Port Man PRime

Three Factors that effect the emigration supply curve

1. Increase in education 2. Increase in youth population 3. Increase in immigrant networks

Autarky

When a country does not trade with other countries

Trade Diversion

When tariff agreements cause imports to shift from low cost countries to higher cost countries. Is undesirable because it concentrates production in countries with a higher opportunity cost and lower comparative advantage. It decreases economic well being

GDP problems

1. does not factor in income earned abroad (GNI can) 2. Only legal market transactions 3. ignores and double counts certain costs (ex: pollution)

Nash Equillibrium

A set of strategies that are mutual best responses A set of strategies from which neither player would unilaterally deviate.

WTO

Administers the rules governing trade between its 153 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly. Main Goals: attempt to liberalize trade, stop conflict & help countries succeed

Fixed Exchange Rate

An exchange rate policy under which a government commits itself to keep its currency at or around a specific value in terms of another currency or a commodity, such as gold. ****stable BUT subject to speculative attacks

OLI

Attempt to explain why MNE's choose FDI

Capital deepening

The increasing of capital resources at a faster rate than the increasing of the labor force, causing a rise in the capital-to-labor ratio

LM interpretation of Theta (In terms of TAA Generosity and FTA voting change)

Generosity of TAA in location C rises by 1 unit, the probability that the congressman in location C votes in favor of an FTA change is by theta.

Common Market

Group formed by countries within a geographical area to promote duty free trade and free movement of labor and capital among its members, usually have an external trade policy

M&A

Home country buys some or all of the shares of a preexisting foreign firm

Greenfield Investment

Home country firm establishes a brand new production facility in the foreign country that if fully owns

Exporting country: the export subsidy will

Hurt consumers and lower overall economic welfare of the exporting country

Comparative Advantage

The ability of a country to produce a g/s at a lower opportunity cost than competitors

International Capital Mobility

The movement of money between countries. It is hard to regulate in a free market in an efficient way, thats why most countries choose to keep it as part of the trinity and sacrifice one of the other two. International mobility of capital limits the freedom of policy makers to pursue domestic macroeconomic goals (such as full employment and stable prices). It also limits the ability of policy makers to tax capital.

Gains from trade

The net benefits from entering into voluntary trade. Increases when countries specialize in g/s they have CA in

Purchasing Power Parody

Theory that the nominal exchange rate will adjust so that the purchasing power of a currency will be the same in every country, this equalization is done through nominal exchange rate (E= home/foreign). Ex: big mac in India vs. US - identical product, when you compare indies currency with US, the big mac should cost the same in both countries

Horizontal Intra-Industry Trade

Trade of products that belong to the same industry

Intra Firm trade

Trade that takes place between two different industries and within a single firm 1 firm, one part is domestic one part is foreign -prices are arbitrary - firm designates prices -intangible assets -reduces dissemination risks

Flexible Exchange Rate

Value set by supply and demand *****allows for capital mobility and monetary independence

Nondiscrimination

WTO principle #1 -countries cannot discriminate between trading partners -permanent normal trade relations Exceptions: special groups, developing markets -can raise trade barriers against products that are traded unfairly

Predictability: Binding and Transparency

WTO principle #2 -promises to promote future opportunity 1. Binding agreements- agree to open their market, promotes security 2. Transparency- make trade rules clear and public

Resellers

a group that purchases finished goods for the purpose of selling those finished goods for a​ profit, renting, or leasing to consumers and other​ businesses?

import quota

a limit on the amount of a good that can be imported

Plant

a manufacturing facility, a warehouse distribution center, or office. A plant may simply store inventory, produce goods, render services, or make goods available for distribution.

heterogenous market

a market comprised of individuals with different product needs

Conversion

a marketing metric that signifies an event that occurs on a Web page that indicates the meeting of a predefined goal associated with the​ consumer's interaction with that​ page?

Product differentiation

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products.

trade barrier

a means of preventing a foreign product or service from freely entering a nation's territory

trade creation

a member country imports a product from another member country that formerly it produced for itself

Passing title of entrusted goods

a merchant who is not authorized to sell a good can only pass valid title to a good faith purchaser IF the true owner voluntarily transferred or entrusted the goods to the merchant.

production subsidy

a subsidy to every unit produced and not just to units that are exported

Variance of a single asset

equals the average squared deviation of observed values from their mean. higher variance indicates higher volatility or dispersion of returns/

Company code

an independent accounting unit. Balance sheets and Profit&Loss statements required by law, are created at the company code level.

what is the Annualized Return and what is the formula?

an investment may have a term less than 1 year. doing this makes it possible to compare across investment instruments with different maturities. Ex. if weeks: use 52 as numerator if days use 365 as numerator if months use 12 as Numerator R = return on investment N = # of periods in year.

Touchpoint

any direct interface between customers and a company​ (online, by​ phone, or in​ person)

Ch2

ethics and legal issues

Consumer generated Value

everyday people generate value instead of buying it. Creating ads on youtube, eBay

B2B marketing

exchange of goods and services from one org to the other. **Buy more than consumers. Example: Internet

Copyrights

exclusive right by the federal gov. to publish and sell various works (intangible)

Patents

exclusive, legal right to use a process or create and sell a product for 20 years (intangible)

Commitment

exclusively commited to eachother and find mutual relationships

Risk management

- a process that defines risk tolerance and measures, monitors, and modifies risk to be in line with that tolerance

Attributes of high-quality relationships

-trust -commitment -relationship satisfaction -mutual goals -cooperative norms

Utility

A measure of relative satisfaction from consumption of various goods and services that an investor derives from different portfolios

Casual looker

A shopper who really has nothing specifically in mind to buy.

Customer empathy

A sincere concern for the interests and feelings of the customer

Change plate

A small shelf located directly above the cash drawer

Marketplace

any location or medium used to facilitate an exchange.

countervailing duty

applied in order to counter export subsidies

Scope of Article 2A

applies to any transaction, regardless of form, that creates a lease." 2A-102.

ethnography

approach to research based on observations of people in their own homes and communities

go to market staretgies

approaches to approach the customer as they add values

Property, plant, and equipment (PPE), also referred to as tangible fixed assets

are assets used in the production of goods and services that the firms sells in order to generate operating income and cash flow. PPE Assets are: 1. tangible in nature 2. expected to be used for more than one year (or more than one operating cycle, whichever is longer) 3. Used in the production and sale of other assets, for rental to others, or for administrative purposes PPE includes land and land improvements; buildings, machinery and equipment; and furniture and fixtures. It also includes natural resources covered in Appendix B.

new to customers

are customers who have either identified a new need or have found a new category of solution for an existing need.

new to company

are customers won from competitors

Decreasing-charge methods

are depreciation methods that take more depreciation in the early years than in the late years of the asset's useful life. Acceleration of depreciation charges is based on the premise that an asset is often most productive in its early years of service. Thus, decreasing charge methods match higher depreciation expense with higher related revenues in the early years of the asset's life and match lower depreciation charges against lower related revenues in the later years. Accelerated depreciation generally results in constant total annual usage costs (depreciation expense and repair and maintenance expense) charged against income over the life of the asset. In the early years of the asset's life, there are high depreciation expenses but low repair and maintenance expenses. When the asset is older. there are high repair and maintenance expenses and low depreciation expenses. Thus, the decreasing-charge methods of depreciation result in a fairly constant level of asset utilization costs over the asset's useful life. (Exhibit 11.2 pg 592)

factors influencing SP ethics

company policies--code of ethics Values of significant others --relatives/friends --other sales people --managers laws

think pair share

complexity organizational/b2b high cost long term--total cost to maintain and use

Case Study

comprehensive examination of a particular firm or organization

Marketing analytics

comprises a group of technologies and processes that enable marketers to​ collect, measure,​ analyze, and assess the effectiveness of marketing efforts.

Security selection

An attempt to generate higher returns than the asset class benchmark by selecting securities with a higher expected return

Web scraping

describes the process of using computer software to extract large amounts of data from websites.

Cross sectional design

descriptive technique uses instruments such as questionnaires to systematically collect info from one or more consumer samples at a single point in time

Capital Controls

Any measure taken by a government, central bank or other regulatory body to limit the flow of foreign capital in and out of the domestic economy. This includes taxes, tariffs, outright legislation and volume restrictions, as well as market-based forces. Capital controls can affect many asset classes such as equities, bonds and foreign exchange trades.

Project Initiators

Anybody who submits projects to be considered for investment by the portfolio.

implications

Approaches for changing perceived value •Increasing performance rating f •Decreasing the rating for competitive product •Increasing or decreasing weight •Adding a new dimension •Decreasing the price of the product

needs gap

desired state vs. actual state

Wants

desires to satisfy a need in a particular way Influenced by history, past exp., and culture

political influence

despite declining farm number still influenced politically

qualify the lead

determine whether a lead is in fact a prospect

Compensation Plans

Attract, retain & motivate sales staff. Control salespersons activities Be competitive & yet economical Be flexible

phases of relationship development

Awareness Exploration Expansion Commitment Dissolution

Contingent claims (options)

Contract between two parties that gives one party the right to buy or sell an underlying asset or to pay or receive a known underlying rate

Formation

Contract for sale of goods may be made in any manner sufficient to show agreement, including conduct of the parties. Contract may exist even if unable to determine exact moment of formation

Portfolio review team (PRT)

Cross functional team consisting of Subject Matter Experts in finance, marketing, engineering, R&D, IT, operations, etc.. Governance body responsible for monitoring portfolio progress and resolving issues.

Why get the customer involved

Involve the customer in the presentation setup: Involve the customer in the product demonstration: Involve the customer (prospect) while explaining a service: Involve the customer with ideas and questions:

Portfolio evaluation criteria

Criteria which need to be assessed in order to enable prioritization of the project.

,users

Manufacturing personnel for OEM products and capital equipment Do not make the ultimate purchase decision

trade secrets

Information owned by the company by which the company gains a competitive advantage

Excuses

Insincere reasons given by customers to delay making a purchase order to avoid becoming involved in the sale

Surety bond

Insurer promises to pay an insured a certain amount of money if a third party fails to fulfill its obligation

Hybrid/balanced funds

Invest in both bonds and stocks

Taxable money market funds

Invest in high quality, short-term corporate dept and federal government debt

Tax free money market funds

Invest in short-term state and local government debt with short maturities (overnight - 90 days)

Emerging markets

Investing in companies in emerging markets by purchasing corporate or sovereign securities

Buy-side firm

Investment management companies and other investors that use the services of brokers/dealers

Risk seeking

Investor gets extra "utility" from the uncertainty associated with the gamble

Investment decision

Investor identifies the optimal risky portfolio

Risk neutral

Investor is indifferent about the gamble or the guaranteed income; only concerned with return, not risk

subordination

Paying larger sums of money

lubrication

Paying small sums of money or gifts

kickbacks

Payments made to buyers based on the amount of orders placed

•Kickbacks:

Payments made to buyers based on the amount of orders placed

bribe

Payments made to buyers to influence their purchase decisions

•Bribes:

Payments made to buyers to influence their purchase decisions

Defined contribution pension plan

Pension plan in which contributions rather than benefits are specified; employee accepts investment risk and is responsible for ensuring there are enough funds in the plan to meet their needs

Cashiers

People who record sales on the cash register,make change, and wrap merchandise, while maintaining a good relationship with customers.

perceived risk

Perceived risk is an element of psychic cost. Perceived risk takes a variety of forms - performance, physical, financial, social and psychological.

free on board (FOB) destination

Seller has title until goods are received at destination

Customer oriented selling

Selling based on satisfying the needs and wants of the customer; also called personal selling

Rebalancing policy

Set of rules that guide the process of restoring the portfolio's original exposure to systematic risk factors

CAPM-based measures

Sharpe Ratio Treynor Ratio M^2 Jensen's Alpha

Demonstration

Showing an emphasizing the features and benefits of a product or service

Demonstration method

Showing or demonstrating that the product can do something that will answer the customers objection

Scenario analysis

Shows the changes in key financial quantities that result from given economic events; a risk management technique involving the examination of the performance of a portfolio under specific situations

Daily balance form

Shows the summary of the days sales and Money received, using the balance in the cash drawer and the detailed audit tape

Brian Drain

Significant emigration of educated or talented individuals due to better professional opportunities in other countries or from people seeking a better standard of living.

Settlement risk

Similar to default risk, deals more with the settling of payments hat occur just before a default

Modern portfolio theory (MPT)

The analysis of rational portfolio choices based on the efficient use of risk

Charge credit

The business will record the amount of the original sale on a sales receipt as a payment received on account in the customers name

Portfolio Management Framework (PMF)

The central repository containing a description of the agreed Portfolio Management practices adopted by the organisation and its governance arrangements.

Land

The cost of land generally includes the purchase price, development costs, legal fees, closing costs,delinquent property taxes, the costs of grading and clearing the land, and a portion of the interest costs incurred during the development process. In addition, firms consider the costs to remove an old structure, net of any proceeds on the sale of scrap materials, as part of the land's acquisition cost, because these costs are required to bring the land to the condition necessary for its intended use.

Buildings

The costs of buildings includes any acquisition or construction costs, as well as legal and closing costs similar to those incurred in the acquisition of land. In addition, firms may capitalize interest on financing employed during the construction period as part of the building under construction.

Attention

The customers first mental stage in the buying process, in which the customer becomes aware of a need or want for a product or service.

Tactical asset allocation

The decision to deliberately deviate from the policy exposures to systematic risk factors with the intent to add value based on forecasts of the near-term returns of those asset classes

Credit limit

The maximum amount customers can charge to their account before paying all or part of the balance

Systemic Risk

The risk inherent in the entire market or an entire market segment. Also known as undiversifiable risk or market risk.

free trade area

a group of countries agreeing to eliminate tariffs among themselves but keeping whatever tariffs they formerly had with the rest of the world

market

a group of individuals or organizations that have a desire or need for products in a product classed have the ability, willingness, and authority to purchase those products

target market

a group of people or organizations for which business creates and maintain marketing mix

5 phases for responding to objections

explore, listen, restate, respond, move on

trade surplus

exports are greater than imports

trust

extent of the buyers' confidence that allows them to rely on the salesperson's integrity

customization

has both cost and revenue implications. may mean the loss of economies of scale thus increasing unit costs. means that companies have to be aware of and responsive to customers' differing requirements. configurator technologies assist in customizing products. has been the norm in B2B markets for many years. any of the 7Ps of the marketing mix can be customized.

Churn Rate

he percentage of a​ company's customers​ (within a given span of​ time) who by the end of that time span have defected.

frequency

the average number of times that a targeted audience member is exposed to an ad or campaign

Lessee

i. Party that identifies the goods to be leased ii. Person who acquires the right to possession and use of goods under a lease (§ 2A-103(1)(n))

absolute advantage

in the production of a good relative to another country if it can produce the good at a lower cost or with higher productivity

Cost per click

in which the cost of the advertisement is charged only each time an individual clicks on the advertisement and is directed to the Web page that the marketer placed within the advertisement.

Value Chain activities

inbound logistics, operations, outbound logistics, marketing and sales, service

Multi-dimensional risk

include one where portfolio risk is evaluated based on the risk profiles of underlying asset classes (equity, fixed income, etc.), and another risk-factor approach where exposure to various risk factors is used to capture associated risk premiums (value stocks versus growth stocks).

Acquisition Cost

includes the costs necessary too bring the asset to the location and condition for its intended use

Big Data

increases ability of marketers to create better products or improve customer service

Arguments for free trade

increases competition, allows domestic goods to be sold all over world, allows country to expose comparative advantage through specialization

Convenience sample

individual who happen to be available where and when the data is collected

influencers

individuals within an organization who guide the decision process by making recommendations and expressing preferences

deciders

individuals within an organization who have the ultimate responsibility of determining which product or service will be purchased

initiators

individuals within an organization who identify a need

business market

individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products

Secondary data research

info that has already been collected for some purpose other than the one at hand

Customer relation management system

info transmitted electronically to the company its sales people and its customers and is contained in this system

World Bank's historical periods

infrastructure project lending, poverty alleviation, structural adjustment lending

What are "moments of truth"

instance of contact or interaction between a customer and a firm that gives the customer an opportunity to form an impression about the firm.

Services

intangible products that we pay for and use but don't own. **Contribute to more than 75% of GDP

Mobile Marketing

interacting with customers through the phone, prime factor for marketing future

Interest Receivable

interest income a business has earned but a customer/debtor has yet to pay

Intranet

internal corporate comm. network thats uses internet tech to lin

Relating to the Risk Management Framework what is risk infrastructure

people, systems & tech required to track risk exposures and conduct quantitative risk analysis.

lead

person or organization that may or may not have what it takes to be a true prospect

Opinion leader

person who influences​ others' attitudes or behaviors because they believe that he possesses expertise about the​ product

personal selling/email

personal and paid (costly but flexible)

word of mouth

personal unpaid (Credible)

Strategic planning

plays an important role in modern corp. optimizes revenue, minimizes risk in global env., serious of dev. growth strategies

targeting policy

policy that achieves the objective most directly

ETF's

portfolio of securities designed to track the performance of a specified index. purchases large number of shares in same proportion as index it tracks. these are traded in the secondary market. pay out dividends.

Prepaid Insurance

portion of an insurance premium that has been paid in advance and has not yet expired

Protectionism vs free market trade -/

practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas/ prices determined by the open market, no government interference.

Customer lifetime value

present-day value of all net margins earned from a relationship with a customer, customer segment or cohort

MROC

privately assembled group of people usually a market research form utilize to gain insights into customer sentiments and tendencies

differentiated targeting strategy

organization directs its marketing efforts at two or more segments by developing a mix for each segment. Benefit is that a firm may increase sales within the total

Database

organized collection of data that can be searched and queried to provide information about contracts, products, and customers

institution

organized markets

benefit competitors

other companies delivering the same benefit to customers. These might include window replacement companies, heating and air-conditioning companies and bathroom renovation companies.

product competitors

other companies marketing kitchens to customers seeking the same benefit.

Advertising

paid impersonal (control)

Perception

process by which people​ select, organize, and interpret information from the outside​ world

market segmentation is the best approach for a heterogenous market

process for diving a market into groups/segments with similar product needs

Consumer behavior

process individuals or groups go through to​ select, purchase,​ use, and dispose of​ goods, services,​ ideas, or experiences to satisfy their needs and​ desires

What is risk transfer?

process of passing on risk to another party

Marketing information systems

process that determines what info marketing managers needs, then stores, sorts, and analyze and distribute relevant and timely marketing information to users.

form utility

processing

slice of life

product being using in a recognizable context

potential sales can be measured along several dimensions:

product level, geographic area, time, and level of competition

Product strategies (Market plan)

products design, packaging, branding, unique benefits

profit margin

profit ------- revenue

Equipment

property (not land/buildings) that is used in the operations of production

Arguments against free trade

protects infant industries, hurts domestic workers, labor standards are not the same, protect national security

response rates

provide a total number of a targeted audience that is exposed at least once at a particular ad or campaign

institutions

public and private purchasing rules and procedures are as complex and rigid as those government agencies

Official Reserve transaction

purchase and sale of the domestic currency by the central bank for purposes of influencing the exchange rate. *purchase of its own currency is a credit (+) *sale is a debit (-).

Bhavioral loyalty

purchase of same product from same vendor overtime

5. consumers

purchase products and services for use by themselves

Convertible Arbitrage funds

purchase securities such as convertible bonds and simultaneously take short positions in related equity securities.

consumer markets

purchasers and household members who intend to consume or benefit from the purchased product. DO NOT buy products to make a profit

Types of assessment criteria

qualitative and quantitative

Assets

resources of a company

Sales organization

responsible for distributing goods and services, negotiating sales conditions, carrying out the business transaction. It is the level to which you sum up sales figures for reporting and analysis.

Capital Gains or losses

resulting in changes from market price

What is self insurance? this is relating to risk acceptance.

retaining exposure to a risk that is considered undesirable but is too costly to eliminate by external means.

slope

rise ------ run

What is Model Risk? this is relating to non financial risks

risk of a valuation error resulting from using an incorrectly specified model or improperly using a valid model.

characteristics of a successful sales person

self motivated listening creative communication ethics analytical flexible confidence info tech skils

price discrimination

seller giving unjustified speical prices disocunts or services to some customers and not to others . must prove 1. differences in the cost of sales manfact and deliver 2. quality or nature of product deliv 3.an attempt to meet prices offed by compets ---price can change with volume

price discrimination

selling a product at different prices to different buyers

missionary sales people 3m

selling put does not take orders ----pharam. sales i sell the drugs but dont have them

Value Chain

series of activities involved in designing, producing, marketing , delivering, and supporting any product.

sales dialogue

series of conversation between buyers and sellers to forge a relationship for:

Channel Distribution

series of firms or individuals that facilitate the movement of the product from the producer to the final customer. (Place) Example: Clothing===>local retailers

dry cleaner's

service where you can clean your clothes

laundry

service where you can wash your clothes

distribution channles

set of people and organizations responsible for the flow of products and services rfom the producer to the ultimate user

What is the arithmetic or mean return?

simple average of all holding period returns. = (0.25 + 0.1 - 0.1 + 0.05 + 0.2) / 5 = 10%

SPIN

situation questions, problem questions, implied needs, need pay off

observations (personal)

situation where researchers record consumers

exam s

slide 33

concentrated demand

small number of large buyers account for most of the purchases

Cookies

small text files inserted by a web site on the user's hard drive, that the web site recognizes when that surfer returns to the site.

Types of relationship oyalty

solo exchnages functional relatoionship

Macro

something that affects whole marketing system

incentive

something that makes you act this or that way

Business defam

sp makes an unfari or untrue statement about compet, its prodds, or splls, illegal when damaging reputation

functional approach

specialized activities performed with in the marketing process

Set Marketing objectives (Market plan)

specific to the firm's marketing mix , help achieve goals, what firm wants to do

Define the research Problem

specify objectives, identify customer population if interest , place problem in environmental context

turnover

speed a product is sold

Avoidable interest

the interest the firm could have avoided if it had not borrowed funds to construct the plant asset.

most favored nation principle

the lower tariffs agreed to in multilateral negotiations must be extended equally to all WTO members

free trade

the lowering or elimination of protective tariffs and other trade barriers between two or more nations

company sales potential

the maximum percentage share of a market that an individual firm within an industry can capture

Distribution Channel

the means through which sales material reaches the customer (e.g. retail, wholesale, and direct sales).

raw customer retention

the number of customers doing business with a firm at the end of a trading period expressed as a percentage of those who were active customers at the beginning of the period.

Share of Customer

the percentage of an individual​ customer's purchase of a product that is a single​ brand?

Product positioning

the place a product occupies in consumer's minds based on important attributes relative to competitive products.

protectionism

the policy of imposing duties or quotas on imports in order to protect home industries from overseas competition

inbound sales

the power in the buying and selling process has shifted from the seller to the buyer

dumping

the practice of a Foreign firm exporting goods at a price that is below its own average cost of production. If the price charged for the exported good is above the firm's marginal cost, then dumping is profitable. We expect to observe dumping when the Foreign firm is acting like a discriminating monopolist.

Risk Management

the process by which an organization or individual defines the level of risk to be taken, measures the level of risk being taken, and adjusts the latter toward the former, with the goal of maximizing the company's or portfolio's value or the individual's overall satisfaction, or utility.

market segmentation

the process of dividing up a market into more-or-less homogenous subsets for which it is possible to create different value propositions.

networking

the process of establishing and maintaining business-related personal relationships.

consultive solving

the process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization

testimonial

the product is endorsed by an opinion-influencer

profit-adjusted retention rate

the profit earned from the retained customers expressed as a percentage of the profit earned from all customers who were active at the beginning of the period

foreign outsourcing

the provision of a service or the production of various parts of a good in different countries for assembly into a final good in another location

What is holding Period Return?

the return earned on an investment over a single specified period of time Formula: Multiply all returns against eachother and subtract 1 (convert % to decimal, ex: 10% = 1.1, -10% = .9.

Dissemination Risk

the risk of having firm specific assets/information leaked that could be detrimental to the firm

Operational risk

the risk that arises from within the operations of an organization and includes both human and system or process errors

missionary sales

the salesperson provides information to an individual who will influence the purchase decision.

Market potential

the total amount of a product that customers will purchase within a specific period at a specific level of industry-wide marketing activities

sales-adjusted retention

the value of sales achieved from the retained customers expressed as a percentage of the sales achieved from all customers who were active at the beginning of the period

geographic competitors

these are benefit and product competitors operating in the same geographic territory.

Convertible bonds

these are bonds that can be converted at anytime to equity in the company (shares). typically lower yielding. offer you a steady return with the chance of bigger gains if company successful and you convert to equity.

What is the Geometric mean return?

this accounts for compounding returns and does not assume amount invested in each period is the same.

What is market risk?

this arises from changes in interest rates, stock prices, exchange rates and commodity prices. These are generally caused by fundamental economic conditions or events in overall economy, industry, or company itself.

What is tail risk? this is related to non financial risks.

this includes events that have a small probability of occurring and occur at the ends of a normal distribution curve.

What is credit risk?

this is the risk of loss if one party fails to pay an amount owed on an obligation These are generally caused by fundamental weakness in the economy or industry or in demand for a company's products.

What is Liquidity Risk?

this is the substantial downward valuation adjustment when trying to sell an asset

What is settlement risk AKA Herstatt risk? This is relating to non financial risks.

this relates to default risk but has more to do with settlement of payments just before a default. -settlement risk can arise from timing of payment process, typically due to significant time zone differences.

relocate

to hange the place, move

Value for society

to make profits and contribute to society. Ex Target sets goals for seafood to be sustainable and traceable. Reusable bags, machine wash cold to lower energy

to pay in installments

to pay later

Data mining

to sophisticated analysis techniques to take advantage of the massive amount of transaction information now​ available

retention issues

too costly to serve strategic switchers constantly in search of a better deal not strategically significant in roles such as benchmark, door opener, inspiration or technology partner

Descriptive Research

tool that probes more systematically investigate marketing problem, results expresses in quantitative terms, large numbers

life cycle costing

total cost of ownership--determining the cost of equit or supplies over useful lives ----higher intial cost lower overall cost

Reach

total number of a targeted audience that is exposed at least once to a particular ad or campaign

4 Situations that result in no reversionary interest

transaction is a sale and not a lease in situations where the lessee cannot terminate the lease and any of the following four are true: 1)The original term of the lease is equal to or greater than the remaining economic life of the goods, or 2)The lessee must renew the lease for the remaining economic life of the goods or is bound to become the owner of the goods, or 3)The lessee has the option to renew the lease for the remaining economic life of the goods for no additional consideration or nominal consideration (deal is too good to turn down), or 4)The lessee has an option to become the owner of the goods for no additional consideration or nominal consideration at the end of the lease term.

Social insurance

transfer payments, employment practices *** ensure that market dislocation are managed and do not impede human development

Form Utility

transforming raw materials into finished products Ex: Dress manuf. combines materials to make a gown.

place utility

transportation

honest

truthfulness sincerity

agents

try o bring buyers and seller together

Billing (invoice)

usually occurs after the product has been shipped to the customer Billing creates credit and debit memos on the basis of requests, and transfers data posts to financial accounting

One-to-one marketing

utilizes the four​ steps: identify,​ differentiate, interact, and customize to facilitate a relationship with​ consumers?

