Marketing and Business Terms: A Comprehensive Glossary, Quizzes of Introduction to Business Management

Download Marketing and Business Terms: A Comprehensive Glossary and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 Marketing DEFINITION 1 The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. TERM 2 Marketing Concept DEFINITION 2 A three-part business philosophy:1) a customer orientation2) a service orientation3) a profit orientation TERM 3 Customer Relationship Management (CRM) DEFINITION 3 The process of learning as much as possible about customers and doing everything you can to satisfy them-or even exceed their expectations- with goods and services. TERM 4 Marketing Mix DEFINITION 4 The ingredients that go into a marketing program: product, price, place, and promotion. TERM 5 Product DEFINITION 5 And physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand. TERM 6 Test Marketing DEFINITION 6 The process of testing products among potential users. TERM 7 Brand Name DEFINITION 7 A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors. TERM 8 Promotion DEFINITION 8 All the techniques sellers use to inform people about and motivate them to buy their products and services. TERM 9 Marketing Research DEFINITION 9 That analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions. TERM 10 Secondary Data DEFINITION 10 Information that has already been compiled by others and published in journals and books or made available online. TERM 21 Benefit Segmentation DEFINITION 21 Dividing the market by determining which benefits of the product to talk about. TERM 22 Volume (or usage) segmentation DEFINITION 22 Dividing the market by usage (volume of use) TERM 23 Niche Marketing DEFINITION 23 The process of finding small but profitable market segments and designing or finding products for them. TERM 24 One-to-one Marketing DEFINITION 24 Developing a unique mix of goods and services for each individual customer. TERM 25 Mass Marketing DEFINITION 25 Developing products and promotions to please large groups of customers. TERM 26 Relationship Marketing DEFINITION 26 Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements. TERM 27 Value DEFINITION 27 Good quality at a fair price. When customers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs. TERM 28 Total Product Offer DEFINITION 28 Everything that consumers evaluate when deciding whether to buy something; also called a value package. TERM 29 Product Line DEFINITION 29 A group of products that are physically similar or are intended for a similar market. TERM 30 Product Mix DEFINITION 30 The combination of product lines offered by a manufacturer. TERM 31 Product Differentiation DEFINITION 31 The creation of real or perceived product differences. TERM 32 Convenience goods and services DEFINITION 32 products that the consumer wants to purchase frequently and with a minimum of effort. TERM 33 Shopping goods and services DEFINITION 33 Those products that the consumer buys only after comparing value, quality, price, and style from a variety of sellers. TERM 34 Specialty goods and services DEFINITION 34 Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them. TERM 35 Unsought goods and services DEFINITION 35 Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem. TERM 46 Brand Awareness DEFINITION 46 How quickly or easily a given brand name comes to mind when a product category is mentioned. TERM 47 Brand Association DEFINITION 47 The linking of a brand to other favorable images. TERM 48 Brand Manager DEFINITION 48 A manager who has direct responsibility for one brand or one product liner; called a product manager in some firms. TERM 49 Product Screening DEFINITION 49 A process designed to reduce the number of new-product ideas being worked on at any one time. TERM 50 Product Analysis DEFINITION 50 Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas. TERM 51 Concept Testing DEFINITION 51 Taking a product idea to consumers to test their reactions. TERM 52 Commercialization DEFINITION 52 Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers. TERM 53 Product Life Cycle DEFINITION 53 A theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline. TERM 54 Target Costing DEFINITION 54 Designing a product so that it satisfies customers and meets the profit margins desired by the firm. TERM 55 Competition-based pricing DEFINITION 55 A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices. TERM 56 Price Leadership DEFINITION 56 The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow. TERM 57 Break-even analysis DEFINITION 57 The process used to determine profitability at various levels of sales. TERM 58 Total fixed costs DEFINITION 58 All the expenses that remain the same no matter how many products are made or sold. TERM 59 Variable Costs DEFINITION 59 Costs that change according to the level of production. TERM 60 Skimming Price Strategy DEFINITION 60 Strategy in which a new product is priced high to make optimum profit while there's little competition. TERM 71 Time Utility DEFINITION 71 Adding value to products by making them available when they're needed. TERM 72 Place Utility DEFINITION 72 Adding value to products by having them where people want them. TERM 73 Possession Utility DEFINITION 73 Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service. TERM 74 Information Utility DEFINITION 74 Adding value to products by opening two-way flows of information between marketing participants. TERM 75 Service Utility DEFINITION 75 Adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time. TERM 76 Merchant Wholesalers DEFINITION 76 Independently owned firms that take title to the goods they handle. TERM 77 Rack Jobbers DEFINITION 77 Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment. TERM 78 Cash-and-carry Wholesalers DEFINITION 78 Wholesalers that serve mostly similar retailers with a limited assortment of products. TERM 79 Drop Shippers DEFINITION 79 Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. TERM 80 Intensive Distribution DEFINITION 80 Distribution that puts products into as many retail outlets as possible. TERM 81 Selective Distribution DEFINITION 81 Distribution that sends products to only a preferred group of retailers in an area. TERM 82 Exclusive