Exam 5

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Terms in this set (...)

12. Which stage of product development is a prototype created
Step 4- product development
Test marketing
A trial minilaunch of a product in limited areas that represent the potential market
Convenience products
Eggs, milk, bread, and newspapers, bought frequently, without a lengthy search, and often for immediate consumption
Shopping products
Furniture, audio equipment, clothing, sporting goods, are purchased after the consumer has compared competitive products and shopping around
Product mix
All the products offered by an organization
4 stages of the product life cycle, explain each
1. Introduction - consumer awareness and acceptance of the product are limited, sales are zero, and profits are negative
2. Growth - sales increase rapidly and profits peak then start to decline
3. Maturity - sales continue to increase at beginning, but then the sales curve peaks and storage to decline while profits continue to decline
4. Decline - sales continue to fall rapidly
Trademark
A brand that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm
Price skimming
Charging the highest possible price that buyers who want the product will pay
Psychological pricing
Encouraging purchases based on emotional rather than rational responses to the price
Intensive distribution
A form of market coverage whereby a product is made available in as many outlets as possible
Physical distribution
All the activities necessary to move products from producers to customer-inventory control, transportation, warehousing, and material handling
Air transportation
Type of transportation that is both the most reliable and most expensive
Another term for asking customer to buy something
Closing (personal selling)
13. Difference between e-business and traditional business
Conducting e-business means carrying out the goals of business through the use of the Internet
Type of media used by digital marketers
They use all digital media, including the Internet and mobile and interactive channels
"Site-to-store"
Buy something online and having it shipped to store
Most flexible aspect of the marketing mix
Price
Social network
A web-based meeting place for friends, family, co-workers, and peers that lets users create a profile and connect with other users for a wide range of purposes
Facebook
Most popular networking site in world, create profile, public or private, can search network for people to connect
Blog
Web-based journals in which writers can edititorialize and interact with other Internet users
Wiki
Software that creates an interface that's enables users to add or edit the content of some types of websites
Viral marketing
A marketing tool that used a networking effect to spread a message and create brand awareness. The purpose of this marketing technique is to encourage the consumer to share the message with friends, family, co-workers, and peers
Pinterest
A photo sharing bullin board site that combines photo sharing with elements of bookmarking and social networking
Podcast
Audio or video file that can be downloaded from the Internet with a subscription that automatically delivers new content to listening devices or personal computers
Google wallet
Mobile apps that store credit and information on the smartphone, can tap to pay and register transaction
Bitcoin
A virtual peer-to-peer currency that can be used to make a payment via smartphones
14. Accounting
The recording, measurement, and interpretation of financial information
Certified Public Accountant (CPA)
An individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records
Forensic accounting
A growing area from public accountants, it is accounting that is fit for legal review. Analyzing financial documents in search for fraud/misconduct
Cash flow
The movement of money through an organization over a daily, weekly, monthly, or yearly basis
Liabilities
Debts that a firm owes to others
Accounting equation
Assets = Liabilites + Owner's Equity
Another name for revenue
Sales ( goods or services sold)
Net income
The total profit (or loss) after all expenses, including taxes, have been deducted from revenue (also called net earnings)
Depreciation
The process of spreading the costs of long-lived assets such as building and equipment over the total number of accounting periods in which they are expected to be used
Balance Sheet
A snap-shot of the organization financial position at a given moment
Accounts payable
The amount a company owes to suppliers for goods and services purchase do with credit
Accounts receivable
Money owes to a company by its clients or customers who have promised to pay for the products at a later rate date
15. Why is the life expectancy of a $100 bill longer than that of a $1 bill
$100 notes are often used as a store value, they are passed between users less frequently than lower denominations that are more often used for transactions
NOW account
Negotiable Order of Withdrawl
(interest-bearing checking account)
Another name for a saving account
Time deposits
Certificate of deposit (CDs)
Savings accounts that garantee a depositor a set interest rate over a specific interval of time as long as the funds are not withdrawn before the end of the interval - six months, one years, seven years, etc.
What happens to the interest rate the longer you have a CD for
In general, the longer the term of the CD, the higher the interest rate it earns
Debit Card
A card that looks like a credit card but works like a check, using it results in a direct, immediate, electronic payment from the cardholders checking account to a merchant or third party
The Credit CARD Act
Regulates the practices of credit card companies
Why was the Federal Reserve Board established
to regulate the nation's banking and financial industry
What are the oldest and largest of all the financial institutions
commercial banks
Credit Union
a financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion
Who insures individual bank accounts
Federal Deposit Insurance Corporation (FDIC)