Zeithaml's four forms of customer percieved value

value as low price value as whatever the customer wants in the product value as the quality obtained for the price paid value as what the customer gets for what the customer sacrifices

value in exchange

value is created by the firm, embedded in products, distributed to the market, and realized when those products are exchanged for money.

value in experience

value is realized only when customers possess, use, consume or interact with the good or service

value in use

value is realized only when customers possess, use, consume or interact with the good or service

Value for Customer Perspective

value is the ratio of perceived benefits to perceived costs.

balance of trade

value of all goods and services exported from a country minus the value of all goods and services imported from outside the country

Culture

values, beliefs,​ customs, and tastes a group of people​ values

regional trade agreements or preferential trade agreements

violates MFN because it allows favoring some member countries over others by providing preferential access through lower tariffs

Bounce Rate

visitors who enter the site, and bounce rather than continue viewing other pages on site

what aspects of the sales role might expose salespeople to more ethical dilemas than the typical employee?

walking in at a disadvantage bc cant say yes to everything -commission base -face of company as one individ

express warranty

way in which a salesperson gives warranty or guarantee to a customer, obligating the company to do the same

mission

what they want to reach

discriminating monopoly

when Home charges a higher price Foreign than domestically

Goodwill

when a company acquires (purchases) another entire company

trade surplus

when a country exports more than it imports

trade diversion

when a member country imports a product from another member country that it formerly imported from a country outside of the new trade region

concentrated targeting strategy

when an organization directs its marketing efforts toward a single market segment using one marketing mix. Allows firm to specialize

time-saving

when it helps you to safe time

money-saving

when it helps you to save money

prospect

when the salesperson determines that the lead is a good candidate for making a sale

cost-effective

when you have good result for little money

Distribution Strategies (Market plan)

when, how, and where the firm will make the product available to targeted customers.

What are surety Bonds?

where an insurer promises to pay the insured a certain amount of money if a third party fails to fulfill its obligation. popular in commercial contracts where one party bears the risk of potentially suffering a huge cost if another party does not perform. this assures one party that it bears no risk for the actions of a specified other party.

durable

works without problems for a long time

Notes Receivable

written promise to receive a certain amount of cash from another party at a certain date/s

Micro

you as an individual in the economy

reliable

you can trust it

managerial grid

Country club, team management, impoverished, produce of perish

Financing decision

Determine the optimal portfolio on the CAL (P)

Target asset allocation

Determines the weighting of asset classes to be included in the portfolio

74%

Digital marketing has become an increasingly important element of the​ marketer's toolbox. According to a survey conducted by Pew Research​ Center, ________ of Americans use at least one social networking site.

Benefits of customer service

Directly related to long term success, creates a culture when upper management motivates employees, based on customer perception

Confidential information

Disclosing confidential information, gives reputation of being untrustworthy

Periodic income

Dividends and interest income

EU

European Union - free movement of goods and workers across borders in European countries

Portfolio approach

Evaluating individual securities in relation to their contribution to the investment characteristics of the whole portfolio

Cross-tabulation

Exploring data by sub-groups in order to see how results vary across categories

Types of Warranties

Express and Implied

Customer complaint

Expression of dissatisfaction by the customer about a product, service, or store policy

Risk exposure

Extent to which the underlying environmental or market risks result in actual risk bourne by a business or investor who has assets/liabilities sensitive to those risks

Acquired Databases

Externally sourced databases can be used to collect various types of useful information Ex; Noncompeting businesses Government databases

Risk premium

Extra return investors can expect for assuming additional risk, after accounting for the nominal risk-free interest rate

Direct denial method

Handling objections by showing customers what they are wrong

strategically significant customers

High lifetime value customers High volume customers Benchmarks Inspirations Door openers But ... these may also be attractive to your competitors

Leverage buyouts

Highly levered transactions that use the company's cash flow to pay down debt and build the equity position

Hofmeyr's conversion model

Hofmeyr's basic premise is that customers who are not committed are more likely to be available to switch to another provider.

well it's made it so much easier

How the Internet has changed marketing (synthesis question of the whole chapter)

Modified rebuys:

Obtaining new information of a product or a similar product that was purchased in the past

Firm Offer

Offer by a merchant (even if no consideration) is binding, if: 1. The offer states that it will be held open for a time period (stated or reasonable) (no more than 3 months); 2. The offer is in writing; and 3. Signed by the offeror

Multi-Project Management

Often focuses on the management of the project portfolio from a controlling perspective and manages critical resources (usually financial only) across several independent and for resources competing projects only.

Fidelity bond

Often used to cover against losses that result from employee dishonesty

Magnuson Moss Warranty Act

Only applies to consumer products Advantages over Article 2: 1.Attorneys' fees possible 2.Federal ct. j/d may be possible 3.Definition of "consumer" broad enough to overcome many horizontal privity issues 4.Elimination of vertical privity concerns in cases of written warranties

Questions Marks

SBUs whose products have low market share in high-growth markets

Charge send

When customers charge an item and want it delivered

operant

When people learn that their actions result in rewards or​ punishments, the type of behavioral learning that occurs is​ _____ conditioning.

Branded

When the Lego Movie​ appeared, the intent was not necessarily to sell more​ Legos, but the firm did have a say in decisions about details of the movie. The movie itself is an example of​

Asset Valuation: Determinable Market Value

When the face amount of a note does not reasonably represent the present value of the consideration give or received in the exchange (today's cash price), the accountant must then determine the proper valuation of the asset. Ex. notes payable are sometimes issued with a zero interest rate stated or at a stated rate that is significantly below the market rate of interest. If the asset's fair value is readily determinable or if the note is traded, the firm records the acquired asset at the fair value of the consideration given (the note) or the fair value of the consideration received (the asset), whichever value is more clearly evident. The difference between the face amount of the note and the fair value of the property (or the note) is called the discount, and represents the amount of interest to be deferred over the loan term. The discount on notes payable, (a contra liability) reduces the face value of the note payable to its present value. The firm reports the note payable's carrying value (its par or face value less the balance of the unamortized discount) - on the balance sheet

Depreciation

a decrease in the value of a currency as measured by the amount of foreign currency it can buy

Prepaid Rent

rent expense that was paid in advance of rental period

Utility function

represents the investor's preferences in terms of risk and return (ie. his degree of risk aversion)

Business Portfolio

represents the range of different businesses that a large firm operates. Ex; Disney operates multiple lines of business, theme parks, studio

Unobtrusive measure

require researchers to measure traces of physical evidence that remain after some action on the part of the consumer has been taken

Excuse from Performance - Impossibility

(1) Goods are identified at time of contract (2) Goods suffer casualty (3) Without fault of the party seeking excuse (4) Before risk of loss passes to buyer If total loss, contract is avoided If partial loss, Buyer may inspect goods and (a) avoid the contract or (b) move forward with allowance from contract price

Scope of Article 2

"Unless the context otherwise requires, [Article 2 of the U.C.C.] applies to transactions in goods." 2-102 some sections only apply to "sales"

Horizontal Privity

"Who can sue"

Research design

"plan of attack" what information marketers will collect and what type of study they will do

Lost Volume Seller Trigger Words

"supply exceeds demand"

Product

"utility and quality," good, a service, an idea, a place, a person-what ever a person or organization offers for sale. Example: Design, packaging, free delivery , "College Education"

Additional Terms in Acceptance or Confirmation

(1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. (2) The additional terms are to be construed as proposals for addition to the contract. Between merchantssuch terms become part of the contract unless: (a) the offer expressly limits acceptance to the terms of the offer; (b) they materially alter it; or (c) notification of objection to them has already been given or is given within a reasonable time after notice of them is received. (3) Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for salealthough the writings of the parties do not otherwise establish a contract. In such case the terms of the particular contract consist of those terms on which the writings of the parties agree, together with any supplementary terms incorporated under any other provisions of this Act. 2-207

SOF Enforcement

(1) A promise which the promise should reasonably expect to induce action or forbearance on the part of the promise or a third person and which does induce the action or forbearance is enforceable notwithstanding the Statute of Frauds if injustice can be avoided only by enforcement of the promise...

Load funds

- charge either up-front fees, redemption fees, or both

Lease Formation

(1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contractmust be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances. (2) If the beginning of a requested performance is a reasonable mode of acceptance, an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance.

Formula for calculating CLV

(Average Value of a Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months or Years for a Typical Customer)

Express Warranty

(a) Affirmation of fact or promise, (b) description, (c) or sample\model Created when made as BASIS OF THE BARGAIN

organizational support

*Boundary spanning employees: Employees who cross the organizational boundary and interact with customers or vendors •Should be given necessary support •Structure and culture •Training •Rewards

Execution (relating to portfolio management process)

- Asset allocation:distribution of funds between various asset classes. - Security analysis - portfolio construction: PM will construct the portfolio in line with the objectives outlined in the IPS. portfolio must be in line with clients risk tolerance level as specified in the IPS.

Sales is changing because of:

- Buyer's market - Social media - Short product lifecycle - Internationalism

Rodrik's Growth Diagnosis (not all the details, just the principles)

- Different approach from the Washington post discussing how to deal with effects of development developing countries suffer from multitudes of problems- ("distortions" or violations of conditions for social optimality) these distortions interact in potentially complicated ways, resulting in unanticipated consequences *** we need a reform strategy that is cognizant of the economics of the second-best ***use the decision tree rather than the one size fits all approach

Training course objectives

- Increase margin - Reduce number of errors - Reduce staff turnover

Demotive factors

- Poor leadership - Lack of teamwork - Unreasonable workload - Unfair business practices - lack of challenges

Advising steps

- Recap the exploratory call - Suggest ways the prospect can achieve their goals or overcome their challenges - Confirm budget, decision making processes, and timeline - Get buyer commitment

Risk transfer

- accomplished through an insurance policy - a deductible in an insurance policy means the insured is bearing some of the risk of loss and thereby (partially) self-insuring

Non-financial risks

- arise from actions within an entity or from external origins, such as the environment, the community, regulators, politicians, suppliers, and customers - consist of a variety of risks - settlement risk, operational risk, legal risk, regulatory risk, accounting risk, tax risk, model risk, tail risk, and sovereign or political risk

Market risk

- arises from movements in stock prices, interest rates, exchange rates, and commodity prices

Hedge Funds

- available only to accredited investors and are exempt from most reporting requirements - different hedge fund strategies exist - typical annual fee structure is 20% of excess performance plus 2% assets under management

Jensen's alpha

- based on systematic risk (beta) rather than total risk - measure of percentage returns in excess of those from a portfolio that has the same beta but lies on the SML

Treynor Measure

- based on systematic risk (beta) rather than total risk - Treynor measure is based on slope and has the same beta but lies on the SML

Asset classes

- building blocks of an asset allocation - an asset class is a category of assets that have similar characteristics, attributes, and risk-return relationships - investors have distinguished cash, equities, bonds, and real estate as the major asset classes

Mutual Funds

- combine funds from many investors into a single portfolio that is invested in a specified class of securities or to match a specific index - many varieties exist, including money market funds, both funds, stock funds, and balanced (hybrid) funds - open-ended shares can be bought or sold at the net asset value - closed-ended funds have a fixed number of shares that trade at a price determined by the market

Reduce Portfolio Risk

- combining assets w/ low correlations

Risk infrastructure

- comprises the resources and systems required to track and assess the organization's risk profile

risk of a two-asset portfolio

- dependent on the proportions of each asset, their standard deviations and the correlation (or covariance) between the asset's returns - as the number of assets in a portfolio increases, the correlation among asset risks becomes a more important determinate of portfolio risk

No-load funds

- do not charge additional fees for purchasing shares (up-front fees) or for redeeming shares (redemption fees)

Sharpe Ratio

- excess returns per unit of portfolio risk and higher Sharpe ratios indicate better risk-adjusted portfolio performance - the Sharpe ratios of all portfolios along the CML are the same - Because the Sharpe ratio uses total risk, rather than systematic risk, it accounts for unsystematic risk that the portfolio manager has taken - Sharpe ratio is the slope of the CAL for the portfolio and can be compared to the slope of the CML, which is the Sharpe ratio for any portfolio along the CML

Conditional Var (CVaR)

- expected value of a loss, given that the loss exceeds a minimum amount - relating it to VaR, the CVaR would be the expected loss, given that the loss was at least 200 million euros. It is calculated as the probability-weighted average loss for all losses expected to be at least 200 million euros - CVaR is similar to the measure of loss given default that is used in estimating risk for debt securities

Risk drivers

- fundamental global and domestic macroeconomic and industry factors that create risk

Security Market Line

- implementation of the CAPM and applies to all securities whether they are efficient or not - can assist in security selection and optimal portfolio construction

Common measures of risk

- include standard deviation or volatility; asset-specific measures, such as beta or duration - derivative measures, such as delta, gamma, vega, and rho - tail measures such as value at risk, CVaR and expected loss given default

Open-end fund

- investors can buy newly issued shares at the NAV - newly invested cash is invested by the mutual fund managers in additional portfolio securities - investors can redeem their shares (sell them back to the fund) at NAV as well - all mutual funds charge a fee for the ongoing management of the portfolio assets, which is expressed as a percentage of the net asset value of the fund

Risk tolerance

- key element of good risk governance - delineates which risks are acceptable, which are unacceptable, and how much risk the overall organization can be exposed to

Constraints when constructing a portfolio

- liquidity requirements - time horizon - regulatory requirements - tax status - unique needs

Nonsystematic risk

- local and can be diversified away by combining assets with low correlations - not priced

Risk-averse investors

- make investment decisions based on the risk-return trade-off, maximizing return for the same risk, and minimizing risk for the same return - concerned by deviations from a normal return distribution and from assumptions of financial markets' operational efficiency

Duration

- measure of the price sensitivity of debt securities to changes in interest rates

Standard Deviation

- measure of the volatility of asset prices and interest rates - standard deviation may not be the appropriate measure of risk for non-normal probability distributions, especially those with negative skew or positive excess kurtosis (fat tails)

Beta

- measures the market risk of equity securities and portfolios of equity securities - measure considers the risk reduction benefits of diversification and is appropriate for securities held in a well-diversified portfolio, whereas standard deviation is a measure of risk on a stand-alone basis

Real return

- nominal return adjusted for inflation - ex. an investor who earns a nominal return of 7% over a year when inflation is 2%. The investor's approximate real return is simply 7-2=5%. The investor's exact real return is slightly lower 1.07/1.02 - 1 =0.049 =4.9%

Indifference curve

- plots combinations of risk (standard deviation) and expected return among which an investor is different - indifference curves slope upward for risk-averse investors because they will only take on more risk (standard deviation of returns) if they are compensated with greater expected returns - an investor who is relatively more risk averse requires a relatively greater increase in expected return to compensate for a given increase in risk - more risk-averse investor will have steeper indifference curves, reflecting a higher risk aversion coefficient

Global minimum-variance portfolio

- portfolio on the efficient frontier that has the least risk

Separately Managed Accounts

- portfolios managed for individual investors who have substantial assets - in return for an annual fee based on assets, the investor receive personalized investment advice

Efficient Frontier

- portfolios that have the greatest expected return for each level of risk (standard deviation) make up the efficient frontier - the efficient frontier coincides with the top portion of the minimum-variance frontier - a risk-averse investor would only choose portfolios that are on the efficient frontier because all available portfolio with that are not on the efficient frontier have lower expected returns than an efficient portfolio with the same risk.

Minimum-variance portfolio

- portfolios that have the lowest standard deviation of all portfolios with a given expected return - together they make up the minimum-variance frontier

Risk can be modified

- prevention and avoidance - risk transfer (insurance) - risk shifting (derivatives)

M-square (M^2)

- produces the same portfolio rankings as the Sharpe ratio but is stated in percentage terms

Closed-end funds

- professionally managed pools of investor money that do not take new investments into the fund or redeem investor shares - the shares of a closed-end fund trade like equity shares (on exchanges or over-the-counter) - the portfolio management firm charges ongoing management fees

Security Characteristic Line

- regression line - line of best fit of all the securities - the slope of the security characterist line is (Covim/standard dev, m, squared) ie. same as beta

Strategic asset allocation

- results from combining the constraints and objectives articulated in the IPS and capital market expectations regarding the asset classes - as time goes on, a client's asset allocation will drift from the target allocation and the amount of allowable drift as well as a rebalancing policy should be formalized

Leveraged return

- return to an investor that is a multiple of the return on the underlying asset

Assumptions of CAPM

- risk aversion : to accept a greater degree of risk, investors require a higher expected return - utility maximizing investors : investors choose the portfolio, based on their individual preferences, with the risk and return combination that maximizes their (expected) utility - frictionless markets : there are no taxes, transaction costs, or other impediments to trading - One-period horizon: all investors have the same one-period time horizon - homogeneous expectations: all investors have the same expectations for assets' expected returns, standard deviation of returns, and returns correlations between assets - divisible assets: all investments are infinitely divisible - competitive markets: investors take the market price as given and no investor can influence prices with their trades

Liquidity Risk

- risk that as a result of degradation in market conditions or the lack of market participants, one will be unable to sell an asset without lowering the prices to less than the fundamental value - a.k.a transaction cost risk -arises from the uncertainty of the spread

Risk mitigation internally

- self-insurance (ie. setting up reserve fund to cover losses) - diversification

Capital Market Line (CML)

- special case of the capital allocation line, where the efficient portfolio is the market portfolio - obtaining a unique optimal risky portfolio is not possible if investors are permitted to have heterogeneous beliefs because such beliefs will results in heterogeneous asset prices - investors can leverage their portfolios by borrowing money and investing in the market - under the assumption of homogeneous expectations, this optimal CAL for all investors is termed the capital market line (CML)

Two-fund separation theorem

- states that all investors' optimum portfolios will be made up of some combination of an optimal portfolio of risky assets and the risk-free asset - the line representing these possible combinations of risk-free assets and the optimal risky asset portfolio is referred to as the capital allocation line - allows us to separate decision making into two steps - 1) the optimal risky portfolio and the capital allocation line are identified, which are the same for all investors 2) investor risk preferences enable us to find a unique optimal investor portfolio for each investor

CML vs. SML

- the CML uses total risk=standard deviation of portfolio on the x-axis - only efficient portfolios will plot on the CML - the SML uses beta (systematic risk) on the x-axis, so in a CAPM world, all properly priced securities and portfolios of securities will plot on SML - portfolios that are not well diversified (efficient) plot inside the efficient frontier and are represented by risk-return combinations

Risk exposure

- the extent to which an entity's value may be affected through sensitivity to underlying risks

Capital allocation line

- the line representing these possible combinations of risk free assets and the optimal risky asset portfolio - represent a set of possible efficient portfolios

Value at Risk (VaR)

- the minimum loss over a period that will occur with a specific probability - consider a bank that has a one-week VaR of 200 million euros with a probability of 3%, that means that a one-week loss of at least 200 million euros is expected to occur 3% of the time. Note that this is not the maximum one-week loss the bank will experience; it is the minimum loss that will occur 3% of the time. VaR does not provide a maximum loss for a period. VaR has become accepted as a risk measure for banks and is used in establishing minimum capital requirements

After-tax nominal return

- the return after tax liability is deducted

Legal risk

- the risk of being sued or the risk that a court will not uphold an agreement

Model risk

- the risk of using the wrong model for analysis or the risk of using the right model incorrectly

Credit Risk

- the risk that a counter party will not pay an amount owed

Tax risk

- the risk that the tax code could change, along with regulatory and accounting risks together form compliance risk

Risk governance

- the top-level foundation for risk management , including risk oversight and setting risk tolerance for the organization

Financial risks

- those that arise from activity in the financial markets - consist of market risk, credit risk, and liquidity risk

Tail risk

- uncertainty about the probability of extreme (negative) outcomes - commonly used measures of tail risk (sometimes referred to as downside risk) include Value at Risk and Conditional VaR

Investor that is less risk averse

- will optimally choose a portfolio with more invested in the risky asset portfolio and less invested in the risk-free asset

Value Proposition

-- the set of key benefits & values that the company promises to deliver to satisfy needs. 1. Salesperson must be prepared to substantiate the points presented during the sales presentation. 2.Salesperson must focus on key points of difference between your product & competitors (knowledge)

Features VS Benefits

---Features.. are the tangible and intangible qualities (or facts) of a product or service. They are the same no matter who uses them. ---Benefits... Are the value to the customer Translating features into benefits is one of your most important skills.

Open-ended questions

--Identify a topic but do not provide structured alternatives 1. Allows the prospect to move in any direction 2. Cannot be answered with a yes or no 3. Ordinarily begins with "How do you feel?" or "What do you think?" 4. Stimulates the prospect's thinking and increases the dialogue 5. Helps uncover the dominant buying motive 6. Uncovers the true personality or behavioral style of the prospect

Government Agencies

--Purchase goods and services valued at more than $1trill --Develop detailed specifications for a product and then invite qualified suppliers to submit bids --Contract is awarded to the lowest bidder --Conduct small purchases without bidding ---Require a thorough knowledge of unique procurement procedures and rules

Close-ended questions

--Structured Alternatives, Multiple Choice Type 1. Uncover Specific Facts 2. Reduce prospect tension because they are easy to answer 3. Check understanding and receive feedback 4. Maintain control by directing the flow of conversation 5. Cement prospect commitment to a specific position

bribes rules

--motives==foster relationship not pay off someone --symbol of appreciattion, no string attached --doesnt violate policies --inexpencie with sale perosns log or name

Parts of the buyers journey

-Awareness -Consideration -Decision

Four stages

-identify -connect -explore -advise

preparation for data mining

-Define the business problem you are trying to solve. -Create a data mart that can be subjected to data mining. -Develop a model that solves the problem. This is an iterative process of developing a hypothetical solution to the problem (also known as model building), testing and refinement. -Improve the model. As new data are loaded into the data warehouse, further subsets can be extracted to the data mining data mart and the model enhanced.

Nonverbal Language

-Includes all aspects of appearance: grooming, clothing, accessories, and posture. - Effects first impressions even though it may actually provide limited or shallow insight into the true person. - Dress the Part -- We all wear uniforms: Choose accessories carefully, dress appropriately, give attention to grooming - You're projecting an image -- want the prospect to take you seriously, work with your physical characteristics - Some accessory tips -- Jewelry should be neutral and not related to an association or belief, should be of good quality, high quality pens, leather attache cases, avoid sunglasses while talking to prospects

Three types of CRMS

-Strategic -Operational -Analytical

Buying Motive

-What's driving your need for change? -What do you hope to accomplish? -If you can achieve this result, what will it mean to you? -What originally led you to this decision?

account based segmentation variables

-account value -share of category (share of wallet) spend -propensity to switch

types of competitor

-benefit competitors -product -geographic

b2b

-concentrated geographically -group decision -very close interaction -complex customized product -negotiated price -primary role to personal selling -direct channels

production risks

-disease -hail storm -drought -livestock-death

Risk shifting

-hedging with derivatives

market segmentation process

-identify the business you are in -identify relevant segmentation variables -analyse the market using these variables -assess the value of the market segments -select target market(s) to serve

Buyout Funds

-involve taking a company private by buying all available shares, usually funded by issuing debt -the company is then restructured to increase cash flow -investors typically exit the investment within three to five years

Two types of new customers

-new-to-category -new-to-company

consumer goods

-numerous: wide geography -inidivid decision -very little close contacts -standard product -fixed price -mass advertising --indirect channels

The 7 P's of Customization

-product -price -promotion -place -process -people

Advising methods

-proposal -presentation or demo -contract

Three measures of customer retention

-raw customer retention rate -sales-adjusted retention rate -profit-adjusted retention rate

Pre-tax Nominal Return

-return prior to paying taxes - Dividend income, interest income, short-term capital gains, and long-term capital gains may all be taxed at different rates

What areas should a Risk Management Framework address?

-risk governance -risk identification and measurement -risk infrastructure -defined policies and processes -risk monitoring, mitigation, and management -communications -strategic analysis or integration

International Monetary Fund

-role was to lend money to countries to back the fixed exchange rate - used in many small developing counties who use fixed exchange rates to regulate their volatile economy - today flexible exchange rates are used so the IMF is not commonly necessary -Its outdated for todays global economy

Marketing risk

-selling price less than expected -buying prices is greater than expected

Venture capital funds

-similar to buyout funds except that the companies purchased are in the start-up phase -venture capital funds, like buyout funds, also provide advise and expertise to the start-up

execution styles of advertising

-slice of life -aspirational -testimonial -comparative

Planning (relating to portfolio management process)

-understanding clients needs - developing investment policy statement (IPS) this is a written document that describes the objectives and constraints of the investor.

When do customers experience value

-value in exchange -value in use -value in experience

Grounds for excuse of performance

1. Impossibility 2. Commercial impracticability 3.Frustration

Statute Of Frauds

1) Does the agreement trigger the SOF? If a sale of goods of less than $500, the SOF isn't relevant. If a sale of goods of $500 or more, the SOF is triggered and you need to go to #2. 2) Is there a sufficient writing? We want a sufficient writing to alleviate possibility of fraud. If we have a sufficient writing, then SOF isn't a bar and P can try to prove and enforce. If no sufficient writing, can't be enforced unless an exception. See #3. 3) Is there an exception to the SOF's writing requirement? If yes, then go ahead and try to prove and enforce the agreement. If no, then the SOF bars enforcement.

When does Parole Evidence rule apply

1) Evidence of prior written agreements [Question: "prior" to what?] 2) Evidence of prior or contemporaneous oral agreements. 3) Trade usage and the like.

When to answer questions

1. Anticipate and Forestall Objections -- Incorporate objections and the answers directly into the presentation. You should be certain that the objection will arise. Prevents a confrontation and communicates objectivity. Objection may come up again -- but it will have less impact the second time. Weave into your presentation factual answers to anticipated objections. 2. Postpone the Answer -- Acknowledge the objection, employ empathy, gives you time to present more benefits, allows you to maintain control, gives you time to think about your response, promise to get back to the question and write it down. If prospect absolutely insists, then answer it when it comes up. Used mostly when price concerns are stated before you are ready to answer. 3. Answer Immediately -- Allows the prospect to concentrate on the rest of the sales story. Shows the prospect your sincerity. Prevents prospects from inferring your inability to answer. Of all the objections, the price question should be answered after need, value, and benefits have been discussed.

Implied Warranty of Title

1. Arises w/ any sale of goods 2. Content of warranty (§ 2-312(1)): a. The title conveyed is good and its transfer rightful; b. The goods are delivered free from any security interest or other lien or encumbrance of which the B at the time of K-ing has knowledge 3. This is difficult to disclaim (§ 2-312(2))

Implied Warranty of Merchantibility

1. Arises when: a. There is a sale of goods b. By a merchant w/ respect to goods of this kind (NOT about just doing business) Content of warranty (§ 2-314(2)): a. Not about the goods being perfect b. Cts. tend to focus on whether the goods would pass w/out objection in the trade (§ 2-314(2)(1)) and whether the goods are fit for their ordinary purpose (§ 2-314(2)(c)) c. § 2-314 cmt. 6 leaves open other possible attributes of merchantability

How to determine whether PER applies

1. Assess the writing(s): Make sure you've got an integration. If not, no PER problem. If yes, continue. 2. Assess whether the terms are parol evidence covered by 2-202. If no, then don't worry about PER. If yes, go to #3. 3. Assess whether the term(s) contradict the integration. If yes, they don't come in. If not, keep going. 4. Assess whether the term(s) are consistent with the writing. If not, they don't come in. If consistent, keep going. 5. Assess whether the integration is a complete or total integration. If no, the terms come in. If not, any terms related to the agreement are barred.

