SIE exam 2

Concentrated strategy

a marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group

Differentiated strategy

a marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs

Undifferentiated strategy

a marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marketing mix

Agent

a middleman business which represents a manufacturers product or service to other business to business middleman firms

Overdraft

a negative balance in a depositors bank account

born internaional

a new firm that opens a website immediately thus being exposed to customers from around the world.

Charge back

a reduction in the bank account of a merchant by a credit card company

Cash receipts budget

a schedule of the amounts and timing of the receipt of cash into a business

Cash disbursements budget

a schedule of the amounts and timings of payments of cash out of a business

Microinventory

a set of goods and services that consists of only one or a few items.

Receivables

amounts that are owed to a business for merchandise that was sold on credit

Money

an accepted medium of exchange

Reconciling

an accounting process that identifies the causes of all differences between book and bank balances

E-tailer

an electronic retailer, a store that exists only on the internet

Transfer

an endgame strategy in which ownership is moved from one person or group to another

Termination

an endgame strategy in which the owner closes down a business

Clearing house

an entity that processes checks and electronic fund transfers for banks and other financial organizations

Estate freeze

an estate planing strategy which focuses on transferring assets to heirs when the asset costs are low

Liquidity enhancement

an estate planning strategy which focuses on generation cash to cover likely estate taxes

Tax management

an estate planning strategy which focuses on minimizing estate tax payments

Contract manufacturing

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

Bankruptcy

an extreme form of business termination which uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets

Bearer

any person or business entity who possesses a security

Direct mail

a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers from which they can mail, call or email an order. direct taxing and direct emailing are more modern forms of direct mail.

Wholesaler

a middleman business which buys and sells to businesses rather than consumers

Retailer

a middleman business which sells to consumers or end users of a product

Sheltered workshop

a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers.

Discounts for prompt payment

a reduction in sales price provided to credit customers for paying outstanding amounts in a timely manner

Non sufficient funds

A situation that occurs when a check is returned to a depositor because the writer of the check did not have a bank available balance equal to or greater than the amount of the check

Timing purchases

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

Short term debt

any debt that must be paid in less than one year from the date of the financial statement on which it is reported

Cash equivalents

assets that may be quickly converted to cash

Slack resources

profits that are available to be used to satisfy the preferences of the owner in how the business is run

Open ended questions

questions that allow respondents to express themselves as they choose

Dichotomous questions

questions that have only two possible choices

Harvest

recover value through a sale of a firm or its assests

Liqidation

the popular name for chapter 7 bankruptcy in which a bankrupt firms assets are sold by the bankruptcy trustee and the proceeds used to pay the firms debts

Consignment

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

Company book balance

the sum of cash inflows and cash outflows recorded in the firms accounting records

Bank ledger balance

the sum of deposits and withdrawals recorded in a banks accounting records

Bank available balance

the sum of money that has actually been received and paid out of a depositors account

Cash to cash cycle

the time that is required for a business to acquire resources, convert them into product, sell the product and receive cash from the sale.

Guerilla marketing

the use of creative and relatively inexpensive ways to reach your customer. examples include doorknob, hangers, flyers under windshield wipers, T-shirts, balloons and messages written on sidewalks.

Initial public offering

transfer method describing the first time public sale of a stock listed on a public stock exchange

Cash

money that is immediately available to be spent

Focus group

A form of data gathering using a small group led by a moderator.

Walkaways

Business terminations in which the entrepreneur ends the business with its obligations met

Primary research

New information collected to solve a problem at hand or answer current questions.

Scalar questions

Questions that are answered by some sort of scale

Profit

The amount that revenues exceed expenses

Cash budget

a cash budget identifies when how and why cash is expected to come into the business and when how and whit it is expected to leave

Fulfillment center

a company that will warehouse your products and fill your customers orders for you

Survey

a data collection method using a questionnaire-in person, on phone, on paper, or on the internet

Letter of credit

a document issued by a bank that guarantees a buyers payment for a specified period of time upon compliance with specified terms

Documentary draft

a draft which can be exercised only when presented with specified shipping documents.

