Bus 101 Final Study Cards

Final Exam Study Cards
Created May 2, 2010
by rkopec09
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Side ASide B
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...
Push Markting V. Pull Marketing
Push - assuming customer is unable to make decision on their own, pushing information  onto...
*To help buyers buy*Set standards of quality relative to price*Creating and communicating a...
Evolution of marketing
1. 1860 -mass produce for profit2. 1920s - over production, focus on persuasion3. Post WW2...
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...
Marketing Mix
The mix of different marking methods used to promote products. ie radio, tv, web ads, newspaper,...
Influences of Marketing:SocioculturalPsychologicalSituational
1. family, culture, social class2. perception, motivation3. previous experiences, social and...
Ways to segment market:DemographicsGeographicsPsychographics
1. By city, region, state, physical location2. By age, income, education3. By values, attitudes,...
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....
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,...
Product Life Cycle (4 steps)
1. Introduction (market tested, high price, selective distribution)2. Growth/Competition (improve...
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...
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...
Pricing Strategies - Psychological Pricing
pricing goods and services at price points that make the product appear less expensive than...
Fixed Costs 
expenses that remain the same no matter how many products are made/sold (ex. building, equipment,...
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...
Supply Chain
adds value at each step as the materials move to become a good, and information sent to the...
Marketing Intermediaries
Organizations that assist in moving goods/services from producers to consumers Tend to add...
marketing activity involving steps from planning to manufacturing to end user the most effectively...
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
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...
Transportation Pros/Cons
Trains - great for large shipmentsTrucks - good for small shipments to remote locationsBy Water...
Loss Leader
to sell something that is at a low price in order to gain a customer to buy a more expensive...
Promotion Mix
Using a variety of promotions tools  (personal selling, public relations, sales promotions,...
paid, non-personal communication, through various media with an identified sponsorEx. newspaper,...
The Selling Process (7 steps)
1. Prospect and Qualify - research prospective buyers, see if there is a need for it2. Pre-approach...
any information distributed about a product or an organization through the media to the public,...
Sales Promotion
to stimulate the consumer into purchasing and dealer interest by means of short term activitiesEx....
Managerial v. Financial Accounting
Managerial: make decisions based on the #s, how to utilize the resources of the companyFinancial:...
Accounting System Inputs and Outputs
Inputs: Sales Documents, reciepts, payroll, travel recordsOutputs: Financial statements such...
Sarbanes Oxely Act
*when the accounting industry was under scrutiny*created government standards for publicly...
Balance Sheet
financial statement that reports the financial condition at a specific time made up of assets,...
Selling Accounts Receivable
way to get rid of a liability - sell to a collections agency for pennies on the dollar, but...
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)
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...
Net Income
revenue left after costs, expenses, and taxes are paid
Value of everything received from goods sold, services, and other financial sources
Net Income Before Taxes
income statement projected over a period of time -usually 12 months. A way to budget based...
Operating Expenses
costs involved with operating a business, such as rent, utilities, insurance, supplies, and...
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,...
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...
Capticla Budget
 a budget that highlights a firm's spending plans for a major purchase that requires a...
Cash Budget
estimates cash flowing in and out during amonth or period, helps to document trends and estimate...
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,...
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
the process of selling accounts receivable for cash
Credit Cards
many business use them for readily available crdit as opposed to loansHOWEVER - very risky...
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...
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...
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...
Federal Reserve
Sets reserve requirements and interest rates for banks, buys and sells government securities...
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...
do not accept deposits, but offer services like banks - these types of non-banks include pension...
Pension Funds
 money put aside by corporations, non-profits or unions to cover the needs of members...
the chance, probability, and amount of possible loss
Speculative Risk
chance of loss OR profit
setting aside money to cover routine claims and buying only Catastrophe polocies to cover big...
Liability Insurance
covers people found liable for professional negligance, protected them rom being sued "malpractice...
Key Executive Insurance
if the owner dies, money goes back into the business as pposed to a beneficiary
way to give risk to a third party, who pays for the risk insteadI
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...
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

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