Shared Flashcard Set

Details

BU121 Midterm
Winter 2012
76
Business
Undergraduate 1
03/03/2012

Additional Business Flashcards

 


 

Cards

Term
Model of business planning
Definition
1. Prepare a relatively easy business plan; this can be used to obtain initial funding if it is needed
2. Actually start the business
3. Refine the business plan on the basis of experience gained from running the business and use the revised plan to run the business and secure additional funding as necessary
4. Continue to grow the business - produce and market the product, hire employees as needed, etc.
Term
7 deadly sins
Definition
1. poorly prepared and has an unprofessional look
2. Plan is far too slick
3. The executive summary is too long
4. Not clear where the product is in terms of development
5. No clear answer to “why would anyone ever want to buy one?”
6. There is no clear statement of the qualifications of the management team
7. Financial projections are wishful thinking
Term
5 things an entrepreneur must accomplish
Definition
1. Make meaning
2. Make mantra
3. Get going
4. Define a business model
5. Weave a MAT (milestones, assumptions, tasks)
Term
4 basic principles of business writing
Definition
1. Purposeful
2. Persuasive
3. Economical
4. Audience oriented
Term
3x3 writing process
Definition
1. Prewriting - Analyze, Anticipate, Adapt
2. Writing - Research, Organize, Compose
3. Revising - Revise, Proofread, Evaluate
Term
"Sticky"
Definition
Understandable, memorable, and effective in changing thought or behaviour
Term
SUCCESs
Definition
Simple, Unexpected, Concrete, Credible, Emotional, Stories
Term
Claim
Definition
Major conclusion to a piece of writing that the author is trying to persuade you to accept
Term
Uncontested claim
Definition
Claims that generally do not need to be contested
Term
Evidence
Definition
Statement(s) that supports the claim
Term
Argument
Definition
Combination of a claim and its support evidence
Term
Quality of evidence
Definition
Accuracy, Precision, Sufficiency, Representativeness, Authority, Clarity of Expression
Term
Underly Assumptions
Definition
A logical link that fills the gap between a piece of evidence and a claim
Term
Two major types of assumptions and define
Definition
Reality assumption -  Challenge a reality assumption by presenting information that shows the author’s notion of reality as debatable or just wrong
Value assumptions - ideals, our standards of right and wrong, the way things ought to be.
Term
Casual claims
Definition
• Certain events or factors (causes) are responsible for bringing about other events or situations (effects).
Term
Marketing Concept
Definition
• Involves identifying customer needs and then producing the goods or services that will satisfy them while making a profit
Term
Relationship Marketing
Definition
A strategy that focuses on forging long-term partnerships with customers. Companies gain these partnerships by creating customer value and offering customer satisfaction. It is less expensive to serve an existing customer than to find another. Easier to retain a customer than to find a new one.
Term
Customer Relationship Management (CRM)
Definition
processes that an organization uses to track and organize information regarding current and prospective customers
Term
Competitive Advantage
Definition
set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
Term
Name the types of competitive advantages and what they are
Definition
o Cost competitive advantage: This means that a firm can produce its product for a lower cost than its competitors while maintain satisfactory profit margins.
o Differential competitive advantage: When a firm provides something unique that is valuable to buyers beyond just having a low price
o Niche competitive advantage: When a firm targets a single segment of the market within a limited geographic area
Term
Consumer Decision Making Process
Definition
1. Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase.
5. Post-purchase behaviour.
Term
Influences on consumer decision making
Definition
Culture, Social, Individual, Psychological
Term
Types of consumer buying decisions
Definition
Routine response behavior, limited decision-making, extensive decision-making
Term
Difference between business-to-business market and consumer market
Definition
o Purchase volume: Business customers by in much larger quantities than consumers.
o Number of customers: There are fewer customers for business marketers than there are for consumer marketers. This makes it much easier to monitor prospective buyers and their needs.
o Location of buyers: Business customers tend to be much more geographically concentrated than consumers.
o Direct distribution: Business sales tend to be made directly to the buyer, because sales involve large quantities. Consumer goods are likely to be sold through intermediaries such as wholesalers and retailers.
Term
Name three trends and describe them
Definition
• Internet Marketing Research - Allows rapid access to business intelligence and thus allows for better and faster decision making
