Marketing Cluster Exam Vocab Flashcards
Slotting allowance
cash premium manufacturers pay to businesses to cover the costs in carrying a new product
Gray marketing
buying from unauthorized distributors
Contract
One party does something in return for what is provided
Which factors dictate a business ownership structure?
personal circumstances, financial needs, type of business
Relationship between agent and client (principal)
Fiduciary
Communication from management to employee
Downward communication
Financial audit
Examination of financial statement
Private enterprise system (aka free market economy, capitalistic system, free enterprise)
individuals own and control means of production, rather than the government
Investment bank
Financial intermediary
What does a finance company do?
purchases borrowers’ contracts from sellers and receives their payments
What does a credit union do?
Financial cooperative set up to provide savings and credit services
What does an asset-management firm do?
Invest client money in different securities by pooling their assets
Advantage of sampling?
Represents a larger group
Advantage to paying a card statement in full?
No interest to be paid
Advantage to paying card in cash?
No spiraling card debt
Fixed cost
Does not change with sales volume
Variable Cost
Changes with sales volume (ie commission, delivery charges, cost of goods sold)
Which software for text documents?
Word-processing software
Scanner fraud
overcharging customers
Predatory pricing
lowering price to drive out competition
Grades
Ratings assigned to food products (dictating what level of ingredient)
Stages of brand loyalty
- insistence (will not buy from another brand)
- preference
- recognition (made aware of the brand)
Advantage of advertising in newspapers
Demonstrate consumer interest in ads, because TV and radio commercials are tuned out
Management functions
- controlling (monitors work effort)
- planning
- directing
- organizing
Marketing mix (elements of marketing)
Product, price, place, promotion
What increases business costs?
Surplus of inventory
Example of external marketing data
Web-based information services
Test marketing
Introducing a new product to a limited market
Examples of internal marketing data
Sales reports, accounts receivable summaries, inventory records
Channel management
Process of coordinating channel members to move goods and services to the end user
Express contracts
contracts expressed verbally or in writing
Why is it difficult to change distribution channels?
Changes flow of goods usually
Protectionism
Governmental policy to protect domestic businesses from foreign competition
Anti-trust laws
protect individuals and businesses from unfair practices that restrain trade
Probate laws
Estate issues
Zoning laws
Regulate property use
Infringement laws
intellectual property issues
Memorandum
A written message in business (to, from, date, subject)
Increasing returns
When output is greater than input
Transfer payments
Not counted in GDP (ie retirement plans)
Unemployment rate
Seasonally adjusted and does not include discouraged workers
Difference between consumer and industrial good
Who makes the purchase
When can currency lose value
Due to political instability
Environmental scan
Analysis of external forces that influence a business’ success
Operations process
Day to day activities required for continued business functioning
How does technology benefit operations process
Computerizes purchasing function
Retail buyer
Analyzes sales data, trends, and supplies when selecting products for the store to sell
Receiving manager
Supervises acceptance, handing, and distribution of orders
Organic marketing
Long-term digital marketing strategy that builds a foundation
Shill marketing
Advertises a product to people without them knowing they are being marketed
Why is planned obsolescence of products an ethical issue?
Natural resources are needed to produce them
Intensive vs exclusive distribution strategy
Selling a product in as many outlets as possible vs very few
Steps to do an environmental scan
- identify participants and responsibilities
- identify and analyze important trends
- select trends to act on
Tort
Civil wrongdoing
Conversion
taking personal property from owner to someone else
Corporation
owned by stockholders
Cooperative
Owned and operated by user-owners
Arbitration
Use of an arbitrator to settle disputes
Rebates
Return of part of the price a customer pays for a good or service
Excise tax
Tax imposed on sale of goods
sugging
selling under the guise of research
frugging
fundraising under the guise of research
institutional public service
inform consumers of noncontroversial issues in public’s best interest
examples of sales promotion
couponing, displays, free samples, general stimulation of purchases
demographic segmentation
similar characteristics
institutional public relations
inform consumers of controversial issues in public’s best interest & related to the company
exchange price vs exchange rate
amount sellers and customers are willing to pay/accept vs rate of conversion of two currencies
price skimming
setting prices high to recover intro costs
penetration pricing
setting prices low to achieve rapid market development during intro stage
cease and desist order
stop running an ad
business cycle
contraction & expansion
credit
purchase now, pay later
business sustainability
maximize long term profitability
accounts receivable
expenses, money received, money owed
primary data
solve specific problems
touchpoint
company connects with customers
certificates of deposit
savings certificates
money orders
used as checks
Phishing
occurs when a scammer sends out an email pretending to be a legitimate company
