MBA MFT Study Cards 2025 #8
Major segmentation variables (4) - correct answer (1) geographic, (2) demographic, (3)
psychographic, (4) behavioral
Penetrated market - correct answer set of customers who are buying the company's
product
Target market - correct answer qualified available market the company decides to
pursue
Available market - correct answer set of consumers who have interest, income, and
access to a particular offer
Potential market - correct answer set of consumer with a sufficient level of interest in a
market offer
Corporate culture - correct answer shared experiences, stories, beliefs, & norms that
characterize an organization
Strategic marketing plan - correct answer lays out the target market and the firm's value
proposition, based on an analysis of the best market opportunities
5 stages of consumer buying process decision process - correct answer (1) need
recognition, (2) information search, (3) evaluation of alternatives, (4) purchase decision,
(5) post-purchase behavior
8 steps of business purchasing process - correct answer (1) identify need, (2) select
specific product, (3) appoint purchase team, (4) specify technicalities, (5) budget for
purchase, (6) research potential suppliers, (7) solicit bids, (8) award contracts
4 factors influencing consumer behavior - correct answer (1) cultural, (2) social, (3)
personal, (4) psychological
4 factors that influence business purchasing behavior - correct answer (1)
environmental, (2) organizational, (3) interpersonal, (4) individual
Competitive intelligence - correct answer defining, gathering, analyzing, & distributing
intelligence about products, customers, competitors, and any aspects of the
environment needed to support executives & managers making strategic decisions for
an organization
Managerial decision making process steps (6) - correct answer (1) establish the
objective, (2) define the problem, (3) identify possible solutions, (4) evaluate alternative
courses of action, (5) implement the decision, (6) acquire feedback
,8 major models of marketing communication - correct answer (1) advertising, (2) sales
promotion, (3) events & experiences, (4) public relations & publicity, (5) direct
marketing, (6) interactive marketing, (7) word-of-mouth marketing, (8) personal selling
Pull strategy - correct answer the manufacturer uses advertising and other
communication to persuade consumers to demand the product from intermediaries,
thus inducing intermediaries to order it
Push strategy - correct answer uses the manufacturer's sales force, trade promotion
money, or other means to induce intermediaries to carry, promote, & sell the product to
end users
Points-of-parity (pops) - correct answer attributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
Points-of-difference (pods) - correct answer attributes of benefits that consumers
strongly associate with a brand, positively evaluate, and believe they could not find to
the same extent with a competitive brand
Posititioning - correct answer the act of designing a company's offering and image to
occupy a distinctive place in the minds of the target market
Supersegment - correct answer set of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - correct answer (1)
measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
Pyschographic - correct answer the science of using psychology & demographics to
better understand consumers
Variables of demographic segmentation (6) - correct answer (1) age and life-cycle
stage, (2) life stage, (3) gender, (4) income, (5) generation, (6) race & culture
Investment banking - correct answer a specific division of banking related to the
creation of capital for other companies, governments, and entities
Weak form - correct answer assumes that all info contained in past price movements is
reflected in the current market price. Info about recent trends in a stock price is no use
in selecting a stock
Semi-strong form - correct answer states the current market price reflects all publicly
available information. To gain abnormal returns insider info is needed
Information efficiency - correct answer all relevant information about a stock is reflected
in its price (this is in a perfect world)
, Strong form efficient - correct answer all info -- public and insider -- is reflected in the
market price. No abnormal returns
Market efficiency - correct answer the degree to which stock prices reflect all available
relevant information
Money market - correct answer a segment of the financial market in which financial
instruments with high liquidity and very short maturities are traded
Capital markets - correct answer markets for buying and selling equity and debt
instruments
Security - correct answer a financial instrument that represents an ownership in a
publicly-traded corporation (stock), a creditor relationship with governmental body or
corporation (bond) or rights to an ownership as represented by an option
Most common underlying assets of derivatives - correct answer stocks, bonds,
commodities, currencies, interest rates, market indexes
Derivative - correct answer a security with a price that is dependent upon or derived
from one or more underlying assets. Its value is determined by fluctuations in the
underlying assets
Futures - correct answer financial contracts obligating the buyer to purchase an asset
(or the seller to sell an asset) at a predetermined future date and price
Option - correct answer a financial derivative that represents a contract sold by one
party (option writer) to another party (option holder). The contract offers the buyer the
right to call or put a security at an agreed upon price (strike price) during a certain
period of time or on the exercise date
2 types of financial instruments - correct answer (1) cash instruments, (2) derivative
instruments
Financial instruments - correct answer assets that can be traded
Inventory turnover = - correct answer sales/inventory
Average collection period = - correct answer days (accounts receivable)/credit sales
Working capital ratio= - correct answer current assets/current liabilities
Working capital managment - correct answer a company's managerial accounting
strategy designed to monitor and utilize the 2 component of working capital -- current
assets and current liabilities
