ENTR 4113 Final Questions

____ is the practice of trading goods and services without the use of money.

barter

____ is a form of communication that encourages the customer to take immediate action.

sales promotion

_____ is the process of dividing the market into smaller portions of people who have certain common characteristics.

segmentation

____ is the most familiar form of cash: bills and coins that represent money.

currency

There are two major elements to CM: handling problems that crop up after a sale and ____, which focuses on the longer-term monitoring and promotion of customer interest and loyalty.

customer relationship management (CRM)

The name for the general approach for keeping customers is called _____, CM for short.

customer retention

Effective messages are _____ that will make your business clear to potential clients and customers.

succinct messages

____ is a wealthy individual who invests in companies in relatively early stages of development.

angel investor

_____ are the other paying forward approach, and do not need to be millions of dollars.

donations

3 sources of financing:

-debt -equity capital -gift

There are 3 primary reasons to use outside equity in your business:

1. reduce your own exposure to financial loss 2. no increased costs in the form of interest 3. can often reenergize by providing new ideas, procedures, and processes

The 3 most common strategies employed by small businesses for handling money shortages are

1. use personal money 2. borrow 3. adjust scheduled purchases

The main thing that lenders want to see before they give businesses their money are the 4 Cs of borrowing:

-character of managers -capacity to repay principal and interest on time -conditions of the industry and economy -collateral used to secure the loan

_____ and ____ are two forms of financing whereby a company with good credit can issue a note for cash to another company

-commercial paper -short-term debt

Predetermined market segments is the professionally compiled target audiences based on ___,___, ___, and ___ characteristics.

-demographic -financial -shopping -psychographic

3 ways to divide the market into different segments:

-demographically -geographically -by the benefits sought

From the point of view of an existing owner, financing with equity is ____ and _____.

-expensive -guaranteed to create problems of control and decision making

People invest in a business to get back the money they had plus extra money, a ____ or a ____.

-gain on investment -dividend

6 operating issues when leasing:

-hidden charges -use of premises -noncompete -hours of operation -rent default -moves and remodels

Site selection 3 main categories:

-home-based -high customer contact -low customer contact

2 typical payment methods:

-letter of credit -documentary draft

You can sell ownership in your business if your business is organized as one of the 3 broad types of legal forms of business:

-partnership -corporation -LLC

Owners believe that if you sell half of your business to raise capital, you have sold half of your future ___, ___, and ____.

-profits -growth -wealth

Those who have interest become your _____ and the most interested ones become your _____ for a sale.

-sales leads -prospects

This definition gives us two purposes of money:

-to make exchanges -to keep track of wealth or value

In a high customer contact business, there are 3 critical site selection considerations:

-traffic -customer ease -competition

7 types of direct marketing:

-word of mouth -direct sales -direct mail -telemarketing -direct response advertising -guerilla marketing

2 ways to generate publicity:

-write or provide materials -conduct interviews

Putting together an export strategy involves answering 3 questions:

1. Are we ready? 2. Where should we go? 3. Whom do we contact over there?

5 techniques to increase cash flows:

1. deposits and progress payments 2. offering discounts 3. asking for your money 4. noncore paying projects 5. factoring receivables

3 ways of borrowing:

1. direct loans of cash 2. guaranteeing loans made by commercial banks 3. reducing taxes by allowing interest to be deducted

3 steps in CRM:

1. gathering the data 2. analyzing the data 3. increasing sales though CRM

The proof of a CRM effort is seen in:

1. higher levels of customer loyalty in existing customers 2. higher levels of purchasing from your customers 3. more tracked prospects making initial purchases from you

The most common means by which employees steal cash from their employers is by using one of the 3 categories of theft:

1. larceny and embezzlement 2. skimming 3. phony disbursements

3 obvious comparisons to compare with your position and results:

1. with your planned 2. with prior years' 3. with other firms

____ is selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the results.

direct marketing

_____ is the process of getting your product to the customer.

distribution

To protect themselves from losing everything, investors _____--invest in several businesses so that the ones that do succeed provide gains that more than offset the losses from those that don't.

diversify

The ______ essentially describes how much of each message conveyance you will use to sell your product as well as your objective in using each one.

promotional mix

Public relations include _____ and other forms of communication to the public in general in order to promote a favorable opinion by the public about your firm.

publicity

____ is the major way most businesses convey their message to potential customers.

advertising

The practice of using one's own capital and funds generated by operating the business to finance start-up and growth is generally called _____.

bootstrapping

Thanks to the internet, once a company has a website, it is essentially an international business, a whole new breed of firms known as ______.

born internationals

____ is money, but its only one form of money, a subcategory of money that is immediately available to be spent.

cash

For small businesses, the key to cash planning is the ____.

cash budget

Businesses use a concept called ___ to measure how much money is available to be spent.

cash equivalents

Public recognition includes _____, _____, _____, and _____.

issue recognition trendiness famous faces proximity

Micro inventories are the small businesses answer to _____ methods in big business.

