Glossary of Business and Marketing Terms: Wholesalers, Distribution, and Logistics, Quizzes of Introduction to Business Management

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TERM 1 Marketing Concept DEFINITION 1 A three part business philosophy:1 - a customer orientation2 - a service orientation3 - a profit orientation TERM 2 Customer Relationship Management (CRM) DEFINITION 2 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 3 Marketing Mix DEFINITION 3 The ingredients that go into a marketing program: product, price, place, and promotion TERM 4 Product DEFINITION 4 Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the consumers, such as the brand TERM 5 Test Marketing DEFINITION 5 The process of testing products among potential users TERM 6 Brand Name DEFINITION 6 A word, letter, or group of words or letters that differentiates one sellers goods and services from those of competitors TERM 7 Marketing Research DEFINITION 7 The analysis of markets to determine opportunities an challenges, and to find the information needed to make good decisions TERM 8 Secondary Data DEFINITION 8 Information that has already been piled by others an published in journals and books or made available online TERM 9 Primary Data DEFINITION 9 Data that you gather yourself (not from secondary sources such as books and magazines) TERM 10 Focus Group DEFINITION 10 A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues TERM 21 Mass Marketing DEFINITION 21 Developing products and promotions to please large groups of people TERM 22 Relationship Marketing DEFINITION 22 Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements TERM 23 Value DEFINITION 23 Good quality at a fair price. When consumers 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 24 Total Product Offer DEFINITION 24 Everything that consumers evaluate when deciding whether to buy something; also called value package TERM 25 Product Line DEFINITION 25 A group of products that are physically similar or are intended for a similar market TERM 26 Product Mix DEFINITION 26 The combination of product lines offered by a manufacturer TERM 27 Product Differentiation DEFINITION 27 The creation of real or perceived product differences TERM 28 Convenience Goods and Services DEFINITION 28 products that the consumer wants to purchase frequently and with a minimum of effort TERM 29 Specialty Goods and Services DEFINITION 29 Consumers 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 30 Unsought Goods and Services DEFINITION 30 Products that consumers are unaware of, haven't necessarily thought of buying, or find that they need to solve an unexpected problem TERM 31 Industrial Goods DEFINITION 31 Products used in the production of other products. Sometimes called business goods or B2B goods TERM 32 Bundling DEFINITION 32 A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors TERM 33 Trademark DEFINITION 33 A brand that has exclusive legal protection for both its brand name and its design TERM 34 Manufacturers' Brand Name DEFINITION 34 The brand names of manufacturers that distribute products nationally TERM 35 Dealer (private-label) Brands DEFINITION 35 Products that don't carry manufacturer's name buy carry a distributer or retailer's name instead TERM 46 Product Life Cycle DEFINITION 46 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 47 Target Costing DEFINITION 47 Designing a product so that it satisfies customers and meets the profit margins desired by the firm TERM 48 Competition-Based Pricing DEFINITION 48 A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors prices TERM 49 Price Leadership DEFINITION 49 The strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow TERM 50 Break-Even Analysis DEFINITION 50 The process used to determine profitability at various levels of sales TERM 51 Total Fixed Costs DEFINITION 51 All the expenses that remain the same no matter how many products are made or sold TERM 52 Variable Costs DEFINITION 52 Costs that change according to the level of production TERM 53 Skimming Price Strategy DEFINITION 53 Strategy in which a new product is priced high to make optimum profit while there's little competition TERM 54 Penetration Strategy DEFINITION 54 Strategy in which a product is priced low to attract many customers and discourage competition TERM 55 Everyday Low Pricing (EDLP) DEFINITION 55 Setting prices lower than competitors then not having any special sales TERM 56 High-Low Pricing Strategy DEFINITION 56 Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors' TERM 57 Psychological Pricing DEFINITION 57 Pricing goods and services at price points that make the product appear less expensive than it is TERM 58 Marketing Intermediaries DEFINITION 58 Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C TERM 59 Channel of Distribution DEFINITION 59 A whole set 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 TERM 60 Agents/Brokers DEFINITION 60 Marketing Intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take the title to the goods TERM 71 Cash-and-Carry Wholesalers DEFINITION 71 Wholesalers that serve mostly smaller retailers with a limited assortment of products TERM 72 Drop Shippers DEFINITION 72 Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer TERM 73 Intensive Distribution DEFINITION 73 Distribution that puts products into as many retail outlets as possible TERM 74 Selective Distribution DEFINITION 74 Distribution that sends products to only a preferred group of retailers in an area TERM 75 Exclusive Distribution DEFINITION 75 Distribution that sends products to only one retail outlet in a given geographic area TERM 76 Electronic Retailing DEFINITION 76 Selling goods and services to ultimate customers over the internet TERM 77 Telemarketing DEFINITION 77 The sale of goods and services by telephone TERM 78 Direct Selling DEFINITION 78 Selling to consumers in their homes or where they work TERM 79 Direct Marketing DEFINITION 79 Any activity that directly links manufacturers or intermediaries with the ultimate consumer TERM 80 Corporate Distribution System DEFINITION 80 A distribution system in which all of the organization in the channel of distribution are owned by one firm TERM 81 Contractual Distribution System DEFINITION 81 A distribution system in which members are bound to cooperate through contractual