products to consumers
promotional mix
combination of tools used to promote a product
advertising
promotional tool consisting of paid, non personal communication used by an identified sponsor to inform an audience about a product
advertising media
variety of communication devices for carrying a seller’s message to potential customers
media mix
combination of advertising media chosen to carry a message about a product
personal selling
promotional tool in which a salesperson communicates one-on-one with potential customers
retail selling
selling a consumer product for the buyer’s personal or household use
industrial selling
selling products to other businesses, either for the purpose of manufacturing or for resale
order processing
personal-selling task in which salespeople receive orders and see to their handling and delivery
creative selling
personal-selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits
missionary selling
personal-selling task in which salespeople promote their firms and products rather than try to close sales
6 steps of the personal selling process
- prospecting and qualifying
- approaching
- presenting and demonstrating
- handling objections
- closing
- following up
sales promotion
short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors
coupon
sales-promotion technique in which a certificate is issued entitling the buyer to a reduced price
premium
sales-promotion technique in which offers of free or reduced-price items are used to stimulate purchases
loyalty programs
sales promotion technique in which frequent customers are rewarded for making repeat purchases
point-of-sale (POS) display
sales-promotion technique in which product displays are located in certain areas to stimulate purchase or to provide information on a product
trade show
sales-promotion technique in which various members of an industry gather to display , demonstrate, and sell products
direct (or interactive) marketing
one-on-one non personal selling by non-store retailers and B2B sellers using direct contact with prospective customers, especially via the Internet
publicity
promotional tool in which information about a company, a product, or an event is transmitted by the general mass media to attract public attention
public relations
company-influenced information directed at building goodwill with the public or dealing with unfavorable events
