Term
| What are the three parts of the marketing concept? |
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Definition
- A customer orientation
- A service orientation
- A profit orientation (this is, market goods and services that will earn the firm a profit and enable it to survive and expand to serve more customers wants and needs) |
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Term
| What kinds of organizations are involved in marketing? |
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Definition
| All kinds of organizations use marketing, both for-profit and non-profit. |
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Term
| What are the four Ps of the marketing mix? |
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Definition
- Product
- Price
- Place
- Promotion |
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Term
| How do marketers implement the four Ps? |
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Definition
| The idea is to design a product that people want, price is competitively, place it in a location where consumers can find it easily, and promote it so that consumers know it exists. |
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Term
| What are the steps to follow when conducting marketing research? |
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Definition
- Define the problem or opportunity and determine the present situation
- Collect data
- Analyze the research data
- Choose the best solution and implement it |
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Term
| What are the different methods used to gather research? |
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Definition
| Research can be gathered through secondary data (information that has already been compiled by others) and published in sources such as journals, newspapers, directories, databases, and internal sources. Primary data (data that you gather yourself) includes observation, surveys, interviews, and focus groups. |
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Term
| What is environmental scanning? |
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Definition
| The process of identifying the factors that can affect marketing success. Marketers pay attention to all environmental factors that create opportunities and threats. |
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Term
| What are some of the more important environmental trends in marketing? |
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Definition
- The growth of the internet
- The growth of consumer databases. Using these databases, companies can develop product and services that closely match the needs of customers.
- Social trends that marketers must monitor to maintain their close relationship with customers – population growth and shifts
- Dynamic competitiveness
- Economic environment |
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Term
| What are some ways that marketers segment the consumers market? |
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Definition
- Geographic segmentation by age, income, education level
- Psychographic segmentation of a person’s lifestyle or personality by activities, interests, opinions
- Behavioural segmentation divides the market based on behaviour with or toward a product by sought, usage rate, and user status. |
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Term
| What are the differences between mass marketing and relationship marketing? |
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Definition
- Mass marketing means developing products and promotions to please large groups of people
- Relationship marketing tends to lead away from mass production and toward customer-made goods and services. Its goal is to keep individual customers over time by offering them goods or services that meet their needs. |
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Term
| What are some of the factors that influence the customer decision-making process? |
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Definition
- Marketing mix influences – product place price promotion
- Sociocultural influences – reference groups, family, social class, culture, subculture
- Psychological influences – perception, attitudes, learning, motivation
- Situational influences – type of purchase, social surroundings, physical surroundings, previous experience.
- Learning, reference group, culture, subculture, and cognitive dissonance.
- Decision making process
o Problem recognition
o Information search
o Alternative evaluation
o Purchase decision/or no purchase
o Post-purchase evaluation |
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Term
| What makes the business-to-business market different form the consumer market? |
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Definition
| The number of customers in the B2B market is relatively small, and the size of business customers is relatively large. B2B markets tend to be geographically concentrated, and industrial buyers generally are more rational than ultimate consumers in the selection of goods and series. B2B sales tend to be direct, and there is much more emphasis on personal selling in B2B markets than in consumer markets. |
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Term
| What is included in a total product offer? |
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Definition
| Total product offer is everything that consumers evaluate when deciding whether to buy something. Price, brand name, satisfaction in use, services, guarantee, convenience and more. |
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Term
| What is the difference between a product line and a product mix? |
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Definition
- Product line is a group of physically similar products with similar competitors. Example different types of gum bubble gum or sugarless gum.
- A product mix is a company’s combination of product lines. A manufacturer may offer lines of gum, candy bars and so on. |
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Term
| How do marketers create product differentiation for their goods and services? |
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Definition
| Marketers use a mix of pricing, advertising and packaging to make their products seem unique and attractive. |
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Term
| What are the functions of packaging? |
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Definition
- To protect the goods inside, stand up under handling and storage, be tamperproof, deter theft and yet be easy to open and use
- The attract the buyer’s attention
- To describe the contents
- To explain the benefits of the good inside
- To provide information on warranties, warnings, and other consumer matters
- To indicate price, value, and uses |
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Term
| How is a trademark different form a brand? |
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Definition
| A trade mark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design. One example of a trademark is the McDs golden arches. |
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Term
| What is brand equity and brand loyalty? |
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Definition
| Brand equity is the combination of factors – such as awareness, loyalty, perceived quality, images and emotions – that people associate with a given brand. The core of brand equity is brand loyalty, with is the degree to which customers are satisfied, like the brand and are committed to further purchases. |
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Term
| What are pricing objectives? |
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Definition
- Achieving a target profit
- Building traffic
- Increasing market share
- Creating an image
- Meeting social goals |
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Term
| What’s the break-even point? |
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Definition
At break-even point, the total costs equal the total revenue. Sales beyond that point are profitable
BEP = fixed costs / (price – variable costs) |
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Term
| What strategies can marketers use to determine a product’s price? |
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Definition
- Skimming price strategy is one in which the product is prices high to make optimum profit while there’s little competition
- Penetration strategy is one in which a product is priced low to attract more customers and discourage competitors
- Cost-oriented pricing occurs when producers often use cost as a primary basis for setting price
- Demand-oriented pricing is based on consumer demands rather than cost
- Competition-oriented pricing is a strategy based on all competitors’ prices.
