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Side A ------ Side B
Benchmarking ------ Comparing your business to a competitors
4 P's of Marketing ------ Price - costPlace - where its soldPromotion - how to get word out about itProduct - what is being sold
Push Markting V. Pull Marketing ------ Push - assuming customer is unable to make decision on their own, pushing information  onto them, like car salesPull - make information available for customer to make their own decision 
Marketing  ------ *To help buyers buy*Set standards of quality relative to price*Creating and communicating a product that has a set value for customers and society at large
Evolution of marketing ------ 1. 1860 -mass produce for profit2. 1920s - over production, focus on persuasion3. Post WW2 - baby boom, competition for the consumer's  dollar4. Consumer research to satisfy them
Product ------ a physical good  or idea to satisfy a need or want
Test Marketing ------ testing products among potential customers
Brand Name ------ word, letter or phrase that differentiates one seller's goods from another
Focus Group ------ small group of people under direction of a discussion leader to communicate opinions on products and issues
Marketing Mix ------ The mix of different marking methods used to promote products. ie radio, tv, web ads, newspaper, magazine
Influences of Marketing:SocioculturalPsychologicalSituational ------ 1. family, culture, social class2. perception, motivation3. previous experiences, social and physical surroundings
Ways to segment market:DemographicsGeographicsPsychographics ------ 1. By city, region, state, physical location2. By age, income, education3. By values, attitudes, interests
Mass Marketing  ------ developing products and promotions to please a large market or group
Characteristics of Business to Business Marketing (6) ------ 1. Few customers2. usually larger organizations as customers3. geographically concentrated4. Rational as opposed to emotional5. Usually direct sales6. Concentrated on Selling rather than Advertising
Top - Bottom Pricing ------ based on costs to produce, then set price
Bottom - Up Pricing ------ set prices before considering costs
Product Line v. Product Mix ------ Line: group of products physically similar, intended for a similar market (ex. Frito Lay pretzels, chips, fritos)Mix: combination of lines offered by a manufacturer
Product Life Cycle (4 steps) ------ 1. Introduction (market tested, high price, selective distribution)2. Growth/Competition (improve product, adjust price to competition, heavy advertising, increased distribution3. Maturity (differentiate product from competition and other market areas, further reduce price, emphasize brand name4. Decline ( cut product mix, consider price increase, reduce advertising to loyal customers, reduce distribution
Pricing Strategies - Skimming ------  Skimming - high prices, when product is highly demanded
Pricing Strategies - Low Prices/Everyday Low Prices ------ Low Prices - enter new market to beat competitionEveryday Low Prices (Walmart) -low prices constantly, predatory 
pricing
Pricing Strategies - Competition Base ------ Competition Based - set pricing at, above, or below competition's 
pricing levels
Pricing Strategies - Cost Based ------ Set pricing based on costs of production comparing profit margins
Pricing Strategies - Price Leadership ------ One or more dominant firms set the pricing practices for all competitors in an industry to follow
Pricing Strategies - Psychological Pricing ------ pricing goods and services at price points that make the product appear less expensive than it is
Fixed Costs  ------ expenses that remain the same no matter how many products are made/sold (ex. building, equipment, insurance)
Variable Costs ------ costs that change according to the level of production (ex. raw materirals, electricity, labor)
Channels of Distribution ------ intermediaries in the market that together transport and store goods in their path from producer to consumersex. agents, brokers, wholesalers, retailers
Supply Chain ------ adds value at each step as the materials move to become a good, and information sent to the ultimate consumer
Marketing Intermediaries ------ Organizations that assist in moving goods/services from producers to consumers Tend to add cost at each step but can make things more efficient.  Can't be eliminated, otherwise consumers would have to perform their functions
Logistics ------ marketing activity involving steps from planning to manufacturing to end user the most effectively and most efficiently
Inbound Logistics ------ managing the inbound  raw materials from suppliers to producers
Outbound Logistics ------ managing the flow of finished products to business buyers and ultimate consumers
Containerization ------ bar coded shipments as it travels, easy to locate
Freight Forwarder ------ an organization that puts many small shipments together to send them in a larger shipment  to transport more cost effectively
Transportation Pros/Cons ------ Trains - great for large shipmentsTrucks - good for small shipments to remote locationsBy Water - inexpensive but slowPipeline - fast and efficient (water, petroleum)Air - Fast, expensive
Loss Leader ------ to sell something that is at a low price in order to gain a customer to buy a more expensive item
Promotion Mix ------ Using a variety of promotions tools  (personal selling, public relations, sales promotions, advertising)
Advertising ------ paid, non-personal communication, through various media with an identified sponsorEx. newspaper, TV, radio, magazines, direct mail, internet, mobile, product placement
