Term
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Definition
a financial report that shows an organizations profitability over a period of time- month, quarter, or year
includes revenue, costs of goods sold, gross income or profit, expenses, net income, and depreciation |
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Term
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Definition
| the total amount of money received from the sale of goods or services, as well as from related business activities |
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Definition
the amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies
costs of goods sold= beginning inventory+ interim purchases- ending inventory |
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Term
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Definition
| revenues-the cost of goods sold required to generate the revenues |
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Term
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Definition
| the costs incurred in the day-to-day operations of an organization |
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Term
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Definition
| the process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used |
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Definition
| the total profit (or loss) after all expenses. including taxes, have been deducted from revenue; also called net earnings |
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Definition
a "snapshot" of an organization's financial position at a given moment
traditional format: assets on left side, liabilities and owners equity on right side
vertical format: assets on top, followed by liabilities and owners equity |
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Definition
| all asset accounts are listed in descending order of liquidity- how quickly each could be turned into cash |
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Term
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Definition
assets that are used or converted into cash within the course of a calendar year
cash is followed by temporary investments, accounts receivable, and inventory, in that order |
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Term
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Definition
| money owed a company by its clients or customers who have promised to pay for the products at a later date |
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Term
| long term, or fixed assets |
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Definition
| a commitment of organizational funds of at least one year, these include long term investments, plant and equipment, and intangible assets, such as corporate "goodwill," or reputation, as well as patents and trademarks |
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Term
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Definition
| a firm's financial obligations to sort-term creditors, which must be repaid within one year |
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Term
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Definition
| the amount a company owes to suppliers for goods and services purchased with credit |
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Term
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Definition
| is an account representing all unpaid financial obligations incurred by the organization |
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Term
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Definition
the owner's contributions to the organization along with income earned by the organization and retained to finance continued growth and development
=assets-liabilities |
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Term
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Definition
explains how the company's cash changed form the beginning of the accounting period to the end
takes the cash balance from one year's balance sheet and compares it with the next while providing detail about how the firm used the cash
change in cash explained in details in three categories: cash from operating activities, cash from investing activities, and cash from financing activities |
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Term
| Cash from operating activities |
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Definition
calculated by combining the changes in the revenue accounts, expense accounts, current asset accounts, and current liability accounts.
includes all the accounts on the balance sheet that relate to computing revenues and expenses for the accounting period, if the amount is a positive number then the business is making extra cash, if negative it may indicate a business that is in a declining position with regards to operations. Negative cash flow is not always a bad thing, however it may indicate that a business is growing, with a very negative cash flow indicating rapid growth |
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Term
| Cash from investing activities |
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Definition
| calculated from changes in the long-term or fixed asset accounts. if the amount is negative, the company is purchasing long-term assets for future growth, a positive figure indicates a business that is selling off existing long-term assets and reducing its capacity for the future. |
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Term
| Cash from financing activities |
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Definition
calculated from changes in the long-term liability accounts and the contributed capital accounts in owner's equity.
if negative, the company is likely paying off long-term debt or returning contributed capital to investors. if the amount is positive, the company is either borrowing more money or raising money from investors by selling more shares of stock. |
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Term
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Definition
calculations that measure an organization's financial health
it is the relationship of the calculated ratios to both prior organizational performance and the performance of the organizations's "peers," as well as its stated goals, that really matters |
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Term
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Definition
| ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owner's equity and sales |
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Term
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Definition
net income divided by sales
shows the overall percentage profits earned by the company, the higher the profit margin the better cost controls within the company and the higher return on every dollar |
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Term
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Definition
net income divided by assets
shows how much income the firm produces for every dollar invested in assets, if low the company is probably not using assets productively |
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Term
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Definition
net income divided by owner's equity: also called return on investment
shows how much income is generated by each $1 the owners have invested in the firm |
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Term
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Definition
| rations that measure how well a firm uses its assets to generate each $1 of sales |
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Term
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Definition
sales divided by accounts payable
indicates how many times a firm collects its accounts receivable in one year |
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Term
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Definition
sales divided by total inventory
indicates how many times a firm sells and replaces its inventory over the course of a year |
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Term
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Definition
sales divided by total assets
measures how well an organization uses all of its assets in creating sales, indicates whether a company is using its assets productively |
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Term
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Definition
| ratios that measure the speed with which a company can turn its assets into cash to meet short-term debt |
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Term
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Definition
| current assets divided by current liabilities |
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Term
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Definition
| a stringent measure of liquidity that eliminates inventory |
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Term
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Definition
| ratios that measure how much debt an organization is using relative to other sources of capital, such as owner's equity |
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Term
| debt to total assets ratio |
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Definition
| a ratio indication how much of the firm is financed by debt and how much by owners' equity |
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Term
| times interest earned ratio |
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Definition
operating income divided by interest expense