just-in-time

The best collateral is

tangible long-lived assets

While selling may be thought of as an art, there is a general formula for generating interest in your product or service:

1. Prospect and evaluate 2. Prepare 3. Present 4. Close 5. Follow-up

As with cash inflows there are 2 factors of cash outflows that must be controlled:

1. amount of cash being paid out 2. timing of cash being paid out

Cash can come from 3 sources:

1. cash flow from operations 2. cash flow from investing 3. financing

____ is the rule of thumb about how many prospective customers it takes to find one who will actually make a purchase.

Marketing funnel

____ is a financial crisis that is caused by a business growing faster than it can be financed.

growth trap

4 strategies of CRM:

market penetration product expansion market expansion diversification

3 valid business reasons entrepreneurs choose their hometown as their location:

-Local bankers know you -You understand market needs and wants -Friends and family are usually first customers

Typically marketers think in terms of 4 types of avenues for getting your message out:

-advertising -sales promotions -public/press relations -personal selling

With indirect exporting, you use ____, ____, or ____.

-agents -export management companies -export trading companies

There are 3 typical locations for services:

-at the client's location -at a mutually accessible location -at your firm

Ultimately there are 3 choices available to the business:

-build -buy -lease

Entrepreneurs can use the _____ formula to write press releases well.

AIDA -attention -interest -desire -action

Commercial paper is issued to be paid to the ____ of the note, and thus is fully transferable.

bearer

_____ is the doubt that occurs after a purchase has been made. An inconsistency between experience and belief.

cognitive dissonance

____ is the practice of accepting goods for resale without taking ownership of them and without being responsible to pay prior to their being sold.

consignment

In ____ an existing firm with the correct manufacturing capabilities makes your product for you.

contract manufacturing

The kind of analyses you want to be able to perform are the ones which give you a ______ which is a type of data report from your CRM database which lets you summarize information by date, by product or service being sold, by groups of customers, or by the purchases of an individual person or firm.

customer vector

_____ is exporting using no intermediaries, while ____ is exporting using intermediaries.

direct exporting indirect exporting

_____ exist for the purpose of addressing some identified social need that cannot be adequately met by market forces.

foundations

_____ are specialists in international export-related activities--packaging transportation, and paperwork.

freight forwarders

_____ is a common, if a bit underhanded, method of controlling cash outflows.

gaming the payment process

Public interest includes a _____, _____, _____, and _____.

good story human interest visuals cultural resonance

____ of money are available from the U.S. government, most state governments, and semiprivate and private economic development agencies.

grants

____ is a relatively new concept in marketing, but the start-up company's best friend.

guerilla marketing

To get people to buy what you are offering, you first need to make an _____ on them, letting them know who you are and what you are offering.

impression

Lenders expect a return on this money from making loans, by getting back the amount had plus more money in the form of ____.

interest

As the manufacturer of the good or service, you have the ability to set the _____ of your product.

manufacturers' suggested retail price

If you are looking at people who have not been customers, you might seek a _____ strategy to sell your existing products to them, or a _____ strategy if you are trying to sell them newly developed products.

market expansion diversification

Selling the same products to the same customers is called ____, while selling the same customers a new product is called _____.

market penetration product expansion

_____ are made up of stocks and bonds for which there is an active auction market.

marketable securities

Comprehensive budgets are often referred to as ____.

master budgets

A _____ is a set of goods or services that consists of only one or few items.

micro inventory

The term _____ refers to using several outlets for contacting your customers.

multichannel marketing

Press releases are meant to draw the attention of the public to something that's new and _____ which could be a range of things, from products and people to services and solutions.

newsworthy

____ for employees is the most widely used technique to reduce the amount of cash that must be paid out of the business.

noncash incentives

___ is money from selling part of your business to people who are not and will not be involved in the management of the business.

outside equity

People who buy ownership rights in your business are considered _____.

outside equity investors

______ has the advantage that you can be flexible in your presentation.

personal selling

Public importance includes _____ and _____.

power currency

The _____ is the key method for telling your business story.

press release

At a fundamental level, _____ drives sales.

promotion

_____ is the segment or segments you select on which to concentrate your marketing efforts.

target market

_____ are provided by state and local governments, primarily to encourage specific activities that are expected to improve blighted areas or to provide additional employment.

tax abatement

_____ is a legal reduction in taxes by a government.

tax abatement

____ are provided by the U.S. government and some state governments for the purpose of encouraging investment in specific types of assets, to increase economic activity in specified disadvantaged geographical areas.

tax credits

While most consumers find this method particularly annoying, ____ still remains a viable form of direct marketing because it works.

telemarketing

The number one source of financing for small businesses is

the owners

The first choice, and often only choice, for many entrepreneurs is ____ because it offers convenience and a familiar setting, and it eliminates a lot of possible family issues.

their hometown

___ is a method of controlling the timing of cash outflows that is invisible to suppliers and vendors.

timing purchases

_____ are given by suppliers and vendors to encourage customers to make timely payments on account.

trade discounts