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Updated 2007-03-30 08:15

PRODUCT CONCEPTS AND MANAGEMENT I

Question Answer
A product is _____ that performs physical functions and enhances egoa bundle of expectations
A product is a bundle of expectations that _____ and enhances egoperforms physical functions
A product is a bundle of expectations that performs physical functions and _____enhances ego
The 3 measures of product mix are?width, depth, consistency
A good is a _____ _____ _____.tangible physical entity
A service is _____ of human or mechanical effort.an intangible result
A service is an intangible result of_____ .human or mechanical effort
A product line is _____ viewed as a unit because of marketing, technical, or end-use considerationsa group of closely related product items
A product line is a group of closely related product items _____ because of marketing, technical, or end-use considerationsviewed as a unit
A product line is a group of closely related product items viewed as a unit because of _____ considerationsmarketing, technical, or end-use
A product mix is _____ that an organization makes available to customersthe total group of products
A product mix is the total group of products that _____ makes available to customersan organization
A product mix is the total group of products that an organization _____makes available to customers
Width & depth help a marketer _____ of the total group of products.coordinate the marketing
Width & depth help a marketer coordinate the marketing of_____ .the total group of products
Product mix width isnumber of product lines
Product mix depth isnumber of items in a line
Product mix consistency issimilarity of product lines in terms of production and marketing
In terms of consistency, as we add products what two questions do you ask?Do they fit with others products? Can similar mkt strateies or prod techniques be used
An idea isan image, concept, or philosophy
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PRODUCT CONCEPTS AND MANAGEMENT II

Question Answer
The four consumer product classifications are (recall the acronym)Shopping , Unsought, Convenience, Specialty
Two Unsought product classifications areRegularly, New
Three Convenience product classifications areStaples, Impulse, Emergency
Two Shopping product classifications areHomogeneous, Heterogeneous
The consumer products classification acronym isSUCS
Consumer products are _____ personal and family needsproducts purchased to satisfy
Consumer products are products purchased to satisfy _____personal and family needs
Business (industrial) products are products bought to_____ , to resell, or to make other productsuse in operations
Business (industrial) products are products bought to use in operations, _____ , or to make other productsto resell
Business (industrial) products are products bought to use in operations, to resell, or to _____make other products
Consumer products, Unsought – how many types and what are they?2: New & Regularly
Consumer products, Convenience – how many types and what are they?3: Staples, Impulse, Emergency
Consumer products, Shopping– how many types and what are they?2: Homogeneous, Heterogeneous
Consumer products, Specialty – how many types and what are they?None, homeboy
A new, unsought consumer product is one the consumer isn’t in the market for becauseshe doesn’t know about it (ignorance)
A regularly, unsought consumer product is one the consumer is not in the market for becauseshe doesn’t need it (no babies, don’t need no diapers)
A staple, convenience consumer product is one the consumer exerts minimal purchasing effort on becausehe buys it repeatedly (good if _you’ve_ captured him)
An impulse, convenience consumer product is one the consumer exerts minimal purchasing effort on becauseshe buys it on impulse (make it visible, she doesn’t know she has a problem)
An emergency, convenience consumer product is one the consumer exerts minimal purchasing effort on becausehe has no alternative, he can not search
A homogeneous, shopping consumer product is one the consumer invests a lot of time in before the purchase (directly related to risk) becausethe choices ARE the same and she’s shopping for price (side-by-side refrigerators)
A heterogeneous, shopping consumer product is one the consumer invests a lot of time in before the purchase (directly related to risk) becausethe choices are NOT the same and she’s shopping for features (clothing)
A specialty, consumer product is one the consumer is willing to expend considerable effort to obtain becausehe will not accept a substitute (product specific, unique characteristics, loyalty, high $, limited volume)
SUCS is the acronym for what?Consumer products classification
If you can classify your product it drives your marketing mix and classifications are made based on what?How the customer buys the product
Specialty products get exclusive, selective, or intensive distribution?Exclusive
Unsought products get exclusive, selective, or intensive distribution?Intensive
Convenience products get exclusive, selective, or intensive distribution?Intensive
Shopping products get exclusive, selective, or intensive distribution?Selective
memorize