measure of the safety margin a company has with respect to he interest payments it must make to its creditors |
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Term
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Definition
| data used by investors to compare the performance of one company with another on an equal, per share basis |
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Term
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Definition
net income or profit divided by the number of stock stares outstanding
important because yearly changes in earnings per share, in combination with other economy wide factors, determine a company's overall stock price, when earnings go up, so does a company's stock price-and so does the wealth of its stockholders |
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Term
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Definition
the actual cash received for each share owned
the payment is made from earnings after taxes by the corporation but is taxable income to the stockholder, thus dividends result in double taxation |
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Term
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Definition
| the function in a business that acquires funds for the firm and manages those funds within the firm |
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Term
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Definition
the job of managing a firm's resources so it can meet its goals and objectives
making sure the company pays its bills |
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Term
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Definition
managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm
perform a number of functions including: determining a firm's long run investments, finding the funds for those investments, conducting the firm's everyday financial activities, and managing a firm's risk. Planning is essential to each of these functions |
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Term
| 3 most common ways for a firm to fail financially |
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Definition
undercapitalizaiton (lacking funds to start the business)
poor control over cash flow
inadequate expense control |
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Term
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Definition
analyzing short-term and long-term money flows to and from the firm. objective is to optimize the firm's profitability and make the best use of its money.
1. forecasting both short-term and long-term needs
2. developing budgets to meet those needs
3. establishing financial control to see how well he company is doing what it set out to do |
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Term
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Definition
forecast that predicts revenues, costs, and expenses for a period of one year or less
short term funds needed to cover operating expenses |
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Term
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Definition
| forecast that predicts the cash inflows and outflows in future periods, usually months or quarters |
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Term
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Definition
forecast that predicts revenues, costs, and expenses for a period longer than 1 year and sometimes as far as 5 or 10 years into the future
long term funds needed to cover capital investments |
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Term
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Definition
| a financial plan that sets forth management's expectations, and on the basis of those expectations, allocates the use of specific resources throughout the firm |
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Term
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Definition
| a budget that highlights a firm's spending plans for major asset purchases that often require large sums of money |
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Term
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Definition
| a budget that estimates a firm's projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period |
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Term
| Operating budget (master budget) |
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Definition
| the budge that ties together all of a firm's other budgets; it is the projection of dollar allocations to various costs and expenses needed to run or operate the business, given projected revenues |
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Term
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Definition
| a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget |
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Term
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Definition
| major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights |
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Term
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Definition
| funds raised through various forms of borrowing that must be repaid |
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Term
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Definition
| funds raised from operations within the firm or through the sale of ownership in the firm |
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Term
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Definition
| borrowed capital that will be repaid within one year |
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Term
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Definition
| borrowed capital that will be repaid over a specific period longer than one year |
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Term
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Definition
| the practice of buying goods and services now and paying for them later |
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Term
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Definition
| a written contract with a promise to pay a supplier a specific sum of money at a definite time |
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Term
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Definition
a loan backed by something valuable, such as property
item of value is called collateral
accounts receivable are commonly used as collateral |
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Term
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Definition
| a loan that's not backed by any specific assets |
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Term
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Definition
| a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available |
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Term
| revolving credit agreement |
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Definition
| a line of credit that is guaranteed by the bank |
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Term
| Commercial finance companies |
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Definition
organizations that make short-term loans to borrowers who offer tangible assets as collateral
usually charge higher interest rates than banks |
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Term
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Definition
the process of selling accounts receivable for cash
expensive way of raising cash |
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Term
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Definition
| unsecured promissory notes of $100,000 and up that mature in 270 days or less |
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Term
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Definition
| a promissory note that requires the borrower to repay the loan in specified installments |
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Term
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Definition
| the principle that the greater the risk a lender takes in making a loan, the higher the interest rate required |
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Term
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Definition
| the terms of agreement in a bond issue |
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Term
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Definition
| a bond issued with some form of collateral |
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Term
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Definition
| a bond backed only by the reputation of the issuer; also called a debenture bond |
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Term
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Definition
| money that is invested in new or emerging companies that are perceived as having great profit potential |
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Term
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Definition
| raising needed funds through borrowing to increase a firm's rate of return |
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Term
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Definition
| the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders |
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Term
| Initial public offering (IPO) |
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Definition
| the first public offering of a corporations stock |
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Term
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Definition