Ways to Improve Listening Skills

1. Capitalize on Speed of Thought: -- We speak at 150 words per minute, but we can listen at up to 600 words per minute. 2. Use this spare thinking time to: -- Anticipate where your prospect is going, mentally summarize the message, formulate a response, listen between the lines, use silence strategically 3. Maintain an open mind -- avoid prejudgement, be patient, take notes, reinforce -- paraphrase the customers meaning - ask questions to make sure you understand -- let the speaker know you are listening, listen for ideas, do not try to get every word, focus your full attention -- get rid of distractions, make & maintain eye contact, think about what the speaker is saying -- not what you are going to say next, do not interrupt, listen to the words & try to picture what the speaker is saying, keep your body language neutral, realize that sometimes just listening is enough, be attentive yet relaxed, don't interrupt & don't impose your solutions, wait for the speaker to pause before asking questions, try to feel what the speaker is feeling, pay attention to what isn't said -- feelings, facial expressions, gestures, posture & other nonverbal clues.

Advantages of amplification questions

1. Checks for mutual understanding 2. Allows the salesperson to rephrase what the prospect appears to have intended 3. Invites the prospect to expand or clarify any point of disagreement 4. Narrows down generalizations and clears ambiguities

Org Elements

1. Company code 2. Sales organization 3. Distribution Channel 4. Division (2-4 are sales area) 5. Plant 6. Shipping point 7. Storage location

Delivery Overview

1. Completed sales order 2. Availability check 3. Delivery document 4. Pick (through a transfer order) & Pack 5. Shipping 6. Post goods issue, update inventory

Master data for sales

1. Customer master (who?) 2. Material Master (what?) 3. Condition pricing records (how much? Aka pricing records)

Adequate Assurance of Performance

1. Either party may seek adequate assurance of performance. a. Must be "reasonable grounds for insecurity," b. Must "in writing" demand c. Adequate assurance of due performance. 2.If no such assurance is given w/in a reasonable time of a justified demand (but not to exceed 30 days), the party that fails to give assurance is deemed to have repudiated the K 3.If they give assurance, proceed w/ K 4.Used when a party is worried that the other will not perform, but is not sure - real concern

Is it Parole Evidence

1. Evidence of prior written agreements 2. Evidence of prior or contemporaneous oral agreements 3. Trade usage and the like

Hierarchy to determine terms of the contract

1. Express terms of the contract 2. Course of performance - How the parties previously conducted the transaction AT HAND 3. Course of dealing - How the parties previously handled past contracts 4. Usage of Trade - Custom in a particular industry 5. UCC Gap fillers

Techniques in handling objections

1. Feel, Felt, Found -- Answer it by referring to a third party and using that experience as your "proof or testimony". If the source is reliable or reputable, this can be especially successful. Provide new facts which allow the prospect to reevaluate your proposition. 2. Compensation or Counterbalance Method -- Admit the objection is valid. Describe some counterbalancing benefit. 3. Relate a case history or testimonial -- describe the experience of a client whose situation is similar to that of the prospect. 4. Ask Why? or a Specific Question -- Excellent for separating excuses from real objections. Ask questions that turn a broad general objection into a specific concern that can be answered. 5. Deny the Objection. (Direct denial involves refuting the opinion or belief of a prospect.) -- Considered a high risk method of handling buyer resistance. If buyer resistance is not valid, there may be no other option than to refute it by providing accurate information. Be firm in stating your beliefs; be sincere and don't be defensive. 6. Indirect Denial (Sometimes prospect's objection is valid, or at least accurate to some degree.) -- Best approach is to acknowledge that the prospect is correct. If initially appears as agreement with the customer's objection. If done in a natural, conversational way it will not offend the prospect. Rephrase or have the prospect rephrase. Blame Yourself. Give the facts that answer the objection.

Contract Resale Damages

1. Formula: KP - RP + ID - ES 2.S's resale must be made in good faith and in a commercially reasonable manner a.Resale must be real and legitimate - in the ballpark of a reasonable market price b.Cannot simply sell the good to a family member for $1 and then recover rest from B c.All aspects of the sale must be commercially reasonable, including: i. Method ii. Manner iii. Time a)Reasonable time depends on "the nature of the goods, the condition of the market and the other circumstances of the case; its length cannot be measured by any legal yardstick or divided into degrees" § 2-706 cmt. 5 iv. Place v. Terms d.The resale price is usually considered in terms of reasonableness w/ the K price and NOT the FMV of the goods

Factors of first impressions

1. Four minutes is the average time that prospects take to decide whether to buy from you. 2. Visual Factors -- clothing, briefcase, grooming 3. Physical Actions -- shake hands, eye contact 4. Attitude -- friendly, enthusiastic 5. Professional habits -- on time, clear agenda, ability to answer questions 6. Building Rapport -- pronounce the prospect's name correctly, look for common ground

Consumer-Benefit Approach

1. Give the prospect a reason to listen 2. Suggest a risk for failure to listen

Product Approach

1. Hand the product, or some physical representation of it to produce a positive reaction 2. It stirs interest 3. Permits a demonstration 4. Makes a multiple sense appeal 5. If bringing the actual product is not feasible, you must use other devices: A piece of literature, sample, model, picture

Referral Approach

1. Helps you establish leverage by borrowing the influence of someone the prospect trusts and respects.

2 main differences between US GAAP and IFRS related to the capitalization of interest for specific borrowings

1. IFRS-reporting firms capitalize all borrowing costs related to a loan obtained specifically to acquire or construct the asset because the debt is used directly to finance the construction. Unlike US GAAP, there is no need to use the weighted-average accumulated expenditures to determine interest to capitalize for specific borrowing. The weighted-average accumulated expenditures are only used to determine interest to capitalize for general debt. 2. Income from the temporary investment of specific borrowings reduces capitalized borrowing costs Exhibit 11.1 on pg 586

Target market selection process

1. Identify the appropriate targeting strategy 2. Determine which segmentation variables 3. Develop market segment profiles 4. Evaluate relevant market segments 5. Select specific target markets

Risk of Loss Principles

1. If 1 party caused the loss, that party will generally bear the loss 2.The parties can make an agreement as to when risk of loss passes (§ 2-509(4)) 3.Otherwise, follow the rules in § 2-509 and § 2-510 a. If a breach is involved, consider § 2-510 1st

Benefits of Demonstration

1. Improved Communication and Retention: Attracts customer attention, adds sensory appeal, stimulates interest, creates desire for product. 2. Proof of Buyer Benefits (Evidence to Support Claims): 3. Proof Devices: Demonstration, Facts & statistics (3rd party & your own company), testimonials, photographs & video, customer data (case histories), reprints, samples 4. Feeling of Ownership -- During presentation (involved), Trial

US GAAP definition of an asset (3 characteristics)

1. It represents probable future economic benefits 2. The firm can obtain the benefit of the asset and can also control others' access to it 3. The transaction or other event giving rise to the entity's right to the benefit or control of the benefit has already occurred. Firms also require reliable measurement methods to record a cost as an asset. Identifying an asset involves differentiating between costs with probable future economic benefits and costs that have expired without the ability to generate revenue in subsequent accounting periods. Firms must also consider the cost-benefit tradeoff and materiality when measuring PPE. (Information is said to be material if omitting it or misstating it could influence decisions that users make on the basis an entity's financial statements.)

PPE Categories

1. Land 2. Land Improvements 3 Machinery and Equipment 4. Buildings Types of PPE include land, plant, equipment, and buildings.

Handling Objections- six step process

1. Listen carefully; Hear the prospect out. 2. Confirm your understanding of the objection -- clarify and classify the objection. Try to distinguish between genuine objections and excuses. 3. Acknowledge the prospect's point of view. -- Restate or rephrase in your own words. Use words such as, "I understand how you feel." Prepare the prospect for your answer. 4. Select a specific technique to base your decision on. -- the prospect's social style, phase of the interview, the prospect's mood, the number of times the objection has been raised, the type of objection (excuse versus a genuine concern or question). 5. Answer the Objection -- say just enough to answer it. 6. Attempt to close -- Continue the presentation if you do not succeed.

Trade Related Investment Measures

1. Local content requirement - requires that a certain amount of local input be used in production 2. Trade balancing - requires that imports be a certain proportion of exports 3. export performance - requires a certain share of output to be exported 4. Technology Transfer -requires that certain technologies be transferred 5. remittance restriction - limits the right of the foreign firm to repatriate profits 6. local equity requirement - restricts the amount of a firms equity that can be held by investors

Approach Objectives

1. Make a good first impression 2. Secure Attention 3. Develop Interest 4. Establish Credibility 5. Opportunity to make a sales presentation(if approach was effective.)

What sales managers do

1. Manages (organizes) sales staff (creates territories) -- Product organization, determine sales territories (one of the most important items that a Sales Manager must do.) , determining the size of the sales team. 2. Recruits 3. Trains 4. Budgets 5. Develops compensation plans 6. Grades sales force productivity 7. Motivates sales staff

3 triggers of motivation

1. Need of something 2. Protection of something 3. Threat, get something you do not want

Disclaiming Express Warranties

1. Once an express W is made, it is difficult to disclaim 2. Common scenarios a. Purported disclaimer is in written agreement containing description, promise, or affirmation of fact. b. Purported description, promise, or affirmation of fact was made prior to written agreement. 3. Cts. to try to construe words/conduct creating warranties and words/conduct disclaiming warranties as consistent. a. If such construction is not reasonable, words/conduct creating warranty prevail § 2-316(1) b. Therefore, disclaimers inconsistent w/ language of express warranties are denied effect to protect Bs from "unexpected & unbargained language of disclaimer" § 2-316 cmt 1. i. Example: A statement by S that the battery life will last at least 6 months, but a written W that disclaims express and implied Ws. → express W/statement prevails

Document Flow in Sales

1. Order 2. Delivery (picking request, goods request, delivery) 3. Invoice 4. Payments

Three major steps in Portfolio Management

1. Planning Step - creating an investment policy statement (IPS) that details the investor's investment objectives and constraints; should also specify an objective benchmark (such as an index return) against the success of the portfolio management process to be measured 2. Execution Step - analysis of the risk and return characteristics of various asset classes to determine how funds will be allocated to the various asset types; top-down analysis, a portfolio manager will examine current economic conditions and forecasts of such macroeconomic variables as GDP growth, inflation, and interest rates. Bottom-up security analysis is when you use model valuations for securities to identify those that appear undervalued 3. Feedback Step - portfolio manager monitor these changes and rebalance portfolio in response, adjusting the allocations to the various asset classes back to their desired percentages

Business Processes for Sales

1. Pre sales activities 2. Sales order processing 3. Inventory sourcing 4. Delivery 5. Billing 6. Payment

Objectives of using questions

1. Preplan your questions (customize) 2. Ask the right questions 3. To discover the prospects "hot button" 4. To establish purchase criteria 5. To agree upon a time frame for completion of negotiations 6. To gain agreement on the problem before beginning the actual presentation

Implied warranty of fitness for a particular purpose

1. Seller not required to be a merchant 2. Seller knows or should know buyer's purpose 3. Seller know buyer is relying on seller's skill\judgment 4. Buyer does rely

When does an offer invite acceptance?

1. Shipment of the goods 2. Promise to ship the goods Note - Non-conforming goods count as acceptance UNLESS seller seller specifies that the non-conforming shipment is an accomodation

Education Approach

1. Show your knowledge of trends in their industry or market 2. Would work well in a virtual meeting

Compliment Approach

1. Signals your honest interest in the prospect 2. Make it sincere, specific, and of genuine interest

5 methods for overcoming the price question

1. Price vs. Value vs. Cost -- Your job is to establish value, not price. Look at the price-quality-value mindset. Talk about the initial price versus the ultimate costs. 2. Price Breakdown -- Break the price down - by day, week, or month (lowest denominator) 3. Presumption of Exclusivity -- Stress the special features that only your product can offer. Sell quality and uniqueness if the buyer argues price. Must be an expert about your industry and product line. Make your price seem unimportant in comparison to the value received. Draw the picture clearly and convincingly -- most buyers are fair-minded. 4. Comparison Method -- When prospects are mentally comparing their present product with your product, make a complete comparison of the two. A demonstration can give a convincing answer to an objection. Comparison of your product's features, advantages, and benefits against competitors. Do a comparison of long-run costs and savings. Use your company's reputation to build trust and justify the higher price. 5. Sell Down Method -- The common law of business balance prohibits paying a little and getting a lot. Be patient, focus on the benefits, and let the buyer tell you what features he can live without. There is a price point below which the buyer will not want to go. All prospects have a purchasing or buying range, find it. Unbundle.

Steps in Sales Process

1. Prospecting 2. Preapproach 3. Approach 4. Needs Discovery 5. Presentation 6. Handling Objections 7. Close the Sale 8. Post-Sale Customer Service

Purpose of Presentation

1. Provide knowledge using the features, advantages, and benefits of your product, marketing plan, and business proposal. 2. Allow buyer to develop positive personal attitudes toward your product and you. 3. Convert need into want and into the belief that your product can fulfill those wants. 4. Convince the buyer that not only is your product the best, but also that you are the best source to buy from.

Question Approach

1. Quickly establishes 2-way communication 2. Suggests interest in the prospects problem 3. Allows you to apply your benefits

Limiting Remedy

1. Reasonable agreements limiting or modifying remedies are to be given effect § 2-719(1)(a); cmt. 1. 2. Can also have an exclusive remedy; however, it must be clear that it is an exclusive remedy and it cannot be unconscionable a. Unconscionability serves as a check § 2-719 cmt. 1; § 2-302 b. Although consequential damages can be limited or excluded, it is prima facie unconscionable to limit consequential damages for personal injury in the case of consumer goods c. Although in K law you consider the time the K was made for unconscionability, under the UCC, consider how the deal panned out

Court options if Unconscionability is found

1. Refuse to enforce the K at all, 2. Enforce the rest of the K w/out the unconscionable term, or 3. Limit the application of an unconscionable term to avoid an unconscionable result. 4. Most cts. cannot give restitution!

What is legal risk? this is relating to non financial risks

1. Risk of being sued for something entity does or fails to do. 2. risk of contract not being upheld by legal system.

Sales AREA

1. Sales organization 2. Distribution Channel 3. Division

Qualifying Question Approach

1. Seeks a commitment from a prospect 2. Determine if prospect is cold, lukewarm, or red-hot

Implied Warranty of Merchantability

1. Seller is a merchant 2. Pass without objection in the trade 3. Fair and average quality 4. Fit for the ordinary purpose the goods are used for

Asset class

A category of assets that have similar characteristics, attributes, and risk-return relationships

SPIN

1. Situation Questions: Data-Gathering Questions Uncover Facts and Background Information. -- Do you handle the collection of overdue accounts internally? 2. Problem Questions: Here You Help Prospects Define Their Needs Explicitly -- Do you know how much it costs to do your collecting internally? 3. Implication Questions: Get The Prospect To Discuss The Problem And How It Might Be Improved -- Would it be important to you to recover a large share of delinquent accounts & bad checks faster than you are currently able to do? 4. Need - Payoff Questions: Help To Build Up The Value Of Your Proposed Solution In The Customer's Mind. -- If you could design the perfect collection agency, what would you want them to do for you?

Question Types

1. Survey Questions -- Information gathering questions designed to obtain knowledge. Discovers basic facts about the buyers existing situation. Not to be used for factual information one could acquire from other sources prior to the sales call. 2. Probing Questions -- Help to uncover and clarify the prospect's buying problem and circumstances. Obtain more specific information to fully understand the problem. 3. Confirmation Questions -- Verify accuracy and assure a mutual understanding of information exchanged.

Weaknesses of first impressions

1. Tend to be based on emotions 2. All behavioral traits do not show up immediately 3. Behavior may be deliberately controlled by either party 4. An earlier event may influence either person's current behavior

Types of closes

1. The Direct Close -- Has the advantage of clarity and simplicity. Ask for the order in a straightforward manner. Most direct closing approach and appeals to many buyers, especially decisive people. Should not come too early. Highly effective when salesperson has earned the customer's respect. 2. Trial Close -- Can be used at any time during the sales process. May elicit a negative response because buyer is not ready to purchase. A trial close that works becomes the close. 3. Summary of Benefits Close -- Summarize all the benefits vs. the costs and asked for the sale. 4. Assumptive Close -- Allows the salesperson (when confident) to verbalize the assumption to see if it's correct. 5. Special Concession Close (Impending Event) -- Offers the buyer an extra incentive for acting immediately. 6. Multiple Options Close (Alternative Choice) -- Gives the buyer multiple viable options 7. Balance Sheet Close -- 2 Column List: "Reasons for Buying" and "Remaining Questions" Helps find out what's holding the prospect back. List pros & cons of buying. 8. Management Close -- Bring in your upper management to assist in negotiations and close. 9. Minor Point Close -- Focuses the buyer on a small element of the decision. 10. Trial Order Close -- This technique involves asking the prospect for a trial order with no obligation (risk). You either guarantee the money back, or provide the product free for a set amount of time. 11. Cost of Ownership Close -- Rather than talking about price - this technique focuses on the long term total cost of ownership. Competing systems may seem cheaper, but when you take into account installation, maintenance, warranty and training over the lifetime of the product -- this system is about half the price. If you buy a competing product, you are more than likely to replace it in two years. Our product will last you twice as long. 12. Combination Close -- Using two or more closing methods.

4 types of objections

1. The Stall or Put-Off -- prospect is simply trying to avoid making a decision, you may not have presented a compelling reason to buy, handling the stall is a test of your attitude. 2. The Searcher -- Often prospects just want more data. They have mentally decided they want to buy. They just want to be convinced. So convince them. 3. The Hidden Objection -- Prospect will not reveal the real reason. Often quite personal, so prospect feels uneasy. Like the iceburg lurking below the surface. 4. The Stopper -- An objection for which no solution can be found. Not every prospect is a fit for what you have to offer. The prospect has a legitimate reason for not buying... so move on.

Content of the notice of breach of warranty

1. The content "need merely be sufficient to let the S know that the transaction is still troublesome and must be watched" 2. Notification need only be such as to inform the S a breach is involved and open the way to normal settlement through negotiation (§ 2-607 cmt. 4) 3. No need for a clear statement of all the objections 4. No need for a claim for damages or of threatened litigation

Impossibility

1. This is relatively rare and usually only used when the goods are very unique, one of a kind, or particular a. Examples: particular painting, particular car, etc. 2. Applies when: a. The K requires for its performance certain goods that are identified when the K is made; b. The goods suffer casualty; c. W/out fault; AND d. Before risk of loss passes to the B. 3. If impossibility does apply, what happens next depends on whether the loss is total or partial a. If a total loss - the K is avoided b. If a partial loss or the goods no longer meet the K reqs - B may demand inspection and may either: i. Treat the K as avoided, OR ii. Go ahead with the deal, but with "due allowance" from the K price

Disclaiming Implied Warranty of merchantibility

1. Under § 2-316(2) where a disclaimer a. May be written or oral; b. Must mention merchantability; and c. If in writing, it must be conspicuous 2. Under § 2-316(3)(a) a. Use of expressions like "as is," "with all faults," or other language that calls the B's attention to the exclusion and makes plain no implied warranties b. Statute does not require conspicuousness; however, many cts nevertheless require it 3. Under § 2-316(3)(b) a. Does not disclaim an IWM, but keeps it from arising in the first place b. By B's examination or refusal to examine i. No implied warranty arises w/ respect to defects that an investigation ought in the circumstances to have revealed c. Professional v. non-professional Bs i. A professional B examining a product in his field will be held to have assumed the risk as to all defects which a professional in the field ought to observe. ii. A nonprofessional B will be held to have assumed the risk only for such defects as a layperson might be expected to observe. § 2-316 cmt. 8. iii. The particular B's skill is also relevant. d. Look for a demand by the S that the B inspect the goods - it is not just about the goods being available. 4. Under § 2-316(3)(c) a. By course of dealing, course of performance, or usage of trade

Dislclaiming Implied Warranty of Fitness for a Particular Purpose

1. Under § 2-316(2) where a disclaimer must a. Be in writing b. Be conspicuous c. Have sufficient language i. Example: "There are no warranties which extend beyond the description on the face hereof." 2. Under § 2-316(3)(a) a. Use of expressions like "as is," "with all faults," or other language that calls the B's attention to the exclusion and makes plain no implied warranties b. Statute does not require conspicuousness; however, many cts nevertheless require it 3. Under § 2-316(3)(b) a. Does not disclaim an IWM, but keeps it from arising in the first place b. By B's examination or refusal to examine c. No implied warranty arises w/ respect to defects that an investigation ought in the circumstances to have revealed 4. Under § 2-316(3)(c) a. By course of dealing, course of performance, or usage of trade

Self-Introduction Approach

1. Weakest approach by itself 2. Address the prospect by name (pronouncing it correctly) 3. State your name and company 4. Present your business card

Curiosity Approach

1. You should know something about the prospect 2. Ask questions whose answers will reflect favorably on your product/service

How to increase per capita incomes...

1. capital deepening 2. improvements in technological efficiency 3. improvements in human development (education and health) 4. Exports expansion (only manufactured) 5. improvements in institutional equality

for market segmentation to succeed, 5 conditions must exist

1. customers needs for the product must be heterogenous 2. segments must be identifiable and visible 3. marketers must be able to compare the different market segments with respects to estimated sales potential, costs, and profits. 4. At least one segment must have enough profit potential to justify maintaining a marketing mix 5. the company must be able to reach the chosen segment using the mix

bases of segmentation

1. geography 2. demographics 3. psychology 4. benefits sought 5. behavior

Marketing Concept

1. identify consumer needs 2. provide products that satisfy those needs and insure long-term profitability

Trade-related investment measures

1. local content- 2. trade balancing- 3. technology transfer requirement- 4. remittance restriction- 5. local equity requirement- 6. export performance requirement-

Several factors influence company sales potential:

1. market potential places absolute limits on the size of the company's sales potential; firm cannot exceed market potential 2. magnitude if industry wide marketing activating has indirect but definite impact on company's sales potential

perfect competition

1. numerous buyers and seller 2. entry is easy 3. product is homogenous

oligopoly

1. numerous buyers, few sellers 2. entry difficult 3. product is differentiated

monopoly

1. numerous buyers, only one or two sellers 2. entry very difficult 3. product highly differentiated

facilitating functions

1. simplifies buying and selling 2. facilitates assembly 3. sales by sample and description 4. makes mass selling possible

By determining the desired benefits, marketers can divide people into groups

1. the benefits sought must be identifiable, using these benefits, 2. markers must be able to divide people into recognizable segments 3. one or more of the resulting segments must be accessible to the firms marketing efforts

trade & capital costs related to offshoring

1. the cost of building a new factory 2. increase in cost for transportation and communication (distance cost) 3. cost from tariffs (if exist)

S's Monetary Damages Possibilities

1.Action for the price under § 2-709 2.Resell the goods and get damages under § 2-706 3.Recover K-market difference damages under § 2-708(1) 4.Lost profits (available in certain circumstances) under § 2-708(2) 5.Liquidated damages under § 2-718 6.Incidental damages (never consequential damages

Lost Profits

1.Availability of this remedy: a.Available when K-market damages and/or K-resale damages are inadequate to put the S in as good a position as performance would have done b.3 instances when these damages will be inadequate: i.B breaches and the S is a lost-volume S. ii.B breaches before S completes production of the goods and S reasonably decides not to complete production (§ 2-704(2)) iii.B breaches and S is a middleman—never actually has the goods, but helps Ss find Bs (a.k.a. a "jobber").

S's remedies arise when B breaches

1.B wrongfully rejects goods, 2.B wrongfully revokes acceptance of goods, 3.B fails to make a payment when due, or 4.B repudiates the K (§ 2-703)

Types of customers

1.Consumers 2.producers 3. reller 4. gov 5. institution

K-Market Damages

1.Formula: KP - MP + ID - ES 2.MP is determined at the time and place for tender a.If a shipment K, MP determined at S's place b.If a destination K, MP determined at time and place of tender

Anticipatory Repudiation

1.If either of the parties repudiates the K "w/ respect to performance not yet due the loss of which will substantially impair the value of the K" to the other party then this aggrieved party may among other things: a.Wait for the other party to perform for a commercially reasonable time b.Resort to any remedy for breach, c.Suspend its own performance. 2.If S is the aggrieved party, it can proceed to identify goods for resale.

S's Remedy Options are indexed in § 2-703 and S can pursue more than 1 remedy to fulfill the fundamental goal of expectancy:

1.S may be able to "withhold delivery" of goods (§ 2-703(a)) 2.S may be able to stop delivery of the goods (§ 2-703(b)) 3.S may be able to resell the goods and recover damages (§ 2-703(d)) 4.S may be able to recover damages for non-acceptance (§ 2-703(e)) 5.S may be able to terminate the K (§ 2-703(f))

Action for the Price

1.When S tries to get B to pay all $ due under the K 2.Favored by Ss above all other monetary damages/remedies b/c it is essentially the S's version of specific performance

value props to manufacts

1.price 2. customize

Persistence

10% sales people left after 4 calls 48% of salespersons quit after 1 contact. 73% of salespersons quit after 2 contacts. 85% of salespersons quit after 3 contacts. 90% of salespersons quit after 4 contacts. Those 10% who go on past the 4th contact -- end up with 80% of the business. Know the numbers -- "300" hitter is a superstar -- failing 70% of the time.

Causes of customer attrition

12 to 15% -- Product Dissatisfaction 10 to 15% -- Price 50 to 70% -- Poor Service

good test slides

14 and 15 -insupplier -out-supplier

Commercial Impracticability

2. To establish excuse for delayed delivery or non-delivery, S must show: a. Performance has been made impracticable by either: i. Good faith compliance w/ government regulation or order, OR ii. The "occurrence of a contingency the non-occurrence of which was a basic assumption on which the contract was made" a) First, identify the contingency (i.e., the change that has made performance impracticable b) Second, ask whether the parties assumed, when they made their K, that the change would not occur. b. AND the S did not "assume a greater obligation" (i.e., the S did not assume the risk of the change) either expressly or implicitly

WBG: Poverty alleviation

2nd phase: eradicating absolute poverty through rural and urban development "redistribution with growth" -bank lending with increased importance in rural development of edu, health, agriculture ** increase productivity of rural poor *** ignored poorest of the poor

Leary circumflex

<-- Opposing and cooperating on the sides

Assets

=liability + owners equity

Revocation of Acceptance

3. May revoke if non-conformity "substantially impairs" the value of the goods to the B, and at least 1 of the following 3 is true: a.B accepted the reasonable assumption S would cure (and S hasn't) b.B accepted w/out discovery of the non-conformity, but non-conformity was difficult to discover before acceptance c.B accepted w/out discovery of non-conformity, but acceptance was induced by the S's assurances. (§ 2-608(1))

evolution of selling slide 2-4

30s prduction 30-60 sales 60-90marketing 90 on partnerships

WBG: Structural adjustment lending

3rd Phase: -assist governments with policy and institutional reform Controversial-

Conditionality

3rd phase of WBG- CONTROVERSY- The concept whereby loans are made to developing countries World Bank provided recipients agree to enact certain economic policies or extend certain trading advantages that benefit lending countries.

time, possession, place, form

4 benefits (also called utility) that marketers work to create

product, price, promotion, place

4 ps of marketing

social, economic, technological, competitive, regulatory

5 areas of environmental scanning

advertising, personal selling, public relations, sales promotions, direct marketing.

5 elements of the promotional mix (know these all)

problem recognition, informtion search, alternative evaluation, purchase decision, and postpurchase behavior

5 steps of consumer purchase decision process (memorize the steps)

filling low inventory goods only

6. evolution of proposals and selection of supplier 7. place and receiver order 8. evolution of product performance

80/20 rule

80 Percent of time spent calling on most productive (potential) customers. 20 Percent on prospects and smaller accounts.

costs of stress

80% of all modern diseases have their origins in stress. In the UK, 40 million working days per year are lost directly from stress -- related illness. Costs in absenteeism to British industry is estimated at 1.5 billion pounds per year. USA is 2.5 times larger = cost of $6.2 billion.

