Midterm 2 Flashcards
Merchant wholesalers
are independently owned firms that take title to (own) the goods that they handle.
Agents/ brokers
are marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange, but do not take title to the goods.
Cash and carry wholesalers
are wholesalers that serve mostly smaller retailers with a limited assortment of products.
Channel of distribution
is the whole series of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
Rack jobbers
are wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
Intensive distribution
puts products into as many retail outlets as possible; includes vending machines (used for convenience goods such as candy and cigarettes).
Selective distribution
sends products to only a preferred group of retailers in an area (used for shopping goods such as appliances or furniture).
Exclusive distribution
is distribution that sends products to only one retail outlet in a given geographic area (used for specialty goods such as luxury automobiles).
Drop shippers
are wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
Marketing intermediaries
are organizations that assist in moving goods and services from producer to business (B2B) and business to consumer (B2C).
Wholesaler
a marketing intermediary that sells to other organizations.
Retailer
is an organization that sells to ultimate consumers.
Utility
in economics, is the want-satisfying ability, or value, that organizations add to goods or services; the products are made more useful or accessible to consumers than they were before.
Time utility
is adding value to products by making them available when they are needed.
Place utility
is adding value to products by having them where people want them.
Possession utility
doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.
Information utility
s adding value to products by opening two-way flows of information between marketing participants.
Service utility
adding value by providing fast, friendly service during and after the sale and teaching customers how to best use products over time.
Online retailing
is selling goods and services to ultimate consumers (e.g., you and me) online.
Social commerce
is a form of electronic commerce that involves using social media and user contributions to assist in the online buying experience.
Telemarketing
is the sale of goods and services by telephone.
Direct selling
is selling to consumers in their homes or workplaces.
Direct marketing
is any activity that directly links manufacturers or intermediaries with the ultimate consumer.
Corporate distribution system
is a distribution system in which all the organizations in the channel of distribution are owned by one firm (example: Sherwin-Williams).
Contractual distribution system
is a distribution system in which members are bound to cooperate through contractual agreements.
Administered distribution system
is distribution system in which producers manage all the marketing functions at the retail level.
Supply chain or value chain
is the sequence of linked activities that must be performed by various organizations to move goods from the sources or raw materials to ultimate consumers.
Supply chain management
is the process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling material when appropriate.
Logistics
is the marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Inbound logisitcs
is the area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.
Materials handling
is the movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.
Outbound logistics
is the area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me).
Reverse logistics
is the area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.
Freight forwarder
is an organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.
Intermodal shipping
is the use of multiple modes of transportation to complete a single long-distance movement of freight.
Production
is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.
Production management
is the term used to describe all the activities managers do to help their firms create goods.
Operations management
is a specialized area in management that converts or transforms resources (including human resources) into goods and services.
Form utility
is the value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting services together to create a vacation package.
Process manufacturing
is that part of the production process that physically or chemically changes materials.
Assembly process
is that part of the production process that puts together components.
Continuous process
is a production process in which long production runs turn out finished goods over time.
Intermittent process
is a production process in which the production run is short and the machines are changed
frequently to produce different products.
Computer aided design
is the use of computers in the design of products.
Computer aided manufacturing
is the use of computers in the manufacturing of products.
Computer integrated manufacturing
is uniting computer-aided design with computer-aided manufacturing.
Lean manufacturing
is the production of goods using less of everything compared to mass production.
Mass customization
means tailoring products to meet the needs of individual customers.
Facility location
is the process of selecting a geographic location for a company’s operations.
Telecommuting
working from home via computer, is a major trend.
Facility layout
is the physical arrangement of resources (including people) in the production process.
Materials requirement planning
is a computer-based production management system that uses sales forecasts to make sure the needed parts and materials are available at the right time and place.
Enterprise resource planning
is a newer version of MRP that combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, human resources, and order fulfillment—into a single integrated software program that uses a single database.
Purchasing
is the function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.
Just in time inventory control
is a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
Quality
is consistently producing what the customer wants while reducing errors before and after delivery to the customer.
Six sigma quality
is a quality measure that allows only 3.4 defects per million opportunities.
Statistical quality control
is the process some managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning.
Statistical process control
is the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph.
ISO 9001
is the common name given to quality management and assurance standards.
ISO 14001
is a collection of the best practices for managing an organization’s impact on the environment.
Program evaluation and review technique
is a method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
Critical path
the sequence of tasks that takes the longest time to complete.
Gantt chart
is a bar graph showing production managers what projects are being worked on and what stage they are in at any given time.
Finance
is the function in a business that acquires funds for the firm and manages those funds within the firm.
Financial management
is the job of managing a firm’s resources so it can meet its goals and objectives.
Financial managers
are managers who examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm.
Cash flow forecast
is a forecast that predicts cash inflows and outflows in future periods, usually months or quarters.
Budget
is a financial plan that sets forth management’s expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm.
Capital budget
is a budget that highlights a firm’s spending plans for major asset purchases that often require large sums of money.
Cash budget
estimates cash inflows and outflows during a particular period like a month or a quarter.
Operating or master budget
is the budget that ties together all of a firm’s other budgets and summarizes its proposed financial activities.
Financial control
is a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget.
Capital expenditures
are major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights.