The Selling Process (7 steps) ------ 1. Prospect and Qualify - research prospective buyers, see if there is a need for it2. Pre-approach - gather information about customer, their wants/needs3. Approach - first impression, emphasize benefits, sell whole package4. Make a presentation, use testimonials5. Answer Objections - anticipate questions, satisfy doubts6. Close the Sale - use test questions to see if ready to buy7. Follow Up - see if customer is happy, handle complaints, establish relationships
Publicity  ------ any information distributed about a product or an organization through the media to the public, not paid for or controlled by the seller
Sales Promotion ------ to stimulate the consumer into purchasing and dealer interest by means of short term activitiesEx. Display boards, trade shows, events, contests, coupons, catalogs, demonstrations
Managerial v. Financial Accounting ------ Managerial: make decisions based on the #s, how to utilize the resources of the companyFinancial: figure out and analyze the numbers, pay people and bills
Accounting System Inputs and Outputs ------ Inputs: Sales Documents, reciepts, payroll, travel recordsOutputs: Financial statements such as balance sheets, income statements, statements of cash flows
Sarbanes Oxely Act ------ *when the accounting industry was under scrutiny*created government standards for publicly traded  companies*created Public Company Accounting Oversight Board
Balance Sheet ------ financial statement that reports the financial condition at a specific time made up of assets, liabilities, and owner's equity
Selling Accounts Receivable ------ way to get rid of a liability - sell to a collections agency for pennies on the dollar, but better than nothing, get cash immediately
Current Assets ------  can be converted into cash with in a yearex. cash, accounts receivable, inventory
Fixed Assets ------  land, building, equipment
Intangible Assets ------ items like patents, copyrights, goodwill
Current Liabilities ------ payments due in one year or lessex. accounts payable, taxes, salaries
Long Term Liabilities ------ payments due in over one yearex. notes and bonds payable
Owners Equity ------ value of what stockholder's own in a firm (aka stockholder's equity)
LIquidity ------ ability for something to be converted into cash
Income Statement ------ shows a firm's profit after costs, expenses and taxes. It summarizes the  revenue, resources in the firm, and net income
Net Income ------ revenue left after costs, expenses, and taxes are paid
Revenue ------ Value of everything received from goods sold, services, and other financial sources
NIBT ------ Net Income Before Taxes
Proforma ------ income statement projected over a period of time -usually 12 months. A way to budget based on current trends and possible future problems or periods of growth
Operating Expenses ------ costs involved with operating a business, such as rent, utilities, insurance, supplies, and salaries
G & A Expenses ------ General and Administrative part of a budgetex. office supplies,  utilities
Statement of Cash Flow ------ reports cash receipts and disbursements related to a firms 3 major activities: operations, investments, and financing. showing the difference between cash coming in and going out
Financial Management ------ job of managing a firm's resources to meet its goals/objectives
3 major reasons why a firm fails financially ------ 1. Under-capitalization (insufficient funds to start)2. Poor control over cash flow3. Inadequate expense control
Capticla Budget ------  a budget that highlights a firm's spending plans for a major purchase that requires a large amount of money
Cash Budget ------ estimates cash flowing in and out during amonth or period, helps to document trends and estimate future spending
Financial Control  ------ when a firm compares its actual revenue, costs, and expenses to it's actual budget
Capital Expenditures ------ major investments in long-term tangible assets (land, buildings, equipment, copyrights, trademarks, patents)
Trade Credit ------ Practice of buying goods now and paying for them later
Secured Loan ------ loan backed by collateral
Unsecured Loan ------ Loan that doesn't require collateral
Time Value (of money) ------ Money has more power and value now, than sitting and doing nothing
Factoring ------ the process of selling accounts receivable for cash
Credit Cards ------ many business use them for readily available crdit as opposed to loansHOWEVER - very risky and costly with interest rates very high, and an expensive way to borrow money
Venture Capital  ------ money invested in new or emerging companies that are perceived as having great profit potential
Cost of Capital  ------ the rate of return a company must earn in order to meet the demands of its lenders and equity holders
Money Supply ------ the amount of money the Federal Reserve Bank makes abailable for people to buy goods and services 
M1 money ------ money that can easily be accessed (coins, paper money, checks)
M2 Money ------ money in M1 plus money that takes a little more time to obtain  (savings accounts, mutual funds, CDs)
M3 Money  ------ M2 PLUS deposits like money market funds
Weak dollar v Strong Dollar ------ Weak -falling value can't buy as much with it, weak economyStrong - rising value, can buy more with it, increased value and strong economy
Federal Reserve ------ Sets reserve requirements and interest rates for banks, buys and sells government securities (bonds/stocks),  buys and sells foreign currency
Using Checks/Check Clearing ------ Lengthy process, expensive.