PRODUCT CONCEPTS AND MANAGEMENT III

Question Answer
What is the acronym for Business Product Categories?CRIBs MAP (to find biz products you must consult your crib’s map)
CRIB MAPComponent Parts = spark plugs, tires, clocks, switches (business product category)
CRIB MAPRaw Materials = minerals, chemicals, agriculturals (business product category)
CRIB MAPInstallations = buildings, warehouses, very large machines (business product category)
CRIB MAPBusiness Services = financial, legal, IT, janitorial, marketing research (business product category)
CRIB MAPMRO Supplies = maintenance, repair, operating = paper, pencils, oil, paints (business product category)
CRIB MAPAccessory Equipment = file cabinets, calculators, tools (business product category)
CRIB MAPProcess Materials = vinegar in dressing – direct use but not identifiable (business product category)
Recall my Product Adoption Process for my new mechanical pencil.I spy eyes, whoa! eyes, hmmmm eyes, test, buy and fly
What are the five stages in the Product Adoption Process?A I E T A: Awareness, Interest, Evaluation, Trial, Adoption
Product Life Cycle diagram. The x & y axes areTime and Dollars
Product Life Cycle diagram. The four sections areIntro, Growth, Maturity, Decline
Product Life Cycle diagram. The upper red line isIndustry sales
Product Life Cycle diagram. The lower blue line isIndustry profits
Product Life Cycle diagram. The upper red line starts where?At zero (industry sales)
Product Life Cycle diagram. The lower blue line starts where?Below zero (industry profits)
Product Life Cycle diagram. The upper red line peaks where?Stage 3, Maturity (industry sales)
Product Life Cycle diagram. The lower blue line peaks where?Stage 2, Growth (industry profits)
In which product life cycle stage do profits peak and why do they begin to decline before sales peaks?Late in the growth stage, competitors enter
Product Life Cycle diagram. The upper red line ends where?Well above zero, but significantly down from peak (industry sales)
Product Life Cycle diagram. The lower blue line ends where?Just above zero (industry profits)
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PRODUCT CONCEPTS AND MANAGEMENT IV (product DEVELOPMENT)

Question Answer
Name 3 reasons new product development is difficult.expensive, complex (involved), and risky
Name 2 reasons new product development is necessary.enhance product mix, failure = market share loss
The 9 phases of the new-product development process are _____ .. Idea Generation .. Idea Evaluation .. _____ .. Technical R&D .. Product/Mkt R&D .. _____ .. Market Testing .. Commercial ProductionMarket Power Analysis .. Biz/Tech Feasibility Analysis .. Prelim Production
The 9 phases of the new-product development process are Market Power Analysis .. _____ .. Idea Evaluation .. Biz/Tech Feasibility Analysis .. _____ .. Product/Mkt R&D .. Prelim Production .. _____ .. Commercial ProductionIdea Generation .. Technical R&D .. Market Testing
The 9 phases of the new-product development process are Market Power Analysis .. Idea Generation .. _____ .. Biz/Tech Feasibility Analysis .. Technical R&D .. _____ .. Prelim Production .. Market Testing .. _____Idea Evaluation .. Product/Mkt R&D .. Commercial Production
1. Market Power AnalysisAre there new needs? New markets developing?
2. Idea GenerationAs many ideas as possible; then see if there’s a need
3. Idea EvaluationScreen out bad ideas or those unable to execute
4.Biz/Tech Feasibility AnalysisEstimate mkt, demand, potential, competitors & see if profit is feasible (on culled products)
5. Technical R&Dmove from paper to real life, start investing
6. Product/Mkt R&DIs the product cost effective? Prototype developed
7. Prelim ProductionPerformance evaluated, costs evaluated
8. Market TestingGo to market, test product and mix
9. Commercial ProductionRefine full-scale mfg and mktg plans, preparing budgets; competitors now know
memorize

