Nakiyah's Entrepreneurship study guide test 3

breakeven point

the point at which total costs equal gross revenue

Multichannel Marketing

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

Current Ratio

the value of current assets divided by current liablities

fixed costs

those costs that remain essentially at the same level, regardless of any changes in the volume of production

External Reference Price

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

Elasticity

From economics, the idea that the markets demand for a product or service is sensitive to changes in its price

Publicity

Information about your company and its activities that is disseminated to the public in order to gain their good opinion

Search Engine Optimization

Techniques applied to web pages in order to obtain favorable placement on Internet search page results.

Diversification

A strategy whose goal is growth based on adding new products or services to the firms existing collection of offerings

Budget Cycle

A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization

End User

A customer role that describes the person who eventually makes actual use of the product or service in his or her personal or work life

Customer Profile

A detailed description of an archtypical or hypothetical potential customer for a product or service, also called a customer persona

Media Kit

A type of specialized web page or sales material based package sent to media outlets that is focused on telling them about your company and its story. These are often built around a press release for something of potential current interest to the media outlet. Also called a press kit

Pershishability

A service exhibits in that if it is not used when offered, it cannot be saved for later use

Cognitive Dissonance

Doubt the occurs after a purchase has been made. An inconsistency between experience and belief

Segmentation

the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics

Cost Volume Profit (CVP) Analysis

A managerial accounting technique that looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize profits

Asset

Something the business owns that is expected tp have economic value in the future

Financial Strength

The ability of a business to survive and adverse financial events

Going Concern Concept

The accounting concept that a business is expected to continue in existence for the foreseeable future.

Permanent Accounts

The accounts of asset, liabilities, and owners equity, excluding accounts for revenues and expenses

Customer Development Process

The procedure to organize and pursue the finding, obtaining, and keeping of new customers

Variance analysis

The process of determining the effect of price and quantity changes on revenues and expenses.

agent

an intermediary business that represents a manufacturers product or service to other busness to business intermediary firms

Wholesaler

an intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets

Owners Equity

the difference between a firm's assets and its liabilities

Economy of Scale

the idea that is cheaper to make many of an otem than few

Influencer

A customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices

Decision Maker

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained.

Budget

A financial plan for the future based on a single level of operations; a quantititative expression of the use of resources necessary to achieve a business's strategy goals

Financial Accounting

A formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators.

Total Available Market (TAM)

A marketing term that refers to all of the people or organization who might consider a product or service being offered

Serviceable Available Market (SAM)

A marketing term that refers to the customers within the geographic reach of a firm.

Target Market

A marketing term that refers to the group of customers in the area you plan to serve who would likely to be interested in your product or those of competitors. Can refer to individuals or market groups called segments

Serviceable Obtainable Market (SOM)

A marketing term that represents the customers that a frim expects to be interested in its particular product or service, and able to be serviced by the firm

Liquidity

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

Direct Mail

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

Born International

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

Mat Release

A news release that is typeset and thus may be photographically reproduced for inclusion in a newspaper

Markup Pricing

A price selling method where an amount is added to the cost of a product to set the retail price and provide profit

Heterogentity

A quality of a service in which each time it is provided it will be slightly different from the pervious time

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service

Random Discounting

A sale run on a schedule that is unpredictable to the customer

Cost of Goods Sold Budget

A schedule that shows the predicted cost of product actually sold during the accounting period.

Cash Flow Statement

A statement of the sources and uses of cash in a business for a specific period of time

Balance Sheet

A statement of what a business owns, what is owes to others, and how much value the owners have invested in it

Income Statement

A statement that lists revenues and expenses and shows the amount of profit a business makes for a specifies period of time

Market Expansion

A strategy whose goal is growth, based on selling in areas or to groups previously not served by the business.

Market Penetration

A strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base.

Manufacturers suggested retail rpice

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

Customer Vector

A type of CRM report which segments by customer (or customer group) on purchases or dates of purchase

Co- Working Space

A type of incubator life offering low cost shared space and basic business service for a daily, weekly, or monthly rental fee. Unlike incubators, coworking spaces rarely get any equity in the businesses using the space

Microinventory

The purchase of inventory only after a sale is made; very typical with Internet firms.

Marketing Funnel

The rule of thumb in marketing is that it takes a large number of people to be made aware of your product in order to find a purchaser.

Purchasing Process

The sequence of steps an individual or organization goes through in making a decision to buy a product or service

Domain Name

The specific name of an internet site, consisting of a name followed by .com, .net, or a similar code

Generally Accepted Accounting Principles (GAAP)

The standardized rules for accounting procedures set out by the financial accounting standards board and used in all audits and submissions of accounting reports to the government

Accounting Equation

The statement that assets equal liabilities plus owners equity (Assests= Liabilties + owners equity)

Retained Earnings

The sum of all profits and losses, less all dividends paid since the beginning of the business.

