MidTerm Flashcards
1
Q
what are the pillars
A
Human Ressources
Strategy(+1 year)
Operations(-1 year)
Marketing
Finance
2
Q
SME
A
Small Medium Enterprise
Less than 500 employees
98.5% of busns
3
Q
how many BUSNS are smalll
A
98%
4
Q
What percent of busns provide services
A
80%
5
Q
What percent of busns provide goods
A
20%
6
Q
What is a busns
A
Anything that provides goods or services for profit
7
Q
What is NFP
A
A non for profit is an org that focuses on a cause and doesn’t pocket profits
8
Q
profits
A
revenue - expenses
9
Q
!!! Can a NFP have profits?
A
Yes it shows good mgmnt just can’t keep them for yourself
10
Q
Producing goods is ___ intensive
A
capital
11
Q
Producing services is ___ intensive
A
labour
12
Q
Why is the service sector growing
A
- more disposable income
- Changing demographics and lifestyles
- Complex goods such as tech
- Need for professional advice
- Low barrier to entry
13
Q
!!! Entrepreneur
A
Someone who risks money time and other resources to start and manage a BUSNS
14
Q
Businesses drive up ____ which contributes to _____
A
standard of living & quality of life
15
Q
4 Factors of production
A
1 Capital
2 natural Resources
3 Human Ressources
4 Entrepreneurship (most important
16
Q
5 environmental factors contributing to BUSN
A
Economic env.
Social env.
Competitive env.
Global env.
Tech env.
17
Q
Reasons for being an entrepreneur
A
Freedom, money, challenge, idea, survival
18
Q
Funding options for SE
A
- personal ressources
- Loans
- angel investor
- Venture Capital
- Love money ( family, friends, partner)
19
Q
more than ___% of entrepreneurs have no interest in growth
A
25%
20
Q
Opportunities for SE
A
-Market Niches
-Personal Customer Service
-Lower overhead cost
-Tech
21
Q
Threats for SE
A
-High risk of failure
-Lack of knowledge and experience
-Little money
-Bigger regulation burden
22
Q
Survival Rates of SE
A
Less than a year: 92.9%
1-3 years: 72.3%
4-5 years: 54.4%
6-10 years: 30.7%
23
Q
!!! 3 launch options
A
Starting from scratch
buying an established busns
buying a franchise
24
Q
Pro of Starting from Scratch
A
All you (concept ,decisions)
Don’t deal with previous owners bad decisions)
25
cons of starting from Scratch
lots of pressure
hard to get credit
challenging logistics
takes time money and effort
26
Pros of buying a BUSNS
Everything in place
Established relations
Financing is less challenging
27
Cons of of buying a BUSNS
Work with someone else idea
May inherit old mistakes
28
Pros of buying a franchise
-Partnering with established brands
-Assistance possible
29
Cons of buying a Franchise
Less creative control
Tied to brand's mistake
Purchase price and royalties can be steep
30
Tools for success when becoming an entrepreneur
-Gain expérience.
-learn from others
-Educate Yourself
-Access Ressources
-Develop a business plan
31
Societal benefits of SE
-create jobs
-fuels innovation
-creates opportunities for women
32
5 eras of busns
-Industrial Revolutions
-Entrepreneurship Era
-Production Era
-Marketing Era
-Relationship Era
33
What can you market
People
Products
Services
Organizations (jobs)
Properties (stocks, real estate)
Experiences
Events
Places
Ideas
Informations (top 10 schools)
34
Revenue:
Sales
35
Entrepreneurial characteristics:
Vision
Self reliance
Energy
Confidence
Tolerance of uncertainty
Tolerance of failure
36
Marketing:
The activity, set of institutions, and processes for creating, communicating, delivering, and exchaning offerings that have value for customers, clients, partners and society at large (core goal: long term profitability)
37
Utility
The ability of goods and services to satisfy consumer wants
38
!!! *The scope of marketing (other than goods and services)
People marketing (Oprah)
Event Marketing (Osheaga)
Place Marketing (Cancun)
Idea Marketing (Political)
39
!!! USP
Unique Selling Perspective
40
Marketing segmentation:
The first step in planning your marketing strategy. Who will buy the product and divide market into demographics and segments to target.
41
Scope of Marketing
– People marketing
– Place marketing
– Event marketing
– Idea marketing
42
Unmatched value:
being able to provide this to customers is the only way to long-term profitability.
43
Customer Relationship
Management (CRM)
– Value
– Customer satisfaction
– Customer loyalty
44
When promising smt to a customer don't ____ or ______
Overpromise or Underpromise
45
A well-chosen target market
considers:
-Size
-Profitability
-Accessibility
-Limited Competition
46
B2C market segmentation
Demographic
Geography
Psychographic (tough but rich data)
Behavioral
47
Marketing Mix/ 4Ps
Place
Price
Product
Promotion
48
Environmental Scanning
-Competitive
-Economic
-Social/Cultural
-Technology
-Political/Legal
-Global Marketing Env.
49
Consumer Behavior
how people act when buying products
50
Elements that INFLUENCE Consumer Behavior
Cultural: Values, Customs
Social: Family, Reference Groups
Personal: Demographic, personality
Psychological: motivations, perception
51
Decision Making Process
1-Need Recognition
2-Info Search
3-Evaluation of alternatives
4-Purchase Decision
5-Post Purchase Behavior
52
Marketing Research
-Monitor and predict customer behaviour
-Evaluate and improve marketing mix
-Better marketing decisions lead to more value for consumers and more profits for business.