Saving and Loans Banks ------ Financial institution that accepts savings/checking deposits,and provides home mortgage loans
Commercial Banks ------ profit-seeking, receives deposits through checking and savings accounts, which uses those funds to make loans 
Nonbanks ------ do not accept deposits, but offer services like banks - these types of non-banks include pension funds, insurance companies, commercial finance companies, brokerage houses
Pension Funds ------  money put aside by corporations, non-profits or unions to cover the needs of members financially when they retire.
Risk ------ the chance, probability, and amount of possible loss
Speculative Risk ------ chance of loss OR profit
Self-Insurance ------ setting aside money to cover routine claims and buying only Catastrophe polocies to cover big losses
Liability Insurance ------ covers people found liable for professional negligance, protected them rom being sued "malpractice insurance"
Key Executive Insurance ------ if the owner dies, money goes back into the business as pposed to a beneficiary
Insurance ------ way to give risk to a third party, who pays for the risk 
insteadI
IRA ------ Individual Retirement Account, save money now, so money 
available when ready to retire
Rainy Day Money ------ SAVE MONEY NOW - for unexpected expenses that may happen
Credit Union ------ a cooperative financial institution the is owned and controlled by  its members, aimed at  providing credit at reasonable rates, and. community developement.
Debt Financing v Equity Financing ------ Debt: to get a loanEquity: using equity as collateral in order to get money
Revolving Credit ------ a line of credtit readily available but usually involves a Fee

Side A ------ Side B
Benchmarking ------ Comparing your business to a competitors
4 P's of Marketing ------ Price - costPlace - where its soldPromotion - how to get word out about itProduct - what is being sold
Push Markting V. Pull Marketing ------ Push - assuming customer is unable to make decision on their own, pushing information  onto them, like car salesPull - make information available for customer to make their own decision 
Marketing  ------ *To help buyers buy*Set standards of quality relative to price*Creating and communicating a product that has a set value for customers and society at large
Evolution of marketing ------ 1. 1860 -mass produce for profit2. 1920s - over production, focus on persuasion3. Post WW2 - baby boom, competition for the consumer's  dollar4. Consumer research to satisfy them
Product ------ a physical good  or idea to satisfy a need or want
Test Marketing ------ testing products among potential customers
Brand Name ------ word, letter or phrase that differentiates one seller's goods from another
Focus Group ------ small group of people under direction of a discussion leader to communicate opinions on products and issues
Marketing Mix ------ The mix of different marking methods used to promote products. ie radio, tv, web ads, newspaper, magazine
Influences of Marketing:SocioculturalPsychologicalSituational ------ 1. family, culture, social class2. perception, motivation3. previous experiences, social and physical surroundings
Ways to segment market:DemographicsGeographicsPsychographics ------ 1. By city, region, state, physical location2. By age, income, education3. By values, attitudes, interests
Mass Marketing  ------ developing products and promotions to please a large market or group
Characteristics of Business to Business Marketing (6) ------ 1. Few customers2. usually larger organizations as customers3. geographically concentrated4. Rational as opposed to emotional5. Usually direct sales6. Concentrated on Selling rather than Advertising
Top - Bottom Pricing ------ based on costs to produce, then set price
Bottom - Up Pricing ------ set prices before considering costs
Product Line v. Product Mix ------ Line: group of products physically similar, intended for a similar market (ex. Frito Lay pretzels, chips, fritos)Mix: combination of lines offered by a manufacturer
Product Life Cycle (4 steps) ------ 1. Introduction (market tested, high price, selective distribution)2. Growth/Competition (improve product, adjust price to competition, heavy advertising, increased distribution3. Maturity (differentiate product from competition and other market areas, further reduce price, emphasize brand name4. Decline ( cut product mix, consider price increase, reduce advertising to loyal customers, reduce distribution
Pricing Strategies - Skimming ------  Skimming - high prices, when product is highly demanded
Pricing Strategies - Low Prices/Everyday Low Prices ------ Low Prices - enter new market to beat competitionEveryday Low Prices (Walmart) -low prices constantly, predatory 
pricing
Pricing Strategies - Competition Base ------ Competition Based - set pricing at, above, or below competition's 
