business risk - -the possibility of financial loss. Situations that can lead to financial gain,
loss or failure.
risk management - -the systematic process of managing an organization's risks to achieve
objectives in a manner consistent with public interest, human safety, environmental
needs, and the law.
economic risks - -risks that result from changes in overall business conditions.
natural risks - -Risks caused by natural causes, such as floods, tornadoes, hurricanes,
fires, etc.
human risk - -risks caused by human mistakes or dishonesty, or other risks that can be
controlled by humans.
insurance policy - -a contract between a business and and insurance company to cover a
specific business risk.
extended coverage - -an endorsement tha provides protection against types of loss that
may not be covered under a basic property insurance policy.
fidelity bonds - -a type of insurance that protects a business from employee dishonesty.
performance bonds - -also called surety bonds, provide financial protection for losses that
might occur when a construction project is not finished on time or as agreed due to the
contractor's impaired financial condition.
brand - -name, term, design, symbol, or combination that identifies a product or service
and distinguishes it from its competitors.
brand name - -also called a product brand, is a word, group of words, letters, numbers
that represent a product or service.
trade name - -corporate brand, identifies and promotes company or division of a
particular corporation.
brand mark - -unique symbol, coloring, lettering, or other design element.
Trade character - -a specific type of brand mark with human form or characteristics.
trademark - -a word, name, symbol, device, or a combination of these elements that is
given legal protection by the federal government.
national brands - -also called producer brands, are owned & initiated by the
manufacturers or by companies that provide a service.
private distributor brands - -also called private brands, store brands, dealer brands, or
private labels. are developed & owned by wholesalers and retailers.
generic brand - -products with no company identity.
brand extension - -branding strategy using existing brand name to promote a new or
improved product/company
brand licensing - -allow other organizations to use your company brand name or mark for
a fee.
mixed brand - -combination of national, private, and generic brands
co-branding - -combine one or more brands to deliver a product or service
Package - -the physical container or wrapping for a product.
mixed bundling - -the practice of packaging different products and services together.
price bundling - -selling two or more goods or serivce as a sinlge package for one price.
blisterpacks - -packages with preformed plastic molds surrounding individual items
arranged on a backing.
aseptic packaging - -a food storage process that keeps food fresh without refrigeration for
extended periods of time.
cause packaging - -packaging that is used by companies to promote social and political
causes.
label - -An information tag, wrapper, seal, or imprinted message that is attached to a
product or its package.
brand label - -label giving the brand name, trademark, or logo.
descriptive label - -a label that gives information about the product's use, construction,
care, performance, and other features.
grade label - -a label that states the quality of the product.
Problem definition - -business clearly identifies a problem and what is needed to solve it
primary data - -data obtained for the first time
secondary data - -already been collected for some prupose other than the current study
survey method - -research technique in which information is gathered from people
sample - -part of the target population that represents it accurately
observation method - -research technique in which the actions of people are watched and
recoreded either by cameras or by observers
point of sale research - -powerful form of research that combines natural observation
experimental method - -research technique in which a researcher oberves the results of
changing one or more marketing
Data analysis - -is the process of compiling , analyzing, and interpereting
Validity - -when the questions asked measure what was intended to be measured
Reliability - -exists when research technique produces nearly identical results in repeated
trails
Open ended questions - -ask respondents to construct their own response to a question
Forced choice questions - -repondents to choose answers from posiibilities given on a
questionnaire
market research - -involves the process and methods used to gather information, analyze
it, and report findings.
marketing information system - -is a set of procedures and methods that regularly
generates, stores, analyzes, and distributes inofrmation for use in making marketing
Database marketing - -information about individual's characteristics
Database - -collection of related inormation about specific topic
Qualitative research - -focuses on smaller numbers of people
Quantitative research - -answers questions that start with "how many" or "how much"
Attitude research - -opinion research obtains information
Market intelligence - -concerned wih the size and location of market
Media Research - -also known as advertising research, focuses on issues of media
effectiveness, selection, freqency, and ratings
Product research - -evaluating product design, package design, product usage
Organizational buyers - -Buyers who purchase goods for business purposes, usually in
much greater quantities than the average consumer buys.
Bill of Materials - -The total of all the materials necessary to make one individual good.
Wholesale and retail buyers - -Purchase goods for resale; they forecast customers' needs
and buy the necessary products.
six-month merchandise plan - -The budget that estimates planned purchases for a sixmonth period.
Planned Purchase - -the retail-dollar purchase figure a firm needs to achieve its sales and
inventory projections for each month. (PS + EOM stock + R) - BOM stock = P
open-to-buy (OTB) - -is the amount of money left for buying goods after all purchases
received and on order have been considered. It is calculated this way:
P - (goods received + goods ordered) = OTB - -...
centralized buying - -Buying for all branches in a chain store operation done in a central
location (company headquarters).
Decentralized buying - -Localchain store managers are authorized to make special
purchases for their individual stores.
want slips - -Customer requests for items that are not carried in the store.
modified rebuy - -the buyer has had experience buying the good or service, but some
aspect of the purchase changes.
new-task purchase - -a purchase is made for the first time.
straight rebuy - -the buyer routinely orders the goods and services purchased from the
same vendor(s) in the past.
Consignment buying - -in which the supplier owns the goods until the wholesaler or
retailer sells them.