• Scanner-Based Research - A system for gathering information from a single group of respondents by continuously monitoring the
• Loyalty cards - Cards issued by a manufacturer, service organization, or retailer that give discounts to loyal and frequent shoppers
• One-To-One Marketing - Creating a unique marketing mix for every customer
Term
Marketing concept
Definition
identifying consumer needs, then producing the goods/services that will satisfy them while making profit for the organization
Term
Relationship marketing
Definition
strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction
Term
Bases of market segmentation
Definition
Geographic, Demographic, Customer Type, Psychographic
Term
Perceptual Mapping and Preference Analysis
Definition
Determine which of the segments will be the target market by finding the biggest gap between how the customer perceives the competition meets their needs (perceptual mapping) and what they really want (preference analysis)
Term
Positioning
Definition
Finding a distinct position for your product in your customers’ mind that communicates your product as one with a unique benefit.
Term
Product Classifications
Definition
Convenience, Shopping, Specialty, Unsought
Term
Types of convenience goods/services
Definition
Staples, Impulse goods, emergency goods
Term
Product
Definition
Any good or service, along with its perceived benefits, which create value for customers
Term
Product life cycle
Definition
Introduction, Growth, Maturity, Decline
Term
Strategies for "Introduction" stage
Definition
Encourage trial
Establish competitive advantage
Establish distribution network
Build brand awareness
Set introductory pricing
Term
Strategies for "Growth" stage
Definition
Get triers to repurchase, attract new customers
Maintain product quality
Solidify distribution relationships
Provide information
Maintain prices
Term
Strategies for "Maturity" stage
Definition
Seek new users or uses
Modify product
Provide additional incentives to ensure support
Reposition product
Reduces prices to meet competition
Term
Strategies for "Decline" stage
Definition
Reduce marketing expenses, keep loyal customers
Maintain product
Eliminate trade allowances
Eliminate most advertising and sales promotion
Maintain prices
Term
Pricing objectives
Definition
• Profit maximization
• Achieving a Target Return on Investment
• Value pricing
Term
Mark-up
Definition
A certain dollar amount is added to a product’s cost to arrive at the retail price
Term
Product pricing strategies and what they are
Definition
• Price Skimming - For new products entering the market, the distributor can price it high and then over time lower the price.
• Penetration Pricing - Offering new products at low pricing with the hope of achieving large sales volume
• Leader Pricing - Pricing products below the normal mark-up or below cost to attract new customers to a store that they would not usually stop at
• Bundling - Grouping two or more related products and pricing them as one
• Odd-even Pricing - Psychologically odd pricing is viewed as a bargain and even pricing is viewed as something with quality
• Prestige Pricing - Raising the price of the product so that consumers view at as being something prestigious
Term
Marketing intermediaries
Definition
• Agents and brokers
• Industrial distributors
• Wholesalers
• Retailers
Term
Alternative channels
Definition
• Multiple channels - When a producer selects two or more channels to distribute the same product it is called dual distribution
• Non-traditional channels - Helps differentiate the firm’s product from the competition
• Strategic channel alliances - Enables the producer to deliver products through another manufacturer’s already established channel
Term
Function of distribution channels
Definition
• Channels reduce the number of transactions
• Channels ease the Flow of Goods
• Channels perform needed functions
Term
Goals of Promotion
Definition
• Creating awareness
• Getting consumers to try products
• Providing information
• Keeping loyal customers
• Increasing the amount and frequency of use
• Identifying target customers
Term
Elements promotional mix
Definition
 Advertising
 Personal selling
 Sales promotion
 Public Relations
Term
Integrated Marketing Communications (IMC)
Definition
Involves carefully coordinating of all promotional activities to produce a consistent, unified message that is consumer focused
Term
Factors that affect the Promotional Mix
Definition
o The nature of the product
o Market characteristics
o Available funds
o Push and Pull strategies
Term
Push strategies
Definition
A promotional strategy in which a manufacturer uses an aggressive personal selling approach to wholesalers and retailers in the hope of having them put your product on store shelves
Term
Pull strategies
Definition