PRODUCT CONCEPTS AND MANAGEMENT V

Question Answer
A service is an _____ involving a deed, a performance, or an effort that cannot be physically possessedintangible product
A service is an intangible product involving a _________, a _________, or an _________ that cannot be physically possesseddeed, performance, effort
A service is an intangible product involving a deed, a performance, or an effort that cannot be _____physically possessed
A brand is an identifying name, _____, design, or _____term, symbol
A brand is an identifying _____, term, _____, or symbolname, design
Three benefits of branding: A brand can _____ , make a consumer’s choice simpler, make a product readily identifiableincrease depth or width of a product mix
Three benefits of branding: A brand can increase depth or width of a product mix, _____ , make a product readily identifiablemake a consumer’s choice simpler
Three benefits of branding: A brand can increase depth or width of a product mix, make a consumer’s choice simpler, _____make a product readily identifiable
What makes up the acronym “I Hiccup” (Characteristics of Services)Intangibility, Heterogeneity, Inseparability, Client-based-relationships, CUstomer contact, Perishability
Intangibility is 1of 6 characteristics of services that cause problems how?(degree of int.) can’t be touched, customers don’t remember the service offered [insurance]
Inseparability is 1of 6 characteristics of services that cause problems how?may be produced, consumed, sold at same time – can’t take it home [marriage counseling]
Perishability is 1of 6 characteristics of services that cause problems how?of capacity; can’t be stored then sold later [hotel rooms]
Heterogeneity is 1of 6 characteristics of services that cause problems how?variation in quality; requires training; site-site variability, can’t patent [bookstore clerk knowledge]
Client-based Relationships is 1of 6 characteristics of services that cause problems how?success depends on the relationship; trust commitment, satisfaction [CPA]
Customer Contact is 1of 6 characteristics of services that cause problems how?high level of interaction [real estate]
why have channels?facilitate exchange and remedy discrepancy thru sorting activities
what are the four sorting activities?sorting .. assorting .. accumulation .. allocation
What is the acronym for the characteristics of services?"I HICCuP"
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Logistics

Question Answer
Logistics is _____ raw materials, WIP, finished goods, and related information from the source of supply to the point of final consumptionall activities involved in the flow of
Logistics is all activities involved in the flow of _________, _________, _________, and related information from the source of supply to the point of final consumptionraw materials, WIP, finished goods
Logistics is all activities involved in the flow of raw materials, WIP, finished goods, and _____ from the source of supply to the point of final consumptionrelated information
Logistics is all activities involved in the flow of raw materials, WIP, finished goods, and related information _____ to the point of final consumptionfrom the source of supply
Logistics is all activities involved in the flow of raw materials, WIP, finished goods, and related information from the source of supply _____to the point of final consumption
How many rights of logistics are there?VII
The rights of logistics start with what letters?triple c, pp, qt
The first 1/3 chunk is what? (rights of logistics)Customer .. Cost .. Condition
The second 1/3 chunk is what? (rights of logistics)Product .. Place
The third 1/3 chunk is what? (rights of logistics)Quantity .. Time
The utility provided by logistics would make a _________ _________ _________ (silly acronym)FaT QuAIL PooP [L no!]
Reel off the 7 anagram words for logistics utilityForm .. Time .. Quantity & Assortment .. Information .. Possession .. Place
A stock-out means you’ve missed one of which two logistics utilities?Time utility or Place utility
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Marketing Channels