Debt financing
refers to funds raised through various forms of borrowing that must be repaid; these funds can be short-term or long-term.
Equity financing
is money raised from within the firm, from operations or through the sale of ownership in the firm (stock).
Trade credit
is the practice of buying goods and services now and paying for them later.
Promissory note
is a written contract with a promise to pay a supplier a specific sum of money at a definite time.
Secured loan
is a loan backed by collateral, something valuable such as property.
Unsecured loan
is a loan that doesn’t require any collateral.
Line of credit
is a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.
Revolving credit agreement
is a line of credit that is guaranteed but usually comes with a fee.
Factoring
the process of selling accounts receivable for cash, is relatively expensive.
Term loan agreement
is a promissory note that requires the borrower to repay the loan in specified installments.
Risk return trade off
the principle that the greater the risk a lender takes in making a loan, the higher the interest rate required.
Venture capital
is money that is invested in new or emerging companies that are perceived as having great profit potential.
Leverage
is raising needed funds through borrowing to increase a firm’s rate of return.
Cost of capital
is the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders.
Human resource management
is the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.
Affirmative action
refers to employment activities designed to “right past wrongs” by increasing opportunities for minorities and women.
Reverse discrimination
discrimination against dominant or majority group members in hiring or promoting.
Job analysis
is a study of what is done by employees who hold various jobs.
Job description
is a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.
Job specification
are written summaries of the minimum qualifications required of workers to do a particular job.
Recruitment
is the set of activities used to obtain a sufficient number of the right people at the right time.
Selection
is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interest of the individual and the organization.
Contingent workers
include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students.
Training and development
involves all attempts to improve performance by increasing an employee’s ability to perform.
On the job training
is training at the workplace that lets the employee learn by doing, or by watching others for a while, and then imitating them.
Orientation
is the activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.
Apprenticeship programs
are training programs during which a trainee works alongside an experienced employee to master the skills and procedures of a craft.
Off the job training
are internal or external training programs away from the workplace that develop any of a variety of skills or to foster personal development.
Online training
consists of training programs in which employees “complete” classes via the Internet.
Vestibule training
(near-the-job training) is done in schools where employees are trained on equipment similar to that used on the job.
Job simulation
is the use of equipment that duplicates the job conditions and tasks so that trainees can learn skills before attempting them on the job.
Management development
is the process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.
Networking
is the process of establishing and maintaining contacts with key managers in one’s own organization and in other organizations and using those contacts to weave strong relationships that serve as informal development systems.
Mentor
is an experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsors.
Performance appraisal
is an evaluation that measures employee performance against established standards to make decisions about promotions, compensation, additional training, or firing.
Fringe benefits
are benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.
Cafeteria style fringe benefits
a fringe benefit plan that allows employees to choose the benefits they want up to a certain dollar amount.
Flexible plan
is a work schedule that gives employees some freedom to choose when to work, as long as they work the number of required hours or complete assigned tasks.
Core time
a period when all employees are expected to be at their job stations.
Compressed workweek
is a work schedule that allows an employee to work a full number of hours per week but in fewer days.
Job sharing
is an arrangement whereby two part-time employees share one full-time job.
Economies of scale
describe the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
Hierarchy
is a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.
Chain of command
is the line of authority that moves from the top of a hierarchy to the lowest level.
Organization chart
is a visual device that shows relationships among people and divides work.
Bureaucracy
is an organization with many layers of managers who set rules and regulations and oversee all decisions.
Centralized authority
is an organizing structure in which decision-making authority is maintained at the top level of management at the company’s headquarters
Decentralized authority
is an organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management
Span of control
refers to the optimum number of subordinates a manager supervises or should supervise.
Tall organizational structure
is one in which the pyramidal organization chart would be quite tall because of the various levels of management.
Flat organizational structure
is an organization structure that has few layers of management and a broad span of control.
Departmentalization
is dividing organizational functions into separate units.
Line organization
is an organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor
Line personnel
are employees who are part of the chain of command that is responsible for achieving organizational goals.
Staff personnel
are employees who advise and assist line personnel in meeting their goals.
Matrix organization
is an organization in which specialists from different parts of the organization are brought together to work on specific projects, but still remain part of a line-and-staff structure.
Cross functional self managed teams
are groups of employees from different departments who work together on a long-term basis
Networking
is using communications technology and other means to link organizations and allow them to work together on common objectives.
Real time
is the present moment or the actual time in which something takes place.
Virtual corporation
is a temporary networked organization made up of replaceable firms that join and leave as needed.
Benchmarking
is comparing an organization’s practices, processes, and products against the world’s best
Core competencies
are those functions that the organization can do as well or better than any other organization in the world.
Digital natives
(individuals who grew up with the Internet and cell phones), companies must retrain older workers in the new technologies (examples: YouTube, Facebook, Twitter, RSS).
Restructuring
is redesigning an organization so that it can more effectively and efficiently serve its customers.
Inverted organization
is an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.
Organizational culture
is the widely shared values within an organization that provide unity and cooperation to achieve common goals.
Formal organization
s the structure that details lines of responsibility, authority, and position; that is, the structure that appears on the organization chart.
informal organization
is the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is, the human side of the organization that does not appear on any organization chart.
