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