| handle the sale of new securities |
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Term
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Definition
| handle the trading of securities between investors with the proceeds of a sale going to the investors selling the stock, not to the corporation whose stock is sold |
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Term
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Definition
specialists who assist in the issue and sale of new securities
help companies prepare the extensive financial analyses necessary to gain SEC approval for stock or bond issues |
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Term
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Definition
| large organizations- such as pension funds, mutual funds, insurance companies, and banks- that invest their own funds or the funds of others |
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Term
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Definition
a corporate certificate indicating that a person has lend money to a firm
a contract of indebtedness issued by a corporation or government unit that promises payment of a principal amount at a specified future time, plus interest
Advantages: no control is lost, interest is tax deductible, temporary source of funding- eventually debt disappears, bond can be repaid before maturity date and can be converted to common stock
Disadvantages- increase debt: may adversely affect the markets view of firm, paying interest is a legal obligation, the face value (denomination) of bonds bust be repaid on the maturity date |
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Term
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Definition
| the payment the issuer of the bond makes to the bondholders for use of the borrowed money |
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Term
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Definition
| the exact date the issuer of a bond must pay the principal to the bondholder |
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Term
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Definition
| bonds that are unsecured (not backed by any collateral such as equipment) |
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Term
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Definition
| a reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond |
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Term
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Definition
| permits the bond issuer to pay off the bond's principal prior to its maturity date |
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Term
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Definition
| can be converted into shares of common stock in the issuing company |
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Term
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Definition
shares of ownership in a company
Advantages: stockholders never have to be repaid, no legal obligation to pay dividends to stockholders; therefore income can be reinvested in the firm, selling stock can improve the condition of a firm's balance sheet since it creates no debt
Disadvantages: stockholders have the right to vote for the company's board of directors, dividends are paid out of profit after taxes and are not tax deductible, management's decisions can be affected by the need to keep stockholders happy |
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Term
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Definition
| evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued |
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Term
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Definition
| part of a firm's profits that may be distributed to stockholders as either cash payments or additional shares of stock |
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Term
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Definition
stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold
it can be callable- stockholders could be required to sell back their shares to the corporation
can be convertible to shares of common stock
can be cumulative |
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Term
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Definition
the most basic form of ownership is a firm; it confers voting rights and the right to share in the firm's profits through dividends, if approved by the firm's board of directors
common stockholders have a preemptive right- the first right to purchase any new shares of common stock the firm decides to issue |
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Term
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Definition
| an organization whose members can by and sell securities for companies and individual investors |
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Term
| over the counter market (OTC) |
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Definition
| exchange that provides a mean to trade stocks not listed on the national exchanges |
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Term
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Definition
| a nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| federal agency that has responsibility for regulating the various exchanges |
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Term
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Definition
| a condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be send to prospective investors |
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Term
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Definition
| involves the use of knowledge or information that individuals gain through their position that allows them to benefit unfairly from fluctuations in security prices |
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Term
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Definition
| the study of money; how it's made, how it's lost, and how it's managed |
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Term
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Definition
| anything generally accepted in exchange for goods and services |
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Term
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Definition
1- a medium of exchange, 2- a measure of value, 3- a store of value
1- a single item, money, that can be freely converted to any other good upon agreement between parties
2- measure of the value of their yearly earnings or purchases-- like a yardstick used to measure the value of goods and services
3-a way to accumulate wealth, value of stored money directly dependent on the health of the economy |
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Term
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Definition
Acceptability- trust in the money
Divisibility- all items valued in terms of comparable units
Portability- easily movable
Stability- maintain its declared face value-instability destroys confidence in a nation's money and its ability to store value and serve as an effective medium of exchange
Durability- must be durable
Difficulty to Counterfeit- hard to fake |
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Term
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Definition
| money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit |
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Term
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Definition
| accounts with funds that usually cannot be withdrawn without advance notice; also known as time deposits |
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Term
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Definition
| accounts that offer higher interest rates than standard bank rates but with greater restrictions |
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Term
| Certificates of deposit (CDs) |
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Definition
| savings accounts that guarantee a depositor a set interest rate over a specified interval as long as the funds are not withdrawn before the end of the period- six months or one year, for example |
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Term
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Definition
| means of access to preapproved lines of credit granted by a bank or finance company |
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Term
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Definition
| a card that looks like a credit card but works like a check; using it results in a direct,immediate electronic payment from the cardholder's checking account to a merchant or third party |
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Term
| The American Finance System includes |
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Definition
| banking institutions, nonbanking financial institution: finance companies, and systems that provide for the electronic transfer of funds throughout the world |
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Term
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Definition
an independent agency of the federal government established in 1913 to regulate the nation's banking and financial industry. Organized into 12 regions
Major responsibilities:
1. to control the supply of money, or monetary policy
2. to regulate banks and other financial institutions
3. to manage regional and national checking account procedures, or check clearing
4. to supervise the federal deposit insurance programs of banks belonging to the federal reserve system |