Memorandum buying - -in which the buyer pays for all goods but is later reimbursed for
unsold goods
reverse auction - -An auction where companies post what they want to buy and suppliers
bid for the contract.
promotional advertising - -when the goal is to increase sales
institutional advertising - -tries to create a favorable image for a company and foster
goodwill in the marketplace
media - -agencies or instruments used to convey advertising messages to the public
types of media - -print, broadcast, online, specialty
print media - -includes advertising in newspapers, magazines, direct mail, signs, and
billboards
transit advertising - -found on public transportation
broadcast media - -radio and television
networks - -ABC, CBS, NBC, and Fox
online advertising - -uses email or the World Wide Web
banner ads - -usually a rectangle at the top, bottom or side of a web page
pop-up ads - -windows that pop up on your screen when online
specialty media - -relatively inexpensive, useful items featuring the an advertiser's name
or logo
media planning - -process of selecting the advertising media and deciding the time or
space in which the ads should appear
audience - -number of homes or people exposed to an ad
impression - -a single exposure to an advertising message
frequency - -number of times an audience sees or hears an ad
Cost Per Thousand - -the media cost of exposing 1,000 readers or views to an advertising
impression (CPM)
crucial - -of extreme importance
spot radio - -the geographical area an advertiser wants to reach
spot commercials - -advertising messages of one minute or less that can be carried on
network or spot radio
visual merchandising - -all the physical elements used to project an image to customers
display - -visual and artistic aspects of presenting a product to a target group
concept - -A general idea or thought about something
storefront - -a store's sign, logo, marquee, banners, awnings, windows, and the exterior
design, ambiance and landscaping
marquee - -architectural canopy that extends over a store's entrance
store layout - -ways that store uses floor space to facilitate and promote sales and serve
customers
fixtures - -main installations in a store; permanent or movable store furnishings that hold
and display merchandise
point-of-purchase displays - -consumer sales promotion devices; manufactured units that
hold, display, or dispense products
kiosks - -interactive point-of-purchase displays
color wheel - -a chart in which complementary colors (or their names) are arranged on
opposite sides of a circle
complementary colors - -found opposite each other on color wheel; used to create high
contrast
adjacent colors - -located next to each other on color wheel and share same undertones;
analogous colors
triadic colors - -three colors equally spaced on the color wheel
focal point - -an area in the display that attracts attention first, above all else
proportion - -relationship between and among objects in a display
formal balance - -large items with large items; small with small; large on one side, large
on the other
informal balance - -several small items with one large one
direction - -moving a viewer's attention from one part of the display to another
texture - -smooth or rough; the look of the surfaces on display
motion - -animation; use to accentuate, no overpower the merchandise
promotion - -persuasive communication
product promotion - -convincing prospects to select products or services over a
competitor's brand
institutional promotion - -creating a favorable image for a business, helping advocate for
change, or taking a stand in the community
advertising - -form of nonpersonal promotion
direct marketing - -type of advertising directed to a targeted group of prospects
sales promotion - -represents all marketing activities--other than personal selling,
advertising, & public relations--that are used to stimulate purchasing and sales
public relations - -activities that enable an organization to influence a target audience
news release - -an announcement sent to the media
publicity - -involves bringing news or newsworthy info about the organization to the
public's attention
promotional mix - -combination of strategies and cost-effective allocation of resources to
inform the public about the business
push policy - -mainly promotes the product ONLY to the next person in the distribution
channel
pull policy - -mainly directs promotion to consumers to create customer interest
trade promotions - -sales promotion activities to get support for a product from
manufacturers, wholesalers, retailers
consumer promotions - -sales strategies that encourage customers and prospects to buy
coupons - -certificates that entitle customers to cash discounts on goods or services
premiums - -low-cost items given to customers at a discount or free
incentives - -higher-priced items are earned and given away through contests,
sweepstakes, and rebates
promotional tie-ins - -cross-promotional & cross-selling campaigns that involve promo
arrangements between more than one retailer or manufacturer
via - -by the way of
distribution - -the commercial activity of transporting and selling goods from a producer
to a consumer
management - -getting work done through the effort of others
vertical organization - -a chain-of-command, hierarchial structure where tasks &
responsibilities are clearly defined
top management - -make decisions that affect the whole company
top - -CEO, president, COO, CFO, vice president
middle management - -implements the decisions of top management, plans for dept
success
supervisory-level management - -supervise the activities of employees who carry out the
tasks assigned by top & middle mgt.
resources - -anything that is used to produce goods or services
horizontal organization - -top management shares decision making with self-managing
teams of workers who set their own goals & make their own decisions
empowerment - -encouraging team members to contribute to & take responsibility for the
management process
individual - -one person
planning - -setting goals for a project & determining how to reach them
organizing - -establishing a time frame to achieve the goal, assigning employees to the
project, determining the method to do the work
controlling - -setting standards and evaluating performance
identify - -pick out; recognize or distinguish, label; point out
mission statement - -brief description of the ultimate goals of a company
require - -to impose an obligation upon, to demand
remedial action - -encouraging appropriate workplace behavior in order to improve
employee performance
preventive discipline - -prevents improper behavior before it happens
corrective discipline - -an effort to fix improper behavior after it happens
exit interview - -interview between employee and human resources dept when the
employee is leaving company