Status

A Rolex​ watch, a Lexus​ car, and even the latest Apple iPhone are all examples of a​ _____ symbol.

Extreme value theory

A branch of statistics that focuses primarily on extreme outcomes

What is "Out of the Money" OTM

A call option with a strike price that is higher than the market price of underlying asset. or Put option with a strike price that is lower than the market price of the underlying asset. Has no intrinsic value, only possesses extrinsic or time value.

Excuse from performance - Commercial Impractibility

A change in circumstances occurred rendering performance impracticable. Parties assumed the contract was contingent on the change not occurring (1) Performance made performance impracticable (2) Without fault of the party seeking excuse (3) Party seeking excuse did not assume greater responsibility (4) Notification of the (a) substantial impairment and (b) desire to terminate or modify the agreement was made seasonably NOTE - Was the change reasonably foreseeable? If only part of the goods were affected, Seller may allocate remainder in a fair and reasonable manner Common Law - Frustration of Purpose

Portfolio

A collection of strategically aligned, value-generating change initiatives that help achieve organizational goals.

Interest Capitalization

A company constructing a long-term operating asset such as a new manufacturing facility may need to finance the costs of construction. When financing by issuing debt, the company must determine whether to add interest costs to the cost of the asset (that is, to capitalize) or to expense the interest costs as incurred. In other words, accountants must determine if interest is a cost of a constructed plant asset or if it is a financing cost. To properly value the cost of a constructed plant asset, firms capitalize material interest charges incurred in the construction of certain assets. The amount of interest capitalized is the lesser of actual interest incurred and avoidable interest. Avoidable interest is the interest the firm could have avoided if it had not borrowed funds to construct the plant asset. 4 Major Considerations in the application of interest capitalization requirements: 1. Assets that qualify for interest capitalization 2. Expenditures on which the firm should compute interest 3. Rate of interest 4. Period of capitalization Because capitalized interest increases an asset's cost, depreciation expense on the asset will be higher in the future. However, interest expense is lower in the construction period.

Overview of Initial Measurement

A company determines the amount to capitalize as PPE as the costs that are reasonable and necessary to bring the asset to the location and condition required for its intended use. Consequently, costs such as installation, delivery, special wiring, interest from the financing of constructed assets, closing costs, and sales tax are included in the initial measurement of PPE. All fixed assets are not capitalized. In practice, firms develop a capitalization policy for PPE, which typically sets guidelines based on the type and/or the magnitude of the cost of the asset acquired. A materiality threshold for capitalization specifies that the firm immediately expense an asset that falls below a predetermined fixed dollar limit (e.g. $1000) rather than capitalize it as an asset. Ex. Ford Motor Company's 2012 annual report noted that it capitalized new assets it expected to use for more than one year with acquisition costs greater than $2500. Firms typically have several subcategories of PPE.

Depreciation of Tangible Fixed Assets

A company's allocation of the initial cost of the asset to future periods of expected benefit from use of the asset is a critically important aspect of accounting for PPE.

objection

A concern or question raised by the Prospect

Accounts Receivable

A current asset account showing amounts payable to a company by customers who have made purchases of goods and services on credit

Business plan

A detailed plan for operating a new business, including description of the business, a marketing plan, a description of the management structure, and financial projections.

Program

A dossier of Projects & transformation activities to achieve outcomes and realise benefits of strategic importance to the business

Cash Drawer

A drawer near the base of the cash register; provides for an organized system of receiving and dispensing money.

Pricing Strategies (Market plan)

A firm may base its pricing strategy on costs, demand, price of competing products.

Application form

A form provided by the employer, to be completed by the job applicant.

Project Request Form

A form that is submitted to request funding from the portfolio for a new initiative.

export

A good or service produced in the home country and sold in another country.

Capital allocation line

A graph line that describes the combinations of expected return and standard deviation of return available to an investor from combining the optimal portfolio of risky assets with the risk free asset

Security market line

A graphical representation of CAPM with beta, reflection systematic risk, on the x axis and expected return on the y axis

loyalty programme

A loyalty scheme is a customer management programme that offers delayed or immediate incremental rewards to customers for their cumulative patronage.

Cash Register

A machine that sales people use to record sales, receive money, and make change.

Core-satellite approach

A majority of the portfolio is invested on a passive or low active risk basis while the minority of the assets is managed aggressively in smaller "satellite" portfolios

Benefit

A measurable improvement resulting from an outcome that is perceived as an advantage by the users and the sponsoring organisation and which contributes towards one or more organizational objective(s)

Relationship Era=Consumer Orientation

A mgmnt philosophy that emphasizes satisfying customers' needs and wants. "Marketing plays a more central role" TQM

uniform commericial code

A number of uniform acts that have been set with the goal of harmonizing the law of sales and other commercial transactions across the U.S.

Discount

A percentage subtracted from the total price of the items purchased

Change bluffer

A person who claims that a salesperson did not return enough money when making change.

Amateur shoplifter

A person who has a strong desire to steal, not for profit but for personal use.

Security characteristic line

A plot of the excess return of the security on the excess return of the market

Portfolio triple constraints

A portfolio's effectiveness to deliver value is controlled by three important elements, namely, organizational goals, projects and resources.

Internal rate of return (IRR)

A profitability metric used by businesses to determine which projects are likely to yield the greatest return per dollar of capital investment. Though it is closely related to the net present value, it reflects anticipated gains as a percentage of the initial investment rather than as a net dollar amount.

Portfolio planning

A program developed in advance of constructing a portfolio that is expected to satisfy the client's investment objectives

straight rebuy

A purchase decision resulting from an ongoing purchasing relationship with a supplier.

modified rebuy

A purchase decision that occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products or services.

new task

A purchase decision that occurs when a buyer is purchasing a product or service for the first time.

Market model

A regression equation that specifies a linear relationship between the return on a security (or portfolio) and the return on a broad market index

Cash-send

A sale in which an item is purchased for cash and the customer wants it to be delivered.

Dramatization

A sales demonstration that uses showmanship

Nonprobability sampling

A sample in which personal judgment is used to select respondents

Nonprobability Sampling

A sample in which personal judgment is used to select respondents (example: surveying random individuals at your favorite restaurant)

Gamma

A second-order risk, reflects the risk of changes in delta

Counterfeiting

Creating a fake or alter document or current sea and passing it off as genuine

Stress testings

A specific type of scenario analysis that estimates losses in rare and extremely unfavorable combinations of events or scenarios

Portfolio Managent Office (PMO)

A structural unit which is established centrally to manage the investment process, strategic alignment, prioritisation and selection, progress tracking and monitoring, optimisation and benefits achieved by an organisation's change initiatives on behalf of its senior management.

tariff

A tax on imported goods

Project

A temporary endeavour to create a unique product, service, or result according to an agreed Business Case

Penalty

A term that fixes unreasonably large damages is void a.If trying to avoid the liquidated damages provision, argue that it is punitive and truly a penalty b.If trying to enforce, argue it is reasonable and parties are free to set their own terms

Cash Tray

A tray in the cash drawer with compartments for bills and coins.

Examples of negative customer retention strategies

Create exit barriers Enforce the contract Extract switching penalties

Competitive shopping trip

A visit to a competitors store, to study that stores pricing and merchandising practices

Demonstration

A well planned demonstration will: ---catch and peak the buyer's interest, fortify your points and get buyer involved, help the prospect understand the benefits, keep you interested and stimulated, cut down on the number of objections, help you close the sale. 3 Principles in Using a Demonstration : 1. Concentrate the prospects attention to you 2. Follow the "tell them 3 times rule" 3.Get your prospect into the act

Notice of breach of warranty

A. B must give notice of breach of (any) warranty "within a reasonable time after [the B] discovers or should have discovered" the breach (§ 2-607(3)(a)) B. Consequence of failure to give notice: barred from any remedy 1.Accordingly, notice is an affirmative part of a B's case

Express Warranty

A. Need not be a merchant Arises when: 1.S makes an affirmation of fact or promise relating to the goods to the B 2.S provides a description of the goods, or 3.Samples or models are exhibited 4. When the affirmation of fact, promise, description, sample or model is made a part of the "basis of the bargain," an express warranty is created.

Spirit of the Remedies

A. Purpose of all UCC remedies (whether for S or B): 1.Remedies should be liberally administered to put the aggrieved party in as a good a position as if the other party had fully performed 2.Should be liberally administered to satisfy non-breaching party's expectation interest B. Consequential damages not awarded (unless a provision of the UCC or other rule of law provides for them) 1.Ss never get them, Bs can sometimes C.Incidental damages can be awarded to B and S

Closing a sale of goods

A. S delivers the goods and now B has 2 main options after a reasonable time to inspect the goods: 1. Accept goods 2. Reject goods

Breach of Warranty Elements

A. Warranty arose B. Warranty was breached C. Breach of warranty was proximate cause of harm D. Damages E. B gave proper notice to S F. B must overcome any privity issues or defenses

Open-end mutual funds

Accepts new investment money and issues additional shares at a value equal to NAV at the time of investment

IFRS Interest Capitalization

Accounting for interest capitalization under IFRS is similar to US GAAP for all areas discussed: 1. Assets that qualify for interest capitalization 2. Expenditures on which firms should compute interest 3. Rate of interest 4. Period of capitalization

Subsequent Measurement of Property, Plant and Equipment

Accounting for long-term operating assets extends beyond acquisition. New machinery must be maintained, depreciated over time, or impaired if its value falls. Several events and transactions affect long-term fixed assets after acquisition, including subsequent expenditures related to the fixed assets, depreciation, and impairments. Impairments (Chp.12) , are decreases in an asset's carrying value whenever the asset no longer provides the future benefits expected.

Money weighted return (internal rate of return)

Accounts for money invested and provides the investor with information on the return earned on the actua linvestment

Risk shifting

Actions that change the distribution of risk outcomes

SOF Exceptions

Admission exception The "merchants should read their mail" exception (note: only excuses the "signed by the party against whom enforcement is sought" requirement) Specially manufactured goods exception Part performance exception Possible non-statutory exceptions

S's remedies on discovery of B insolvency after delivery of goods

After delivery of goods: a.S can reclaim goods bought on credit if: i. B was insolvent when goods were received; AND ii. If S makes demand w/in ten days of receipt (§ 2-702(2)) b.S may also have a security interest in goods for which payment was due on delivery, but not paid for (example: B receives goods and pays w/ a check that bounces).

Forward commitments

Agreements that obligate two parties to undertake a transaction at a future date at a price or rate agreed on when the commitment is made

The two-fund separation theorem

All investors regardless of taste, risk preferences and initial wealth will hold a combination of two portfolios or funds: a risk free asset and an optimal portfolio of risky assets

Goods (defined)

All things (including specially manufactured goods) which are movable at the time of identification to the contract (other than money) for which the contract price is to be paid

Overview of the Depreciation Process for Property, Plant, and Equipment

Allocating the cost of a fixed asset through depreciation requires that management estimate the asset's useful life and its scrap value, and choose the depreciation method.

open non customers

Ambivalent non-customers are as attracted to the alternative as they are to their current brand

conspiracy

An agreement between competitors before customers are contacted

trade deficit

An excess of imports over exports

Goodwill

An intangible asset that is obtained through acquiring another entry that provides a competitive advantage, in the market place such as a brand recognition, quality reputation, high employee morale, etc.

Separately managed accounts

An investment portfolio managed exclusively for the benefit of an individual or institution

Objections

An objection is anything the prospect says or does that presents an obstacle to the smooth completion of the sale. Learn to accept objections as a challenge, which when handled correctly will benefit you and your prospect. If you fear objections you will fumble your response, often causing you to fail.

Part Performance Exception

An oral contract can be enforced with respect to goods for which payment has been made and accepted or with respect to goods which have been received and accepted.

Admissions Exception

An oral contract can be enforced without a writing if the party against whom enforcement is sought admits in pleading, testimony, or otherwise in court that a contract was made. Only enforceable up to the quantity admitted.

Portfolio Sponsoring Organisation (PSO)

An organisational unit with the budget, projects, resources, and the decision-making authority on how it wants to allocate its resources.

Change Initiative

An umbrella term for Projects and Programs

Risk

An uncertainty (threat or opportunity) that will affect costs, time, benefit, quality and/or scope objectives of a project.

Security analysis

Analysts assess the expected level and risk of cash flows each security will provide

Fundamental factor models

Analyze and use relationships between security returns and the company's underlying fundamentals

Situational Analysis Market plan

Analyze the marketing environment Conduct SWOT analysis

Credit card

Another name for a charge card

Charge return

Another name for a charge credit

family, social surroundings, price, lifestyle

Any 5 influences that affect consumer behavior (there are many!)

Entrustment

Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him the power to transfer all rights of the entruster to a B in ordinary course of business."

Liquidated Damages

Arises when the parties specify or agree to, in the K (can be oral or written) to a specific amount of damages in the event of either party's breach

Implied Warranty for a Particular Purpose

Arises when: a. S has reason to know B's particular purpose for which the goods are required; b. S has reason to know B is relying on S's skill or judgment to select or furnish suitable goods; AND c. B does rely. Content of warranty: goods will be fit for that particular purpose

Tabulation

Arranging data in a table or other summary form to get a broad picture of overall response

Expenditures

As construction occurs, a company records its expenditures in a noncurrent asset account (construction in progress) and computes interest on the weighted average accumulated expenditures for the accounting period in which it is calculating interest capitalization.

Drift

As the portfolio is constructed and its value changes with the returns of the asset classes and securities in which it is invested, the weights of the asset classes deviate from the SAA

closing

Asking for the Prospects commitment

activities ranked by high-skilled/low-skilled labor

Assembly, Component Production, Marketing & Sales, R&D

Intangible Assets

Assets that do not have a physical existence that provide a business entity competitive advantage such as copyrights, patents, trademarks, etc.

ASEAN

Association of Southeast Asian Nations - 12 member nations of Southeast Asia to promote economic growth, free trade and economic collaboration between member nations

Homogeneity of expectations

Assumption that all investors have the same economic expectations (expectations of prices, cash flows and other investment characteristics)

Risk averse

Assumption that an investor will choose the least risky alternative

Warranty

Assurance by the seller that the products will perform as represented

warranty

Assurance by the seller that the products will perform as represented

Skewness

Asymmetry of the return distribution

Additional terms in the acceptance - Battle of the Forms

At common law - Mirror image rule UCC Art 2 displaces the mirror image rule Four situations additional or different terms are incorporated into the contract: 1. Definite and seasonable acceptance (expression or in writing). If "conditional" then no formation. 2. Informal agreement, followed by a written confirmation with CONTRADICTORY terms - Knockout Rule - knockout conflicting terms and use a gap filler. 3. Informal agreement, followed by written confirmation with additional NON-CONTRADICTORY terms - NON-MERCHANTS - Generally considered proposals for modification - MERCHANTS - terms become part of the contract unless (a) express limitation; (b) material alteration 4. No contract formed by offer and acceptance, but parties performance indicates a contract. UCC gap fillers may supplement

Equity market neutral

Attempt to eliminate overall market movement by going short overvalued securities and going long an equal value of undervalued securities

Fixed-income arbitrage

Attempt to profit from arbitrage opportunities in interest rate securities

Event driven

Attempt to take advantage of specific company events

Benefit to cost ration (BCR)

Attempts to identify the relationship between the cost and benefits of a proposed project.

Installment Contract

B can reject ONLY if: a) Non-conformity substantially impairs the value of the goods or that particular installment and it cannot be cured (§ 2-612(2)) b) B must accept only if S gives adequate assurance that it will cure the non-conformity.

Single Delivery Contract

B may properly reject if: a) The goods are non-conforming or tender is non-conforming (Perfect Tender Rule) b) But note, this might be softened by trade usage, etc.

B's rights & duties after revocation

B who revokes has the same rights and duties w/ regard to the goods as if he had rejected them (§ 2-608(3))

Cash

Banknotes and coins in hand or readily available; money or ready money immediate payment for goods or services

statutory law

Based on legislation passed either by state legislatures or by Congress

Why Objections Occur

Because there are doubts or unanswered questions in the mind of the prospect. Because the prospect wants to buy or is interested in buying, but needs clarification, wants a better deal, or must have a third party approval. Because the prospect does not want to buy.

Top-down analysis

Begins with consideration of macroeconomic conditions then addresses selection of the most attractive investments within those segments

Courtesy

Being considerate of the rights and ideas of others and sincerely interested in what people are doing and saying Credit card

Enthusiasm

Being excited about one's job in the products and services provided to customers

Dependability

Being on time, always going to work unless an absence is unavoidable, and always completing the tasks assigned

Mutual trust

Belief by one party that the other party will fulfill its obligations in a relationship --Dependability --Competence --Customer orientation --honesty --likability

FDI (costs and benifits)

Benefits -increased competition= lower prices and increased quantities -creating jobs -new skills -transfer of technology -improve imports and exports in BOP -new progressive business culture Costs -foreign firm could have too much market power -could worsen imports in BOP -increase in pollution -negative dominance of western culture

Magnuson-Moss Warranty Act

Benefits - (1) Warranty regulation \ Transparency, (2) Attorneys' Fees, (3) Easier to overcome privity, (4) State and Federal Jurisdiction Must be "consumer product" normally used for personal, family or household goods Provides Cause of Action for damages and attorneys' fees State Court or Federal Court if (1) $50k or (2) Class action with 100+ claimants each at least $25 If Seller offers a warranty - (1) Must indicate full or limited warranty, (2) Must include certain required terms, (3) Warrany made available before purchase

Merchant's Exception

Both parties must be merchants; Writing must be "sufficient against the sender" (it has to meet all the requirements of a sufficient writing except that it is signed by the sender, not the recipient); Writing must be received within a "reasonable time" of the making of the K; Recipient knows or has reason to know the writing's contents; and Doesn't object in writing within10 days. If ALL the above are satisfied, then the writing is enforceable against the recipient even though the recipient never signed it

Sell-side firm

Broker/dealer that sells securities to and provides independent investment research/recommendations to investment management companies

Customer oriented businesses

Businesses that attempt to satisfy the needs and wants of their customers

FOB factory

Buyer assumes responsibility for any loss or damage incurred during transportation

Rejection

Buyer may reject for non-conformity. If installment contract, non-conformity must substantially impair the value Buyer must reject within a reasonable amount of time & seasonably notify seller After rejection, buyer can't use goods but must hold for reasonable time for seller to remove. Buyer can't use the goods Seller has unfettered right to cure (must give seasonable notice of intent to cure)

Revocation of Acceptance

Buyer may revoke if non-conformity substantially impairs the value and at least one of the following: 1. Buyer reasonably assumed seller would cure; 2. Non-conformity was difficult to discover before acceptance 3. Acceptance was induced by seller's assurances

Breach of Warranty

Buyer\Plaintiff must prove: 1. Warranty arose; 2. Warrany was breached; 3. Breach was proximate cause of harm 4. Damages 5. Buyer notified seller 6. Privity: Alt A - Warranty extends to persons in buyers family, household, or guest in buyer's home - Reasonably expected to use the goods Alt B - Warranty extends to any natural person reasonably expected to use the goods

Long/short

Buying long equities that are expected to increase and selling short equities that are expected to decrease (profit from market movements)

Convertible arbitrage

Buying securities that can be converted into shares at a fixed price and simultaneously selling the stock short

Straight rebuys:

Buying the same product from the source it was bought previously

Buyout fund

Buys all shares of a public company to make it private and restructure the operations

customer porfolio management

CPM aims to optimize business performance - whether that means sales growth, enhanced customer profitability or something else - across the entire customer base.

Ambition

Desire to improve oneself, to become a better sales person.

campaign management

Campaign managers design, execute and measure marketing campaigns with the support of CRM technologies. Sometimes these are multimedia campaigns across direct mail, email, fax, outbound telephony and SMS platforms

Closing Differences between 2 & 2A

Can only accept leases by affirmatively signifying acceptance after reasonable time to inspect Must be a true lease and must meet financial lease elements

Dislclaiming Warranty of Title

Can only be modified or excluded by specific language or by circumstances which give B reason to know that S does not claim title in himself or that he is purporting to sell only such right or title as he or a 3rd person may have b."As is" language will not work to disclaim c. Doesn't require a writing, but it should be d. Should use bold letters in disclaimer e. The more clear, the better → need to ensure that the B knows it and cannot later turn around and say "I didn't know"

Cancelling an Installment Contract

Can only occur when the non-conformity substantially impairs the value of the whole K

-OLI Framework- Ownership Advantage

Capital that can be replicated in different countries without losing value or high transaction costs "knowledge capital"- managers, patents, technology, brand, reputation

Amount keys

Cash register keys to record the purchase price of products or services.

PS: Interpretation of (Theta) for an industry with an NTR gap of 1 percent

Change in employment for an industry affected by PNTR relative to change in employment with 0 NTR gap

Idea behind how PS estimates the effect of the PNTR on manufacturing employment (NTR Gap)

Change in employment in industries with a high NTR gap and subtract that off with a change in employment in industries with a low NTR gap

Portfolio entry criteria

Characteristics a newly proposed project needs to fulfil in order to be considered for further evaluation.

CORE

Choice, organisation, results and evaluation (the choice of introducing sales to the company, where is sales place in the company, are the objectives and strategic goals clear, evaluate choice and make adjustments)

Marketing Metrics

Click-through rates, conversion​ rates, and cost per order are all examples of​ _____ that help marketers to watch the performance of their marketing​ campaigns, initiatives, and channels and when appropriate serve as a control mechanism

Risk attitude

Client's willingness to take risk

Balanced score card

Clients, internal business processes, learning capacity ---> financial results

Choice close

Closing technique in which the sales person offers the customer a choice between two items

Ask your customer to buy and close

Closing technique in which the salesperson asks the customer to buy.

Assume they are buying to close

Closing technique that involves a leading statement to get a commitment from the customer.

Advantage and disadvantage close

Closing technique used to summarize or reveiw for customers the reasons for making the purchase.

Buying Signals

Clues that a customer is ready to buy.

organizational buying and selling

Complexity of the organizational buying process ---Purchasing agents make purchase decisions ---Buying decisions involve extensive evaluations and negotiations ---Complexity is increasing as more customers become global businesses

commitment to mutual gain

Creates a win-win relationship •One does not take advantage of the other •Mutual investment

distinctive

Coca-Cola is superior to its competitors in its distribution of products. This is an example of​ _____ competency.

cognitive advertising

Cognitive advertising objectives include: raising awareness, developing understanding and generating knowledge. New customers generally need to be made aware of the product and to understand what benefits it can deliver

HM: Interpret Theta College (In terms of wage growth)

College graduates in industries that lost all protection due to NAFTA and college graduates in industries unaffected by NAFTA had the same wage growth from 1990-2000

Customer Lifetime Value

Combinded total of all future sales --frequency of purchase --revenue size

Mutual funds

Commingled investment pool in which investors in the fund each have a pro-rata claim on the income and value of the fund

Frustration of Purpose

Common Law 1. An excuse for a party's non-performance b/c of some unforeseeable and uncontrollable circumstance 2. Very fundamental purpose of K is rendered irrelevant - the K ceases to make sense by occurrence of which was a basic assumption of K

Follow Through

Common Post-Sale Services: -- Make credit arrangements. Schedule Deliveries. Be present during delivery. Monitor Installation. Offer training on use or care. Make good on your promises.

Value Proposition

Communicate with marketing promotional activities, value customer will realize Whole bundle the firm promises to deliver.

ADH Slides state that locations that are considered most vulnerable to Chinese import competition:

Commuting Zones that specialize in industries that saw the largest growth in Chinese imports per workers

collusion

Competitors working together while the customer is making a purchase decision

Empathy

Concern for the interest and feelings of other people

Customer objections

Concern or hesitation by customers when considering the purchase of products or services

Consideration

Concerned for the feelings and rights of other people

Units of conviction

Concise, carefully prepared "mini-presentations" that are used as building blocks in constructing the information the salesperson presents. -- Prepare units of conviction ahead of time, practice them until they are comfortable, they become a permanent part of your selling arsenal, learn how to personalize units of conviction. Each Unit of Conviction Contains: Feature (A fact about the product or service), Transitional Phrase or Bridge Statement, Benefit (What's in it for me?), Evidence or proof statements, Tie-down (Trial Close)

LM: Type of congressman more responsive to TAA generosity

Congressmen whose CD is more vulnerable to trade and an FTA partner that is facing a greater reelection risk

How to keep an offer open

Consideration or Firm Offer

Portfolio Executive Board (PEB)

Consists of Senior Management with decision making authority: Builds and maintains the Strategic Framework. Governance body taking decisions on inclusion of initiatives in portfolio.

Bond mutual funds

Consists of individual bonds and occasionally preferred shares

Collaborative Consumption

Consumers increasingly would rather rent than purchase the products they use * Traditional marketers looking for this trend

How to see if a contract was formed

Contract formed under 2-206? P.O. followed up by a means of acceptance reasonable in the circumstances (perhaps shipment of goods). If so, the PO is probably the offer and it was probably accepted. The PO's terms are probably the governing terms. 2. Contract formed orally or by informal correspondence followed up by one or more written confirmations. You have a deal (how do I know this?) and just need to figure out the terms. 3. If no to 1 and 2, ask if there is a contract formed by the exchange of forms. Remember the mirror image rule is supplanted, but what do we still need after the offer? ______________________ What language in the "acceptance" prevents formation? ________ If a contract formed by exchange of forms, you still may need to figure out the terms. 4. If "No" to 1-3, then ask if a contract evidenced by conduct. If yes, use 2-207(3) for terms. If no, no K.

Gatekeepers

Control the flow of information and limit the alternatives considered Ensure that purchases are consolidated under one contract Reduce costs and increase quality

Two main strategies for customer development

Cross-selling is selling additional products and services to an existing customer. Up-selling is selling higher priced or higher margin products and services to an existing customer.

Notes Receivable

Currency owed to a business entity from its customers that are acknowledged with a signed written contract..

Prepaid Assets (or Expenses)

Currency paid in advance by a business entity for a service such as property insurance or a building lease. BS.

Customer delight

Customer delight = P > E where P = Perception E = Expectation

simple customer retention

Customer retention is the number of customers doing business with a firm at the end of a financial year expressed as percentage of those who were active customers at the beginning of the year.

portfolio purchasing

Customers buy on a portfolio basis when they buy from a choice set of several more or less equivalent alternatives.

customer value

Customers perception of what they obtain in exchange for what they have to give up

Sales order processing

Customers place orders with a customer service representative.

Cash Refund

Customers receive the money originally paid for the item.

Decided customers

Customers who know what they want to buy

Demand

Customers' desires for products coupled with the resources needed to obtain them

Regulatory risk, accounting risk, tax risk (Compliance risk)

Deal with the matter of conforming to policies, laws, rules and regulations as set forth by governments and authoritative bodies

relationship with customers

Deception: Deliberately presenting inaccurate information •Telling half-truths •Withholding important information •Manipulative and unethical •Bribes: Payments made to buyers to influence their purchase decisions •Kickbacks: Payments made to buyers based on the amount of orders placed

Country levying the tariff, the tariff will

Decrease the consumer surplus and Increase the producer surplus

Portfolio Design Specifications

Defines which change initiatives can be considered as serious contenders for a given portfolio.

buyer personas

Defining your personas is essential to personalizing the sales process for today's empowered buyer

Customer orientation

Degree to which salesperson puts customer needs first •Stressing benefits and solutions to problems over features •Emphasizing the salesperson's availability and desire to provide service

How do customers reduce perceived risk

Delay purchase Seek word-of-mouth endorsement Negotiate service contracts Seek additional information from advertising copy Buy established brands Build a relationship with a supplier Transact with reputable supplier Seek performance guarantees Buy with credit card (protection if product fails) Negotiate discounts Take out insurance Request pre-purchase trial Read testimonials

deception

Deliberately presenting inaccurate information

Deception:

Deliberately presenting inaccurate information •Telling half-truths -Withholding important information --Manipulative and unethical

Positive customer retention strategies

Delight customers Create customer-perceived added value Create social and structural bonds Create customer engagement

With regard to derivatives, what are the specialized measures of risk?