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Term
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Definition
means by which the Fed controls the amount of money available in the economy
four basic tools used to do this are: open market operations, reserve requirements, the discount rate, and credit controls |
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Term
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Definition
| decisions to buy or sell U.S. treasury bills (short-term debt issued by the U.S. government) and other investments in the open market |
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Term
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Definition
| the percentage of deposits that banking institutions must hold in reserve |
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Term
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Definition
the rate of interest the Fed charges to loan money to any banking institution to meet reserve requirements
serves to discourage banks from borrowing from the Fed
when the Fed wants to expand the money supply, it lowers the discount rate to encourage borrowing, conversely, when the Fed wants to decrease the money supply, it raises the discount rate |
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Term
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Definition
| the authority to establish and enforce credit rules for financial institutions and some private investors |
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Term
| Regulatroy Functions (by the Fed) |
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Definition
| The Fed determines which non-banking activities, such as brokerage services, leasing, and insurance, are appropriate for banks and which should be prohibited. The Fed also has the authority to approve or disapprove mergers between banks and the formation of bank holding companies |
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Term
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Definition
| The Fed provides national check processing on a huge scale. |
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Term
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Definition
| the Fed is responsible for supervising the federal insurance funds, that protect the deposits of member institutions |
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Term
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Definition
| the largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals |
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Term
| Savings and loan associations (S&Ls) |
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Definition
| financial institutions that primarily offer savings accounts and make long-term loans for residential mortgages; also called "thrifts" |
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Term
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Definition
| a financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion |
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Term
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Definition
| financial institutions that are similar to savings and loan associations but, like credit unions, are owned by their depositors |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| an insurance fund established in 1933 that insures individual bank accounts |
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Term
| National Credit Union Association (NCUA) |
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Definition
| an agency that regulates and charters credit unions and insures their deposits through its National Credit Union Insurance Fund |
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Term
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Definition
| businesses that protect their clients against financial losses form certain specified risks (death, accident, and theft for example) |
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Term
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Definition
| managed investment pools set aside by individuals, corporations, unions, and some nonprofit organizations to provide retirement income for members |
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Term
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Definition
| an investment company that pools individual investor dollars and invests them in large numbers of well-diversified securities |
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Term
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Definition
| firms that buy and sell stock, bonds, and other securities for their customers and provide other financial services |
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Term
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Definition
| underwrites new issues of securities for corporations, states, and municipalities |
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Term
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Definition
| businesses that offer short-term loans at substantially higher rates of interest than banks |
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Term
| electronic funds transfer (EFT) |
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Definition
| any movement of funds by means of an electronic terminal, telephone, computer, or magnetic tape |
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Term
| Automated teller machine (ATM) |
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Definition
| the most familiar form of electronic banking, which dispenses cash, accepts deposits, and allows balance inquiries and cash transfers from one account to another |
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Term
| Automated clearinghouses (ACHs) |
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Definition
| a system that permits payments such as deposits or withdrawals to be made to and from a bank account by magnetic computer tape |
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Term
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Definition
a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas
its is not: manipulating consumers to get them to buy products they do not want. it is not just selling and advertising; it is a systematic approach to satisfying consumers |
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Term
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Definition
| the act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, or ideas) |
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Term
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Definition
Buying-understand buyers needs and desires
Selling-accomplished through promotion
Transporting- moving products from seller to buyer
Storing- physical distribution of products
Grading- standardizing products by dividing them into subgroups
Financing- marketer arranges credit to expedite purchase
Marketing Research- ascertain needs for new goods and services
Risk Taking- the chance of loss |
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Term
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Definition
| the idea that an organization should try to satisfy customers' needs through coordinated activities that also allow it to achieve its own goals |
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Term
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Definition
| an approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customers |
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Term
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Definition
| a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers |
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Term
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Definition
| a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas |
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Term
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Definition
| a specific group of consumers on whose needs and wants a company focuses its marketing efforts |
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Term
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Definition
| an approach whereby a firm tries to appeal to everyone and assumes that ally buyers have similar needs |
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Term
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Definition
| a strategy whereby a firm divides the total market into groups of people who have relatively similar product needs |
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Term
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Definition
| a collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires |
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Term
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Definition
| a market segmentation approach whereby a company develops one marketing strategy for a single market segment |
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Term
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Definition
| a market segmentation approach whereby the marketer aims its efforts at two or more segments, developing a marketing strategy for each |
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Term
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Definition
| the four marketing activities- product, price, promotion, and distribution- that the firm can control to achieve specific goals within a dynamic marketing environment |
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Term
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Definition
