System
an interconnected and coordinated set of elements and processes that convert inputs to desired outputs.
Tactical plans
plans that define the actions and the resource allocation necessary to achieve tactical objectives and to support strategic plans.
Operational plans
plans that lay out the action and the resource allocation needed to achieve operational objectives and support tactical plans.
Value chain
all the elements and processes that add value as raw materials are transformed into final products for consumers.
Customer demand
the wants of consumers who have the money to make a purchase.
Mass production
the creation of identical goods or services, usually in very large quantities.
Mass customization
production where a large part of the product or service is mass produced, while remaining features as customized for each consumer, i.e. Dell computers
Customerization
producing unique goods for each customer.
Controlling cycle
a set period of time during which progress is measured against goals and objectives, and corrective actions are taken if deviations occur.
Quality control
measuring quality against a set standards after goods have been produced and then weeding out defective products.
TQM (Total Quality Management)
a management mindset that focuses on building quality into every activity of the business.
Six Sigma
a quality management program that strives to eliminate deviations between actual and desired performance in manufacturing products.
Marketing concept
a management approach that stresses meeting consumer wants, takes a long term relationship view, and integrates marketing with all other functional units in the firm.
Selling concept
a management approach that attempts to satisfy consumer demand, takes a short term view of customer development, and focuses on profitability through volume sales.
Product
anything used as a basis for commerce.
Cause related marketing
identification and marketing of a social issue, cause or idea to a specifically targeted set of consumers., i.e. green marketing, American Heart Association, etc.
Utility
the power of the attributes of a good or service to satisfy a consumer need.
Marketing Mix
the four key elements (4 P's) of marketing strategy: product, price, place (distribution) and promotion. Others include (6 P's) "people" and business "processes.
Market segmentation
the division of a market into smaller, relatively homogenous groups with similar needs, wants, and purchase behavior.
Market research
the collection and analysis of primary and secondary data for making marketing decisions.
Product positioning
a process by which marketers create an image of their products, brand or organization in the consumer's mind relative to the sum of the attributes of competitors.
Buyer behavior
the mental processes consumers use to make a buying decision.
Services
intangible actions that are the products marketed by service firms.
Product life cycle
the four stages through which a product progresses: introduction, growth, maturity and decline.
Branding
the use of names, terms, signs, symbols, designs or a combination of these to identify the firm or its products and to differentiate them from the competition's.
Price
the amount charged for a product or service that takes into account the cost of production, the competition's prices and what consumer are willing to pay for its perceived value.
Integrated Marketing Communications (IMC)
a strategy of fully integrating all communication and promotional efforts with consumers to ensure greater efficiency and effectiveness.
Communications mix
the blend of personal selling, advertising, direct marketing, sales promotions and public relations a firm employs to communicate with potential consumers.
Push marketing strategy
a promotional approach designed to motivate wholesalers and retailers to push a firm's goods to end users.
Pull marketing strategy
a promotional approach that stimulates consumer demand, which then puts pressure on wholesalers and retailers to carry the product.
Advertising
a paid, non-personal communication to a target market from an identified sponsor using mass communication channels.
Direct marketing
direct communications with consumers designed to affect a measurable response.
Sales promotions
short term events and activities designed to stimulate sales.
Public relations
non-sales communications programs with a variety of stakeholders to promote products, corporate image or address crisis situations.
Supply chain management
business procedures, policies, and computer systems that integrate into a cohesive system the various elements of supplies a firm needs to function.
Distribution channels
systems for moving goods and services from producers to consumers: also known as marketing channels.
Distribution mix
the combination of intermediaries and channels a producer uses to get goods and services to a consumer.
Intensive distribution
placing goods in as many outlets as possible.
Selective distribution
using a limited number of strategically chosen outlets to distribute goods and services.
Exclusive distribution
gives specific distributors exclusive rights to distribute a product in a geographical area.
Multi-channel distribution
using a variety of coordinated efforts to reach consumers through a variety of types of retailers.
Motivation
the combination of forces that moves individuals to take certain actions or exhibit certain behaviors to avoid other actions or behaviors.
Human Resource Management
a special function of a business to plan for and carry out acquiring, training, evaluating and compensating employees.
Management
the process of planning for and coordinating a firm's resources to meet organizational goals.
Organizational structure
the framework that enables managers to divide responsibilities, ensure employee accountability, and distribute decision-making authority.
Work specialization
specialization in or responsibility for some portion of an organization's overall work tasks; also known as "division of labor.
Chain of command
the pathway for the flow of authority from one management level to the next.
Span of control
the number of individuals reporting to one manager.
Departmentalization
grouping people according to function, division, network or some matrix.
Divisional structure
organizing departments according to similarities in product, process, customer type, or geography.
Matrix structure
any structure that combines functional and divisional structures.
Managerial roles
behavioral patterns and activities involved in management: includes interpersonal, informational and decisional roles.
Team
a unit of two or more people that share a mission and collective responsibility as they work together to achieve a common goal.
Management pyramid
organizational structure comprising upper, middle and first line managers.
Leadership
the set of skills required to guide and motivate people to work toward organizational goals.
Transactional leaders
those who concentrate on meeting organizational goals, clarifying roles and procuring all necessary resources.
Transformational leaders
leaders whose leadership style results in inspiring all employees, finding creative solutions to problems and promoting success on both individual and organizational levels.
Ethics
an examination of the rules or standards by which individuals or groups govern themselves.
Rights
those things which are inalienable and which are necessary for individuals to reach their full potential.
Justice
fair adjudication of conflicting claims or administration of rewards or punishment resulting from such conflict: these include the notions of compensatory, retributive and distributive justice.
Utilitarianism
a decision-making approach that seeks to create the greatest good for the greatest number of people affected by the decision.
Ethical egoism
an approach that assumes that rational individuals acting in their own self-interest will arrive at a mutually beneficial decision.
Libertarian
an approach that considers any interference in the pursuit of self-interest is unethical.
Ethics of caring
considers that it is necessary to consider "the other" and that caring by all will result in the harm of no one.
Buddhist ethics
considers that all things are interrelated and that by doing harm to one thing, harm is done to everything else, including oneself.
Transparency
the degree to which affected parties can observe relevant aspects of transactions or decisions.
Sarbanes-Oxley
a comprehensive piece of legislation that resulted from corporate malfeasance, designed to improve integrity and accountability in reporting financial information.
Consumer sovereignty
the realization that consumer have the right to truthful product information, the right to have a choice of competing products, and that consumers must be capable of making a rational product decision.
Stakeholders
all those who may be affected by a company's decisions; these include current and previous employees, customers, markets, the community, suppliers and interest groups.
Sustainable development
operating businesses in a manner that minimizes its impact on the environment and depletion of resources, ensuring that future generations will have the vital resources it needs to survive.