A promotional strategy in which a manufacturer focuses on stimulating consumer demand for a product through heavy advertising; with the hope that consumers would go asking at their local retailers for the product and then because they don’t have it on shelves, they would ask the manufacturer to sell it to them
Term
Trends of promotion
Definition
• Incorporating more technology at all levels
• Yield Managements Systems (YMS) help companies maximize their revenues
• Category Management
Term
Total Product Concept includes:
Definition
o Brand
o Package
o Service
o Warranty
o Delivery
Term
Brand
Definition
A collection of perceptions in the mind of the consumer
Term
Stages of brand name recognition
Definition
 Non-recognition
 Brand recognition
 Brand recall / awareness
 Brand preference
 Brand loyalty
Term
How to approach price
Definition
o Cost based - mark-up
o Competitive based - market share
o Important that the price supports the CBP
Term
strategies for price
Definition
o Market protection
o Market domination
o Market stabilization
o Product line promotion, bundling
o Price lining
o Customer attraction
o Image enhancement
Term
Advertising
Definition
Non-personal sales presentation that is paid for by an identified sponsor
Term
Objectives of advertising
Definition
 Aware of your product.
 Interested in your product.
 Desire your product.
 Act on your product.
Term
Communication Model
Definition
o Increase credibility of source
o Develop a clear message
o Use most effective medium
Term
Cost Per Thousand (CPM)
Definition
Cost of advertising divided by the number of consumers the medium will reach
Term
How are all advertising, personal selling, and sales promotion and publicity integrated in the IMC
Definition
o IMC is integration marketing communication. It is the careful coordination of all promotional activities to deliver the same CBP to the customer. Advertising, sales promotion, PR and publicity are all forms of the promotional mix. Advertising and personal selling can be combined to generate more leads, reduce cost of all sales, reach ‘inaccessible’ people (the ones that don’t answer the phone or door), and maintain brand image in buyer’s mind. This along and all other sales promotion, PR and publicity, should send to the consumer the same message about the product. If there are conflicting messages between these components then the consumer will be confused about the product
Term
Accounting system
Definition
Classify summarize and analyze data - prepare financial reports - use reports to make decisions
Term
Financial vs. Managerial Accounting
Definition
o Financial: The focus is on preparing external financial statements that are used by outsiders to assess the financial strength of the business.
o Managerial: The focus is on providing financial information that managers can use to make decisions internally about current and future operations
Term
Trends of accounting
Definition
o Accountants expand their role: Take an active role in advising their clients on systems and procedures, accounting software, and changes in accounting regulations.
o Valuing knowledge assets: The value of intellectual capital
o Canada moves to IFRS
Term
What is ASPE, GAAP and IFRS
Definition
• ASPE: Accounting Standards for Private Enterprise.
• GAAP: Generally Accepted Accounting Principles.
• IFRS: International Financial Reporting Standards.
Term
Key differences between ASPE/GAAP and IRFS
Definition
o Relevancy vs. Reliability: Fair value vs. historic cost of an asset.
o Title of statements: Statement of financial position / Statement of Comprehensive Income.
o Order of Assets: It is in reverse – non-current comes before current.
Term
Auditor’s statement
Definition
Shows the scope and opinion, and qualifications.
Term
How can a profitable company fail?
Definition
• A profitable company can go bankrupt because the profit that is received is mostly in the form of receivables. This money is not cash, and if it is not collected in adequate time, then it will not be possible to pay off accounts payable and the company will go bankrupt.
Term
Current Ratio
Definition
Current Assets / Current Liabilities
Term
Acid Test Ratio
Definition
Current Assets – (Inventories + Supplies + Prepaid Expenses) / Current Liabilities
Term
Rule of thumb for current ratio and why
Definition
 2:1 to 4:1
 If it is not 2:1, then the company is going to have trouble paying its liabilities in the short-term.
 It if is greater than 4:1, then the money is being underutilized.
Term
Rule of thumb for acid test ratio and why
Definition
 Rule of thumb is that it should be greater than 1:1, more accurate measure because the only assets that would actually be used in day-to-day operations would be cash and accounts receivables, and this ratio disregards the other needed current assets
Term
Accounts Receivables Turnover
Definition
Annual (credit) sales / Avg. A/R
Term
Average Collection Period
Definition
Avg. accounts receivable x 365 days / annual (credit) sales
Term
Inventory Turnover
Definition
COGS / Avg. Inventory
Term
2/10, net 30
Definition
2% discount if you pay in 10 days
Supporting users have an ad free experience!