| a value placed on an object exchanged between a buyer and a seller |
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Term
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Definition
| making products available to customers in the quantities desired |
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Term
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Definition
| a persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups, and organizations to accept goods, services, and ideas |
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Term
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Definition
| a systematic, objective process of getting information about potential customers to guide marketing decisions |
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Term
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Definition
| marketing information that is observed, recorded, or collected directly from respondents |
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Term
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Definition
| information that is compiled inside or outside an organization for some purpose other than changing the current situation |
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Term
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Definition
| the decision processes and actions of people who purchase and use products |
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Term
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Definition
| the process by which a person selects, organizes, and interprets information received form his or her senses |
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Term
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Definition
| inner drive that directs a person's behavior toward goals |
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Term
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Definition
| changes in a person's behavior based on information and experience |
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Term
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Definition
| knowledge and positive or negative feelings about something |
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Term
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Definition
| the organization of an individual's distinguishing character traits, attitudes, or habits |
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Term
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Definition
| a set of expectations for individuals based on some position they occupy |
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Term
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Definition
| groups with whom buyers identify and whose values or attitudes they adopt |
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Term
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Definition
| a ranking of people into higher or lower positions of respect |
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Term
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Definition
| the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts |
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Term
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Definition
| a trial minilaunch of a product in limited areas that represent the potential market |
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Term
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Definition
| the full introduction of a complete marketing strategy and the launch of the product for commercial success |
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Term
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Definition
| products intended for household or family use |
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Term
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Definition
bought frequently, without a lengthy search, and often for immediate consumption
brand doesn't matter, consumers don't spend much time searching for products ex: eggs, milk, newspapers |
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Term
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Definition
purchased after the consumer has compared competitive products, and "shopped around". Price, product features, quality, style, service, and image all influence the decision to buy
ex: furniture, audio equipment, clothing |
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Term
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Definition
require even greater research and shopping effort. consumers know what they want and go out of their way to find it; they are not willing to accept a substitute
ex: ethnic foods, designer clothing, shoes, art, antiques |
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Term
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Definition
| products that are used directly or indirectly in the operation or manufacturing processes of businesses |
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Term
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Definition
| a group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations |
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Term
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Definition
| all the products offered by an organization |
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Term
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Definition
introduction, growth, maturity, and decline
introduction: consumer awareness and acceptance of the product are limited, sales are zero, and profits are negative
growth: sales increase rapidly and profits peak, then start to decline
maturity: sales continue to increase in the beginning, but then the sales curve peaks and starts to decline while profits continue to decline
decline:sales continue to decline rapidly, profits also decline and may even become losses as prices are cut and necessary marketing expenditures are made |
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Term
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Definition
| the process of naming and identifying products |
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Term
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Definition
| a brand that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm |
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Term
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Definition
| brands initiated and owned by the manufacturer to identify products from the point of production to the point of purchase |
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Term
| private distributor brands |
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Definition
| brands, which may cost less than manufacturer brands, that are owned and controlled by a wholesaler or retailer |
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Definition
| products with no brand name that often come in simple packages and carry only their generic name |
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Term
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Definition
| the external container that holds and describes the product |
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Term
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Definition
| the presentation of important information on a package |
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Term
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Definition
| the degree to which a good, service, or idea meets the demands and requirements of customers |
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Term
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Definition
| charging the highest possible price that buyers who want the product will pay |
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Definition
| a low price designed to help a product enter the market and gain market share rapidly |
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Term
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Definition
encouraging purchases based on emotional rather than rational responses to the price
even/odd pricing: people will buy more of a product at $9.99 than $10 because it seems to be a bargain at an odd price
symbolic/prestige pricing: high prices connote high quality |
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Term
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Definition
| temporary price reductions, often employed to boost sales |
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Term
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Definition
| a group of organizations that moves products form their producer to customers; also called a channel of distribution |
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Term
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Definition
| intermediaries who buy products from manufacturers (or other intermediaries) and sell hem to consumers for home and household use rather than for resale or for use in producing other products |
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Term
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Definition
| create time, place, and ownership utility |
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Term
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Definition
| intermediaries who buy from producers or form other wholesalers and sell to retailers |
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Term
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Definition
creates alliances between channel members.
