topic 2 management process part 1: operations and marketing Flashcards
business prelims
name the 4 main business functions
operations
marketing
finance
human resources
what does STM stand for
simply transformed manufactured
what does ETM stand for
Elaborately transformed manufactured
what is STM
inputs that undergone little transformation or an immediate good
what is an immediate good
a good that is used by other businesses in the next stage of manufacturing
what is an ETM
a much more complex good that goes through many stages of value adding
what is quality management
is a strategy used by the business to ensure that the quality of the product meet the expectations of the business and customer
what is quality control
checking the product for defects
what is quality assurance
stopping defects from happening in every stage of the process through using methods that ensure maximum quality.
how to identify a specific target in the market
market segmentation
what is market segmentation
the division of the total market into small segments based on the similar/common characteristics
what is the marketing mix
a process of developing a product that meets the needs of the consumer
name the 4 Ps in the marketing mix
product
place
price
promotion
what does the product stage involve(4)
packaging
branding
features
positioning
what does the price stage involve
choosing a price that will be compatible with the marketing and finance objectives of the business
list 3 pricing methods used by bussinesses
cost plus margin
competitor based pricing
market pricing
list 3 pricing strategies
loss leader
price penetration
price skimming
what is the cost plus margin method
cost of production + profit margin
what is the competitors pricing method
adjust price depending on competitors
what is the market pricing method
price dependant on demand of product
what is the loss leader startegy
selling at a loss to get customers in
what is the price penetration strategy
low price in order to gain customer loyalty
what is the price skimming strategy
place price initially due to hype of product.
what is Total quality management (TQM)
continuous improvement of quality
what happens in the promotion phase
the process of creating and maintaining consumer awareness and interest.
name 3 promotion startegies
sales promotion
advertising
product placement
what happens in sales promotion
the business offers special offers to get customers to buy products
what happens in advertising
promotion of a product through media
what happens in product placement
the product is demonstrated by actors in a TV show or movie
what happens during the placement phase
how a product is made available to the market and journey it takes to get to the consumers
what is the classical distribution chain
manufacturer
wholesaler
retailer
consumer
