The 4 P's Vocab

Interdependence

The four components of the marketing mix already directly related and reliant on one another.

Annual Percentage Yield (APY)

defined as the rate earned over a year taking compound interest into effect.

Logistics

the details of an organization and the functions that keep it running appropriately.

Wholesale

the re-sale of goods by retailers.

Target Market

The Group of people most likely to become customers, identified for a specific marketing program.

Market Information Rates

A set of procedures and methods that regularly generates, stores, analyzes, and distributes information for making marketing and other business decisions.

Inventory

Amount of merchandise on hand at any particular time, including raw materials, parts from suppliers, manufactured subassemblies, work-in-process, packing materials, or finished goods.

Distribution Channel

The commercial activity of transporting and selling goods from a producer to a consumer.

Power of 72

The rule of 72 is a shortcut to estimate the number of years required to double your money at a given annual rate of return. The rule states that you divide the rate, expressed as a percentage, into 72:

Risk

is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profits is. influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations.

Intermediary

middleman business involved in sales transactions that move products from the manufacturer to the final user. An Agent or connector between people and things.

Promotion

refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty. It is one of the four basic elements of the market mix.

Federal Funds Rate

The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other.

Mark-up Percentage

the difference between the amounts of money it costs a company to manufacture a product compared to the cost they charge customers for it.

Marketing Mix

the four basic marketing strategies called the four P's Product, Place, Price, Promotion.

Financing

to purchase a product and then pay off in payments, with interest rates applied.