Marketing plan

a systematic written plan of all phases of marketing for a business including information on the product price distribution and promotion strategy as well as a clear identification of the target market and competition

Manufacturers suggested retail price

a target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel

Consolidation

a transfer method in which a small business is bought by a larger firm for the purpose of quickly growing the larger firm

Bot

a web based program that uses artificial intelligence techniques to automate tasks such as searches

Payables

amounts owed to vendors for merchandise or services purchased on credit

Factoring receivables

borrowing money secured by a firms accounts reveivable

Deposits and progress payments

cash payments received before product is completed or delivered

Indirect competition

companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need

Comprehensive budget

comprehensive budgets are often referred to as master budgets

Telemarketing

contact via telephone from the express purpose of selling a product or service. telemarketing can either be inbound or outbound

Ethnographic research

data gathered by simple observation, seeing what consumers do rather than asking them

Float

delays in the movement of money among depositors and banks

Indirect exporting

exporting using intermediaries such as agents export management companies or export trading companies

Direct exporting

exporting using no intermediaries

freight forwarders

firms specializing in arranging international shipments - packaging transportation and paperwork

Just in time inventory

having just enough product on your shelves to meet the immediate purchases. this usually requires frequent shipment from your supplier.

Secondary research

information already collected for some other purpose that the current problem or questions

Demand deposits

money held in checking and savings accounts

Direct sales

methods of going directly to your customer in order to sell your product. Vending machines, door to door salespeople leasing space at a craft fair, farmers market and most industrial sales are methods of direct selling.

Commercial paper

notes issued by credit worthy corporations

Traffic generators

other businesses that bring customers to the area

Direct competition

other companies that make a similar product or provide a similar service

Channels

people and firms who connect producers of goods and services with customers

Trade discounts

percentage discounts from gross invoice amounts provided to encourage prompt payment

Direct response advertising

placing an advertisement in a magazine or newspaper on television or radio or in any other media. the ad contains an order blank with a phone number and email or regular mail address with the intent of having the customer place an immediate order.

Noncore projects

revenue producing tasks and activities related to but not part of the primary strategy of a business.

Noncash inventives

rewards that do not require payment of cash, such as stock options compensating time off or added vacation days

Mail order

sales made from ads in newspapers or magazines with purchases made online or by phone as well as by mail.

Direct marketing

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

Marketable securites

stocks and bonds that are traded on an open market

Marketing research

systematic collection and interpretation of data to support future marketing decisions

Currency

the bills and coins printed by governments to represent money

Differential advantage

the characteristics that separates one company from another in product, price, promotion, and distribution

Manufacturer

the entity which produces a product or service to be sold

Growth trap

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

Workout

a form of business termination in which the firms legal or financial obligations are not fully met at closing

Employee stock ownership plan

a formalized legal method to transfer some or all of the ownership of a business to its employees

Serial entrepreneurs

people who open multiple businesses throughout their career

Categorical questions

questions that are answered by selecting the proper category

Supplemental profits

returns above costs intended as a secondary income for entrepreneurs

Success profits

returns at levels higher than the entrepreneur could make working for others

Substitution profits

returns intended to equal and replace the salary of wages the entrepreneur could draw working for someone else

Reorganization

the popular name of chapter 13 bankruptcy in which a bankrupt firm continues to operate while paying off debts identified by the bankruptcy trustee

Barter

the practice of trading goods and services without the use of money

Market segmentation

the process of dividing the market into groups that have somewhat homogeneous needs for a product or service

Business life cycle

the sequence or pattern of developmental stages any business goes through during its life span

Liability of newness

the set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

Multichannel marketing

the use of several different channels to reach your customers for example a website direct mail and traditional retailing

Gaming the payment process

using methods to appear to be paying bills on time, which in fact payment is being delayed or avoided