pricing levels
Pricing Strategies - Cost Based ------ Set pricing based on costs of production comparing profit margins
Pricing Strategies - Price Leadership ------ One or more dominant firms set the pricing practices for all competitors in an industry to follow
Pricing Strategies - Psychological Pricing ------ pricing goods and services at price points that make the product appear less expensive than it is
Fixed Costs  ------ expenses that remain the same no matter how many products are made/sold (ex. building, equipment, insurance)
Variable Costs ------ costs that change according to the level of production (ex. raw materirals, electricity, labor)
Channels of Distribution ------ intermediaries in the market that together transport and store goods in their path from producer to consumersex. agents, brokers, wholesalers, retailers
Supply Chain ------ adds value at each step as the materials move to become a good, and information sent to the ultimate consumer
Marketing Intermediaries ------ Organizations that assist in moving goods/services from producers to consumers Tend to add cost at each step but can make things more efficient.  Can't be eliminated, otherwise consumers would have to perform their functions
Logistics ------ marketing activity involving steps from planning to manufacturing to end user the most effectively and most efficiently
Inbound Logistics ------ managing the inbound  raw materials from suppliers to producers
Outbound Logistics ------ managing the flow of finished products to business buyers and ultimate consumers
Containerization ------ bar coded shipments as it travels, easy to locate
Freight Forwarder ------ an organization that puts many small shipments together to send them in a larger shipment  to transport more cost effectively
Transportation Pros/Cons ------ Trains - great for large shipmentsTrucks - good for small shipments to remote locationsBy Water - inexpensive but slowPipeline - fast and efficient (water, petroleum)Air - Fast, expensive
Loss Leader ------ to sell something that is at a low price in order to gain a customer to buy a more expensive item
Promotion Mix ------ Using a variety of promotions tools  (personal selling, public relations, sales promotions, advertising)
Advertising ------ paid, non-personal communication, through various media with an identified sponsorEx. newspaper, TV, radio, magazines, direct mail, internet, mobile, product placement
The Selling Process (7 steps) ------ 1. Prospect and Qualify - research prospective buyers, see if there is a need for it2. Pre-approach - gather information about customer, their wants/needs3. Approach - first impression, emphasize benefits, sell whole package4. Make a presentation, use testimonials5. Answer Objections - anticipate questions, satisfy doubts6. Close the Sale - use test questions to see if ready to buy7. Follow Up - see if customer is happy, handle complaints, establish relationships
Publicity  ------ any information distributed about a product or an organization through the media to the public, not paid for or controlled by the seller
Sales Promotion ------ to stimulate the consumer into purchasing and dealer interest by means of short term activitiesEx. Display boards, trade shows, events, contests, coupons, catalogs, demonstrations
Managerial v. Financial Accounting ------ Managerial: make decisions based on the #s, how to utilize the resources of the companyFinancial: figure out and analyze the numbers, pay people and bills
Accounting System Inputs and Outputs ------ Inputs: Sales Documents, reciepts, payroll, travel recordsOutputs: Financial statements such as balance sheets, income statements, statements of cash flows
Sarbanes Oxely Act ------ *when the accounting industry was under scrutiny*created government standards for publicly traded  companies*created Public Company Accounting Oversight Board
Balance Sheet ------ financial statement that reports the financial condition at a specific time made up of assets, liabilities, and owner's equity
Selling Accounts Receivable ------ way to get rid of a liability - sell to a collections agency for pennies on the dollar, but better than nothing, get cash immediately
Current Assets ------  can be converted into cash with in a yearex. cash, accounts receivable, inventory
Fixed Assets ------  land, building, equipment
Intangible Assets ------ items like patents, copyrights, goodwill
Current Liabilities ------ payments due in one year or lessex. accounts payable, taxes, salaries
Long Term Liabilities ------ payments due in over one yearex. notes and bonds payable
Owners Equity ------ value of what stockholder's own in a firm (aka stockholder's equity)
LIquidity ------ ability for something to be converted into cash
Income Statement ------ shows a firm's profit after costs, expenses and taxes. It summarizes the  revenue, resources in the firm, and net income