Inelastic product

product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased

Me-Too Products

products essentially similar to something already on the market

Public Importance

(1) Things that are considered important to large numbers of otherwise unrelated people, (2) Things that are of civic importance, as opposed to private or corporate entities.

Public Interest

(1)Things that are generally considered to be beneficial to large numbers of people, (2) Civic causes and benefits, as opposed to private and corporate benefits.

Hit Rate

-How many prospects or leads you need to approach in order to make one sale. -Also called the conversion rate

Human Interest

A concept in public interest which alludes to a character to whom the public can relate.

Good Story

A concept in public interest which alludes to an incident with good triumphing

Power

A concept in public importance that alludes to potential shifts in control or influence

Currency

A concept in public importance that alludes to the degree to which the issue is immediate in its impact

Media Content Strategy Plan

A document, for the managers and employees of the firm to see, that details the specifics of the firm's marketing efforts including the goals, target audiences, distribution channels, keywords, content types, calendar, publishing procedures, action items, KPIs, and analytics across all the different types of marketing efforts the firm will attempt.

Focus Group

A form of data gathering from a small group led by a moderator

Concentrated Strategy

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

Viral Marketing

Any electronic equivalent of word of mouth advertising, in which the advertisers message spreads quickly and widely via email, website, blogs, and other online tools

Public Recognition

Being recognized or acknowledged by large numbers of people, similar to "fame."

Price Gouging

Charging an outrageously high price for something

Key Performance Indicators (KPIs)

Measures or metrics that identify the outcomes that are most important to the success of a business. While outcomes like sales or products produced are KPIs, events leading up to these are usually considered key, like customers coming to your store or website for sales, or number of products started.

Donations

Monetary or other gifts to organizations or people who are in need

Services

Nonphysical products

Advirtising

Often used to support the corporate identity and value proportions that are established through public relations efforts

Sponsorships

Paying for a local organization's needs in exchange for recognition.

Organic Traffic

People who come to your website based on their own actions where you have not paid for the link. It is also called unpaid search

Dichotomous Question

Question that has only two possible choices; for example, "Have you shopped here before?"

Categorical Question

Question that is answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."

Scalar Questions

Questions that are answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?"

Value Propostition

Small business owners unique selling points that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition

Keywords and Description Tags

Terms included in the hidden portion of a web page that are used by search engines such as Yahoo! and Google to describe your website and evaluate its focus and category placement

Margin

The amount of profit, usually stated as a percentage of the total price

Primary Research

The approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation

Total Product

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

Optimum Price

The highest price that will produce your desired level of sales in your intended market

Brand

The name a firm puts on itself and its products to differentiate them from competitors offerings

Customer Job

The term given to what a potential customer is trying to do- perform or complete a task, solve some problem, or try to achieve some outcome. The target of the job is often the key to what a proposed product or service is intended to help.

Newsworthy Events

To garner serious attention from the media and the public, a news story needs to deliver certain essentials that will hold their attention and keep your news in their thoughts. It should have public recognition, importance, and interest.

Press Release

a written announcement intended to draw news media attention to a specific event

Augmented Product

core product plus features that tend to differentiate it from the competition

Ethnographic Research

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

Promotional Mix

how much of each message conveyance you will use to sell your product as well as your objective in using each one

Sales Leads

people who receive a promotional impression and who give some thought to buying the product

Goods

physical products

Elastic Product

product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased

Prospects

sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase

Customer Retention

techniques that focus on efforts to promote satisfaction with and interest in the firm

Markup

the amount added to the cost of merchandise to establish the selling price

Law of Supply and Demand

the economic theory that describes how the demand for products or services and the supply of them affect each other

Succinct Message

Your key point in as few and as memorable words as possible

Survey

a data-collection method in which participants respond to questions

Purchaser

A customer role that describes an individual or institution that pays for or obtains a product or service.

Financing Activities

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

Public Relations

Activities used to establish and promote a favorable opinion by the media

Public Relations

Activities used to establish and promote a favorable opinion by the public

Telemarketing

Contact via telephone for the express purpose of selling a product or service

indirect exporting

Exporting using intermediaries such as agents, export management companies, or export trading companies.

Financial Statements

Formal summaries of the content of an accounting system's records of transactions.

Current

In accounting, current means an asset that will be turned into cash in less than one year or a liability that must be paid in less than one year

Long Term

In accounting, long term refers to an asset that will still have value to the business more than on year from now or a liability that will be owned more than one year from now

Liabilities

Legal obligations to give up things of value in the future

Traffic Generators

Other businesses that bring customers (generate traffic) to the area

Channels

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

Outstanding Customer Service

The idea of "going all out" for the customer or providing over-the-top service, not just the basic help, professionalism, and friendliness we all expect in any business transaction; an employee or manager who is trying to make sure the customer walks away with an exceptional experience

Prototype

The name given to the first model of a product or service.

