Exam #2 Preparation

charge back

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

viral marketing

Any electronic equivalent of word-of-mouth advertising, in which the advertiser's message spreads quickly and widely via e-mail, website, blogs, and other online tools.

secondary research

Information already collected for some other purpose than the current problem or questions.

financial flexibility

A business' ability to manage cash flows in such a manner that the company can respond appropriately to unexpected opportunities and needs.

cash budget

A cash budget identifies when, how, and why cash is expected to come into the business, and when, how and why it is expected to leave.

internal reference pricing

A consumer's mental image of what a product's price should be.

sales promotion

A form of communication that encourages the customer to act immediately, such as coupons, sales or contests

liquidity

A measure of how quickly a company can raise money through internal sources by converting assets to cash.

managerial accounting

Accounting methods that are specifically intended to be used by managers for planning, directing and controlling the business.

operating activities

Activities involved in producing and selling goods and services.

financing activities

Activities through which cash is obtained from and paid to lenders, owners and investors.

external reference pricing

An estimation of what a price should be based on information external to a consumer, such as advice, advertisements, or comparison shopping.

premium pricing

Setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol.

float

Delays in the movement of money among depositors and banks.

primary research

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

elastic product

Product for which there are any number of substitutes and for which a change in price makes very little difference in quantity purchased.

market research

Systematic collection and interpretation of data to support future marketing decisions

financial strength

The ability of a business to survive adverse financial events.

differential advantage

The characteristic that separates one company from another in product, price, promotion and or distribution (placement)

total product

The entire bundle of products, services, and meanings of one's offering; including extras like service, warranty, or delivery, as well as what the product means to the customer.

target market

The group of people on which a marketer focuses promotion and sales efforts

segmentation

The process of dividing a market into smaller portions of people who have common characteristics.

investing activities

The purchase and sale of land, buildings, equipment and securities.

guerilla marketing

The use of creative and relatively inexpensive ways to reach your customer.

core product

The very basic description of what a product is.