agreements TERM 82 Administered Distribution System DEFINITION 82 A distribution system in which producers manage all of the marketing functions at the retail level TERM 83 Supply Chain (or Value Chain) DEFINITION 83 The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers TERM 84 Supply Chain Management DEFINITION 84 the process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organization involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate TERM 85 Logistics DEFINITION 85 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 TERM 96 Process Manufacturing DEFINITION 96 That part of the production process that physically or chemically changes materials TERM 97 Assembly Process DEFINITION 97 That part of the production process that puts together components TERM 98 Continuous Process DEFINITION 98 A production process in which long production runs turn out finished goods over time TERM 99 Intermittent Process DEFINITION 99 A production process in which the production run is short and the machines are changed frequently to make different products TERM 100 Computer-Aided Design (CAD) DEFINITION 100 The use of computers in the design of products TERM 101 Computer-Aided Manufacturing (CAM) DEFINITION 101 the use of computers in the manufacturing of products TERM 102 Computer-Integrated Manufacturing (CIM) DEFINITION 102 The uniting of computer-aided design with computer-aided manufacturing TERM 103 Flexible Manufacturing DEFINITION 103 Designing machines to do multiple tasks so that they can produce a variety of products TERM 104 Lean Manufacturing DEFINITION 104 The production of goods using less of everything compared to mass production TERM 105 Mass Customization DEFINITION 105 Tailoring products to meet the needs of individual customers TERM 106 Facility Location DEFINITION 106 The process of selecting a geographic location for a company's operations TERM 107 Telecommunication DEFINITION 107 Working from home via computer and modem TERM 108 Facility Layout DEFINITION 108 The physical Arrangement of resources (including people) in the production process TERM 109 Materials Requirement Planning (MRP) DEFINITION 109 A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place TERM 110 Enterprise Resource Planning (ERP) DEFINITION 110 A newer version of materials requirement planning (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 TERM 121 Gantt Chart DEFINITION 121 Bar graph showing production managers what projects are being worked on and what stage they are in at any given time TERM 122 Importing DEFINITION 122 Buying products from another country TERM 123 Free Trade DEFINITION 123 The movement of goods and services among nations without political or economic barriers TERM 124 Comparative Advantage Theory DEFINITION 124 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 125 Absolute Advantage DEFINITION 125 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 126 Balance of Trade DEFINITION 126 The total value of a nations exports compared to its imports measured over a particular period TERM 127 Trade Surplus DEFINITION 127 A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports TERM 128 Trade Deficit DEFINITION 128 An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports TERM 129 Balance of Payments DEFINITION 129 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 130 Dumping DEFINITION 130 Selling products in a foreign country at lower prices than those charged in the producing country TERM 131 Licensing DEFINITION 131 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 132 Contract Manufacturing DEFINITION 132 A foreign country's production of a private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing TERM 133 Joint Venture DEFINITION 133 A partnership in which two or more companies (often from different countries) join to undertake a major project TERM 134 Strategic Alliance DEFINITION 134 A long-term partnership between two or more companies established to help each company build competitive market advantages TERM 135 Foreign Direct Investment (FDI) DEFINITION 135 The buying of permanent property andb usinesses in foreign nations TERM 146 World Trade Organization (WTO) DEFINITION 146 The international organization that replaced the General Agreement on Tariffs and Trade, and was assigned the duty to mediate trade disputes among nations TERM 147 Common Market DEFINITION 147 A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. An example is the European Union TERM 148 North American Free Trade Agreement (NAFTA) DEFINITION 148 Agreement that created a fre-trade area among the United States, Canada, and Mexico TERM 149 Operations Management DEFINITION 149 deals with the production of goods and services TERM 150 Value DEFINITION 150 The tangible and intangible benefits that customers can derive from consuming a good or a service at a price they are willing to pay. TERM 151 Purchasing Function DEFINITION 151 sources inputs into the transformation process of the organization from other for-profit and nonprofit organization TERM 152 Logistics Function DEFINITION 152 responsible for the actual movement of goods and/or services across organizations TERM 153 Supply Chain DEFINITION 153 the networking of manufacturing and service operations that supply one another from raw materials through manufacturing to the ultimate customer TERM 154 Decision Making DEFINITION 154 An important element of operations management, provides a basis for dividing operations into four major responsibilities: process, quality, capacity, and inventory TERM 155 Function DEFINITION 155 Operations function refers to the production of the goods and services. TERM 156 Process View DEFINITION 156 Provides common ground for defining service and manufacturing operations as transformation processes and is a powerful basis for the design and analysis of operations in an organization TERM 157 Cross-Functional Decision Making DEFINITION 157 Separate functions of an organization interact and integrate in order to cooperate on operations decisions TERM 158 Transformation System DEFINITION 158 System that converts inputs (energy, materials, labor, capital, and information) into outputs TERM 159 Internal and External Environments DEFINITION 159 Internal interaction occurs through cross functional decision makingExternal