Distribution DEFINITION 82 Distribution that sends products to only one retail outlet in a given geographic area. TERM 83 Electronic Retailing DEFINITION 83 Selling goods and services to ultimate customers (e.g. you and me) over the internet. TERM 84 Telemarketing DEFINITION 84 The sale of goods and services by telephone. TERM 85 Direct Selling DEFINITION 85 Selling to consumers in their homes or where they work. TERM 96 Reverse Logistics DEFINITION 96 The area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials. TERM 97 Freight Forwarder DEFINITION 97 An organization that puts many small shipments together to create a single large shipment that can be transported cost- effectively to the final destination. TERM 98 Intermodal Shipping DEFINITION 98 The use of multiple modes of transportation to complete a single long-distance movement of freight. TERM 99 Production DEFINITION 99 The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. TERM 100 Production Management DEFINITION 100 The term used to describe all the activities managers do to help their firms create goods. TERM 101 Operations Management DEFINITION 101 A specialized area in management that converts or transforms resources (including human resources) into goods and services. TERM 102 Form Utility DEFINITION 102 The value producers add to materials in the creation of finished goods and services. TERM 103 Process Manufacturing DEFINITION 103 The part of the production process that physically or chemically changes materials. TERM 104 Assembly Process DEFINITION 104 The part of the production process that puts together components TERM 105 Continuous Process DEFINITION 105 A production process in which long production runs turn out finished goods over time. TERM 106 Intermittent Process DEFINITION 106 A production process in which the production run is short and the machines are changed frequently to make different products. TERM 107 Computer-Aided Design (CAD) DEFINITION 107 The use of computers in the design of products. TERM 108 Computer-Aided Manufacturing DEFINITION 108 The use of computers in the manufacturing of products. TERM 109 Computer-integrated Manufacturing DEFINITION 109 The uniting of computer-aided design with computer-aided manufacturing. TERM 110 Flexible Manufacturing DEFINITION 110 Designing machines to do multiple tasks so that they can produce a variety of products. TERM 121 Six Sigma Quality DEFINITION 121 A quality measure that allows only 3.4 defects per million opportunities. TERM 122 Statistical Quality Control (SQC) DEFINITION 122 The process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning. TERM 123 Statistical Process Control (SPC) DEFINITION 123 The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards. TERM 124 ISO 9000 DEFINITION 124 The common name given to quality management and assurance standards. TERM 125 ISO 14000 DEFINITION 125 A collection of the best practices for managing an organization's impact on the environment. TERM 126 Program Evaluation and Review Technique (PERT) DEFINITION 126 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. TERM 127 Critical Path DEFINITION 127 In a PERT network, the sequence of tasks that takes the longest amount of time to complete. TERM 128 Gantt Chart DEFINITION 128 Bar graph showing production managers what projects are being worked on and what stage they are in at any give time. TERM 129 Data Processing (DP) DEFINITION 129 Name for business technology in the 1970's; included technology that supported an existing business and was primarily used to improve the flow of financial information. TERM 130 Information Systems (IS) DEFINITION 130 Technology that helps companies do business; includes such tools as automated teller machines (ATMs) and voice mail. TERM 131 Information Technology (IT) DEFINITION 131 Technology that helps companies change business by allowing them to use new methods. TERM 132 Business Intelligence DEFINITION 132 Any of a variety of software applications that analyze an organization's raw data and take out useful insights from it. TERM 133 Intranet DEFINITION 133 A companywide network, closed to public access, that uses internet-type technology. TERM 134 Extranet DEFINITION 134 A semiprivate network that uses internet technology and allows more than one company to access the same information or allows people on different servers to collaborate. TERM 135 Virtual Private Network (VPN) DEFINITION 135 A private data network that creates secure connections, or "tunnels", over regular internet lines. TERM 146 Importing DEFINITION 146 Buying products from another country. TERM 147 Exporting DEFINITION 147 Selling products to another country. TERM 148 Free Trade DEFINITION 148 The movement of goods and services among nations without political or economic barriers. TERM 149 Comparative Advantage Theory DEFINITION 149 Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently. TERM 150 Absolute Advantage DEFINITION 150 The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. TERM 151 Balance of Trade DEFINITION 151 The total value of a nation's exports compared to its imports measured over a particular period. TERM 152 Trade Surplus DEFINITION 152 A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. TERM 153 Trade deficit DEFINITION 153 An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports. TERM 154 Balance of Payments DEFINITION 154 THe difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment. TERM 155 Dumping DEFINITION 155 Selling products in a foreign country at lower prices than those charged in the producing country. TERM 156 Licensing DEFINITION 156 A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty). TERM 157 Contract Manufacturing DEFINITION 157 A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing. TERM 158 Joint Venture DEFINITION 158 A partnership in which two or more companies (often from different countries) join to undertake a major project. TERM 159 Strategic Alliance DEFINITION 159 A long-term partnership between two or more companies established to help each company build competitive market advantages. TERM 160 Foreign Direct Investment (FDI) DEFINITION 160 The buying of permanent property and businesses in foreign nations.