MBA MFT Study Cards
major segmentation variables (4) - answer(1) geographic, (2) demographic, (3)
psychographic, (4) behavioral
penetrated market - answer set of customers who are buying the company's product
target market - answer qualified available market the company decides to pursue
available market - answer set of consumers who have interest, income, and access to a
particular offer
potential market - answer set of consumers with a sufficient level of interest in a market
offer
corporate culture - answer shared experiences, stories, beliefs, & norms that
characterize an organization
strategic marketing plan - 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 - answer(1) need recognition,
(2) information search, (3) evaluation of alternatives, (4) purchase decision, (5) post-
purchase behavior
8 steps of business purchasing process - 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 - answer(1) cultural, (2) social, (3) personal, (4)
psychological
4 factors that influence business purchasing behavior - answer(1) environmental, (2)
organizational, (3) interpersonal, (4) individual
competitive intelligence - answerdefining, 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) - 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 - 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 - answerthe manufacturer uses advertising and other communication to
persuade consumers to demand the product from intermediaries, thus inducing
intermediaries to order it
push strategy - answeruses 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) - answerattributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
points-of-difference (PODs) - answerattributes 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 - answerthe act of designing a company's offering and image to occupy a
distinctive place in the minds of the target market
supersegment - answerset of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - answer(1)
measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
pyschographic - answerthe science of using psychology & demographics to better
understand consumers
variables of demographic segmentation (6) - answer(1) age and life-cycle stage, (2) life
stage, (3) gender, (4) income, (5) generation, (6) race & culture
investment banking - answera specific division of banking related to the creation of
capital for other companies, governments, and entities
weak form - answerassumes 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 - answerstates the current market price reflects all publicly available
information. to gain abnormal returns insider info is needed
information efficiency - answerall relevant information about a stock is reflected in its
price (this is in a perfect world)
, strong form efficient - answerall info -- public and insider -- is reflected in the market
price. no abnormal returns
market efficiency - answerthe degree to which stock prices reflect all available relevant
information
money market - answera segment of the financial market in which financial instruments
with high liquidity and very short maturities are traded
capital markets - answermarkets for buying and selling equity and debt instruments
security - answera 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 - answerstocks, bonds, commodities,
currencies, interest rates, market indexes
derivative - answera 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 - answerfinancial contracts obligating the buyer to purchase an asset (or the
seller to sell an asset) at a predetermined future date and price
option - answera 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 - answer(1) cash instruments, (2) derivative instruments
financial instruments - answerassets that can be traded
INVENTORY TURNOVER = - answerSALES/INVENTORY
AVERAGE COLLECTION PERIOD = - answerDAYS (ACCOUNTS
RECEIVABLE)/CREDIT SALES
WORKING CAPITAL RATIO= - answerCURRENT ASSETS/CURRENT LIABILITIES
working capital managment - answera company's managerial accounting strategy
designed to monitor and utilize the 2 component of working capital -- current assets and
current liabilities
3 main dividend policies - answer(1) residual dividend policy, (2) dividend stability
policy, (3) hybrid dividend policy
major segmentation variables (4) - answer(1) geographic, (2) demographic, (3)
psychographic, (4) behavioral
penetrated market - answer set of customers who are buying the company's product
target market - answer qualified available market the company decides to pursue
available market - answer set of consumers who have interest, income, and access to a
particular offer
potential market - answer set of consumers with a sufficient level of interest in a market
offer
corporate culture - answer shared experiences, stories, beliefs, & norms that
characterize an organization
strategic marketing plan - 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 - answer(1) need recognition,
(2) information search, (3) evaluation of alternatives, (4) purchase decision, (5) post-
purchase behavior
8 steps of business purchasing process - 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 - answer(1) cultural, (2) social, (3) personal, (4)
psychological
4 factors that influence business purchasing behavior - answer(1) environmental, (2)
organizational, (3) interpersonal, (4) individual
competitive intelligence - answerdefining, 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) - 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 - 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 - answerthe manufacturer uses advertising and other communication to
persuade consumers to demand the product from intermediaries, thus inducing
intermediaries to order it
push strategy - answeruses 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) - answerattributes or benefit associations that are not
necessarily unique to the brand but may be shared with other brands
points-of-difference (PODs) - answerattributes 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 - answerthe act of designing a company's offering and image to occupy a
distinctive place in the minds of the target market
supersegment - answerset of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - answer(1)
measurable, (2) sustainable, (3) accessible, (4) differentiable, (5) actionable
pyschographic - answerthe science of using psychology & demographics to better
understand consumers
variables of demographic segmentation (6) - answer(1) age and life-cycle stage, (2) life
stage, (3) gender, (4) income, (5) generation, (6) race & culture
investment banking - answera specific division of banking related to the creation of
capital for other companies, governments, and entities
weak form - answerassumes 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 - answerstates the current market price reflects all publicly available
information. to gain abnormal returns insider info is needed
information efficiency - answerall relevant information about a stock is reflected in its
price (this is in a perfect world)
, strong form efficient - answerall info -- public and insider -- is reflected in the market
price. no abnormal returns
market efficiency - answerthe degree to which stock prices reflect all available relevant
information
money market - answera segment of the financial market in which financial instruments
with high liquidity and very short maturities are traded
capital markets - answermarkets for buying and selling equity and debt instruments
security - answera 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 - answerstocks, bonds, commodities,
currencies, interest rates, market indexes
derivative - answera 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 - answerfinancial contracts obligating the buyer to purchase an asset (or the
seller to sell an asset) at a predetermined future date and price
option - answera 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 - answer(1) cash instruments, (2) derivative instruments
financial instruments - answerassets that can be traded
INVENTORY TURNOVER = - answerSALES/INVENTORY
AVERAGE COLLECTION PERIOD = - answerDAYS (ACCOUNTS
RECEIVABLE)/CREDIT SALES
WORKING CAPITAL RATIO= - answerCURRENT ASSETS/CURRENT LIABILITIES
working capital managment - answera company's managerial accounting strategy
designed to monitor and utilize the 2 component of working capital -- current assets and
current liabilities
3 main dividend policies - answer(1) residual dividend policy, (2) dividend stability
policy, (3) hybrid dividend policy