- Price leadership occurs when all following the pricing practises of one or more dominant companies
- Bundling means grouping two or more products together and pricing them as a unit |
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Term
| Why do companies use non-price strategies? |
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Definition
| Pricing is one of the easiest marketing strategies to copy. Therefore, often it is not a good long-run competitive tool. Instead marketers may compete using non-pricing strategies that are less easy to copy, including offering great service, educating consumers, and establishing long-term relationships with customers. |
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Term
| What is a marketing channel? |
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Definition
| Consist of a 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. |
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Term
| How do marketing intermediaries add value? |
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Definition
| Intermediaries perform certain marketing tasks – such as transporting, storing, selling, advertising, and relationship building – faster and cheaper than more manufactures could. Channels of distribution ensure communication flows and the flow of money and title to goods. They also help ensure that they right quality and assortment of goods will be available when and where needed. |
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Term
| What are the principles behind the use of such intermediaries? |
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Definition
| Marketing intermediaries can be eliminated, but their activities cannot. Intermediary organizations have survived in the past because they have performed marketing functions faster and more cheaply than others could. Intermediaries add costs to products, but these costs are usually more than offset by the value they create. |
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Term
|
Definition
| An organization that sells to ultimate consumers |
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Term
| What are three distribution strategies that marketers use? |
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Definition
- Intensive – putting products in as many places as possible
- Selective – choosing only a few stores in a chose market
- Exclusive – using only one store in each market area to sell the produce |
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Term
| What is non-store retailing? |
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Definition
| Retailing done outside a traditional store. It includes online marketing, telemarketing, vending machines, kiosks, and carts (in shopping centers) and direct selling (going to homes or workplace). |
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Term
|
Definition
| Is an effort made by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange. |
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Term
| What are the five traditional promotional tools that make up the promotional mix? |
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Definition
- Advertising
- Personal selling
- Public relations
- Sales promotions
- Direct marketing |
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Term
| How are sales promotion activities used both within and outside the organization? |
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Definition
Internal sales promotion efforts are directed at salespeople and other customer-contact people to keep them enthusiastic about the company.
- Internal sales promotion activities include sales training, sales aids, audiovisual displays, and trade shows.
- External sales promotion (promotion to customers) involves using samples, coupons, cents-off deals, displays, store demonstrators, premiums, and other such incentives. |
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Term
| What is the importance of finance? |
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Definition
| Finance comprises those functions in a business responsible for acquiring finds for the firm, managing funds within the firm and planning for the expenditure of funds on various assets. |
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Term
| What are the most common ways in which firms fail financially? |
|
Definition
- Undercapitalization
- Poor control over cash flow
- Inadequate expense control |
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Term
| What do financial managers do? |
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Definition
| They plan, budget, control funds, obtain funds, collect funds, audit, manage taxes, and advise top managers on financial matters. |
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Term
| What is the financial planning process? |
|
Definition
- Forecasting short-term and long-term needs
- Budgeting
- Establishing financial controls |
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Term
| What are three budges of finance? |
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Definition
- The operating (master budget) is divided into two other budgets: it projects dollar allocations to various costs and expenses given various revenues
- The capital budget is the spending plan for expenses assets, such a property, plant and equipment
- The cash budget is the projected cash inflows and outflows for a period and the balance at the end of the given period. |
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Term
| What are the major financial needs for firms? |
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Definition
- Managing day-to-day needs of the business
- Controlling credit operations
- Acquiring need inventory
- Making capital expenditures |
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Term
| What is the difference between short-term and long-term financing? |
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Definition
- Shot-term refers to finds that will be repaid in less than one year
- Long-term refers to finds that will not be repaid over a specific time period of more than one year. |
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Term
| What is the difference between debt financing and equity financing? |
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Definition
- Debt financing refers to finds raised by borrowing (going into debt)
- Equity financing is raised form within the firm (through retained earnings) or by selling ownership in the company to venture capitalists or by issuing shares to other investors. |
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Term
| What are the different sources of short-term financing? |
|
Definition
- Trade credit
- Promissory notes
- Family and friends
- Commercial banks and other financial institutions
- Factoring
- Commercial paper |
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Term
| Why should businesses use trade credit? |