Question Answer
_____ is a group of intermediaries who make distribution more efficient by directing the product to consumers, facilitating exchange, and remedying discrepanciesA marketing channel
A marketing channel is _____ who make distribution more efficient by directing the product to consumers, facilitating exchange, and remedying discrepanciesa group of intermediaries
A marketing channel is a group of intermediaries who _____ by directing the product to consumers, facilitating exchange, and remedying discrepanciesmake distribution more efficient
A marketing channel is a group of intermediaries who make distribution more efficient by_____ , facilitating exchange, and remedying discrepanciesdirecting the product to consumers
A marketing channel is a group of intermediaries who make distribution more efficient by directing the product to consumers, _____ , and remedying discrepanciesfacilitating exchange
A marketing channel is a group of intermediaries who make distribution more efficient by directing the product to consumers, facilitating exchange, and _____remedying discrepancies
_____ are responsible for both physical movement of the product and exchange of the titleMarketing Channels
Channels are responsible for both _____ and exchange of the titlephysical movement of the product
Channels are responsible for both physical movement of the product and _____exchange of the title
What are the two marketing channels?Logistics and Transaction
The logistics channel moves ____, the transaction channel moves _____physical goods .. ownership of the goods
Ownership of goods is moved by the ____ channel, while goods themselves are moved by the ___ channeltransaction .. logistics
What two basic things do intermediaries do?Facilitate exchange and remedy discrepancies
Intermediaries remedy what two discrepancies?of assortment and of quantity
Discrepancies of assortment are remedied how?sorting and assorting
Discrepancies of quantity are remedied how?accumulation and allocation (or break-bulk)
Sorting and Assorting… what is Sorting?organize according to quality, size, spec compliance [AAA eggs]
Sorting and Assorting… what is Assorting?mult Mfg’s to a wholesaler, mult wholesalers to a retailer, mult retailers to a customer
Accumulation and Allocation… what is Accumulation?accumulate “up” to larger quantities to facilitate transportation
Accumulation and Allocation… what is Allocation?break-bulk, my man… break “down” to smaller quantities from warehouses to store shelf
Where must both logistics and transaction channels meet?At the retailer
The difference between Direct and Indirect channels is what?Intermediaries: none for Direct (common for industrial channels), several for Indirect (consumer mkts require considerable sorting & assorting)
Define dual distribution and provide 3 examplesselling product through mult channels .. P66 gasoline at station & convenience store; Tupperware at home & Target; Movies at theaters, PPV, & DVD
Why dual distribution?selling to mult mkt segments – packaging, size, strength, convenience
_____ exist to make distribution more efficient – this creates transactional efficiencyIntermediaries
Intermediaries exist to_____ – this creates transactional efficiencymake distribution more efficient
Intermediaries exist to make distribution more efficient – this creates _____transactional efficiency
Exclusive Distribution/ObjectiveLimited distribution to maintain quality image
Exclusive Distribution/GoodSpecialty
Exclusive Distribution/Customerbelieve there’s no substitute; exert considerable effort
Exclusive Distribution/Mktg Emphasisemphasize quality, features; you’re special and made the right choice
Selective Distribution/ObjectiveBe sufficiently convenient
Selective Distribution/GoodShopping
Selective Distribution/Customerwill exert some effort, but not if inconvenienced
Selective Distribution/Mktg Emphasishomo it’s Price, hetero it’s Features (the emphasis is)
Intensive Distribution /ObjectiveBe everywhere
Intensive Distribution/GoodConvenience
Intensive Distribution/Customerno effort; must be convenient if you want your brand purchased
Intensive Distribution/Mktg Emphasisemphasize convenience, maybe price
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Price

Question Answer
Anagram for the Pricing Objectives?eViL MaPS CoP (drop the vowels from “evil maps cop” – he who sets pricing objectives)
V (pricing objectives anagram)Volume objectives [sales, market share, unit]
L (pricing objectives anagram)Long-term survival [PRIMARY GOAL]
M (pricing objectives anagram)Market suppression [driven by gov’t]
P’ (pricing objectives anagram)Provide market incentive [driven by gov’t]
S (pricing objectives anagram)Social responsibility objectives
C (pricing objectives anagram)Competition, meeting objectives of [matching price]
P” (pricing objectives anagram)Profitability
what are the 5 psychological pricing policies?xxx
Which of the two Profitability pricing objectives is weaker?marginal analysis
Which of the two Profitability pricing objectives is stronger?target return objectives [achieve a given level of MSS, volume, revenue,…]
Reel off the 7 anagram words for pricing objectivesVolume • Long • Market • Provide • Social • Competition • Profitability
memorize

Role of Promotion

Question Answer
The role of promotion is to _____ with individuals, groups, or organizations to directly or indirectly facilitate exchangecommunicate
The role of promotion is to communicate with _____ to directly or indirectly facilitate exchangeindividuals, groups, or organizations
The role of promotion is to communicate with individuals, groups, or organizations to _____ facilitate exchangedirectly or indirectly
The role of promotion is to communicate with individuals, groups, or organizations to directly or indirectly _____facilitate exchange
What are the 5 communication process actions?sender encodes, message transmits, receiver decodes, feedback circles, noise hampers
How the message is encoded depends onwho is targeted to receive it
Name two methods of message transmissionface-to-face, mass media
Choice of ______ affects the messagemessage transmission
If there’s an error in message decoding, you fix _____encoding
Name four sources of noiseEmotional state, preconceptions, physical noise, misinformation
To proactively prevent noise you shouldConsider what might prevent reception
An example of breakdown in encoding?Japan, Mac guy was rude to the PC guy (humorous in the US); KFC in China ‘eat your fingers off’
Two examples of breakdown in message transmission?Radio over limited range; mass transmission hits wrong receivers
An example of breakdown in decoding?parents and HPV vaccine, parents hear ‘I want to make money’
Two examples of breakdown in feedback/response?Nickelodeon advertising to tweens may not be known for several years; salesperson misinterprets body language
The Promotional Mix consists of what four (plus one) ingredients?advertising, personal selling, publicity/PR, sales promotion (and direct marketing)
Define (promotional mix element) advertisingpaid, non-personal, mass media, identified sponsor
Define promotional mix element personal sellingpaid, personal contact, not mass-media, identified sponsor
Define promotional mix element publicity/PRnot paid, non-personal, mass media, not sponsored, (news story)
Define promotional mix element sales promotionnot in first three ingredients then it’s ‘sales promo’; coupons, games, samples
Define promotional mix element direct marketing (the extra one)paid, personal or not, semi-personal (targeted), semi-mass (targeted), may/may not ID sponsor [just channel of distribution?]
Name 2 classifications of advertisingProduct, Institutional
Define Product Advertisingspecific product and its features, uses, benefits [GE refrigerator]
Define Institutional Advertisingimage of an organization [GE saves the whales]
One special type of institutional advertising is (define)Advocacy – company promotes its position on a public issue [recycling, not-smoking, drink responsibly]
memorize