Delta Gamma Vega Rho

Derivatives Risks

Delta - this is the sensitivity of derivatives values to the price of the underlying asset Gamma - this is the sensitivity of delta to changes in the price of the underlying asset Vega - this is the sensitivity of derivatives values to the volatility of the price of the underlying asset Rho - this is the sensitivity of derivatives values to changes in the risk-free rate

Competence

Demonstrated knowledge/training of: •Customer •Product •Industry •Competition

Depreciation Guidelines

Depreciation Expense is an end-of-period adjustment that firms include on the income statement in the computation of operating income. Firms generally report depreciation expense as part of selling, general, and administrative expenses. On the balance sheet, firms reduce the tangible fixed asset by increasing accumulated depreciation, a contra-asset account that represents the total depreciation taken over the life of the asset. Firms subtract accumulated depreciation from the original cost of the fixed asset and report net book value (NBV), also referred to as net fixed assets (NFA), in the noncurrent asset section of the balance sheet. Initially the most objective information regarding a fixed asset's value is its cost. As a result, the accountant preserves the record of historical cost and records the estimated depreciation in the separate accumulated depreciation account. For financial statement purposes, firms report the net book value as a single line item.

Organizational Buying and Selling

Derived versus direct demand ---Sales to OEMs and resellers are based on derived demand rather than direct demand ----Derived demand:

Main Redistribution effect of a tariff: Transfer of income from

Domestic Buyers to Domestic Producers

Dealing with price concerns

Don't apologize for the price. Do add value with a cluster of satisfactions. Unbundle. Don't make price the focal point of your presentation. Do point out the relationship between price and quality (VALUE) Do explain the difference between price and cost.

Amplification Questions

Double-Check Question -- restate or re-phrase the prospects remarks. Ask prospect to expand on their answer. Tells prospects: 1. That you have been listening 2. That you understand their concerns 3. That what they say is important to you 4. Checks for mutual understanding 5. Invites the prospect to expand or clarify any point of disagreement 6. Narrows down generalizations and clears ambiguities

event-based marketing

EBM provides companies with opportunities to approach prospects at times which have a higher probability of leading to a sale, e.g. important life-stage events

Probability sampling

Each member of the population has some known chance of being included (example: action films vs. "chick flicks")

Defined Contribution Plan

Employer contributes a certain sum each period to the employee's retirement account. The employer makes no promise regarding the future value of the plan assets; thus, the employee assumes all of the investment risk

Defined benefit pension plans

Employer has an obligation to pay a certain annual amount to its employees when they reitre

Defined Benefit Plan

Employer promises to make period payments to the employee after retirement. Because the employee's future benefit is defined, the employer assumes the investment risk

Key point in risk governance framework

Employing a risk governance committee and a chief risk officer (CRO)

false claims act (lincoln law)

Encourages citizens to press claims against vendors who sell fraudulently to the U.S. government

administrative laws

Established by local, state, or federal regulatory agencies

Customer Payment

FINAL STEP of sales cycle. Posting payments against invoices Reconciling differences, if necessary Process is done in accounts receivable against open items

Personal selling

Face-to-face selling in which a seller attempts to pursuade a buyer to make a purchase

Recognizing nonverbal buying signals

Facial expression changes. Prospect becomes more relaxed (friendly). Prospect nods agreement. Leans toward you. Examines product and/or literature intently.

Kurtosis

Fat tails or higher than normal probabilities of extreme returns

How do B2B customers differ from B2C customers

Fewer in number Bigger in size Closer relationships with suppliers Derived demand Professional buying Direct purchase

Initial Measurement with Deferred Payment Arrangements

Firms can acquire PPE by making an immediate cash payment, financing the acquisition by issuing a note payable, or some combination of the two. The payment method used impacts the amount of PPE the firm records.

Period of Capitalization

Firms capitalize interest from the time of the initial expenditure to the time the asset is ready for its intended use. When construction is completed but the asset is held idle - envision protestors blocking the operating of a nuclear power plant - the firm must charge interest incurred after the completion of construction to expense.

Land Improvements

Firms capitalize land improvements - which include landscaping costs, lighting, fence installations, lawn sprinkler systems, and driveway construction - in a separate land improvements account. A separate account is needed because land improvements are subject to depreciation, whereas land is not.

Computation of Capitalized Interest

Firms compute the amount of avoidable interest as the weighted-average accumulated expenditures times the appropriate interest rate. If the computed avoidable interest exceeds the actual interest for the year, the firm only capitalizes the actual interest incurred. (in other words, it capitalizes the lesser of the actual interest or the avoidable interest) Companies often invest excess borrowed funds, particularly at the beginning of a construction project, in short-term interest-bearing investments that earn interest revenue. Companies report interest revenue separately, rather than netting this interest revenue with their interest costs.

Subsequent Expenditures

Firms either capitalize or expense expenditures made after acquisition of a fixed asset. Again, the decision to capitalize or expense these costs depends on the definition of an asset. Firms expense noncapital expenditures immediately, such as ordinary repairs, which are expenditures to maintain the operating efficiency of an asset that do not extend its original useful life. Many ordinary repairs are relatively small expenditures that recur on a regular basis, such as a periodic oil change for a vehicle. An oil change does not increase the life of an asset beyond the original estimate and it does not enhance its output. If an expenditure provides future economic benefit and therefore, qualifies as an asset (i.e. it is a capital expenditure), the firm capitalizes the costs by adding the cost of the expenditure to the carrying value of the long-term fixed asset. Examples of capital expenditures are major overhauls of existing property, plant and equipment, extraordinary repairs, and plant expansion. Adding an additional floor to a factory building or installing a refrigeration system in a delivery van would qualify as a capital expenditure.

qaulity c

Firms expect their suppliers to support their efforts to provide quality products •Salespeople need to know what organizational buyers are looking for

Property, Plant, and Equipment Measurement

Firms measure PPE by determining the amounts to record as an asset or to expense immediately.

Qualifying Assets

Firms should capitalize interest for assets constructed or otherwise produced for the firm's own use (ex. a self-constructed power plant by a public utility). Qualifying assets include assets constructed by others for the firm's use where deposits and progress payments have been made. The manufacture of inventory or other routine production are not qualifying assets. Firms should also capitalize interest on assets intended for sale or lease that they construct or otherwise produce as discrete projects (for example, office buildings and land purchased for development)

Rate of Interest

Firms use two separate interest rates to determine the amount of interest to capitalize. 1. The interest rate incurred on specific borrowings applies to the portion of the weighted-average accumulated expenditures that is less than or equal to the amount borrowed specifically to finance the construction of the asset. 2. The weighted average interest rate on all other general outstanding debt during the period applies to the amount of the weighted-average accumulated expenditures that is greater than the amount borrowed specifically to finance the construction of the asset.

Marketing

First and Foremost about satisfying Consumer need in a profitable manner.

Approach

First initial contact with prospect (Potential Customer) **Not always face-face contact

Finance Lease

First, it must be a true lease and NOT a disguised sale (remember Economic Realities Test & Four Sure Sales Situations) Second, the remainder of § 2A-103(1)(g) must be satisfied: i.Lessor does not select, manufacture, or supply the goods; a) Purpose: to ensure lessor is just the middle man ii.Lessor acquires the goods or the right to possession and use of the goods in connection w/ the lease; AND iii.One of the following occurs: a) Lessee receives copy of supply K before signing the lease; b) Lessee has K approval over the supply K; c) Lessee receives statement designating warranties, disclaimers, etc., before signing the lease K, provided to the lessor by the supplier; OR d) In a non-consumer lease, lessor informs lessee in writing before signing the lease K the identity of the supplier whom lessee can get all the info about the lease from

Vega

First-order measure of the change in the derivative price for a change in the volatility of the underlying

Guidelines for closing sale

Focus on dominant buying motives. Negotiate tough points before attempting the close. Avoid surprises at close. Display self-confidence at close (believe). Ask for order more than once. Recognize closing clues. Longer selling cycles require multiple commitments.

Strategic relationship

Focused on long-term relationships, complex product, greater risk, high added value

What is risk budgeting?

Focuses on how risk is taken by quantifying and allocating tolerable risk to various activities and/or investments based on their characteristics.

Follow up

Follow-Ups have two major objectives: To express appreciation & to enhance the relationship. AND to determine if customer is satisfied or are they having problems. -Poor service and lack of follow-up are common causes of customer attrition. -Follow Up Methods: Personal Visits, Telephone Calls, E-mail Messages, Letters or Cards, Entertainment, Call Reports, Should encompass all key people (Receptionists, Technical Personnel, Stock/Receiving Clerks, Management Personnel, All Sales Personnel.) Plan For Follow-Up: Stay Informed -- Changes & Problems. Determine Contact Frequency -- Needs of both you and customer considered. Phone Calls -- Verifications, Check for Problems, Information, Inventory. Send Mail (Email, Letter or Card) -- No specific problems - keep in touch - grow the relationship.

Passively managed stock mutual funds

Followed by index funds, goal is to match or track the performance of different indices

Tariff levied on a large country (Home) lowers the world price of imported good. This causes

Foreign suppliers to produce less of the good which was levied a tariff

Cover Damages Buyer not paid any part of purchase formula

Formula: CC - KP + ID + CD - ES

Cover Damages Buyer paid part of purchase price

Formula: RBPP + CC - KP + ID + CD - ES

Lessor

Functionally, like a financer - usually a bank or financial institution Entity that has nothing to do w/ the selection, manufacture, or supply of the leased goods (§ 2A-103(1)(p)) Person who transfers the right to possession and use of goods under a lease

Gap Filling

Gap fillers are used when contracts are ambiguous Gap filling is a last resort Price - Reasonable at the time of delivery Goods are to be delivered at once, not in separate lots Place for delivery is the seller's place of business Time for shipment shall be reasonable NO GAP FILLER FOR QUANTITY

Fact finding

Gather information about the client's circumstances and discuss the client's objectives and requirements

Risk of Loss

Generally, If one party causes the loss, that party bears the loss Default - FOB Seller's Place (Shipment) - Burden shifts when goods leave seller's possession FOB Buyer - Burden shifts when goods are delivered to buyer If goods are held by Bailee - Risk shifts to buyer when one of three: 1. Buyer receives title 2. Bailee acknowledges Buyer has right of possession 3. Bailee is given direction to deliver to buyer If contract is otherwise breached, Risk of Loss remains with seller until cure or acceptance If buyer repudiates otherwise valid contract, risk of loss remains with buyer for a commercially reasonable time

Parol Evidence Rule

Generally, Parties to a contract may not introduce evidence extrinsic to a contract as terms of performance 1. Is the extrinsic evidence contradictory or consistent with the terms of the writing? If contradictory, may not be introduced. 2. Assess the writing: (A) Is it a final expression (or does it contemplate further negotiation)?; (B) Is it complete, i.e., does it contain a merger clause indicating that all previously negotiated terms are incorporated therein? If final but not complete, writing is not intended to be exclusive source of terms. Extrinsic evidence CONSISTENT with the writing may be introduced. If final and complete, no extrinsic evidence introduced

Expansion Selling

Get More From Current Customers 1. Full-Line Selling -- Recommending products & services related to the main item sold. 2. Cross-Selling -- Selling products or services not directly related to the previously sold item. 3. Up-Selling -- Effort to sell better quality or newer version of product.

Warranty of Title

Goods are conveyed with good title and its transfer rightful, delivered free from encumbrance Difficult to disclaim Void Title - Buyer unknowingly purchases goods from seller who doesn't own the goods, then buyer has void title and nothing to pass on Voidable title - Goods obtained by fraud or bad check -- If sold, good title transferred to a good faith purchaser for value Entrustment - Goods are entrusted to a merchant -- If sold, good title transferred to a good faith purchaser in the ordinary course of business

Specially Manufactured Goods Exception

Goods are to be specially manufactured for the buyer, Goods are not generally suitable for sale to others in the ordinary course of the seller's business and are not generally suitable for sale to others, and The seller has either made a substantial beginning of the manufacture or a commitment for procurement of the goods Before notice of repudiation by the buyer; and Under circumstances that reasonably indicate the goods are for the buyer.

Markoqitz efficient frontier

Graph of the set of portfolios offering the maximum expected return for their level of risk

Why territory management

Greater sales. Greater customer & salesperson satisfaction. Greater salesperson motivation (ownership). Less turnover Pay for performance Control expenses Plan for staff incentives

common law

Grows out of court decisions

IFRS Component Depreciation

IFRS requires that firms separately depreciate each part or component of a fixed asset that is significant in relation to the asset's total cost. For example, the purchase of a building would involve a number of different components, such as the foundation and frame, heating and air conditioning systems, and other non-weight bearing parts. After the firm identifies the components, the methodology to depreciate is identical to our prior discussion. Although US GAAP allows the components-based approach, it does not require it. Consequently, most firms the report under US GAAP do not separate their depreciable assets into components.

Problem recognition

If a consumer sees a significant difference between his or her current state of affairs and some desired or ideal​ state, which step of the consumer​ decision-making process is the consumer​ in

Sadvertising

If an advertiser places a TV commercial using a​ lonely, lost puppy to sell its​ products, then that advertiser is said to be utilizing​

subliminal

If an advertiser uses hidden messages in its product​ commercial, or hides messages in the product itself​ (such as baking words into the tops of​ crackers), the advertiser is using​ _____ advertising.

Is it a complete integration

If parol evidence does not contradict the terms in the writing and is consistent w/ the writing, the evidence will be admitted to explain or supplement the agreement "unless the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement" (a complete integration, total integration or full integration) as opposed to a mere final integration or partial integration

Economic Realities Test

In a true lease, there is, at the time the lease is entered into, a reasonable possibility that the lessor will eventually get the goods back when there is still meaningful economic value in them. If there isn't a reasonable possibility, then you've got yourself a sale that was just dressed up as a lease.

Load mutual funds

In addition to an annual fee, a percentage fee is charged to invest in the fund and/or for redemptions from the fund

Basket Purchase: Heterogenous Assets

In basket purchases involving heterogenous assets, the firm must properly allocate the total costs to the individual accounts to be reported on the balance sheet (e.g. manufacturing equipment, building, land, and inventory) Ex. A firm pays one price for a piece of land that has four buildings on it. At what amounts does the firm initially record the land and each of the four buildings? The relative fair value method allocates the total purchase cost to the individual assets acquired in a single transaction by assigning the total cost incurred based on the percentage that each asset's fair value bears to the total fair value of the assets purchased.

Cost per impression

In digital​ marketing, which of the following refers to an online ad purchase in which the cost of the advertisement is charged each time the advertisement shows up on a page that the user​ views?

Unconscionability

In light of the commercial needs of the case, the terms are so one sided as to be unconscionable under the circumstances - question of law, not fact Procedural Unconscionability - Unfairness in the bargaining (formation) process - Absence of meaningful choice (short of fraud) Substantive Unconscionability - Terms are unreasonably favorable to a party which no sane man would take advantage of If Court finds unconscionability - (1) refuse to enforce contract, (2) Sever the unconscionable term, or (3) Limit the application of the unconscionable term

Examples of sales promotions that build repeat purchase

In pack or on-pack voucher Rebate or cash-back Patronage awards Free premium for continuous purchase Collection schemes Self-liquidating premium

Partial-year Depreciation

In reality, firms purchase PPE throughout the year. Thus, they must use a partial-year depreciation. In practice, firms employ a large variety of methods to compute partial-year depreciation that assume the firm purchased the asset at certain fixed points during the year. Half-Year Convention - the firm records a half year of depreciation for an asset acquired during the year of purchase (the assumption is that the firm acquired the asset at the midpoint of the year). The company also records a half-year's depreciation in the final year of the asset's life. Ex. For an asset purchase on May 1 with a 5-year useful life, the firm take a half year of depreciation in year 1 and year 6 Other approaches assume that the firm acquired the asset at the beginning or the middle of the month it was placed in service. Partial year depreciation using the straight-line method is shown in Ex 11.15

Straight-Line Method (SL)

In recent years, US firms depreciated over 90% of tangible fixed assets using the straight-line method. The SL Method applies a constant rate of depreciation against a constant depreciable cost. The firm determines the rate of depreciation by taking one over the useful life of the asset. Depreciable base (also referred to as depreciable cost) is equal to acquisition cost less estimated scrap value. Depreciation expense is the depreciable base divided by the useful life or the depreciable base multiplied by the straight-line rate. Depreciable Base = Acquisition Cost - Scrap Value Straight-Line Depreciation Expense = Depreciable Base / Useful Life or Straight-line Rate = 1/Useful Life Straight-line Depreciation Expense = Depreciable Base * Straight-Line Rate

Buyer

In the buying​ center, which role has responsibility to execute the​ purchase

Market

Includes all risky assets or anything that has value (all assets may not be tradable/investable)

Export Subsidy has the following effects:

Increase Producer Surplus Decrease Consumer Surplus Decrease Government Revenue Decrease Overall Domestic Welfare

Effects of an Import Quota:

Increase in Producer Surplus Decrease in Consumer Surplus No Change in Government Revenue Ambiguous Effects on Overall Domestic Welfare

Trade Creation

Increase in economic welfare from joining a free trade area, such as a customs union. Occurs when there is a reduction in tariff barriers, leading to lower prices, then consumer surplus: shift from high cost domestic to low cost foreign imports

buying signals

Indications, both verbal and non-verbal, that a Prospect is ready to buy

users

Individuals within an organization who will actually use the product being purchased

Selling strat

Information needed for salespeople to develop a sales strategy •Suppliers or brands the customer is considering •Product characteristics being used in the evaluation •Customer's rating of each product's performance on each dimension •Weights the customer attaches to each dimension

Bottom-up analysis

Involves selection from all securities within a specified investment universe without prior narrowing of the universe

step 3

In​ _____ of the marketing planning​ process, marketing managers decide which markets to target and develop the marketing mix strategies to support how they want to position the product in the market.

Portfolio Manager (PfM)

Is in charge of collecting all project and program information to enable the PEB and PRT to take informed decisions, builds and maintains the Portfolio Management Framework, and manages the Portfolio Management Office.

Writing element (PER)

Is there a "writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein?" Let's shorthand this to an "integration." If no integration, no parol evidence rule. Technically the PER also applies to efforts to contradict, explain or supplement terms on which "confirming memoranda agree."

do-not-call law

Limits the conditions under which anyone on the registry may be telephoned at home or on a cell phone

Franke's formula

K*B=total visits, G+W+R = Time per visit, total visits * timer per visit = total time required

Lost Volume Seller Formula

KP - DC + ID (DC DOES NOT INCLUDE OVERHEAD COSTS)

open Communication

Key building block for building successful relationships •Different for relational and strategic partnership •Relational partnership - Communication goes through the salesperson •Strategic partnership - Direct communication between the buyer and seller •Cultural differences should be considered

Property, Plant, and Equipment

Land, buildings, and equipment used by the business entity. BS-long term.

Strategic Business Units (Bus. Plan)

Large multiproduct firms that have separate divisions; Ex. Toyota, Pepsi

Rejection in finance leases

Lessee can reject goods

Franchising

Licensing+ exerts control over production to ensure consistency

econ creiteria

Life-cycle costing: Method for determining the cost of equipment or supplies over their useful lives •Proves that a product with a higher initial cost will have a lower overall cost

internal stressors

Lifestyle Choices (Caffeine, Lack of Sleep, Overloaded Schedule), Negative Self-Talk (Pessimistic Thinking, Self Criticism, Over Analyzing), Mind Traps (Unrealistic Expectations, Taking Things Personally, All or Nothing Thinking, Exaggeration, Rigid Thinking), Personality Traits (Perfectionists, Workaholics)

privacy laws

Limit the amount of information that a firm can obtain about a consumer

MAD

Money, authority, desire to buy

Nonsystematic risk

Local or limited to a particular asset or industry that need not affect assets outside of that asset class

Functional relationship

Long Term exchanges based on behavioral loyalty --maximize customers value by decreasing sacrafice --out of habit

relational partenership

Long term close relationships, open and honest trust and flexibility

ADVERSE EFFECTS OF UNETHICAL CONDUCT

Losing self-respect and confidence in self •Thinking that the only way to make sales is to be dishonest or unethical •Compromising long-term customer relationships in the pursuit of short-term gain

Fama French four factor model

MKT: excess return on the market portfolio SMB: difference in returns between small-cap stocks and large-cap stocks HML: difference in returns between high book to market stocks and low book to market stocks UMB: difference in returns of the prior year's winners and losers

Survey Methods

Mail questionnaires Telephone interviews Face-to-face interviews Online questionnaires (dominant)

Emotional equation

Maintain and improve relations

Alternative A

Majority Rule S's warranties extend to: a) Any natural person who sustains a personal injury as a result of breach of warranty b) If such person is in B's family or household or a guest in B's home, and c)If such person may reasonably be expected to use, consume, or be affected by the goods.

What to do when buyer says no

Make sure the deal is really dead. Review chain of events. Try to interview client. Stay in touch.

Deciders

Make the final choice For straight rebuys the purchasing agent usually selects the vendor and places the order

Cooperation

Making a contribution to the business; being concerned about the welfare of the business, coworkers, and customers

3. Select Depreciation Method

Management also decides which depreciation method to use for the company's fixed assets. The goal is to select a depreciation method reflecting the pattern that most closely articulates with the revenue generated from the use of the asset. The conceptual framework direct that firms should recognize expenses when they consume benefits in revenue-generating activities.

1. Estimate Useful Life

Management consider a number of different factors in estimating the productive life of a fixed asset. Ex. managers may consider experience using this type of asset in prior years, relevant industry practice, maintenance policy, specific firm usage versus normal usage, and the possibility of obsolescence. Useful life varies by type of asset. Ex. AT&T depreciates its buildings and improvements over 10 to 44 years, office equipment over 3 to 10 years, and cable, wiring, and conduits over 15 to 50 years

Marketing Activities

Managing existing brands, new product dev., pricing, distribution , comm., adv., understanding the market and competitors.

Informationally efficient market

Market in which asset prices reflect new information quickly and rationally

Growth Strategies

Market penetration Market development Product development Diversification

personal selling

Market tool that focuses on interpersonal interactions between buyers and sellers

Value of Marketing

Marketing activities facilitate exchanges that create, communicate, and deliver value to customers. Sellers and society at large also derive value from these exchanges.

Production Era-Product Orientation

Marketing dominated by. A mgmnt philosophy that emphasizes most efficient way to produce and distribute a product. "promotions played minor role" Example Henry Ford Model T

Value from Society's Perspective

Marketing transactions may add or subtract value from society. Stressing socially responsible and ethical decisions is good for business. BP Spill

Disclaiming a warranty

May disclaim warranty of merchantability or fitness for a particular purpose Must mention "merchantability" and be conspicuous Use language such as "as-is" or "with all faults" Buyer's examination or refusal to examine Course of dealing, course of performance, usage of trade Express limitation on remedy to be given effect instead of disclaiming warranty unless limited remedy fails its essential purpose -- UNCONSCIONABILITY serves as a check

Standard deviation

Measure of dispersion in a probability distribution

Treynor ratio

Measure of risk-adjusted performance that relates to a portfolio's excess returns to the portfolio's beta

Sharpe ratio

Measure of the average excess return earned per unit of standard deviation of return

Duration

Measure of the interest rate sensitivity of a fixed-income instrument

Beta

Measure of the sensitivity of a security's returns on the market portfolio

Value at risk (VaR)

Measure of the size of the tail of the distribution of profits on a portfolio for an entity; minimum extreme loss metric

M-squared

Measure of what a portfolio would have returned if it had taken on the same total risk as the market index

Net return

Measure of what the investment vehicle has earned for the investor; accounts for all managerial and administrative expenses that reduce the investor's return

Value Benefit Analysis

Measures the effectiveness of a solution.

Return on investment (ROI)

Measures the performance of an investment by measuring the gain from an investment and the cost of the investment.

Net present value (NPV)

Measures the profitability in corporate budgeting to assess a given project's potential return on investment. Because of the time value of the currency, it takes into account the compounding of the discount rate over the duration of the project.

Diversification ratio

Measures the risk reduction benefits of equal weighting; = standard deviation of the equally weighted portfolio/ standard deviation of the randomly selected security

Portfolio Director (PD)

Member of the Management Board responsible for the Portfolio Strategy. Provides leadership and direction to portfolio management. Heads both the PEB and the PRT.

merchandising

Merchandising is any behaviour-triggering stimulus or pattern of stimuli, other than personal selling, that takes place at retail or other points-of-sale

Clothes on and objection method

Method for handling objections in which the sales person, when hearing a buying signal, tries to answer the objection and close the sale

Acceptance

Methods (1) Affirmative indication after opportunity to inspect, (2) Do nothing after opportunity to inspect, (3) Buyer does something inconsistent with the seller's ownership interest Consequences of Acceptance (1) Buyer must pay (2) Buyer can no longer reject (revocation still possible) (3) Burden shifts to buyer to establish breach (4) Gives rise to "part performance" exception of the SOF

Steps in Strategic planning

Mission, evaluate internal and external env., Set objs sbu, estb. Bus Port, growth strategies

sacrifices examples

Money Transaction costs Psychic costs

Tail risk

More events in the tail of the distribution than would be expected by probability models

Right (positively) skewed

Most of the distribution is concentrated to the left

Left (negatively) skewed

Most of the distribution is concentrated to the right (ex: stock returns)

Why focus on newly acquired customers

New customers may have greater future lifetime value potential than longer tenure customers evidence suggests that retention rates rise over time, so if defections can be prevented in the early stages of a relationship, there will be a pay-off in future revenue streams

No-load mutual funds

No fee for investing in the fund or for redemption, but there is an annual fee based on a percentage of the fund's NAV

Closed-end mutual funds

No new investment money is accepted into the fund; new investors buy existing shares and liquidate by selling to other investors (can sell at a premium or discount to NAV)

Complainers VS NonComplainers

Non-Complainers -- Unhappy customers will tell 9 to 10 other people. Happy customers only tell 3 to 4. Golf Industry -- 80% to 85% of unhappy customers to do not verbally complain -- they just don't come back.

NAFTA

North American Free Trade Agreement - eliminates trade barriers between the United States, Canada, and Mexico

Self-insurance

Notion of bearing a risk that is considered undesirable but too costly to eliminate by external means

Systematic sampling

Nth Number

Checking

Opening merchandise packages, removing the merchandise, making certain the merchandise order has been received

Sales area criteria

Optimum customer processing, profitability, efficient operations, comparison and control, earnings, ethno-cultural aspects

purchasers

Organizational members who negotiate final terms of the purchase and execute the actual purchase

Differences management leadership

Output/input, expenses/value, efficiency/effectiveness, resources/people, internally/externally focused, quantity/quality, past/present&future oriented, rational/emotional

Enterprise risk management

Overarching governance approach applied throughout the entity and consistent with its strategy

Dependability

Perception that the salesperson, and the product and company, will live up to promises made •Can be proved by: •Third-party references, product demonstrations and plant tours •Special presentations, salesperson's experience and training •Time

Combination Approach

Performing multiple approaches at once

Financial Assets may provide one or both of the following types of returns.