53
Secondary data
Existing Data
-Lower cost
-May not be specific
-Frequently outdated
-Available to competitors
54
Primary data
New Compiled Data
-Customizable
-Fresh and new
-Proprietary
-More expensive
55
Primary research tools:
-Observation research: Doesn't interact! !(Video, Traffic Counter)
-Survey research: Interacts!! (ex. questionnaires, interviews, focus groups)
56
Product:
Anything a company offers to satisfy customer needs and wants, including both goods and services
57
Most services embody these qualities:
Intangibility
Inseparability
Variability
Perishability
58
Example of a product that can be both good & service
Restaurant meal
59
Core benefit:
satisfies the customer's need
Reason people buy product*
60
Actual Product
Physical properties of good
61
Augmented Product
Warranties, service manual
62
Consumer Product Categories (B2C)
– Convenience products (coke)
– Shopping products (computer)
– Specialty products (Rolex)
– Unsought products (Thesaurus)
63
What are the 3 product layers
actual product
Core benefits
Augmented product
64
Business Product Categories (B2B)
-Installations
-Accessory equipment
-Maintenance/Repair
-Raw material
-Component parts
-Business services
65
Quality Level
performance of core functions
66
Product Consistency
how reliable it delivers its promised quality level
67
Features of a product
specific characteristics ex: Facial Recognition
68
Product Benefit
the advantage that customers gain from product ex: security
69
Product Line
products that are closely related either in terms of how they work or the customers they serve
70
Product Mix
the total number of product lines by a single firm
71
Cannibalization:
A producer offers a new product that takes away sales from its existing product
(doesn't add new customers so waste of money)
72
Brand:
Product identitity that seperates it from competitors
73
Brand equity
the extra money consumers will pay for the brand
ex: detergent common price is 10$ but for Tide its 15$ so 5$
74
Brand Name
Catchy memorable name
75
!!! Line extension
similar products offered under the same brand name
76
Brand extensions
A product in a new category under an existing brand
77
Dangers of Brand Extension
Dilution
Damaged reputation bc of defects
EX: Canadians
78
Co-Branding
Two Campaigns cross over
ex: Couche Tard + Tim Horton
79
Packaging
Protects product
Provides Info
Facilitate Storage
Suggests Product use
Promote Brand
Attract buyer attention
80
!!! Why do profits plateau earlier than sales (PLC)
Because expenses go up due to lack of competition. After you need to spend on marketing and have to lower prices due to competition.
81
New Product Development Process
1-Idea
2-Idea Screening
3-Analysis
4-Development
5-Testing
6-Commercialization
82
First adopters of products
2.5%
83
Laggards of product adoption
16%
84
Modes of Transportation
Rail
Truck
Plane
Ship
Pipeline
85
What is the only P that generates revenue:
Price
86
Adv and DisAdv of Truck
-Most extensive Availability
-Medium flexibility in Handling
87
Adv and DisAdv of Ship
-Lowest Cost
-Lowest frequency of shipment
88
Adv and DisAdv of Plane
-Fastest
-Highest Cost
89
Adv and DisAdv of Pipeline
-Highest frequency of shipment
-Lowest flexibility in Handling
90
Adv and DisAdv of Rail
-Extensive Availability
-Slow
91
Promotion
The power to influence consumers, to remind them, to persuade them, and inform them (Elections)
92
integrated marketing communications
IMC
-Coordinate promotional messages
Create a unified impression in the customer’s mind
-Identify key points of contact between the product and target market
93
Promotional mix:
S.P.A.D.E
Sales Promotion
Personal Selling
Advertising
Direct Marketing
Emerging tools
94
Sales Promotion
Generates immediate sales
ex: Coupons, Sales
95
Personal Selling
person 2 person
Big complex sales
96
steps of Personal Selling
-Prospect and Qualify
-Prepare
-Present
-Handle Objections
-Close Sale
-Follow Up
97
Advertising
Paid NON PERSONAL communication designed to influence a target audience
98
Choosing the right promotional Mix
-Product Characteristics
-product life cycle
-Target audience
-Push vs pull
-Competitive environment
-Budget
99
Multi Retail Channeling
Retailer does store and online
100
Store Retailer Categories
-Category Killers
-Convenience Stores
-Department Stores
-Discount Stores
-Outlet Store
-Specialty Store
-Super Market
-Supercentre
-Warehouse
101
Distribution Strategy
Intensive (Coke)
Selective (Computer)
Exclusive Distributions (Bentley)
102
Direct channel
Distribution process that links directly producer and consumer
103
Intermediary
Retail, Wholeseller
104
Retailer
Distributor that sell products directly to ultimate user
105
Wholeseller
distributors that buy products from producers and sell them to retailers, other wholesalers, or business users
106
!!! Non-Store Retailer
Online
Direct Response (catalogue)
Direct Selling
Vending Machine
107
How to fix Margin Prices
Cost based Pricing
Demand based Pricing
108
!!! Supply chain Management
Planning and coordinating the movement of products along the supply chain
109
!!! Logistics
The tactics involved in moving the product
110
Elements of Supply chain
Raw Material
Logistics
Warehouse/Storage
Production
Warehouse
Logistics
Distributors
111
Pricing
-Key role in demand for product
-Price is tough variable: legal constraints and intermediary
-Stable pricing not the norm & prices should be constantly evaluated
112
boosting volumes
penetration pricing
everyday low pricing (walmart)
High/low
loss leader pricing
113
matching comp. (creating Prestige)
Skimming pricing
114
Breakeven analysis
the process of determining the number of units that must be sold to cover costs
115
What do you look for in a Partnership
Shared vision
Financial Stability
Skilled
Trust
Connections
116
Internal Locus of Control
you are responsible for what happens in your life