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Definition
| It is the least expensive and most convenient form of short-term financing. Businesses can buy goods today and pay for them someone in the future. |
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Term
| What is a line of credit? |
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Definition
| t is an agreement by a band to lend up to a specified amount of money to the business at any time, as long a certain conditions are met. A revolving line of credit agreement is a line of credit that guarantees a loan will be available – for a fee. |
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Term
| What is the difference between a secured loan and an unsecured loan? |
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Definition
- unSecured loan has no collateral backing it
- Secured loans have collateral pledged as security such as accounts receivable, inventory or other property of value. |
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Term
| Is factoring a form of secured loan? |
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Definition
| No, factoring means selling accounts receivable at a discounted rate to a factor (an intermediary that pays cash for those accounts) |
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Term
| What is commercial paper? |
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Definition
| Is a corporation’s unsecured promissory note maturing in 365 days or less. |
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Term
| What are the major sources of long-term financing? |
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Definition
- Debt financing involves the sale of bonds and long-term loans from banks and other financing institutions
- Equity financing is obtained through the sale of company stock, form the firm’s retained earnings, or from venture capital. |
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Term
| What are the two major forms of long-term financing? |
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Definition
- Debt financing comes from two courses: selling bonds and borrowing from individual banks, and other financial institutions
- Bonds can be secured by some form of collateral or can be unsecured. The same is true of loans. |
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Term
|
Definition
| Accounting is the recording, classifying, summarizing, and interoperating of financial events and transactions that affect and organization. The methods used to record and summarize accounting data into reports are called and accounting system. |
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Term
| What are the different areas of the accounting profession? |
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Definition
- Managerial accounting
- Financial accounting
- Compliance
- Tax accounting
- Governmental and not-for-profit accounting |
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Term
| How does managerial accounting differ from financial accounting? |
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Definition
- Managerial accounting provides info for planning and control purposes to managers within the firm to assist them in decision making
- Financial accounting provides info in the form of three basic financial statements to managers and external users of data such as creditors and lenders. |
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Term
| What is the job of an auditor? |
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Definition
- To review and evaluate the standards used to prepare a company’s financial statements
- An individual audit is conducted by a public accountant and is an evaluation and unbiased opinion about the accuracy of a company’s financial statements. |
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Term
| What is the difference between a private accountant and a public accountant? |
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Definition
- A public accountant provides services for a fee to a variety of companies. Also has an independent audit.
- A private accountant works for a single company. |
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Term
| What is the difference between bookkeeping and accounting? |
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Definition
- Bookkeeping is part of accounting and includes a mechanical part of recording data
- Accounting also includes classifying, summarizing, interpreting and reporting data to management. |
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Term
| What are journals and ledgers? |
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Definition
- Journals are original-entry accounting documents – they are the first place that transactions are recorded.
- Ledgers are summaries of the journal entries. They are specialized accounting books that arrange the transactions by homogeneous groups (accounts) |
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Term
| What are the six steps of accounting cycle? |
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Definition
- Analysing documents
- Recording information into journals
- Posting that information into ledgers
- Developing a trial balance
- Preparing financial statements
- Analyzing financial statements |
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Term
| How can computers help accountants? |
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Definition
- Record and analyze data and provide financial statement
- Software ensures that data is done correctly
- Help in decision making by providing appropriate info, but cannot make good financial decisions independently. |
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Term
|
Definition
| Reports the financial position of a firm on a particular day. Uses the equation: assets = liabilities + owners’ equity. |
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Term
| What is an income statement? |
|
Definition
Reports revenues, costs and expenses for a specific period of time. Many equations:
- Revenue – cost of goods sold = gross margin
- Gross margin – operating expenses = net income before taxes
- Net income before taxed – taxes = net income or profit |
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Term
| What is a cash flow statement? |
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Definition
| Difference between cash receipts (money coming in) and cash disbursements (money going out). It reports cash receipts and disbursements related to the firm’s major activities: operations, investing and financing. |
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Term
|
Definition
| It’s the systematic matching of the cost of a tangible asset against the revenue earned from the use of this asset over the asset’s estimated useful life. It must be noted on both the balance sheet and the income statement. |
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Term
|
Definition
- They are methods of valuing inventory.