Guerrilla Marketing

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

Variable Costs

Those cots that change with each unit produced

Impression

What it is called when someone notices a promotional effort

direct exporting

exporting using no intermediaries

Captive Pricing

setting the price for an item relatively low and then charging much higher prices for the expendables it uses

Pro Forma

A Latin phrase ("for the sake of form") that in business means a projection of future financial performance.

Master Budget

A budget, also referred to as a comprehensive budget, consists of sets of budgets that detail all projected receipts and spending for the budgeted period.

Finacial Flexability

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

Public Business

A business that has its stock bought and sold on an organized stock exchange, such as the New York Stock Exchange.

Fulfillment Center

A company that will warehouse your products and fill your customers' orders for you.

Visuals

A concept in public interest which alludes to the graphic interest held by an event.

Famous Faces

A concept in public recognition that altitudes to connections of your event or firm to individuals the general public would recognize

Issue Recognition

A concept in public recognition which alludes to the extent to which the public is familiar with the issue or problem at hand.

Trendiness

A concept in public recognition which alludes to the fit of the topic to current fashion or public interest.

Long Term Value (LTV)

A marketing concept that refers to the revenue generated by one customer over his or her lifetime dealing with one firm. Higher long term value is usually performed

Differentiated Strategy

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

Undifferentiated Strategy

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

Penetrated Market (PM)

A marketing term that describes the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.

Account

AN account is chronological list of all additions to and subtractions from a single type of assest

Managerial Accounting

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

Operating Activites

Activities involved in producing and selling goods and services

MACRS Rate

An Internal Revenue Service acronym for the Modified Accelerated Cost Recovery System. The MACRS approach lets taxpayers depreciate more of the cost earlier in the life of a capital expense.

Tax Accounting

An accounting approach based on specific accounting requirements set by governmental taxing agencies.

Activity Based Cost Estimates

An accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service.

Secondary Research

An approach to researching based on the use of existing information, often from government, commercial, or academic databases and research efforts

E-Tailer

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

Contact Manufacturing

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

Retailer

An intermediary business that sells to consumers or end users of a product

Tangiblity

An items capability of being touched, seen, tasted, or felt

Accelerator

An organization that supports start-ups, typically of a particular type with a financial investment, free or inexpensive office space, mentoring, a variety of free or low cost support services and other resources

Internal (Cost) Factors

Aspects of or choices within the business which could cause the business's costs to change.

External (Cost) Factors

Aspects of the world outside the business which could cause the business's costs to change.

Skimming

Setting a price at the highest level the market will bear, usually because there is no competition at the time

odd-Even pricing

Setting a price that ends in the number 5, 7, or 9

Freight Forwarders

Firms specializing in arranging international shipments-packaging, transportation, and paperwork

Direct Sales

Methods of going directly to your customers in order to sell your product

Direct Response Advertising

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

Depreciation

Regular and systematic reduction in income that transfers asset value to expense over time

Mail Order

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

Direct Marketing

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

Premium Pricing

Setting a price above that of the competition to indicate higher quality

Prestige Pricing

Setting a price above that of the competition to indicate your product is a status symbol

Business Entity Concept

The concept that a business has an existence separate from that of its owners

Articulate

The concept that information flows from the income statement through the statements of retained earnings and owners equity to the balance sheet

Variance

The difference between an actual and budgeted revenue or cost

Manufacturer

The entity which produces a product or service to be sold

Just in Time Inventory

The practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer.

Price Lining

The practice of setting three price points; good quality, better quality, best quality

Product Development Process

The procedure to organize and pursue the creation of new goods or services

Commercialization

The process of making the new products ready for use by consumers by achieving standards of durability and performance suitable for the market and comparable to the competition

Personal Selling

The process of selling your products and services; includes prospect and evaluate, prepare, present, close and follow up

Customer Relationship Management (CRM)

The process of tracking the customer's different contacts with the firm, and using this data to help improve sales as well as the customer's experience.

Investing activites

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

Cultural Resonance

a concept in public interest which alludes to events with a broad appeal within the market or population

Proximity

a concept in public recognition that alludes to how close the issue being discussed is to you, your family, or your business

Internal Reference Price

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

Referral Discount

a discount given to a customer who refers a friend to the business

Letter of credit

a document issued by a bank that guarantees the payment of a customer's draft

Documentary Draft

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

Sheltered Workshop

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

Open-Ended Question

a question that allows a respondent to share any feelings or information she or he thinks is relevant

Product Expansion

a strategy whose goal is growth, based on selling existing customers a product or service they have never bought before

Off Peak Pricing

charging lower prices at certain times to encourage customers to come during slack periods

Multiple or Bonus Pack

combining more than one unit of the same product and pricing it lower than if each unit were sold separately

Bundling

combining two or more products in one unit and pricing it less than if the units were sold separately

Partitioned Pricing

setting the price for a base item and then charging extra for each additional component

Predetermined Market Segments

professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics

periodic dIscounting

sales conducted at predictable intervals, such as before major holidays