Marketing Channels II

Question Answer
_____ is a group of intermediaries who direct the product to consumersA marketing channel
A marketing channel is _____ who direct the product to consumersa group of intermediaries
A marketing channel is a group of intermediaries who _____direct the product to consumers
_____ are responsible for both physical movement of the product and exchange of the titleChannels
Channels are responsible for both _____ and exchange of the titlephysical movement of the product
Channels are responsible for both physical movement of the product and _____exchange of the title
What are the two marketing channels?Logistics and Transaction
The logistics channel moves ____, the transaction channel moves _____physical goods .. ownership of the goods
Ownership of goods is moved by the ____ channel, while goods themselves are moved by the ___ channeltransaction .. logistics
What two basic things do intermediaries do?Facilitate exchange and remedy discrepancies
Intermediaries remedy what two discrepancies?of assortment and of quantity
Discrepancies of assortment are remedied how?sorting and assorting
Discrepancies of quantity are remedied how?accumulation and allocation (or break-bulk)
Sorting and Assorting… what is Sorting?organize according to quality, size, spec compliance [AAA eggs]
Sorting and Assorting… what is Assorting?mult Mfg’s to a wholesaler, mult wholesalers to a retailer, mult retailers to a customer
Accumulation and Allocation… what is Accumulation?accumulate “up” to larger quantities to facilitate transportation
Accumulation and Allocation… what is Allocation?break-bulk, my man… break “down” to smaller quantities from warehouses to store shelf
Where must both logistics and transaction channels meet?At the retailer
The difference between Direct and Indirect channels is what?Intermediaries: none for Direct (typical for industrial channels), several for Indirect (consumer mkts require considerable sorting & assorting)
Define dual distribution and provide 3 examplesselling product through mult channels .. P66 gasoline at station & convenience store; Tupperware at home & Target; Movies at theaters, PPV, & DVD
Why dual distribution?selling to mult mkt segments – packaging, size, strength, convenience
_____ exist to make distribution more efficient – this creates transactional efficiencyIntermediaries
Intermediaries exist to_____ – this creates transactional efficiencymake distribution more efficient
Intermediaries exist to make distribution more efficient – this creates _____transactional efficiency
Exclusive Distribution/ObjectiveLimited distribution to maintain quality image
Exclusive Distribution/GoodSpecialty
Exclusive Distribution/Customerbelieve there’s no substitute; exert considerable effort
Exclusive Distribution/Mktg Emphasisemphasize quality, features; you’re special and made the right choice
Selective Distribution/ObjectiveBe sufficiently convenient
Selective Distribution/GoodShopping
Selective Distribution/Customerwill exert some effort, but not if inconvenienced
Selective Distribution/Mktg Emphasishomo it’s Price, hetero it’s Features (the emphasis is)
Intensive Distribution /ObjectiveBe everywhere
Intensive Distribution/GoodConvenience
Intensive Distribution/Customerno effort; must be convenient if you want your brand purchased
Intensive Distribution/Mktg Emphasisemphasize convenience, maybe price
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Examples...