- FIFO – first in first out
- LIFO – last in first out |
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Term
| What are the four key categories of ratios? |
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Definition
- Liquidity ratios
- Leverage (debt) ratios
- Profitability (performance) ratios
- Activity ratios |
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Term
| What is the major value of ratio analysis to the firm? |
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Definition
| Ratio analysis provides the firm with info about its financial position in key areas compared to similar firms in its industry and its past performance. |
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Term
|
Definition
| – the good feeling you have when you have done a job well |
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Term
|
Definition
| – something given to you by someone else as recognition for good work – increased wages, praise, and promotion |
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Term
|
Definition
| – studying workers to find the most efficient ways of doing things and then teaching people those techniques |
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Term
| Principle of motion economy |
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Definition
| – theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions. |
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Term
| What is Moslow’s hierarchy of needs? What are the levels? |
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Definition
A theory of motivation that places different types of human needs in order of importance. Abraham Maslow said that a person with an unfilled need would be motivated to satisfy it and that a satisfied need no longer served as motivation. From bottom of pyramid to top:
- Physiological Needs: basic survival needs, such as the need for food, water and shelter
- Safety Needs: the need to feel secure at work and at home
- Social Needs: the need to feel loved, accepted and apart of the group
- Esteem Needs: the need for recognition and acknowledgement from others, as well as self-respect and a sense of status or importance.
- Self-Actualization Needs: the need to develop to one’s fullest potential |
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Term
| Can managers use Maslow’s theory? |
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Definition
| Yes, they can recognize what unmet needs a person has and design work so that it satisfies those needs. This increases work efficiency and helps the business! |
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Term
| What are the factors called motivators? |
|
Definition
- Work itself
- Achievement
- Recognition
- Responsibility
- Growth
- Advancement |
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Term
| What are hygiene (maintenance) factors? |
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Definition
- Company policies
- Supervision
- Working conditions
- Interpersonal relations
- Salary |
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Term
|
Definition
| Efforts to make jobs more interesting to employees |
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Term
| What characteristics of work affect motivation and performance? |
|
Definition
- Skill variety
- Task identity
- Task significance
- Autonomy
- Feedback |
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Term
| Name two forms of job enrichment that increases motivation? |
|
Definition
- Job enlargement
- Job rotation |
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Term
| What is Douglas McGregor’s theory of managers? |
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Definition
| Managers will have one of two opposing attitudes toward employees |
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Term
|
Definition
| Assumes that the average person dislikes work and will avoid it if possible. Therefore people must be forced, controlled and threatened with punishment to accomplish organizational goals. |
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Term
|
Definition
| Assumes people like working and will accept responsibility for achieving goals if rewarded for doing so. |
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Term
| What is goal-setting theory? |
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Definition
| It is based on the notion that setting ambitious but attainable goals will lead to high levels of motivation and performance if the goals are accepted, accompanied by feedback and facilitated by organizational conditions. |
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Term
| What is management by objectives (MBO)? |
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Definition
| MBO is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation by objectives among top and middle-level managers, supervisors and employees. |
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Term
| What is the expectancy theory? |
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Definition
| Victor Vroom’s theory that the amount of effort employees exert on a specific task depends on their expectation of the outcome. |
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Term
| What are the key elements involved in expectancy theory? |
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Definition
Expectancy theory centers on three questions employees often ask about performance on the job:
- Can I accomplish the task?
- If I do accomplish it, what is my reward?
- Is the reward worth the effort? |
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Term
| What are the five steps employers take to improve employee performance? |
|
Definition
- Determine what rewards are valued by employees
- Determine each employee’s desired performance standard
- Ensure that performance standards are attainable
- Guarantee rewards tied to performance
- Be certain that rewards are considered adequate |
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Term
| What is the reinforcement theory? |
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Definition
| Theory that positive and negative reinforces motivate a person to behave in certain ways. |
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Term
| What are the variables in reinforcement theory? |
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Definition
- Positive reinforces are rewards such as praise, recognition, or pay raises that a worker might strive to receive after performing well.
- Negative reinforces are punishments such as reprimands, pay cuts or firing that a work might be expected to try and avoid. |
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Term
|
Definition
| The idea that employees try to maintain equity between inputs and outputs compared to tohers in similar positions. |
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Term
| Why is open communication so important in building effective self-managed teams? |
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Definition
| Open communication helps both top managers and team members understand the objectives and work together to achieve them. Teams establish an environment in which learning can happen because most learning happens at the peer level |
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Term
| How are baby bust managers likely to be different from their baby-boomer predecessors? |
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Definition
- Baby boomers are willing to work long hours to build their careers and often expect their subordinated to do likewise
- Baby busters strive for a more balanced lifestyle and are likely to focus on results rather than on how many hours their teams work
- Baby busters are better off at working in teams and providing frequent feedback. They are not bound to tradition and they are willing to try new approaches to solving problems. |
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Term
| Why is this industry important to Canada? |
|
Definition
- The financial services industry employs more than 1million Canadians, directly or indirectly.