connecting and integrating all parties in the chain to improve the flow “end-to-end” for the mutual benefit of all businesses in the chain and the customer.
include all organizations involved in moving products from the producer to the ultimate customer |
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Term
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Definition
| a form of market coverage whereby a product is made available in as many outlets as possible |
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Term
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Definition
| a form of market coverage whereby only a small number of all available outlets are used to expose products |
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Term
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Definition
| the awarding by a manufacturer to an intermediary of the sole right to sell a product in a defined geographic territory |
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Term
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Definition
| all the activities necessary to move products from producers to customers- inventory, control, transportaion, warehousing, and materials handling |
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Term
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Definition
| the shipment of products to buyers |
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Term
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Definition
| the design and operation of facilities to receive store, and ship products |
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Term
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Definition
| the physical handling and movement of products in warehousing and transportation |
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Term
| integrated marketing communications |
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Definition
| coordinating the promotion mix elements and synchronizing promotion as a unified effort |
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Term
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Definition
| a paid form of nonpersonal communication transmitted through a mass medium, such as television commercials or magazine advertisements |
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Term
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Definition
| designing a series of advertisements and placing them in various media to reach a particular target market |
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Term
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Definition
| direct, two way communication with buyers and potential buyers |
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Term
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Definition
| nonpersonal communication transmitted through the mass media but not paid for directly by the firm |
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Term
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Definition
| direct inducements offering added value or some other incentive for buyers to enter into an exchange |
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Term
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Definition
an attempt to motivate intermediaries to push the product down to their customers
producer>wholesaler>retailer>consumer |
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Term
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Definition
the use of promotion to create consumer demand for a product so that consumers exert pressure on marketing channel members to make it available
producer |
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Term
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Definition
| the use of promotion to create and maintain an image of a product in buyers' minds |
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Term
| Accountants (vs Bookkeepers) |
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Definition
| record financial information, but to understand and interpret and develop sophisticated accounting |
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Term
| Purpose of internal financial information |
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Definition
1) to aid in internal planning and control
2) for external purposed such as reporting to the Internal Revenue Service, stockholders, creditors, customers, employees, and other parties |
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Term
| Personal Finance Concepts |
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Definition
1)Value of money is constantly changing
2)Small Sacrifices can yield big payoffs in the future
3)Every Decision involves tradeoffs |
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Term
| Environmental Forces of Marketing |
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Definition
-Economic/Demographic
-Legal/political
-Social/cultural
-Development status
-Technology
-media fragmentation
-competition |
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Term
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Definition
1)Recognize problem/need
2)Seek information
3)Evaluation of alternatives
4)Purchase decision
5)post purchase evaluation |
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Term
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Definition
-Product/service itself
-Value enhancers |
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Term
| Consumer value of branding |
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Definition
-Convenience
-Status
-Quality
-Safety |
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Term
| Producer Value of Branding |
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Definition
-Purchase Convenience
-Leverageable
-Consumer Loyalty |
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Term
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Definition
| costs that remain the same regardless of number of products made (rent) |
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Term
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Definition
| costs that change depending on the number of units produced |
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Term
| Break even analysis (pricing) |
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Definition
Quantity = Total fixed costs / price - variable costs
tells the business how many units they have to sell to cover their costs
-Tells business how many units to sell at a certain price to cover all expenses |
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