The process of managing people by selecting, recruiting, training, appraising, developing, and compensating employees and attending to their labor relations, health and safety concerns, and fairness concerns
Net Profit
The residual profit after deducting all operating expenses, interest, taxes, and other costs from the gross profit (Net Profit = Gross Profit - Operating Expenses - Interest - Taxes - Other Expenses)
Gross Profit
The amount of money a company has left over after deducting the cost of goods sold (COGS) from its total revenue (Gross Profit = Total Revenue - Cost of Goods Sold)
Channel Management
Involves making decisions about where to sell your product. The process of deciding how to get goods into customer's hands
Promotion
Any form of communication used to inform, persuade, or remind people about a business's products
Personal Selling
Any form of direct contact between a salesperson and a customer
Product Planning
Making decisions on the features needed to sell a company's products, services and ideas---ex: product attributes, branding, packing, labeling, product support services
Prestige Pricing Strategy
Setting a high price so that quality or status conscious consumers will be attracted to the product and buy it
Odd-Even Pricing Strategy
Setting prices a few dollars or cents under an even number
Bundle Pricing Strategy
Selling two or more products in a single package price; based on the idea that consumers value the package more than the individual items
International Pricing Strategy
The approach a company takes to set prices for its products or services when operating in multiple countries or across borders
Break Even Point
The point at which a business makes neither a profit nor a loss
Marketing Information Management
The process of getting the marketing information needed to make sound business decisions. Gathering information about a consumer's needs, wants, and experiences in order to improve your product.
Why do businesses have policies and procedures in place?
Standardization
Compliance
Employee Guidance
Marketing Mix
The 4Ps: Product, Price, Place, and Promotion. These elements work together to create a comprehensive marketing strategy.
Elements of the Promotional Mix
Advertising
Public Relations (PR)
Sales Promotion
Personal Selling
Direct Marketing
Steps in the selling process
Prospecting and Qualifying
Preapproach
Approach
Presentation and Demonstration
Handling Objections
Closing the Sale
Follow-up
Important to understand when preparing for a sale: Know Your Product/Service, Understand Customer Needs, Market Research, Build Rapport, Address Objections, Sales Presentation Skills, Closing Techniques, Follow-Up Plan
Cost
The total expenses incurred in producing a product or delivering a service
Price
The amount of money a customer is willing to pay for a product or service
Internal Pricing Factors
Costs
Business Objectives
Product Lifecycle
External Pricing Factors
Market Demand
Competitor Pricing
Economic Conditions
Customer Perceptions
Vendors
Individuals or businesses that supply goods or services to another business
Importance of establishing good vendor relationships
Reliability
Cost Efficiency
Quality Assurance
Innovation and Collaboration
Timely Delivery
Primary Data
Data collected directly from original sources for a specific research purpose
Secondary Data
Data that has been collected by someone else for a purpose other than the current research
Market Segmentation
Dividing a broad target market into smaller, more manageable segments based on similar characteristics, needs, or behaviors
Ways to segment a market
Geographic
Demographic
Psychographic
Behavioral
Advantages of having too many products in a product mix
Catering to Diverse Needs
Market Coverage
Reduced Risk
Disadvantages of having too many products in a product mix
Complexity
Costs
Brand Dilution
Advantages of having too little products in a product mix
Focus and Expertise
Simplicity
Brand Consistency
Disadvantages of having too little products in a product mix