Periodic Income and/or Capital Gains or losses

agent

Person who acts in place of his or her company

Merchant (defined)

Person who deals in goods of the kind OR otherwise holds himself as having knowledge or skill particular to the practices and goods involved in the transaction. Or employs an agent having knowledge of such skill

Entrepreneur

Person who starts, bones, managers, and assumes the risk of a business

Observational Methods

Personal observation Unobtrusive measures Mechanical systems

Emotional needs:

Personal rewards and gratification of the person buying the produc

WBG: Infrastructure project lending,

Phase one: ports, railways, flood control, roads, telecommunication missing: education, health, agriculture and urban planning

external types of stressors

Physical Environment (Noise, Bright Lights, Heat, Confined Spaces), Social Interaction (Rudeness, Bossiness, Aggressiveness by others, Bullying) , Organizational (Rules, Regulations, "Red-Tape", Deadlines, Lack of Resources), Major Life Events (Birth, Death, Lost Job, Promotion, Marital Status Change), Daily Hassles (Commuting, Misplaced Keys, Mechanical Breakdowns)

Planning your time

Plan about 70% of your time. Leave 30% for the unexpected.

What are the steps in the portfolio management process?

Planning execution feedback

Operational Planning

Planning done by supervisor mgmnt level, day-to-day execution of functional plan, annual, semi, or even quarterly plan to guide mrkting plan, use marketing metrics

Steps in the portfolio management process

Planning,execution, feedback

Indifference curve

Plots the combinations of risk-return pairs that an investor would accept to maintain a given level of utility

Market portfolio

Point on the Markowitz efficient frontier where a line from the risk free asset is tangent to the Markowitz efficient frontier

Washington Consensus

Policy adopted by the World Bank and imposed on developing countries through SAL 1) that free trade raises the well-being of all countries 2) that competition through trade raises a country's long-term growth rate by expanding access to global technologies and promoting innovation. **** issues 1. no clear sense of priorities in #'s 1-20 2. too rapid 3. Once size fits all to every situation

Actively managed stock mutual funds

Portfolio manager seeks outstanding performance through selection of stocks included in the portfolio

Feedback (relating to portfolio management process)

Portfolio monitoring and rebalancing. portfolio must be regularly monitored. Rebalancing may be required when changes in security prices cause a significant change in weights of assets in the portfolio. Performance measurement and reporting: This step involves measuring the performance of the portfolio relative to the benchmark stated in the IPS and reporting portfolio performance to the client.

Passive portfolios

Portfolios that are based on the assumption of unbiased market prices

Hofstede

Power distance, individualism/collectivism, Masculine/feminine, uncertainty avoidance, long/short term oriented

Reinsurance

Practice of selling some of the risk to another insurer

Objection Prevention

Prevent Objections by discussing them in your presentation before the prospect has a chance to voice them. Identify all possible objections, write them down, script objection responses with closing questions for each. Develop sales tools that enhance & support every response. Rehearse the scripts in role play. Tweak the scripts. Try them out on customers. Make final revisions based on real world situations. Keep documents in a master notebook. Meet regularly as a group to discuss revisions.

- skimming, penetration, prestige, oddeven, bundle

Pricing strategies

ETHICS

Principles governing the behavior of an individual or group •Establish appropriate behavior, indicating what is right and wrong

Hedge funds

Private investment vehicles that typically use leverage, derivatives and long and short investment strategies

With regard to measuring risk, what are the main risk metrics?

Probability standard deviation beta

Risk management

Process by which an organization or individual defines the level of risk to be taken, measures the level of risk being taken and adjusts the latter toward the former

Most vocal political Pressure on tariffs is made by

Producers lobbying for import tariffs

End users:

Producers who buy goods and services to support their own production and operations

Develop marketing strategies (Market plan)

Product Price Promotion Place (Distribution)

Inventory

Products held by the business entity that are planned to be sold to customers.

buying stations

Products included in manufacturing Products and services to support the manufacturing operation

Supplies

Products used by the business entity and not sold to customers.

Project Sponsors

Provide the investments funds for the projects in the portfolio and work closely with the respective project managers in ensuring that the projects are completed successfully.

Using questions to determine needs

Provides a roadmap for you to follow, allows prospects to discover their problems for themselves, determine prospect's buying criteria, salesperson as a diagnostician

Return generating model

Provides an estimate of the expected return of a security given certain parameters

Venture capital funds

Provides financing for companies in their start up phase

Deductible

Provision in policies, a monetary amount of the loss that will be covered by the insured before any claims are paid

Original equipment manufacturer (OEM):

Purchase goods to use in making their products

business-to-business, or​ organizational, market

Purchases involving competitive​ bidding, price​ negotiations, and complex financial arrangements

Derived demand:

Purchases made by the OEMs and resellers depend on the product demand

Predominant Purpose Test

Purpose of the contract in general, Which is the dominant purpose Goods or Services? Majority approach

approach telling

Purpose, explain instructions, demonstrate, feedback, compliment, appointments, monitor&encourage

directing the promotional mix to channel members to gain their cooperation and ordering and stocking the product/ directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.

Push vs pull strategy

Selling Tools

Quantify the Solution (ROI), Product and Plant Tours, Models, Photos, Illustrations, and Brochures, Portfolio of support materials, Reprints of Articles on Product, Catalogs show product line and specifications, Graphs, charts and test results, bound paper presentations, laptop computer and demonstration software, laptop computers & video, virtual reality, samples.

Recognizing Verbal Buying Signals

Questions -- What color does it come in? Can I get delivery by the end of the month? Recognitions (Positive Feedback) -- I have always wanted a boat like this. I like the features you described. Requirements -- We will need shipment by May 15th. Our staff will need training. Seeks other Opinions -- Who are some other firms that have bought this product recently?

activities ranked by order in production

R&D, Component Production, Assembly, Marketing & Sales

What is true about the imposition of a US tariff on cheese

Raises the revenue of the government

Depreciation Methods

Rather than requiring a particular method of depreciation, U.S. GAAP simply states that the method of depreciation should result in a systematic allocation of the cost of the asset. Thus, firms employ a number of different depreciation methods in practice. 3 most common allocation methods: 1. Straight-line method 2. Units-of-output method 3. Double-declining balance approach

Investments

Real estate, stocks and bonds held for investment purposes.

Buying motives

Reasons a customer is influenced to select a specific product or service.

Emotional buying motives

Reasons to select a product or service, based on a desire to have that specific product or service

What to do when buyer says yes

Reassure customer. Confirm sale and partnership. Reduce buyer's remorse -- forms of regret, fear, anxiety about sale. Compliment buyer on wise decision. Thank customer for order. Ask for referrals. Provide after-sales service.**

Contagion

Refers to crises beginning in one country and "spreading" to other countries This can occur through a few different mechanisms 1. Shifts in expectations and confidence (herding or informational cascades) 2. Asset prices (financial linkage) 3. Capital flight (sudden stops)

Market Research

Refers to the process of collecting, analyzing, and interpreting data about customers, rivals, and the business environment

Rho

Reflects sensitivity to changes in interest rates

Geometric mean return

Reflects the buy and hold strategy; assumes the investment amount is not reset at the beginning of each year and accounts for the compounding of returns

Three factor model

Relative size of the company, relative book to market value and beta

Four factor model

Relative size of the company, relative book to market value, beta and momentum

HM: Interpret Delta High School (In terms of wage growth)

Relative to High School dropouts in locations unaffected by NAFTA, wage growth of a high school dropout between 1990-2000 was lower in locations that lost tariff protection

Dealing with rejections

Remind yourself you are not alone. Forgive yourself. Give yourself a positive pep talk(s). Refuse to give up. Remember you are important because of who you are, not what you do. Positively anticipate rejection & it will not overwhelm you. Broaden your definition of success. Commit to routinely attracting more customers than you need.

Chief risk officer

Responsible for building and implementing a risk framework for the enterprise and managing the many activities

Gross return

Return earned by an asset manager prior to deductions for management expenses, custodial fees, taxes or any other expenses

Return on Marketing Investment

Revenue (or profit) generated by investment in a given marketing program divided by the cost of the program at a given level of risk

Four causes of profit margin growth over time

Revenues grow over time, as customers buy more. Cost-to-serve is lower for existing customers, because both supplier and customer understand the other. Higher prices are paid by existing customers than new customers. Value-generating referrals are made by existing, satisfied customers through their unpaid advocacy.

Liquidity risk

Risk of a significant downward valuation adjustment when selling a financial asset

Model risk

Risk of a valuation error from improperly using a model

Legal risk

Risk of being sued over a transaction or anything an entity does or fails to do

Credit risk

Risk of loss if one party fails to may an amount owed on an obligation

Rogue trader

Risk that a trader/portfolio manager will fail to follow laws, rules or guidelines and put the company at financial risk

Solvency risk

Risk that an entity does not survive or succeed because it runs out of cash

Market risk

Risk that arises from movements in interest rates, stock prices, exchange rates and commodity prices

Operational risk

Risk that arises from the people and processes that combine to produce the output of an organization

Systematic risk (non-diversifiable, market)

Risk that cannot be avoided and is inherent in the overall market

Institutional arrangements for growth

Rule of law Secure property rights Sanctity of contracts Regulation Social insurance

Express Warranty

S says/does something to create the warranty

Alternative B

S's warranties extend to: a) Any natural person who sustains a personal injury as a result of a breach of warranty b) If such person may reasonably be expected to use, consume, or be affected by the goods.

Dogs

SBUs nobody wants

stars

SBUs whose product have dominant market share in high growth markets

Cash Cows

SBUs whose products have a dominant market share in a low-growth market

Discount sale

Sale in which a person receives a reduction from the list price of the product or service

Cash Sale

Sale in which the customer pays for the product or service at the time or the sale.

COD sale

Sale in which the customer pays when the item is delivered

coupouns, rebates, samples, contest.

Sales promotional tools (know at least 4)

Charge sales

Sales transactions in which customers charge products or services to their charge accounts in order to pay at later date

backdoor selling

Salespeople ignore the purchasing agent's policy and contact people directly involved in the purchasing decision

Backdoor selling**

Salespeople ignore the purchasing agent's policy and contact people directly involved in the purchasing decision --going around the back of people invovled

Secure property rights

Secure ownership of assets *** ensures that people get returns on their assets

approach delegating

Select task, formulate assignment, background & objectives, preconditions, monitor progress, confidence, feedback

Custom Research

Single firm; provide answers to specific questions, "why certain trends have surfaced"

Foundation of succesful relationships

Slide 13-20 charts trust communication common goals commit to mutal gain organizational support

Petty Cash

Small amount of cash used for paying small amounts owed (instead of check)

Enclosure

Something in closed with a letter; in the case of a letter of application, a resume is usually enclosed

Capital market line

Special case of the capital allocation line where the risky portfolio is the market portfolio

Risk tolerance

The amount of risk an investor is willing to tolerate to achieve an investment goal

initiators

Start the buying process Could be an executive making a decision

Addition method of counting change

Starting with the sales amount, add the fewest possible coins and bills until you havs bult up to the amount the customer gave you; also known as the manual method or counting forword method.

Statute of Frauds

Statute of Frauds applies if contract is for (1) sale of goods (2) $500 or more - $1000 for a lease Demands the contract be in writing containing signature of the party to be charged and a quantity term. Exceptions 1. Admission by a party that a contract was formed (in a pleading or otherwise) 2. Merchant Exception - (a) Both parties are merchants, (b) Writing (without signature) is received within a reasonable time of formation, (c) Recipient knows of should know of the writing, (d) Recipient doesn't object within 10 days 3. Specially Manufactured Goods for Buyer; Not suitable for sale to others; Seller has substantially committed before buyer's repudiation 4. Part performance - Payment has been made & accepted; or goods have been received and accepted

Display specialists

Store employees who plan and build window and interior displays

Ch. 13

Strategic Partnerships

strategic switching

Strategic switching occurs when customers shift their allegiances from one supplier to another in pursuit of a better deal.

Three levels of business planning

Strategic, Functional, operational, keep big picture in mind

What is stress

Stress is the reaction people have to excessive pressures or other types of demand placed upon them. It arises when they worry that they cannot cope. Stress is the "wear and tear" our minds and bodies experience as we attempt to cope with our continually changing environment.

Finance Lease Parties

Supplier, lessor, lessee

value analys

Suppliers and customers work together to reduce costs and still provide the required level of performance

differential

Suppose a restaurant offers breakfast options​ 24-hours a​ day, however, none of the competition even offers breakfast options. This would be an example of​ a(n) _____ benefit.

Total cost of ownership

TCO looks not only at the costs of acquiring products, but also the full costs of using and servicing the product throughout its life, and ultimately disposing of the product

Analyze an interpret the data

Tabulations and Cross-tabulation

Conditional VaR

Tail loss measure, the weighted average of all loss outcomes in the statistical distribution that exceed the VaR loss

offer

Takes place when salesperson quotes specific terms

Buying change

Taking a large bill from the cash register to exchange for the coins or bills needed to have an adequate supply or change.

Dedicated short bias

Taking more short positions than long positions

Mutual Investment

Tangible investment in the relationship by both parties •Involves spending money to improve the products and services •Must be followed by actions signaling commitme

Consumer Goods

Tangible products that individual consumers purchase for personal or family use

Difference between Tariffs and Quotas

Tariffs: Generate Revenue for the government Quotas: Don't generate revenue, only limit the supply of goods that come in

Leadership styles

Telling, selling, participating, delegating

comparative advantage

The ability to produce a product most efficiently given all the other products that could be produced

Risk appetite

The amount and type of risk that an organization is willing to take in order to meet their strategic objectives.

Jensen's alpha

The difference between the actual portfolio return and the calculated risk-adjusted return

Currency Crises

The domestic currency looses value (depreciates) RAPIDLY compared to other countries. •This causes a decrease in the demand for the domestic currency, lowering its value. Ex: Asia- yen value rapidly depriciated results ins... outflow of capital, downward pressure, and speculative attacks

Full-cost accounting

The firm allocates a proportionate share of all indirect cost incurred by the company to the construction project.

Transfer pricing

The manipulation of the prices of intra-firm trade by multinational enterprises to reduce their global tax payments ***Multinationals adjust costs and prices in different countries to minimize their tax liabilities.

Approach

The first step of a sale, in which the sales person directs the customer's attention to the product or service.

Risk management framework

The infrastructure, process and analytics needed to support effective risk management in an organization

Even exchange

The item originally purchased is exchange for another item at the same price

lead management

The lead management process includes a number of sub-processes, including lead generation, lead qualification, lead allocation and lead tracking

Payback period

The length of time required to recover the cost of an investment.

exchange rate

The measure of how much one currency is worth in relation to another.

Probability

The measure of relative frequency with which one would expect an outcome, series of outcomes, or range of outcomes to occur

Firm Offer

The offeror is a merchant familiar with general business practices—so just about anyone in business acting in mercantile capacity. Doesn't matter if offeree is a merchant or not. The offer states that it will be held open; The offer is in writing; and The offer is signed by the offeror.

Sales order TYPE

The order type defines the processes that the sales doc. will go through during the various customer order transactions.

Sufficient Writing

The required writing need not contain all the material terms of the contract and such material terms as are stated need not be precisely stated. ... The only term which must appear is the quantity term which need not be accurately stated but recovery is limited to the amount stated. The price, time and place of payment or delivery" can all be omitted. 2-201 cmt.

Risk infrastructure

The people and systems required to track risk exposures and perform most of the quantitative risk analysis to allow an assessment of the organization's risk profile

Detailed audit tape

The permanent record of all the cash register transactions, recorded on a tape within the cash register

Buyer benefits

The personal benefits, gain, or satisfaction the customer receives from the product or service.

Global minimum variance portfolio

The portfolio on the minimum variance frontier with the smallest variance return

Minimum variance portfolio

The portfolio with the minimum variance for each given level of expected return

Dissemination risk

The possibility of a foreign partner firm obtaining technology or other know-how from the home-country firm and exploiting it for its own commercial advantage

Cashing Out

The process of balancing the cash drawer and the audit tape by having a salesperson count the money in the cash drawer and record it on the daily balance form; also called proving out.

Risk budgeting

The process of deciding on the amount of risk to assume in a portfolio and subdividing that risk over the sources of investment return

Risk transfer

The process of passing on a risk to another party, often in the form of an insurance policy

Backward Linkages

The purchases of goods from local suppliers by MNE's in the foreign country *** host country benefits

2. Estimate Scrap Value

The scrap value (also referred to as residual or salvage value) is the amount the firm expects to realize on disposal of the fixed asset at the end of its productive service to the firm. The scrap value reduces the depreciable base of the asset, so that the firm only depreciates the cost less scrap value over the life of the asset. Scrap values are designed to minimize or avoid any gain or loss on disposal. Ex. A company sells its fleet of service vans every 5 years. If the dealership allows a trade-in value equal to 10% of the original cost, then there is a 10% residual value. If the company depreciates the vans using a 10% residual value, there would never be a gain or loss on the disposal. Management estimates scrap values based on their experience or relevant industry practice. For example, management teams that estimated residual values for fixed assets used in high-tech industries typically assume a zero scrap value due to rapid advances in technology causing a minimal residual value in a short period of time. As a result, the cost of eliminating scrap values is not worth the benefit.

Delta

The sensitivity of the derivative price to a small change in the value of the underlying asset

Strategic asset allocation

The set of exposures to IPS-permissable asset classes that is expected to achieve the client's long-term objectives given the client's investment constraints; stated in terms of percent allocations to asset classes

Action

The stage in the customer's buying process when the customer decides to buy the product or service.

Conviction

The stage in the customers buying process in which the customer become is convinced that the product or service will satisfy his or her needs

Volatility

The standard deviation of the continuously compounded returns on the underlying asset

What is Value at Risk (VaR)?

The stats used to compute this can be used to estimate average extreme losses. VaR accepted as risk measure by most bank regulators and approved for disclosure for accounting purposes.

Close

The step of these sale in which the customer makes the decision to buy the product or service

Change fund

The supply of money that is counted into the cash drawer at the beginning of each business.

Initial measurement of Basket Purchases

The valuation of assets acquired in a basket purchase includes both homogenous assets (assets that are the same), and heterogenous assets (assets that are dissimilar from one another).

What is portfolio return and what is the formula?

The weighted average of the returns on individual assets. Rp=portfolio return W1=weight of asset 1 W2=weight of asset 2 R1=return of asset 1 R2=return of asset 2

referral schemes

These work by inviting existing customers to recommend a friend and rewarding the recommender with a gift

communication style flex

This is when seller must change his or her selling technique to suit the buyer.

Desire

This stage in the customers buying process in which the customer shows a willingness to own the product or service

Risk governance

Top down process and guidance that directs risk management activities to align with and support the overall enterprise

Functional Planning (Bus. Plan)

Top functional level management CM) implements and controls marketing plan, performs situational analysis, 3-5 year plan to support strategic plan, and annual plan, provides tactics for short term while supporting long term plan, directly involved in planning process

Strategic Planning (Bus. Plan)

Top level corp mgmnt; managerial process that matches firms resources and capability to market opportunities for long term growth(Next 5 years), SBUs

Stolper-Samuelson Theorem

Trade leads to an increase in the return to a country's abundant factor and a fall in the return to its scarce factor; under constant returns to scale, perfect competition, equality of the number of factors to the number of products.

Exchange traded funds

Trade like closed-end funds; prices track NAV due to an innovative redemption procedure (can be shorted or purchased on margin)

Inter-Industry Trade

Trade of products that belong to different industries

RELATIONSHIPS WITH THE SALESPERSON'S COMPAN

Trade secrets: Information owned by the company by which the company gains a competitive advantage •Protected by law •Taking advantage of other salespeople •Poaching: Unethical practice of stealing potential customers from other salespeople

What can you still bring in if there is an integration?

Trade usage, course of dealing, and course of performance are admissible to explain or supplement terms of the agreement

Traded goods and services vs non-traded goods and services

Traded ex- oil Price: determined in world markets Domestic consumption and production can differ causing a trade surplus or deficit Nontraded ex- tailoring Price determined in domestic markets Domestic consumption and production must be equal

4 Selling approaches

Transaction-focused selling System sellig Account management Strategic relationship

sale

Transfer of title to goods by seller to buyer for a consideration known as price

Transitional Phrases or Bridge Statements

Transitional Phrases (or Bridge statements) allow a salesperson to connect a product's features to its benefits. Features to Benefits -- Which, This, That Benefits to Features -- Because, Thanks to, On account of, As a result of, Due to, Since, For that reason This product is nationally advertised, which means you will benefit from more presold customers. (Feature to Benefit.) You will experience increased profits because the first order includes point of purchase advertising materials for the Valentine's Day promotion. (Benefit to Feature.)

Predominant Purpose Test

Trigger - Transaction must be reviewed to determine whether it is a sales or a service contract Ask - What is the predominate purpose of the transaction? If the essence of the contract is a transaction to sell goods, then UCC Art 2 applies. If not, then apply common law. Distinguish - Gravamen Approach: Source of the complaint (not overall essence) determines source of law

Global macro

Trying to capture shifts between global economies (use derivatives on currencies /interest rates)

Boomerang method

Turning the objection into a selling point.

Syndicated research

Type of market research; general information that research companies collect on a regular basis and sell to other firms.

Modifications

UCC does not require additional consideration for modification to be binding Test - Good faith Demonstrable reason for seeking a modification

ETHICAL SELLING

Unethical behavior hinders the relationship between buyers and sellers •Basic principle - Customer remains free to make a choice

poaching

Unethical practice of stealing potential customers from other internal salespeople

business defamation

Unfair or untrue statements to customers about a competitor, its products or its salespeople

USP

Unique selling point, what is unique about your product

price discrimination

Unjustified special prices, discounts, or services to some customers

sales puffery

Unreliable statements that do not state the inherent capabilities of products or services

Vertical Privity

Up the supply chain, beyond the direct seller "who can we sue"

Special treatment

Upsets other customers •Reduces salesperson's productivity

Macroeconomic factor models

Use economic factors that are correlated with security returns

Statistical models

Use historical and cross-sectional return data and analyze them to identify factors that explain variance or covariance in observed returns

Segregated accounts

Used by large institutions, investments are held in an account on their behalf and managed by a portfolio manager/ team

Charge card

Usually a small plastic card with the customers name and account number on it used to charge merchandised to a customers account.

Three factors that influence quality of research

Validity Reliability Representativeness

people buy expectations

Value Proposition. Client Expectations = Salesperson, Product, Company; you must exceed expectations. -- Lifetime customers (long term relationship). Part of customers "team". Buy again. Buy more. Referrals. Enjoyment & Purpose of Job. Financial Rewards.

servic c

Value analysis: Suppliers and customers work together to reduce costs and still provide the required level of performance •Used by salespeople to get customers to consider a new product •Useful for the out-supplier in a straight rebuy situation

Active portfolios

Value assets based on estimates of cash flows, growth rates and discount rates

Types of Privity

Vertical and Horizontal

CLPST Voting Behavior:

Voting behavior in locations most hurt by PNTR with China shifts more Democratic compared to Democratic shift in locations not hurt so much by PNTR with China

UCC DEFINED TERMS RELATED TO SALESPEOPLE

Warranty: Assurance by the seller that the products will perform as represented •Expressed: Oral or written statement by seller •Implied: Not actually stated but still an obligation defined by law

Fixing a BOP crisis (overvalued currency): Demand reduction

Way to adjust if the current account deficit becomes unsustainable & the central bank runs out of foreign reserves to sell---> eventually creates a BOP crisis reduce incomes that households spent on consumption demand for traded and nongraded goods decrease *** cannot be confined to traded goods alone *** causes unemployment *** comes at the cost of internal balance "efficiency of resources" ---Not a positive outcome

Why time management

We all have the same amount of time. It depends on you how effectively you use it. It is about prioritizing. It is about vision. It is about knowledge.

unavailable non-customers

Weakly unavailable non-customers prefer their current brands

Lost Volume Seller

When a S can resell the goods after B's breach, but to someone who would have bought the goods from him anyway such that the resale was not made possible by the breach

Constructed Assets and Overhead Costs

When a company constructs an asset, it may contribute certain portions of the labor and material toward the completion of the project. Ex. a company incurs costs to pay the builders and buy the concrete and steel needed to construct a new headquarters. Firms capitalize direct materials used and direct labor hours expended on the project as part of the acquisition cost of the asset. Indirect overhead costs (ex. general supervisory salaries and depreciation) are generally accounted for using full-cost accounting.

Basket Purchase: Homogenous Assets

When a firm acquires homogeneous assets, it records the PPE at cost and includes it on the balance sheet, assigning an equal amount to each asset. Ex. If a firm acquires five identical laptop computers at a total cost of $5,250, it would value each laptop at $1,050 (5250/5) and report the total cost of $5250 in the office equipment account on the balance sheet

contract to sell

When a salesperson makes an offer and receives an unqualified acceptance

Risk-adjusted discount rate

When analyzing investments or projects for profitability, cash flows are adjusted to the present value to ensure the true value of the undertaking is captured.

Charge take

When customers charge an item and take it with them

Asset Valuation: Nondeterminable Market Value

When the fair values of the asset or the note are not clearly evident, the firm must compute the present value of the note as an estimate of the asset's fair value. The firm computes the fair value of the asset by discounting the note payable at an implied or imputed rate of interest reflecting the market rate of interest that a borrower would incur today under similar terms and conditions. After determining the present value of the note payable, the firm allocates the face value of the note between the asset's acquisition cost (which equals the present value of the note payable) and the discount, which represents the deferred interest expense (i.e. finance charges) When using the effective interest rate method of amortization, the carrying value of the note payable will always the equal the present value of the remaining cash flows discounted at the historical market rate. Separating the asset value from the finance charges is critical for proper expense classification on the income statement. Depreciation affects operating income, while interest expense is a non-operating expense. Ignoring taxes, combining the finance charge with the acquisition cost overstates the asset's carrying value on the balance sheet. Improper management of the asset's cost and the finance charge will also overstate depreciation expense and interest expense on the income statement. pg. 576

Bunch sales

When the sales person records several different sales transactions at once on the cash register.

Reverse engineering

Which of the following processes involves physically deconstructing a​ competitor's product to determine how​ it's put​ together?

Which of the following refers to step 4 in the market planning​ process?

Which of the following refers to step 4 in the market planning​ process?

Which situation is the TAA most generous for a congressional district

Workers tend to be employed in industries where workers are likely to be approved for TAA and the state has generous TAA benefits

orders

Written offers from buyers or agents

IPS

Written planning document that describes the client's investment objectives and constraints that apply to the portfolio; must be reviewed and updated regularly

Government

Your local city council or your county commissioners are examples of​ a(n) _____ market.

diversity

a big choise of something

tying agreement

a buyer is requiered to purchases one product in order to get another --must by paper if by copy machine --reduce competiion, clayton act --legal if the products can be used together --legal in service contract if reputation dpends on it

Extending Revocation period

a buyer's reasonable time for revocation of acceptance may be extended if the buyer relied on the seller's repeated assurances that the defects would be cured but the seller failed to do so

Nonmonetary exchange

a company acquires an asset by exchanging another set with the seller rather than paying cash. Non monetary exchanges are an infrequent way to acquire PPE and are discussed in Appendix A.

well-established

a company like this is known on the market and has a good reputation

Double-Declining Balance Method (DDB)

a decreasing-charge method that applies a constant rate of deprecation against a decline net book book value (defined as cost less accumulated depreciation). The constant rate used in dealing balance methods is a multiple of the straight-line rate. Note that the asset's net book value is the depreciable base for DDB and not the cost less scrap value. Therefore, DDB does not subtract the scrap value from the depreciable base before computing the annual depreciation expense. Firms compute the DDB rate as twice the straight-line rate - hence the term "double" in the title of the method. DDB Rate = 2 * Straight-line Rate or DDB Rate = 2 * 1/Useful Life DDB Depreciation Expense = Net Book Value at Beginning of Period * DDB Rate With the DDB approach, the ending net book value is not always equal to the planned scrap value. In this case, the firm reduces the depreciation expense in the last year to the necessary amount to arrive at an ending book value equal to the scrap value.