 

Question Answer
A motive is an _____ that directs a person's behavior toward satisfying needs or achieving goals.internal energizing force
A motive is an internal energizing force that _____ toward satisfying needs or achieving goals.directs a person's behavior
A motive is an internal energizing force that directs a person's behavior toward _____ or achieving goals.satisfying needs
A motive is an internal energizing force that directs a person's behavior toward satisfying needs or _____.achieving goals
The 4 types of consumer buying decisions, in order of level of involvement, areImpulse, Routine, Limited problem solving, & Extensive problem solving
Step 1 of 5 in the buying decision process for consumer/business is (acronym first)Problem recognition/Problem recognition
Step 2 of 5 in the buying decision process for consumer/business is (acronym first)Information search/develop specs to solve problem
Step 3 of 5 in the buying decision process for consumer/business is (acronym first)Evaluation/search & evaluate
Step 4 of 5 in the buying decision process for consumer/business is (acronym first)Purchase/select supplier and order
Step 5 of 5 in the buying decision process for consumer/business is (acronym first)Evaluation/evaluate product and supplier
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MGT703 EXAM1

 

Question Answer
what are some key differences between managerial and financial accounting?financial: focused on the past and made for external purposes. aims to provide objectivity and summaries. must follow GAAP. managerial is focused on the future (on making decisions) and is made for internal uses. focused more on detail; need not follow GAAP.
what are some of the consequences of a JIT system?1. depends on a few ultra-reliable suppliers 2. can lead to improved layouts (manufacturing "cells") 3. can lead to complications with "setups"
what are the benefits of a JIT system?1. funds from inventory can be used elsewhere 2. space for storing inventory can be used more productively 3. throughput time is reduced 4. fewer defects
what are the two definining characteristics of total quality management?1. a focus on customer service 2. systematic problem-solving using teams of front-line workers
describe process reengineeringa more radical approach than TQM in which all processes are scrutinized and redesigned. every step must add value. more likely to come from above than TQM.
what is a product cost?one that, according to the matching principle of financial accounting, is ascribed when the product it is associated with is actually sold and the revenue from it is realized.
what is another term for product costs?inventoriable, because they are initially ascribed to inventory
what are period costs? give examplesall non-product costs, not included in the cost of goods. examples include all selling and administrative expenses.
what are the three classes of inventory in a manufacturing company?1. raw materials 2. finished goods 3. work in process
describe the theory of constraintsthe theory that effectively managing the constraint, or bottleneck, is a key to success. focusing on the weakest link yields the greatest benefit.
what are the three main categories of manufacturing costs?1. direct materials 2. direct labor 3. manufacturing overhead
define direct materialsthose that become an integral part of the finished product and can be physically and conveniently traced back to it
define direct laborlabor costs that can be physically and conveniently traced to individual units of product (indirect labor is part of manufacturing overhead)
define manufacturing overheadall costs except direct materials and direct labor. sometimes called "conversion cost"
define marketing or selling coststhose necessary to secure customer orders and get the finished product to the customer, e.g., advertising, shipping, sales commissions
what are the two main categories of non-manufacturing costs?1. marketing or selling costs 2. administrative costs
define cost of goods *manufactured*manufacturing costs associated with goods finished during the period
describe cost of goods *sold* in a manufacturing companycost of goods sold = beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
what is another way to think of "work in process"?as being on the assembly line
why does it matter that product costs are the same as inventoriable costs?because if goods are unsold or only partially completed at the end of a period, they can end up on the balance sheet as assets
what is a variable cost? give an exampleone that varies, in total, in direct proportion to changes in the level of activity. direct materials are an example.
in what sense can a cost actually be "fixed"within a relative range
what is an example of a fixed cost?rent
what is a cost object?anything for which data is desired
what is a direct cost?one that can be easily and conveniently traced back to the particular cost object under consideration
what is an indirect cost?one that cannot easily or conveniently be traced back to the cost object under consideration
what is an example of an indirect cost?a manager's salary.
true or false? a common cost is a type of indirect costTRUE
what is differential cost or revenue?the difference in effect between two alternatives
what is another term for differential cost?incremental cost
what economics concept is similar to that of differential cost?marginal cost--basically concept applied to a single unit
to what is the overtime premium charged, and why?manufacturing overhead. to charge to one job or another would be unfair to the last one.
labor fringe benefits are charged to ___________.depends. can be seen as direct or indirect labor.
what are the four types of quality costs?1. prevention costs 2. appraisal (inspection) costs 3. internal failure costs 4. external failure costs
what is the drawback to appraisals (inspections)?ineffective and expensive
memorize