- Its activities represent 5 percent of Canada’s GDP.
- On a yearly basis more than $9 billion in tax revenue to all levels of government is generated.
- Nearly $50 billion of services are exported annually.
- Because of its important role in the economy, the financial industry is one of the most regulated sectors in the country
- Regulation is designed to ensure the integrity, safety and soundness of financial institutions and markets. |
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Term
|
Definition
| – non-profit, member-owned financial co-operatives that offer a full variety of banking services to their members |
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Term
|
Definition
| – a financial institution that can administer estates, pension plans, and agency contracts in addition to other activities conducted by banks |
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|
Term
|
Definition
| – financial organizations that accept no deposits but offer many services provided by regular banks |
|
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Term
|
Definition
| – amounts of money put aside by corporations, non-profit organizations, or unions to cover part of the financial needs of their members when they retire |
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Term
| How is the value of money determined? |
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Definition
| The value depends on the money supply; that is how much money is available to buy goods and services. Too much money in circulation causes inflation. Too little money causes deflation, recession, and unemployment |
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Term
|
Definition
| anything that people generally accept as payment for goods and services |
|
|
Term
|
Definition
| – the trading of goods and services for other goods and services directly |
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|
Term
|
Definition
| – the amount of money the Bank of Canada makes available for people to buy goods and services |
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Term
|
Definition
| – the interest rate that banks charge their most creditworthy customers |
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|
Term
| What are the characteristics of useful money? |
|
Definition
- Portability
- Divisibility
- Stability
- Durability
- Uniqueness |
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Term
|
Definition
| – a profit-seeking organization that receives deposits from individual and corporations in the form of chequing and savings accounts and then uses some of these funds to make loans |
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Term
|
Definition
| – a firm that trades securities for its clients and offers investment services |
|
|
Term
|
Definition
| a condensed version of economic and financial information that company must make available to investors before they purchase a security |
|
|
Term
|
Definition
| – a government agency that administers provincial securities legislation |
|
|
Term
|
Definition
| – an organization whose members can buy and sell (exchange) securities for companies and investor |
|
|
Term
|
Definition
| a registered representative who works as a market intermediary to buy and sell securities for clients |
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Term
| Who benefits form the services offered by banks? |
|
Definition
- Individuals
- Small- and medium-sized businesses
- Large corporations
- Governments
- Institutional investors
- Non-profit organizations
- Services from banks include: banking, investing, financial services |
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Term
| What is the role of insurance as part of the financial services industry? |
|
Definition
| Everyone who drives a vehicle is required to have auto insurance. All businesses typically carry a mix of insurance coverage for property, liability, crime and business interruption insurance. |
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Term
| What are the key criteria when selecting investment options? |
|
Definition
- Investment risk - the chance that an investment will be worth less at some future time than it’s worth now
- Yield - the expected rate of return on an investment over a period of time
- Duration - the length of time you investment is committed to an investment
- Liquidity - how quickly you can get you money back if you need it
- Tax consequences – how the investment will affect your tax situation |
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Term
|
Definition
| – the positive difference between the purchase price of a stock and its sale price |
|
|
Term
|
Definition
| – purchasing securities by borrowing some of the cost from the broker |
|
|
Term
|
Definition
| – an action by a company that gives shareholders two or more shares of stock for each one the own |
|
|
Term
|
Definition
| a fund that buys stocks and bonds and then sells units of ownership in the fund to the public |
|
|
Term
|
Definition
| Buying several different types of investments with different degrees of risk. The purpose is to reduce the overall risk an investor will assume by investing in just one type of security. |
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|
Term
| How can mutual funds help individuals diversify their investments? |
|
Definition
| A mutual fund is a fund that buys a variety of securities and then sells units of ownerships in the fund to the public. Individuals who buy shares in a mutual fund are able to invest in many different companies they could not afford to invest in otherwise. |
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Term
| Describe the responsibilities of three federal agencies that oversee financial institutions. |
|
Definition
- The Office of the Superintendent of Financial Institutions – monitors the day-to-day operations of institutions with respect to their financial soundness
- Canada Deposit Insurance – oversees the deposit insurance system which protects deposits that Canadians have in the federal financial institutions
- The Financial Consumer Agency of Canada – monitors financial institutions to ensure that they comply with federal consumer protection measures, which range from disclosure requirements to complaint-handling procedures. |
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