Basket purchase

a firm acquires two or more fixed assets together for a single purchase price.

infant industry

a firm that required protection to compete at world prices today. When a government applies a temporary tariff, it expects that costs for the firm or the industry overall will due to learning, thereby allowing it to compete at world prices in the future.

shipping point

a fixed location that carries out shipping activities. Each delivery is processed by only one shipping point.

Seller's Right to a Cure after rejection (after contract time)

a further reasonable time" after the K time ONLY if: a)S had reasonable grounds to believe the non-conforming tender would be accepted (S knew they were non-conforming) AND b)S reasonably notifies B of intent to cure § 2-601 cmt. 2 makes it clear that a B cannot reject and then accept

storage location

a general area where inventory is stored. It allows you to differentiate between various types of stock in a site (raw materials, finished goods, etc.)

import

a good or service brought in from another country for sale

strategic trade policy

a government gives strategic advantage to Home firms in imperfectly competitive markets that would enable them to compete more effectively with Foreign firms.

export subsidy

a payment to firms for every unit exported

personal selling

a person to person business activity in which a person uncovers and satisfies need of a buy for a mutual longterm benfit

Merchant

a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction" or who employs an agent or intermediary having such knowledge or skill 2-104(1).

a prospect

a potential customer

Trade Usage

a practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction

customer

a prospect that purchases

course of performance

a sequence of conduct between the parties to a particular transaction [the transaction at issue] that exists if: (1) the agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and (2) the other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection.

Course of Dealing

a sequence of conduct concerning previous transactions between the parties to a particular transaction that is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.

undifferentiated

a single marketing mix for an entire market

Nash equilibrium

a situation in which each player is making the best response to the action of the other player

autarky

a situation in which one country cannot trade with other countries

predatory dumping

a situation refers to a situation in which a Foreign firm sells at a price below its average costs wth the intention of causing Home firms to suffer losses and, eventually, to leave the market because of bankruptcy. It occurs between domestic firms.

antidumping

a tariff applied against the Foreign discriminating monopoly with the permission of WTO

Lease

a transfer of the right to possession and use of goods for a term in return for consideration, but a sale . . . is not a lease."

Fixing a BOP crisis (overvalued currency): Demand switching

a way to achieve external balance and maintain internal balance (Demand reduction cannot maintain internal balance- unemployment ---> therefore we must do both to have a successful adjustment program) *** a change in the nominal exchange rate (devaluation or depreciation) this leads to... increase in domestic prices of imports and exports.... leading to a decrease in the relative price of nontradable goods. decrease in Nominal Exchange Rate, increase in domestic Price of M & X, decrease in Price in non-traded goods... effects: 1. increase in incentives to produce tradable 2. decrease the incentive to consume traded goods

Intellectual Property Rights

a work or invention that is the result of creativity ****dissemination risk has decreased through increased IP protection, because of this there has been a switch from FDI to contractual modes of entry "switching effect"

Conspicuous

a) "so written, displayed, or presented that a reasonable person against whom it is to operate ought to have noticed it." § 1-201(b)(10) •NOT about whether the person actually read it - just about whether a reasonable person would have noticed it b) Conspicuousness determined by ct. c) Key is whether "attention can reasonably be expected to be called to it." § 1-201 cmt. 10 d) Examples of methods of making language stand out: Heading in capitals equal to or greater than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same or lesser size Language in the body of a record or display in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from surrounding text of the same size by symbols or other marks that call attention to the language

Direct or variable costs

a) Any costs that are directly attributable to the sale b) Cost of the components of the K-ed goods c) Cost to ship or deliver the goods (assuming shipment is included) d) Installation if charged for each individual sale

Overhead or fixed costs

a) Costs that are already paid and are independent of the sale b)Rent & utilities for facility or warehouse c)Advertisements d)Installation if someone is hired for that purpose e)Usually employee's salaries (however, this could be a direct cost if more were hired to complete a particular sale)

Value from Sellers Perspective

making profitable exchange, earning prestige among rivals, nonprofits.

Destination Carrier Contract

a) S is required to send goods to a particular destination b)ROL passes to the B when the goods are duly tendered as to enable the B to take delivery i.Tender of delivery reqs that the S put and hold the conforming goods at B's disposition and give B any notification reasonably necessary to enable him to take delivery (§ 2-503) c)ROL does not pass to B until S gets the goods to the final destination d)B's prefer this type of K e)Look for "F.O.B. B's Place of Business"

Shipment Carrier Contract

a) When K requires that S send goods to B, but does not specify the destination b) Default type of K if none specified c) ROL passes to the B when the goods are duly delivered to the carrier, as soon as they are delivered to the shipper, such as FedEx d) S's prefer this type of K e) Look for "F.O.B. S's Place of Business" f) S must put the goods in the possession of the carrier and make such a K for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case (§ 2-504(a)) i. Scenarios where transportation might be unreasonable • Send shipment of ice cream in an unrefrigerated truck • Put wrong address on the shipment g)S must obtain and deliver/tender any document necessary to enable B to obtain possession of the goods (§ 2-504(b)) h)S must notify the B when the goods are shipped so B can inform insurance company (§ 2-504(c))

Finance Lease Elements

a)Lessor does not "select, manufacture, or supply the goods." b)Lessor acquires the goods in connection with the lease. c) 1 of the following 4 is true: • Lessee receives copy of supply K before signing lease K, • Lessee has K approval over the supply K, •Lessee receives statement designating warranties, disclaimers, etc., provided to the lessor before signing lease K, OR •In a non-consumer lease, lessor informs the lessee in writing before signing of the lease K: Identity of the supplier (unless the lessee selected the supplier), That lessee is entitled to supplier's warranties to lessor, and That lessee may communicate w/ supplier and obtain a statement of warranties.

Undifferentiated strategy must be effective under 2 conditions: 1. homogenous market

all customers have similar needs for the product

Recoverable Consequential Damages for Buyers

a. 1st category: damages of any kind, including purely economic loss i.B can recover under this provision if B can establish: a)Damages were foreseeable at time K was made b) Damages were caused "in fact" by S's breach, AND c) Damages could not have been mitigated by reasonable efforts/cover by B b.2nd category: covers personal injury or property damage caused by breach of warranty i.B can recover under this provision if B can establish: a) Damages AND b) Proximate cause

Voidable Title

a. A person w/ voidable title has power to transfer good title to a good faith purchaser for value (§ 2-403(1)) i. Benefits the good faith purchaser for value, not the individual w/ voidable title b.One gets voidable title when goods have been delivered under a transaction of purchase even though i. Transferor was deceived as to the identity of the purchaser ii. Delivery was in exchange for a check which is later dishonored iii. It was agreed that the transaction was to be a "cash sale" iv. The delivery was procured through fraud punishable as larcenous under criminal law c. What matters is transferor's intent - must be intent to voluntarily transfer i. A loans to B, no voidable title b/c no intent to transfer ii. Theft breaks the chain of title

Procedural Unconscionability

a. A problem w/ formation or context of the K b. An absence of meaningful choice c. Falls short of fraud, but still gives ct. bad feeling about the K d. Some cts. say that a K of adhesion by itself is procedurally unconscionable i. These are offered on a "take-it-or-leave it" basis and the less powerful party has no choice but to adhere to the proffered terms e. Consider if there are any good faith issues considering the relationship b/w those involved f. Consider B's credit; however, that may mean S needs to take preventive action to ensure payment g.Consider Maxwell v. Fidelity - D taking advantage of people living at the poverty line.

Substantive Unconscionability

a. A problem w/ the term or terms themselves b. K terms which are unreasonably favorable to the other party c. A term which "no sane man not operating under a delusion would make and ... no honest man would take advantage of." d. Consider acceleration clauses; however, they are not uncommon

LVS Breach before s completes production of goods and S decides not to complete production formula

a. Formula: KP - DC + ID + CI - RP i.CI = costs reasonably incurred ii.RP = payments or proceeds of resale

Types of title

a. Good title (or, just "title") b. Void title (really, "no title"— a person w/ void title has nothing to pass on) c.Voidable title

What keeps Trade usage out

a. If parties have carefully negated trade usage or course of dealing. § 2-202 cmt. 2. b. Saying "trade usage shall not be used to explain or supplement this agreement" is probably not enough. You have to mention the particular trade usage or course of dealing. Ct. will look for something explicit. c. If the trade usage, course of dealing, or course of performance contradicts something in the writing, it will probably not be considered. However, the contradiction must be pretty clear. § 1-303(e).

Exclusive Source of Supply

a. Implicated when "a particular source of supply is exclusive under the agreement" or when "a particular source of supply is shown by the circumstances to have been contemplated or assumed by the parties at the time of contracting." § 2-615 cmt. 5 b. Failure of an agreed source typically excuses performance b/c production by the agreed source is, w/out more, a basic assumption of the K c. S can only avail itself of excuse based on failure of an agreed source if S "has employed all due measures to assure that his source will not fail" § 2-615 cmt. 5 d. S must turn over to B its rights against the defaulting supplier (i.e., the right to sue for breach of K). e. When the S is also the supplier: i. Cts. are split on whether the S can argue excuse based on failure of an exclusive source of supply, but most cts. do not entertain this argument

S's Duty to Give Notice to B (contract resale damages)

a. In a private sale, S must give notice to B of his intention to resell b.In a public auction, S usually has to give notice to the B w/ some exceptions, such as perishable goods or goods that threaten to decline in value speedily

Revocation (2-608)

a. Must occur w/in reasonable time after non-conformity discovered or should have been discovered, b. Must not have been any substantial change in the condition of the goods (except as caused by the non-conformity) c.Revocation not effective until notification is given.

How to take advantage of Comm Impracticability

a. S must notify the B seasonably of any delay or non-delivery b. If only part of the performance is made impracticable, the S must allocate and give timely notice to the B of the allocation

Situations in which the goods are held by a bailee

a. Usually when goods are sold w/out being moved - being bought from a warehouse and B takes them from the warehouse b. Usually involved a person engaged in storing goods c. ROL passes to the B when 1 of the 3 situations is met: i. B receives a negotiable document of title covering the goods ii. Bailee acknowledges that the B has the right of possession iii. B receives non-negotiable document of title or other written direction for bailee to deliver the goods

Consequential Damages for Buyers

a.3rd party damages (e.g., B made a K with TP in reliance on S's performance; when S breached, B was forced to breach K with TP and pay damages to TP) b.Lost profits (e.g., the goods are needed to help run B's business and when they are not delivered on time or are non-conforming B's business suffers—maybe an oven for a restaurant for example ) c.Physical injury or property damage (e.g., defective goods cause damage)

Liquidated Damages test

a.Anticipated OR actual harm, i.Consider California & Hawaiian Sugar Co. where $17K/day damages held reasonable b.Difficulty of proving loss, and c.Difficulty of obtaining an adequate remedy

3 Situations for Action for the price

a.B accepted the goods; i.A wrongful rejection (goods perfectly tendered, but still reject w/out a substantive basis for it) DOES count as a rejection and prevents an action for the price based on acceptance (§ 2-709(3)) ii.An ineffective rejection (a procedural problem w/ the rejection like it comes too late or no notice is given) does NOT count as a rejection. iii.A justified revocation "erases" or undoes the acceptance. b.Goods are damaged or destroyed while ROL is on B; OR c.S is unable to resell at a reasonable price goods identified to the K. i.Goods identified to the K: goods are identified to the K when you say it, not when you necessarily do it (§ 2-501)

Insolvent

a.Having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute; b.Being unable to pay debts as they become due; OR c.Being insolvent w/in the meaning of bankruptcy law (§ 1-201(b)(23))

adaptive selling

ability of salespeople to change their sales messages based on various customer situations

Open end Funds

accept new investment funds and issue new shares at a value equal to the fund's net asset value per share at the time of investment. These funds also allow investors to redeem their investment in the fund at the prevailing net asset value per share.

Closed end funds

accept no new investment money into fund. shares in the fund are traded in the secondary market so new investors invest in the fund by purchasing shares in the market and liquidate by selling shares in market. shares of this type of fund are priced off of the demand. if high they go for more if low demand they sell at a discount.

Selecting the right metrics in control process should

account for short-term objectives balanced against firm's long-term sustainability

What is the money weighted return?

accounts for amount of money invested in each period and provides info on the return earned on actual money invested. this also equals the Internal rate of return of an investment.

What is risk shifting and what is it associated with?

actions that change the distribution of outcomes. associated with derivative contracts and risk modification vehicles. This is used when organization wants to modify probability distribution of returns, or adjust the payoff diagram of its risk exposures.

Consumer marketing channel

activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption.

Marketing AMA Definition

activity, set if institutions, and processes for creating, communication delivering, and exchanging offerings that have value for customers, clients, and society at large.

Reference group

actual or imaginary individual or group that has a significant effect on an​ individual's evaluations,​ aspirations, or​ behavior?

hiearchy of success/marketing

actual purchase conviction brand preference awareness unaware

communication methods

advertising PR Personal Selling Word of mouth

Capitalizing or expensing an expenditure for a fixed asset

affects the financial statements differently. When a firm expenses an item, earnings are reduced for the full amount in the first year. When a firm capitalizes an expenditure, assets increase and earnings are reduced only for the depreciation expense in the first year. Therefore, firms may prefer to capitalize expenditures whenever possible in order to avoid the larger decrease in earnings in the first year. Of course, future earnings will decrease, but by a lower amount than expensing immediately.

price volatility

ag prices tend to be more volatile than the prices of non farm good and services

demographic variables

aggregate population characteristics like age, gender, fertility, race, ethnicity income

marketing bill

all cost associated with marketing at home, away from home

What is Operational risk? this is related to non financial risks.

all internal risks that arise from people and processes that work together in an organization to produce its output. Ex. hackers breaking into company's computer systems.

Mass Market

all passive customers in a market regardless of the differences in their specific needs and wants

Possession Utility

allowing consumers to own, use and enjoy the product. Ex. Bridal place has a range of gown options

nueral networks

also known as machine-based learning, are another way of fitting a model to existing data for prediction purposes. represented by complex mathematical equations, with many summations, exponential functions and parameters.

Life Time Value of a customer

amnt customer spends minus cost to maintain relationships

Accounts Receivable

amounts a company has a right to collect because it sold goods/services on credit to a customer

Prepaid Advertising

an ad for a company that has not yet run

needs satisfaction

an approach to selling based on the notion that the customer is buying to satisfy a particular need or set of needs.

stimulus response

an approach to selling where the key idea is that various stimuli can elicit predictable responses from customers.

Notes payable

are formal credit arrangements between a creditor (lender) and a debtor (borrower) requiring the payment of a stated face amount on a specified maturity date. In a straight-forward notes payable issue, the face value of an interest-bearing note is equal to the cash price (i.e. the fair value) of the asset. In this case, for the initial measurement, the firm debits the asset and credits the notes payable for that amount. The firm recognizes interest expense each period on the unpaid balance of the debt and pays the debt in full at maturity.

Exchange-traded Funds

are similar to mutual funds, but investors can buy and sell ETF shares in the same way as shares of stock. Management fees are generally low, though trading ETFs results in brokerage costs.

Weighted-average accumulated expenditures

are the construction expenditures weighted by the portion of the year that the expenditure is outstanding until the project is complete, or the end of the year if the project is not complete.

situation questions

ask about facts, background data, and information about the customer's situation. These often bring little value to the Buyer

implication questions

ask about the effects, consequences, or implications of the customer's problems

need pay off questions

ask about the value or usefulness of a proposed solution

Portfolio Analysis

asses the growth potential for a firms SBUs and product lines; BCG

Cash

asset of a company that includes currency, coins, checking accounts, and un-deposited checks from customers

Inventory

asset of company's products that are still awaiting to be sold

Supplies

asset representing the cost of supplies at one point in time (inventory)

aspiration

associates the product with a desirable outcome or lifestyle

Global macro funds

attempt to profit from changes in the overall macroeconomic environment using derivatives on currencies and interest rates.

Event Driven Funds

attempt to take advantage of specific company events, such as mergers and acquisitions.

persuasion

attempting to influence the buyer's decision, but decision remains the buyer's

Casual Research

attempts to understand cause-and-effect relationship. Ex: sales, promotion, will sales volume increase

AIDA

attention, interest, desire, and action

frequency

average number of times that a targeted audience member is exposed to an ad or campaign

Risk prevention and avoidance

avoiding every risk would be unwise as benefits from taking certain risks can outweigh associated costs. like putting all you retirement assets in cash you are losing 2% a year from inflation but you have no risk.

embargo

ban ; government prohibits the import of that item

unconscionability

basic test is whether, in light of the commercial background and the commercial needs of the particular trade or case, the clauses involved are so one-sided as to be unconscionable under the circumstances existing at the time of the making of the contract."

likability

behaving in a friendly manner and finding a common good b/w buy and seller ---increased personal communication

value equation

benefits / sacrifices

Value

benefits received by the customer from a product relative to total costs. Marketing activities lead this to creation through innovation that enhances customer benefits and reduce costs.

buyer profit

benefits-selling price + time and effort purchase

Merger Clause

best evidence of complete integration

solo exchanges

both buyer and seller puruse bast interst

Exploration

both parties explore eachother

Sales people are

boundry spanners

intuitive segmentation

brain storm segmentation variables

Customer Loyalty drivers

brand/product/service=38%==a must but is a threshold Sale exp=35% P

illegal business practices

busines defamation reciprocity trying agreeement conspiracy collusion

Straight rebuy

business-to-business term that refers to the routine purchase of items that a B2B customer regularly​ needs

Reseller

buy finished product and resell them to business and consumer ----max roi

Producers

buy products and services to manfacture and sell to customers

market

buyers and sellers interact to make economic decisions

exchange

buying and selling

Ch 3.

buying and selling relationships

1 and done

buys once then never again

conflicting objectives

company salesperson customer

PER consistency Element

c. If the additional terms are "such that, if agreed upon, they would certainly have been included in the document in the view of the court, then evidence of their alleged making must be kept from the trier of fact." § 2-202 cmt. 3 d. Cts. will often ask if the additional terms are in "reasonable harmony" w/ the integration. i. If yes, they are consistent. ii. If not, they are inconsistent and won't be permitted in. e. Consider the sophistication of the parties i. The more you can show a party didn't know to include every term, more likely to get in the parol evidence

Realtionship marketing

companies attempts to develop a stroner relationship w/there companies

customercentric

making the customer the center of everything the salesperson does

What are gross returns?

calculated before deductions for managerial expenses, custodial fees , taxes & other expenses that are not directly linked to generation of returns. trading expenses (commissions) are accounted for in computation of these returns.

customer acquisition cost

calculated by dividing all the costs spent on acquiring more customers by the number of customers acquired in the period the money was spent

Emotional Analysis

can analyze the content of social media communications within the context of a specific brand or product and determine what emotional category the communication fits within.

adding middle men

can be cheaper by outsourcing

Big Data

can be seen through examples such as the success of the Oakland​ Athletics, a major league baseball team that used the analysis of large data sets to help identify undervalued players and make strategic decisions in games.

Division

can be used to segment a business into product lines

Vega

captures the impact of changes in the volatility of the underlying asset on the value of an option contract.

Gamma

captures the impact of relatively large changes in the underlying asset on the value of the derivative.

segmentation variables

characteristics of individuals, groups, or organizations used to divide a market. Theres no best way to segment markets

demographics

characteristics of population

Points of difference

characteristics of the product that make it superior to others

see slide 13-7

chart

geodemographic segmentation

clusters people by zip codes for neighborhoods based on lifestyle

Four types of engagement

cognitive engagement affective engagement behavioural engagement social engagement

World Bank Group

collection of agencies, established in 1945, headquartered in washington DC, which promotes development in medium and low-income countries with project loans, structural adjustments programs. and various advisory services

production possibilities frontier

combination of multiple outputs that could be produced given the amount of resources and technology

Promotion

communication and incentives ; different activities marketers undertake to inform consumers about their products and to encourage potential customers to buy these products. Aid distribution of product. Example: "Marketing Comm.", adv., personal selling, publicity and sales

boundry spanners

connect business and product

market segment

consist of individuals, groups, organizations that share one or more similar characteristic

Long-Term Operating Assets

consist of tangible fired assets (also referred to as property, plant, and equipment), natural resources, and intangible assets. Typically have a significant impact on a firm's financial statements.

Market

consists of all consumers who are a common need that can be satisfied by a specific product, and who have resources, willingness and authority to purchase

Post-purchase evaluation

consumer is experiencing cognitive dissonance regarding his or her​ purchase, the consumer is on what step of the consumer​ decision-making process

Benefits

consumer received benefit when needs are satisfied

User-generated Content

consumers engage in marketing activities such as creating an advertisement

Product choice

consumer​ decision-making process is a consumer likely to be in if heuristics such as brand loyalty and​ country-of-origin are factoring into the​ decision

contract enforcement

contract design, escape clauses, and recourse *** allows parties to enter into long term contracts with a minimum degree of certainty

Internal Environment

controlable elements within the company. Ex; employees, supply chain, patents, reputation

customer lifetime value

costs are higher and profits are lower if every customer is a first-time customer

What are Fidelity bonds?

cover against losses that result from employee dishonesty. this assures one party that it bears no risk for the actions of a specified other party.

product dev. Strategy

create growth by selling new products in existing markets

Product specifications

creating a written description of the​ quality, size,​ weight, color,​ features, quantity,​ training, warranty, service​ terms, and delivery requirements for the​ purchase

Sustainability

creating products that meet present needs while ensuring future generations can have their needs met. Ex. Green Marketing

Marketing

creating, communicating, delivering, and exchanging offerings that benefit customers, the organization, and society

Prospect customer

customer fits the target market profile and is being approached for the first time

Client manager

customercentric 24/7 services

primary data research

data from research conducted to help make a specific decision

Structured data

data that is typically numeric or​ categorical; can be organized and formatted in way that is easy for computers to​ read, organize, and​ understand; and can be inserted into a database in a seamless​

persausion

decision still remains buyers with attempts made to influence it

problem solving

define the problem, generate alternative solutions, evaluate alternative solutions, continue selling until purchase decision

Derived demand

demand for industrial products and services that is driven by, or derived from the demand of consumer product and services

derived demand

demand in a business market is closely associated with the demand for consumer goods

Inelastic demand

demand in which changes in price have little or no effect on the amount​ demanded

4 major variable categories

demographic, geographic, psycograohic, behavioristic variables

Contingencies for possible commercial impracticability

depends on how unforeseeable they are though a) War(careful) b) Embargo c) Local crop failure d) Unforeseen shutdown of major sources of supply or the like

Units-of-Output Method

derives a rate of depreciation per unit produced and applies that rate against the actual number of units produced each period. Ex. Number of miles driven could be used to depreciate a delivery truck. Depreciation expense is the depreciable base divided by the estimated total units of output times the actual number of units produced each period. The depreciable base is cost less estimated scrap value. Depreciation Rate per Unit = Depreciable Base/ Estimated Total Units of Output Units-of-output Depreciation Expense = Depreciation Rate per Unit * Actual Units produced or Units-of-output Depreciation Expense = Depreciable Base * (Actual Units of Output/ Estimated Total Units of Output)

affective advertising

developing a liking for the product, and generating preference

Needs

difference between actual and desired, physiological or psycho Example: hungry--> eat

Search engine optimization​ (SEO)

digital marketing methods refers to a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your​ business

ROI (Return on Investments)

direct financial impact of a firm's expenditure of a resource, time and money

influencers

direct or indirect provide info econ influ--concerend about finianical aspect tech influ: makes sure the tech requriements are met coach; advises and directs sales person in a buying process leading to sale

Market Segments

distinctive group of customers within a larger market who are similar to one another, but different. BMW vs. Ford

Trademark

distinctive word, phrase, symbol that distinguishes the source of goods (intangible)

Stratified Sampling

divided population into segments

behavioristic segmentation

division of market according to benefits that customers want from product

Expansion

do we buy more or give more exclusisve deals

Marketing Plan

document that explains the marketing strategy

Suspect customer

does the potential customer fit your target market profile?

appreciate

dollar strengthens

depreciate

dollar weakens

Land Improvements

enhancements to a plot of land to make the land more usable

Simple random sample

equal chance

Sales people are

ears and eyes of the company skillful at disseminating knowledge acquired from customers to other people in their companies

Land

earth and environmental attributes that a company sits on or owns with property, long term asset

convenient

easy to use, easy to get to

orgnizational needs and criteria

economic quality service

effort

effort it takes to sell

Equity market neutral funds

eliminate exposure to overall market movements by taking short positions in overvalued securities and long positions (of nearly equal value) in undervalued securities.

Manipulation

eliminating or reducing a buyer's choice unfairly

manipulation

eliminating or reducing buyers choice unfairly

ehtical check list

embaressed if customer found out superviser ? most sps? get away? upset if a sp did this to me family or friend think less? possible consequences upset if it was published would it be worse offf? ###if any is yes it is unethical

Attiudinal loyal

emotional attachement to brand person or salesperson--strong connection

diversification strategy

emphasize both new products and new markets to achieve growth

Dissolution

ending because of some negative relationships

External environment

factors outside the firm which could be a positive or negative impact. Ex; economy, competition

Market research primary vs secondary data

facts and figures that are newly collected for the project/ facts and figures that have already been recorded prior to project at hand.

Questionnaires

failing because of telemarketing

misrepresentation

false claims by a salesperson

retail price

farm value

online research

fastest way to collect data; it's also less expensive, and perhaps the most versatile, as marketers can use the Internet for both exploratory research, via online focus groups and in-depth interviews, and descriptive research via Internet surveys

Balance Sheet

financial statement that summarizes a company's assets, liabilities, and shareholder's equity at a certain point in time

Corporate Citizenship

firm's responsibility to the community in which it operates to society in general

Mission Statement

formal document that describes the firm's overall purpose and what it hopes to achieve in terms of its customers, products, and resources

Sheth's five types of value

functional social emotional epistemic conditional value

U.S.- future prospects

future of developing country agriculture lies in markets of the developing world

Cost per order

gaining an order in terms of the marketing investment made to turn a Web site visitor into a customer who has chosen to make a​ transaction

variables for segmenting business markets

geographic location, type of organization, customer size, product use

Set Org. or SBU objectives

goals and objectives should be direct outgrowth of the mission statement.

imports

goods and services from other countries

exports

goods and services sent to other countries

rules of origin

goods must have a certain content requirement in order to be considered duty-free within the FTA

Investments

goods that can be used to bring in future wealth

Industrial Goods

goods that individuals or orgs buy for future processing or for their own use when they do business Example: automakers buy steel

subsidy

government makes payments to local supplier to reduce the production costs of the supplier

Sovereign Wealth Fund

government owned investment fund. usually established to invest revenues from finite revenue sources to benefit future generations of citizens or to manage a country's foreign exchange reserves

standard

government sets regulations to ensure safety of goods

How long do firm offers stay open

held open for the time period stated in the offer, or, if no time is stated, for a "reasonable time." Note: The period of irrevocability under 2-205 cannot exceed three months.

elastic

highly responsive to change in price

Subcontracting

home country contracts with foreign country to product a product with specific materials (outsourcing and manufacturing)

Joint Venture

home country establishes a seperate firm in a foreign country that is jointly owned by a company in that foreign country

Promotional strategies (Market plan)

how marketers communicate a product's value proposition to the target market. Advertising Sales promotion

Accountability

how much value an organization marketing activities creates

Exchange rate

how mush $ in terms of other currency

Price fluctuation in commercial impracticability

i. An increase in cost or price fluctuations alone usually cannot suffice as an unforeseen circumstance (Resources Investment Corp. v. Enron Corp., § 2-615 cmt. 4) a) For a price fluctuation to be unforeseeable, would have to be beyond the realm of what anyone could anticipate

How to reject goods

i. B has to reject w/in a reasonable amount of time, AND ii. S has to be seasonably notified (§ 2-602)

Revoking acceptance under finance leases

i. Finance leases are harder to revoke than non-finance leases, esp. when it is a non-consumer finance lease ii.Can only revoke where the finance lessee's failure to discover the non-conformity before acceptance was reasonably induced by the lessor's assurances. a)Finance lessor typically does not make any assurances. b)Usually when lessor says "pick this one, I've done extensive testing on it."