Some from Will

Question Answer
What are the "rights" of logistics?Get the right product in the right quantity to the right place for the right customer at the right time in the right condition at the right cost.
Are logistics and physical distribution synonyms?Book says yes, she says NO.
What are the utlities provided by logistics?Time, Place, Form, Assortment and Quantity, Information, Possession
What is materials management?INBOUND. What we do so form utility can be created.
What is physical distribution?OUTBOUND finished goods.
What four characteristics make logistics unique?1. Spans entire flow. 2. Spans normal boundaries. 3. Interact with each other. 4. Total cost approach.
What are the subsystems of physical distribution?p. 347-349. order processing. inventory management. materials handling. warehousing. transportation.
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Articles

 

Question Answer
“Too Many Choices” (Toothpaste, Pert)Producers make slight variations to entice consumers & keep shelf space. If they keep consumer entertained, perceptual screens may go down. Consumers don’t buy because it’s too confusing or may choose competitor’s product (risky)
“World is Not Flat” (Tube TV’s – CRT’s)Managing product into decline; harvest profit; compete on price. Offer similar size tube TV at ½ the price.
“Flat Panel TVs You Can Afford” (LCD’s, Plasma)New items experience period of steep decline right before mainstream. Late growth stage of the lifecycle.
“Murder, Inc.” (James Patterson novel “Along Came a Spider”)Key to a brand is trust; brand can be a person; market books over and over at prime times of the year to keep it on the visible shelves.
“The Meteoric Rise of DVDs” (DVD’s vs. VCR’s)It took DVD’s 5 years to sell 30 million; VCR’s took 13 years. Very rapid growth; harvesting VCR’s
“Consumer Internet Adoption Rate Slows…”Internet similar to TV’s. 8 years to get to 63% - 30 more years to get to 98%. Early rapid growth; leveling off; steady climb to saturation.
“TV On-Demand”TV advertising & DVR’s. Companies are branching out advertising in other media and/or sponsoring TV shows to reach laggards.
“The Quest to Make Tupperware Chic” (Headbands, shoes, other kitchen wares)Decline stage – disposable containers have pushed out Tupperware – change image with new products and different distribution to extend product life cycle.
“Retailers Attempt to Get a Leg Up On Markdowns…”When to mark down to maximize profits; Markdown Optimizer software can determine elasticity – best to mark down once; cuts labor costs.
“PIN NumbersSignature transactions cost retailers than PIN transactions so banks make more money with signature transactions and are trying to force them; PINS are more secure.
“Better Mousetrap” (Disney)Selling entertainment on internet/cell phones (other than TV); New ways to derive growth (online properties, videogames, movie releases on DVD)
“Networks Go Boldly” (on-demand TV shows)Consumers pay for shows rather than getting them free – paid for by advertisers; advertisers have shifted their dollars; profitable news divisions are losing viewers.
“Look Who’s Thinking Small” (Home Depot, Costco, Staples)Open smaller stores to satisfy an immediate need – a way to reach new customers who may not shop at the superstores.
“Members Only” (Costco, Sam’s)Membership and buying in bulk create loyalty – count on cross-selling and impulse buying which doesn’t happen online.
“Getting the Goods” (800.com, Sneakernet)Even virtual merchants need real people in real warehouses; new features on one website are expected on others.
“Getting an Oil Change Off Ebay” (Ebay Motors)New way of selling services online; automotive services as extension of ebay motors. Helps comparison shopping. Competition to phone book.
“Signposts: The Power of Point-of-Purchase”To attract impulse buyers; can be signs, displays, sniff-teasers, computerized interactive displays; adding more materials attracts customers and sales.
“Promotion is Too Successful” (P&G Pampers)Running out of give away; most loyal customers shop points – may lose them. Can steal market share; it’s immediate & draws shoppers into stores. Good way to get names/addresses.
“Marketers Beef Up Ad Spending” (FMOT)Growth and increasing sophistication of packaging and in-store marketing. Wal-Mart TV advertising in the stores. “a shoppers concept” – a single promotional theme
“Obsessive Coupon Disorder” (Viral Marketing)Website coupons. Becomes exclusive which captures customer attention; gives consumer the message that they are smarter because they found a deal – you have to hunt for a bargain.
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