Net Income ------ revenue left after costs, expenses, and taxes are paid
Revenue ------ Value of everything received from goods sold, services, and other financial sources
NIBT ------ Net Income Before Taxes
Proforma ------ income statement projected over a period of time -usually 12 months. A way to budget based on current trends and possible future problems or periods of growth
Operating Expenses ------ costs involved with operating a business, such as rent, utilities, insurance, supplies, and salaries
G & A Expenses ------ General and Administrative part of a budgetex. office supplies,  utilities
Statement of Cash Flow ------ reports cash receipts and disbursements related to a firms 3 major activities: operations, investments, and financing. showing the difference between cash coming in and going out
Financial Management ------ job of managing a firm's resources to meet its goals/objectives
3 major reasons why a firm fails financially ------ 1. Under-capitalization (insufficient funds to start)2. Poor control over cash flow3. Inadequate expense control
Capticla Budget ------  a budget that highlights a firm's spending plans for a major purchase that requires a large amount of money
Cash Budget ------ estimates cash flowing in and out during amonth or period, helps to document trends and estimate future spending
Financial Control  ------ when a firm compares its actual revenue, costs, and expenses to it's actual budget
Capital Expenditures ------ major investments in long-term tangible assets (land, buildings, equipment, copyrights, trademarks, patents)
Trade Credit ------ Practice of buying goods now and paying for them later
Secured Loan ------ loan backed by collateral
Unsecured Loan ------ Loan that doesn't require collateral
Time Value (of money) ------ Money has more power and value now, than sitting and doing nothing
Factoring ------ the process of selling accounts receivable for cash
Credit Cards ------ many business use them for readily available crdit as opposed to loansHOWEVER - very risky and costly with interest rates very high, and an expensive way to borrow money
Venture Capital  ------ money invested in new or emerging companies that are perceived as having great profit potential
Cost of Capital  ------ the rate of return a company must earn in order to meet the demands of its lenders and equity holders
Money Supply ------ the amount of money the Federal Reserve Bank makes abailable for people to buy goods and services 
M1 money ------ money that can easily be accessed (coins, paper money, checks)
M2 Money ------ money in M1 plus money that takes a little more time to obtain  (savings accounts, mutual funds, CDs)
M3 Money  ------ M2 PLUS deposits like money market funds
Weak dollar v Strong Dollar ------ Weak -falling value can't buy as much with it, weak economyStrong - rising value, can buy more with it, increased value and strong economy
Federal Reserve ------ Sets reserve requirements and interest rates for banks, buys and sells government securities (bonds/stocks),  buys and sells foreign currency
Using Checks/Check Clearing ------ Lengthy process, expensive.
Saving and Loans Banks ------ Financial institution that accepts savings/checking deposits,and provides home mortgage loans
Commercial Banks ------ profit-seeking, receives deposits through checking and savings accounts, which uses those funds to make loans 
Nonbanks ------ do not accept deposits, but offer services like banks - these types of non-banks include pension funds, insurance companies, commercial finance companies, brokerage houses
Pension Funds ------  money put aside by corporations, non-profits or unions to cover the needs of members financially when they retire.
Risk ------ the chance, probability, and amount of possible loss
Speculative Risk ------ chance of loss OR profit
Self-Insurance ------ setting aside money to cover routine claims and buying only Catastrophe polocies to cover big losses
Liability Insurance ------ covers people found liable for professional negligance, protected them rom being sued "malpractice insurance"
Key Executive Insurance ------ if the owner dies, money goes back into the business as pposed to a beneficiary
Insurance ------ way to give risk to a third party, who pays for the risk 
insteadI
IRA ------ Individual Retirement Account, save money now, so money 
available when ready to retire
Rainy Day Money ------ SAVE MONEY NOW - for unexpected expenses that may happen
Credit Union ------ a cooperative financial institution the is owned and controlled by  its members, aimed at  providing credit at reasonable rates, and. community developement.
Debt Financing v Equity Financing ------ Debt: to get a loanEquity: using equity as collateral in order to get money
Revolving Credit ------ a line of credtit readily available but usually involves a Fee