interaction occurs through the economic, physical, social, and political environment of operations TERM 160 Voice of the Customer DEFINITION 160 The idea that, regardless of other factors, the main drive behind an operation should be to meet the needs of the customer, and this in itself should improve efficiency TERM 171 Global Corporation DEFINITION 171 Due to the inadequacies of a tradition company on a global scale, Facilities and plants are expanded to be located on a worldwide basis, products and services can be shifted back and forth between countries, and components, parts, and services are sourced worldwide TERM 172 Supply Chain Strategy DEFINITION 172 The expansion of operations strategy; aims to achieve a sustainable competitive advantage for the entire supply chain TERM 173 Functional Strategy DEFINITION 173 Operations strategy; four elements of this strategy are mission, distinctive competence, objectives, and strategic decisions. Along with inputs or outputs from the process of developing operations strategy. The outcomes are a consistent pattern of operations decisions well connected with other business functions TERM 174 Corporate Strategy DEFINITION 174 Defines the business that the company is pursuing. TERM 175 Business Strategy DEFINITION 175 defines how well each particular business will compete.most large corporations have several businesses competing in different market segments. differing business strategies: differentiation, low cost, and focus TERM 176 Benchmarking DEFINITION 176 A comparison to a "world class" competitor that may indicate whether operations are behind or ahead of competition TERM 177 Competition Through Quality DEFINITION 177 Operation objective that focuses on the wants and needs of the customer first throughout the operation chain TERM 178 Low-Cost Objective DEFINITION 178 Method of operations that focuses on reducing wasteful activities and performing actions that only pertain to what is necessary to satisfy the customer TERM 179 Delivery Time DEFINITION 179 Objective that eliminates any wasted time throughout the operation and doing away with non-value-added steps like process changeover in order to make operations smoother and quicker TERM 180 Flexibility DEFINITION 180 The ability to change the operations involved with production to meet the requirements of the customer TERM 181 Product Imitator DEFINITION 181 In a price sensitive, mature market with a standardized product, low cost throughout the operations process in emphasized, and superior technology and mass distribution are necessary to generate profits TERM 182 Product Innovator DEFINITION 182 In an emerging or growing market, advantage is gaine through superior-quality products quickly. Price is not the emphasis, but rather flexibility to new products, workforce, and customer TERM 183 Order Winners DEFINITION 183 An objective that will win orders from the customers in a particular segment that marketing has selected as the target market (in product imitator strategy, price is the order winner) TERM 184 Order Qualifiers DEFINITION 184 Objectives that are not primary in a target market, and only need to be acceptable to qualify to ge the order. Insufficient levels of performance on these objectives could hurt, but high performance won't help. (In product imitator strategy, flexibility, quantity, and delivery are order qualifiers) TERM 185 Customer Satisfaction DEFINITION 185 Relative concept that varies from one customer to another. Quality is defined by a particular customer's expectations at a given time TERM 196 Juran DEFINITION 196 Originated the idea of the quality trilogy: planning control and improvement of quality- Planning - companies should identify major business goals, customers, and products required- Control - through the use of statistical methods. management should institute the procedures and methods needed to ensure quality- Improvement - both breakthrough improvement and continuous improvement of processes TERM 197 ISO 9000 DEFINITION 197 Major approach companies used to ensure quality. ISO 9000 was oriented towards compliance (conformance quality). Customer needs not included, any product could sell as long as the company had a quality system in place TERM 198 Baldridge Award DEFINITION 198 Award given at most to three organizations in each of six categories for "best quality practice" : manufacturing, service, small business, health care, education, and nonprofit TERM 199 Cost of Quality DEFINITION 199 includes prevention, appraisal, internal failure, and external failure. costs of not doing things right the first time. can be managed and controlled TERM 200 Control Costs DEFINITION 200 related to activities that remove defects from the production stream- Prevention and appraisal TERM 201 Failure Costs DEFINITION 201 Incurred either during the production process (internal) or after the product is shipped (external). TERM 202 Supply Chain DEFINITION 202 the set of entities and relationships that cumulatively define materials and information flows both downstream toward the customer and upstream toward the very first supplier TERM 203 Physical Supply DEFINITION 203 Flow of materials from upstream suppliers into the producer TERM 204 Physical Distribution DEFINITION 204 Flow of materials through entity the producer toward the end customers TERM 205 Distribution Channel DEFINITION 205 A specific route from a producer forward through the various distributors and wholesalers to the end customer and is therefore the only part of the supply chain for that producer TERM 206 Supply Chain Management DEFINITION 206 the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer TERM 207 Demand Management DEFINITION 207 refers to decisions that are taken to affect the quantities demanded of one or more products that are served by a supply chainfocuses on creating and managing the quantities of one or more products that can be served by a supply chain TERM 208 Global Sourcing DEFINITION 208 the practice of procuring needed goods and services without being constrained to geographic regions TERM 209 Reverse Logistics DEFINITION 209 the movement, storage, and disposal of goods that are returned by the customer TERM 210 On-Time Delivery DEFINITION 210 the percentage of orders delivered complete on the requested by the customer