Major segmentation variables (4) - correct answer (1) geographic, (2) demographic, (3)
psychographic, (4) behavioral
Penetrated market - correct answer set of customers who are buying the company's
product
Target market - correct answer qualified available market the company decides to
pursue
Available market - correct answer set of consumers who have interest, income, and
access to a particular offer
Potential market - correct answer set of consumer with a sufficient level of interest in a
market offer
Corporate culture - correct answer shared experiences, stories, beliefs, & norms that
characterize an organization
Strategic marketing plan - correct answer lays out the target market and the firm's value
proposition, based on an analysis of the best market opportunities
5 stages of consumer buying process decision process - correct answer (1) need
recognition, (2) information search, (3) evaluation of alternatives, (4) purchase decision,
(5) post-purchase behavior
8 steps of business purchasing process - correct answer (1) identify need, (2) select
specific product, (3) appoint purchase team, (4) specify technicalities, (5) budget for
purchase, (6) research potential suppliers, (7) solicit bids, (8) award contracts
4 factors influencing consumer behavior - correct answer (1) cultural, (2) social, (3)
personal, (4) psychological
4 factors that influence business purchasing behavior - correct answer (1)
environmental, (2) organizational, (3) interpersonal, (4) individual
Competitive intelligence - correct answer defining, gathering, analyzing, & distributing
intelligence about products, customers, competitors, and any aspects of the
environment needed to support executives & managers making strategic decisions for
an organization
Managerial decision making process steps (6) - correct answer (1) establish the
objective, (2) define the problem, (3) identify possible solutions, (4) evaluate alternative
courses of action, (5) implement the decision, (6) acquire feedback
,8 major models of marketing communication - correct answer (1) advertising, (2) sales
promotion, (3) events & experiences, (4) public relations & publicity, (5) direct
marketing, (6) interactive marketing, (7) word-of-mouth marketing, (8) personal selling
Pull strategy - correct answer the manufacturer uses advertising and other
communication to persuade consumers to demand the product from intermediaries,
thus inducing intermediaries to order it
Push strategy - correct answer uses the manufacturer's sales force, trade promotion
money, or other means to induce intermediaries to carry, promote, & sell the product to
end users
Points-of-parity (pops) - correct answer attributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
Points-of-difference (pods) - correct answer attributes of benefits that consumers
strongly associate with a brand, positively evaluate, and believe they could not find to
the same extent with a competitive brand
Posititioning - correct answer the act of designing a company's offering and image to
occupy a distinctive place in the minds of the target market
Supersegment - correct answer set of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - correct answer (1)
measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
Pyschographic - correct answer the science of using psychology & demographics to
better understand consumers
Variables of demographic segmentation (6) - correct answer (1) age and life-cycle
stage, (2) life stage, (3) gender, (4) income, (5) generation, (6) race & culture
Investment banking - correct answer a specific division of banking related to the
creation of capital for other companies, governments, and entities
Weak form - correct answer assumes that all info contained in past price movements is
reflected in the current market price. Info about recent trends in a stock price is no use
in selecting a stock
Semi-strong form - correct answer states the current market price reflects all publicly
available information. To gain abnormal returns insider info is needed
Information efficiency - correct answer all relevant information about a stock is reflected
in its price (this is in a perfect world)
, Strong form efficient - correct answer all info -- public and insider -- is reflected in the
market price. No abnormal returns
Market efficiency - correct answer the degree to which stock prices reflect all available
relevant information
Money market - correct answer a segment of the financial market in which financial
instruments with high liquidity and very short maturities are traded
Capital markets - correct answer markets for buying and selling equity and debt
instruments
Security - correct answer a financial instrument that represents an ownership in a
publicly-traded corporation (stock), a creditor relationship with governmental body or
corporation (bond) or rights to an ownership as represented by an option
Most common underlying assets of derivatives - correct answer stocks, bonds,
commodities, currencies, interest rates, market indexes
Derivative - correct answer a security with a price that is dependent upon or derived
from one or more underlying assets. Its value is determined by fluctuations in the
underlying assets
Futures - correct answer financial contracts obligating the buyer to purchase an asset
(or the seller to sell an asset) at a predetermined future date and price
Option - correct answer a financial derivative that represents a contract sold by one
party (option writer) to another party (option holder). The contract offers the buyer the
right to call or put a security at an agreed upon price (strike price) during a certain
period of time or on the exercise date
2 types of financial instruments - correct answer (1) cash instruments, (2) derivative
instruments
Financial instruments - correct answer assets that can be traded
Inventory turnover = - correct answer sales/inventory
Average collection period = - correct answer days (accounts receivable)/credit sales
Working capital ratio= - correct answer current assets/current liabilities
Working capital managment - correct answer a company's managerial accounting
strategy designed to monitor and utilize the 2 component of working capital -- current
assets and current liabilities