Good faith purchaser for value

i. Good faith - honesty in fact and observance of reasonable commercial standards of fair dealing (§ 1-201(20)) a) Subjective standard: honesty in fact b) Objective standard: reasonable commercial standards of fair dealing ii. Purchaser - a person who takes by purchase - taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property (§ 1-201(30), (29)) iii. Value - person gives value for rights if person acquires them in return for any consideration sufficient to support a binding K (§ 1-204)

Non Merchant Buyer Obligations after rejection

i. Hold goods w/ reasonable care at S's disposition for a time sufficient to permit S to remove them ii. Cannot use the goods at all for any period of time post-rejection iii. Can hold on to goods as leverage to get $ back (§ 2-711(3))

Merchant Buyer Obligations after rejection

i. Must hold goods w/ reasonable care and not act like those goods are his AND: ii. If S has no agent or place of business in the market, "follow any reasonable instructions from the S" regarding the goods (§2-603(1)) iii. If goods are perishable or would decline in value speedily, B must make reasonable efforts to sell them for the S's account. iv. Even a merchant B can hold onto the goods until it gets $ back

Supplier

i. Party that supplies the goods that will be leased to the lessee ii. A person from whom a lessor buys or leases goods to be leased under a finance lease (§ 2A-103(1)(x)) iii. Has a supply K with the lessor: a K under which a lessor buys or leases goods to be leased under a finance lease (§ 2A-103(1)(y))

When lessee accepts goods

i.Hell or High Water Provision arises for non-consumer finance leases (§ 2A-407) a)Makes the lessee's promises under the lease "irrevocable and independent" b) However, lessee can still revoke, but it will be an uphill battle

risk of loss passing to the buyer

i.If the S is a merchant → on B's receipt of goods a) Receipt of goods means taking physical possession of them (§ 2-103(c)) ii. If the S is not a merchant → on tender of delivery a) Tender of delivery reqs that S put and hold the conforming goods at B's disposition and give B any notification reasonably necessary to enable him to take delivery (§ 2-503)

Revoking acceptance under a non-consumer finance lease (§ 2A-517(2))

i.Lessee can revoke in same ways under Art 2, BUT ALSO ii.Lessee may revoke acceptance of a lot if the lessor defaults under the lease K [not the supply K] and the default substantially impairs the value of that lot or commercial unit to the lessee a)This provision is there when the lessor is supposed to provide maintenance or there is some continuing obligation for the lessor to do something in the lease - maintaining the goods, paying taxes, checking the goods every 3 months, etc.

Seller's Right to a Cure after rejection (waiver in contract time)

i.S has unfettered right to cure so long as S gives seasonable notice of intent to cure b.After K time has expired: S may cure w/in "

PR

impersonal unpaid

prospecting

important process of locating potential customers for a product or service (lifeblood of selling)

comparative advantage

in the production of a good if it can produce that good at a lower opportunity cost relative to another country

Money-weighted rate of return

internal rate of return on a portfolio based on all of its cash inflows and outflows - calculate by considering the beginning value and additional deposits of cash by the investor to be inflows and considers withdrawals of cash, interest, and dividends (which are additional cash available to be withdrawn) and the ending values to be outflows - PVinflows=PVoutflows

SWOT

internal strengths ans weaknesses, external opportunities and threats , used by managers

go to market staretgies ex

internet, field, resellers

information

interpreted data

Market development strategy

introduce existing products to new markets

Product life cycle (be able to draw and label this!)

introduction stage, growth stage, maturity stage, decline stage.

IDEA

introduction, delivery, explaination, ask

hybrid or balanced funds

invest in both bonds & equities

Emerging Market Funds

invest in companies in emerging markets by purchasing corporate or sovereign securities.

Money Market Funds

invest in high quality short term debt instruments.

personal selling creates economic exchange

involves profits for both parties seller profit:=sales-cgs-time/effort buyer profit **have to increase benefits

Capital expenditure

is a cost recorded by a company as an asset rather than an expense.

BCG growth market share matrix

is a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

value

is the customer's perception of the balance between benefits received from a product or service and the sacrifices made to experience those benefits

Shrinkage

is the industry term for inventory and cash losses from shoplifting and employee theft.

Capitalization

is the process of recording an expenditure as an asset.

Depreciation

is the systematic and rational allocation of the cost of a long-term plant asset to expense over the asset's expected useful life. As the asset is depreciated, the firm reports depreciation expense on the income statement and reduces the carrying value of the asset on the balance sheet. Depreciation is a process of allocating costs to the periods in which the benefits are consumed. Land is not depreciated because it typically has unlimited life - generally, it is not consumed in operations.

data warehouse

is where companies store and process data.

What is a risk management framework?

it is the infrastructure, Process, and analytics required to support the risk management function in an organization. every organization must have a customized risk management framework based on its individual objectives and requirements.

Place

key to making the product available to consumers at desired time and location. Closely tied to supply chain. (Linked to distribution)

Predictive analytics

large quantities of data within variables that have identified relationships to more accurately forecast specific future​ outcomes

inelastic demand

less responsive to changes in price

export

limit on the amount that firms are allowed to export

Buildings

long term asset that includes the cost of the building of a company (not including land)

strategic partnerships

longterm relation LT strategic investment for improvement *beyond trust create strategic advantage in partnerships **uncover joint opportunities

Awareness

looking for parties

Three ways to create customer-perceived added value

loyalty schemes customer communities sales promotions

profit margin

make on each sale

Place Utility

making prod. available where consumers want them. Ex. Rent the runway: services rents dresses than buy at fashion shows

Sales- Selling Orientation

managerial view of marketing as a sales function, or a way to move products out of the warehouses to reduce inventory/ "Emphasizes on aggressive promotional activities" EX: Post-World War II prod. exceeds demand, led bus. to focus on one time sales

trade sales perosn

manufact selling to a distrubtor

Basic disciplines for CPM

market segmentation sales forecasting - we will cover this is a class on its own activity-based costing customer lifetime value estimation data mining

micromarketing

market segmentation focuses on very small geographic markets

Target market

market segments on which an organization focusses its marketing plan and toward which it directs its marketing efforts.

behavioral systems approach

market structure-market power, examining the performance of management decisions made by coordinating the interdependent forms

Societal marketing Concept

marketers must satisfy customers needs in ways that also benefit society and deliver profit to the firm

Digital

marketing channels are those specific means of distribution through which digital marketing communications can be delivered to current and potential customers.

breakdown approach

marketing manager develops a general economic forecast for a specific time period. next the manager estimates marketing potential based on forecast . Derives sales potential from forecast

buildup approach

marketing manager estimates how much a potential buyer in a geographic area will purchase . then manager multiplies that by potential buyers in the area

30s prduction

marketing sales shortterm provider taking orders and deliver goods

Sensory marketing

marketing techniques that link distinct experiences such as a unique fragrance with a product or​ service

B's rights where B receives notification of a material/indefinite delay or an allocation

may, by written notification to the S, and where the prospective deficiency substantially impairs the value of the whole K: i. Terminate and thereby discharge any unexecuted portion of the K, OR ii. Modify the K by agreeing to take his available quote in substitution

cross buys

me and bought out cometitors

Goods

means all things (including specially manufactured goods) which are moveable at the time of identification to the contract for sale other than money in which the price is to be paid, investment securities (Article 8) and things in action. 'Goods' also includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty. (Section 2-107).

Risk budgeting

means of allocating investments or assets by their risk characteristics

Beta

measure of a security's systematic risk, which is actually the risk that investors can expect to be compensated for in the form or a higher expected return. for example if a stock has a beta of .3 it means it is 30% less volatile than the benchmark or market. It can also be the measure of the sensitivity of a security's returns to the return's on the market portfolio

Single dimensional risk

measures include standard deviation, beta, value at risk (VaR), and scenario loss.

What is standard deviation?

measures over which a percentage of outcomes would be expected to occur.

Rho

measures the sensitivity of the value of a derivative contract to changes in interest rates.

What is Delta?

measures the sensitivity of the value of a derivative to a small change in the underlying asset.

Control

measuring actual performance, comparing performance to establish market objectives or strategies, and make adjustments to analysis

Market Intelligence

method by which marketers get info about whats going on in the world that is relevant to their business. Ex; monitoring sources like websites

Triple Bottom-Line Era

mgmnt seeks to maximize financial, social, and environmental bottom lines/ "societal marketing concepts" ROI

Natural Resources

minerals, oil reserves, timberland, stone quarries, etc that are long term assets of a company

steps in the buying process

model 3-11 1. recognition need 2.define product type need 3. detailed specification 4. search for qualified suppliers 5 .acquisition and analysis proposals 6. evolution of proposals and selection of supplier 7. place and receiver order 8. evolution of product performance

developing countries

more income elastic compared to developed countries

30-60s

ms

sales promotion

ny behaviour-triggering temporary incentive aimed at prospects, customers, channel partners or salespeople

How to choose a method for modifying risk.

must weigh the costs versus benefits in light of risk tolerance.

value for customers

needs, wants, benefits, demand

pioneers

new products, new customers, or both

types of organizational buying decisions

new tasks modified rebuy straight rebuy

Unstructured data

non-numeric information that is typically formatted in a way that is meant for human eyes and not easily understood by​ computers

inside sales

nonretail salespeople who remain in their employer's place of business while dealing with customers

recently

not long ago (в последнее время)

reject

not to accept, to say no

Personal observation

occur in a grocery store when a researcher watches consumers actions as they take place

Non store retailing

occurs outside a retail outlet through activities that involve varrying levels of customer (snifff) and retailer involvement.

Inventory sourcing

occurs when the order is created or changed (and again when the delivery process begins). Determines: 1. availability 2. date for delivery 3. how will product be supplied

types of producers

oem end users

Firewall

ombination of hardware and software that ensures that only authorized individuals gain entry into a computer​ system

Business Planning

on going process that guides short-and long term decisions. Build firm's strength, improves decision making, develops objective for goals

What are methods of risk modification?

once required analysis is done and organization has determined which risks it is exposed to and which ones are acceptable/unacceptable and to what degree, the risk mngt proceeds to alight actual risk with acceptable risk. this is not always related to reducing risk. for example say you have a 50/50 portfolio of cash and stock you would need to add more stocks/equity to increase risk because cash is bringing total return down.

What are Indemnity clauses & hold harmless arrangements?

one of the parties to a contract agrees to hold the other harmless and/or indemnify the other in the event of loss.

Target market

one or more specific groups to which an organization aims its marketing program

EXAM

only those 3 things in ch 2 narrowed down legal -apply concepts -go slow think aspects

Exclusions

oral or written conspicious as is had opportunity to inspect/ refused to inspect course of dealing, trade usage

Data

raw unorganized facts

Mutual trust I/R

reduces --risk --decsion uncertianity --belief that partner may act opportunitisitically Increase -- willingness to share info

Customer insights

refer to the collection, deployment, and interpretation of information that allows a business to acquire, develop, and retain its customers. (transforms data into information)

Market research ethics

refers to taking an ethical and above broad approach to conducting market research, does not harm participant

Net return

refers to the total return after deducting fees for management and administration of the investment account (commissions on trades and other that are necessary to generate investment are included)

Gross return

refers to the total return on a security portfolio before deducting fees for management and administration of the investment account (commissions on trades and other that are necessary to generate investment are included)

Regulation

regulation of finance, management, health and safety ****addresses well known instances of market failure

think pair share

relationships move from solo exch to strat partnerships

Mechanical Observation

relies on machies to collect dat a ---> future analysis, TV trackers

Knockout Rule

remove clause they disagree on

Systematic risk a.k.a Beta Risk

risk that affects the entire market or economy and is not diversifiable - priced and earns a return - beta measures the relation between a security's excess returns and the excess returns to the market portfolio

Solvency risk

risk that the entity does not survive or succeed because it runs out of cash to meet its financial obligations

Investors

risk-averse and historical data confirm that financial markets price assets for risk-averse investors

User

role in the buying center is the member of the buying center who actually needs the​ product

Business ethics

rules of conduct

Heuristics

rules of thumbs used by individuals to arrive at a good decision with less mutual effort Ex; Price equals quality

C4 ratio

sale by the 4 largest firms is more than 50%, market is highly concentrated

slide 2.7

sales conflict

perosnal code of ethics

sales men code, may develop logical unethical decisions through rationalizng --all people do this --no one will ge t hurt --lesser of 2 evils --price one has to pay for being in bsuiness

data scientist

searches through​ multiple, disparate data sources in order to discover hidden insights that will provide a competitive advantage.

Market penetration strategy

seek to increase sales of existing products to existing markets

respiprocity

spiecal relationship in which two companies agree to buy products from each other...computer for mic --illegal under sherman anti trust law if 1 copany forces the other -must agree willingly

BCG Matrix

stars, question marks, cash cows, dogs

Mission statement

statement of the organizations function in society that often idntifies its customers, markets, products, and technologies

Information Search

step in the consumer​ decision-making process is a marketer likely to utilize search marketing techniques such as search engine optimization​ (SEO), sponsored search​ ads, and shopbots to help consumers find and learn more about their​ products

stock to utility ratio

stock/supply --------------- utility (consumption demanded)

time utility

storage

physical

storage, processing, transportation

Breadth vs depth of a product line

store carries variety of different items/ store carries large assortment of each item.

Time utility

storing products till they are needed. Ex: Renting wedding gowns instead of buying them at once

SWOT analysis

strenghts, weaknesses, oportunities, threats

relationship selling

strong relationships are a source of C advantage --rentention is important to all companies

institutional

study of the various individuals, agencies, and businesses that perform/affect the marketing process

Representativeness

study similar to large groups in which organizations has an interest.

segment

subgroup share 1 characteristic segmentation

Utility

sum of benefits a consumer receives from product

Scanner data

supermarkets, such as​ Safeway, have sold data derived from all the items processed at the cash register when consumers check out with their loyalty cards. Which of the following refers to this type of​ information?

Customer relationship management​ (CRM)

systematic tracking of​ consumers' preferences and behaviors over time in order to tailor the value proposition as closely as possible to each​ individual's unique wants and​ needs?

Fixed-income arbitrage funds

take opposing positions in debt securities to profit from arbitrage opportunities and to limit interest rate risk.

merchants

take title of commodity

speculators

take title- in market to make profit

marketing

taking commodity from farm to consumers, all institutions and activity involved

export tariffs

taxes applied by the exporting country when a good leaves the country

longitudinal designs

teach change over time, by collecting data from the same sample of respondents overtime

explanatory research (Primary)

technique that marketers use to generate insights for the future, more rigorous studies (indept probing of customers

Focus Group

techniques that market researchers employs most often for for explanatory research

Evaluation of alternatives

tep in the​ consumer-decision making process will a consumer narrow down choices deciding on​ feasibility, and comparing the pros and cons of each remaining​ option

S's remedies on discovery of B insolvency Prior to delivery of goods

the S can: a.W/hold delivery of goods (§ 2-702(1)); OR b. Stop goods already in transit (§ 2-705(1))

market power

the ability to influence prices

absolute advantage

the ability to produce more of a given product using a given amount of resources

comparative

the ad compares one or more alternatives with the advertised product

Price

the amnt the consumer must exchange in order to receive the product or offering. Higher Price=Higher Quality, Markers lower price to increase demand and turn to price to get customer interested.

sales forecast

the amount of a product a company expects to sell during a specific period

Shipment Contract

the buyer bears the risk of loss for the goods prior to actually receiving them. Here, the seller's only duty is to get the goods to a common carrier and make proper delivery arrangements for the goods to get to the seller. After this, under a shipment contract, if any loss occurs the buyer bears the risk of loss and is responsible for the costs. A shipment contract could be identified with language stating it is free on board and the city where the seller is located.

Exchange (Price)

the buyer receives an idea, that satisfies a need and the seller receives something equivalent in value.

E-commerence

the buying or selling of goods and services electronically, usually over the internet

customer portfolio

the collection of mutually exclusive customer groups that comprise a business's entire customer base.

Integrated marketing communication

the concept of designing marking communication programs that coordinate all promotional activities to provide a consistent message across all audiences. Mumble mumble mumble

advertising

the creation and delivery of messages to targeted audiences through the purchase of time or space in media owned by others.

Marketing Decision Support System

the data, analysis, software, and interactive software, and interface software that allows manager to conduct analysis

psychological

the desire for feeling of assurance and risk reduction, as well as positive emotions and feelings such as success, joy, excitement, and stimulation

knowledge

the desire for personal development, information, and knowledge to increase thought and understanding as to how and why things happen

Exposure

the extent to which a​ person's sensory receptors are capable of registering a​ stimulus

Reliability

the extent to which research measurement techniques are free of errors.

What is risk tolerance?

the extent to which the entity is willing to experience losses or opportunity costs and to fail meeting its objectives.

Validity

the extent to which the research actually measures what it was intended to measure.

information

the fuel that runs the the marketing engine , marketers must have good information to make good decisions

publicity

the generation of free editorial content relevant to a company's interests.

Franchises

type of license held by a party in order to have access to a business' proprietary knowledge, processes, and trademarks so the party can sell goods/services under the business' name

problem questions

uncover problems, difficulties, or dissatisfactions. Essential to plan these ahead of time otherwise you will remain in Situation Questions

know the multiple attribute model

understanding facotrs inidicatin individ memebers of a buying center consider in evaluating products and making choices ---complex decsions with vendors ---many strsiaght rebuys people view the product as a collection or attributes based off needs

New tasks: P

urchasing a product or service for the first time

Licensing

use home countries production process overseas

who makes buying decision

users gatekeepers initators deciders influencers

internal company data

uses information w/in the organization to produce reports on the results of sales and activities. Ex; Sales Record

positioning

uses marketing communication to place their brand in the minds of their customers in relation to the competition.

Neuromarketing

uses neuro technologies such as EEG and fMRI, and biometric techniques like measuring heart rate to measure brain activity to better understand how and why consumers make the decisions they do.

Predictive technology

uses shopping patterns of large numbers of people to determine which products are likely to be purchased Ex; "those who purchased this item also purchased ..."

Three stages of customer lifecycle

• Customer acquisition • Customer retention • Customer development

rational needs:

•: Performance of the product

Optimum Currency Area

•A collection of countries characterized by well-integrated factor markets, fiscal systems, and economic disturbances that affect each country in a symmetrical manner •A geographical region in which it would maximize economic efficiency to have the entire region share a single currency. 1. Factor markets 2. fiscal policy 3. Similar reaction to external shock

Human Development Index

•A conception of economic development that stresses health, education levels and per capita income

Lorenz Curve

•A graph relating the cumulative percentage of income to the cumulative percentage of households. •Measures inequality

Monetary union

•A group of member countries in a common market all using a common currency

•Ethical perceptions can vary from:

•Country to country •Industry to industry

RELATIONSHIPS WITH THE SALESPERSON'S COMPANy

•Expense accounts - Cover legitimate expenses, such as for travel, accommodation, food etc. •Reporting work-time information and activities - Giving inaccurate information or bending the truth is clearly unethical •Switching jobs •Give ample notice and assist during the transition phase •Do not burn bridges •Do not take anything that belongs to the company

LEGAL ISSUES

•Laws affecting salespeople in the U.S •Statutory law: Based on legislation passed either by state legislatures or by Congress •Uniform Commercial Code: Legal guide to commercial practice in the United States •Administrative laws: Established by local, state, or federal regulatory agencies •Federal Trade Commission is the most active agen Common law: Grows out of court decisions •Precedents set by these decisions fill in the gaps where no laws exist

common goals

•Provide strong incentive to pool strengths and abilities •Help focus on exploiting opportunities •Help sustain the partnership •Effective measuring of goals is critical

Heckscher-Ohlin theorem

A country will export goods that use its abundant factors and import goods that use its scarce factors: capital-abundant and labor-abundant

Millennium Development Goals

A declaration with the goal of improving the living conditions of people in the least developed countries. The goals were: (1) Eradicate extreme poverty and hunger (2) Achieve universal primary education (3) Promote gender equality and empower women (4) Reduce child mortality (5) Improve maternal health (6) Combat HIV/AIDS, malaria, and other diseases (7) Ensure environmental sustainability (8) Develop a global partnership for development. *International declaration improving the living conditions

Quotas

A government-imposed trade restriction that limits the number, or value, of g/s that can be imported or exported during a time period.

Immigration Surplus

Before immigration GDP= a+b+c B+C--> native born workers A--> employers After Immigration ^L = decrease wage rate (Wo--> W1) C--> native born workers E--> immigrant workers A+B+D--> employers GDP= A+B+C+D+E **** B is redistributed from native workers to employers **** D is the Immigration Surplus (not redistributed, not taken from anyone)

ADH Thought Experiment

Compare the labor market outcomes for locations strongly affected by trade with China with locations not strongly affected by trade with China.

Strategy

Complete and contingent plan for playing a game. Strategy has to have one choice for for every information set.

Capital/financial account balance

Difference in payments to and from the country in association with purchases or sales of assets

Current Account Balance

Domestic Savings- Domestic Investment= Balance of Trade (X-M) If savings are greater than investment, there is a BOT Surplus (carries out trade) •Therefore, the country lends the difference to the Rest of the World. This outflow of foreign investment generates a trade surplus. If savings are less than investment, there is a BOT Deficit (receives foreign savings) •The country requires an inflow of foreign savings to make up the difference This inflow of foreign savings finances the trade deficit.

Lower tariff on imported steel would most likely benefit

Domestic consumers of steel

Factors of production

Economic resources used in the production of goods: natural resources, labor, capital Mobile- reallocated easily Specific- cannot be reallocated easily

Change in economic welfare of a country is associated with an increase in tariffs equals

Efficiency Loss - TOT Gain

ADH: What effect to Chinese trade shocks to the local manufacturing sector have on the local non-manufacturing sector (Effect on employment and wages)

Employment stays the same Wages Fall

Imposition of Tariffs will help a nation attain:

Gains for domestic producers

Impossible Trinity

Hypothesis in international economics that it is impossible to have all three of the following at the same time: ▪ A fixed exchange rate ▪ Free capital movement - Freedom to invest and withdraw money ▪ An independent monetary policy - Which is essentially managing inflation A country must pick two out of three. It can fix its exchange rate without emasculating its central bank, but only by maintaining controls on capital flows (like China today); it can leave capital movement free but retain monetary autonomy, but only by letting the exchange rate fluctuate (like Britain--or Canada); or it can choose to leave capital free and stabilize the currency, but only by abandoning any ability to adjust interest rates to fight inflation or recession (like Argentina today, or for that matter most of Europe). In the modern world, given the growth of trade in goods and services, capital controls are easily evaded. In addition, capital controls introduce numerous distortions. Hence, there is virtually no important country which has an effective system of capital control. Under these conditions, the Impossible Trinity asserts that a country has to choose between reducing currency volatility and running a stabilizing monetary policy: it cannot do both.

According to PS which of the following is the most vulnerable industry when US grants PNTR to China

Industry where non-NTR tariff is much higher than the MFN tariff

Convergence criteria of the European Monetary Union

Inflation- no more than 3% higher than the 3 members with the lowest rate Govt. Deficit- no more than 3% of you countries GDP (g-t) Intrest Rate- no more than 2% above the average of 3 members with the lowest inflation rate Exchange rate- Member of ems for 3 years and not devalued Government Debt- no more than 60% of GDP

CLPST: Most vulnerable location when the US grants PNTR to China

Location where workers tend to work in industries where Non-NTR tariff is higher than an MFN tariff

ADHM Voting Behavior:

Locations facing stronger growth in import competition from China see a surge in people voting against the party in that location

ADHM Voting Behavior Part 2:

Locations facing stronger growth in import competition from China see a surge in people voting for Tea Party and Liberty Republicans

Locations that have the highest total tariff according to definition in the NM paper

Locations that heavily specialize in tradable industries have higher tariffs on Mexico prior to NAFTA

HM Slides: Locations that were most vulnerable to NAFTA

Locations that specialize heavily in industries where tariffs on Mexico were high before NAFTA

ADHM Voting Behavior Part 3:

Locations that were republican from 2000 to 2010 and facing stronger growth import competition tend to see different and more conservative Republicans in 2010.

Tariffs

a government tax on imports or exports

-OLI Framework- Internationalization Advantage

all capital stays within the firm, maintains competitive position

Appreciation

an increase in the value of a currency as measured by the amount of foreign currency it can buy

Inter Firm Trade

between two companies

-OLI Framework- Location Advantage

close to final consumers, government policies, transport costs, exploit comparative advantage

Forward Exchange Rate

exchange rate at which a bank agrees to exchange one currency for another at a future date when it enters into a forward contract with an investor.

Effective Exchange Rate

index that describes the relative strength of a currency relative to a basket of other currencies

Structural Change

industrialization (out of date) increase diversity of products urbanization (out of date) geographic expiation of countries markets *** as development proceeds, productive factors move out of lower-productivity activities into higher-productivity activities

Solow residual "growth theory"

number describing empirical productivity growth in an economy from year to year and decade to decade. *** amount of UNEXPLAINED growth in per capita incomes

Rule of law

political representation election civil liberties *** prevents violent conflict and provides legitimacy in political decision making

Real Exchange Rate

real exchange rate tells how much the goods and services in the domestic country can be exchanged for the goods and services in a foreign country

Basel Standards

regulate and supervise banks 1- Proposed regulatory capital requirements of 8% 2- Introduced three pillars of bank regulation (minimum capital requirements, supervisory review, and disclosure for market discipline) and two tiers of capital. Effectively reduced the capital requirement and allowed asset measurements to be risk adjusted by banks' internal models. 3- Improved asset risk adjustment and increased capital requirements to 7%. Not Sucessful!

Asset Price Deflation

the rapid or substantial decline in the value of assets Ex: Asia -burst of real-estate bubble

Gini Coefficient

•A summary measure of the Lorenz curve that gives an overall value to the degree of income inequality. = A/A+B •0 (perfect equality) - 1 (perfect inequality)

Remittances

•Remittances are flows of money from emigrants to their countries of origin •Remittances can have significant and positive impacts in developing countries by directly transferring income more efficiently than foreign aid

GNI

•The value of all final goods and services produced within a countries factors of production (not necessarily within the boarder)

GDP

•Total market value of all final goods & services that are newly produced within boundaries of an economy during a specific amount of time