3rd Six Weeks Flashcards
The buying process that companies lead customers through when purchasing products.
Sales Funnel
The rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.
Competition
A structured and long-term marketing effort which provides incentives to repeat customers who demonstrate loyal buying behavior.
Loyalty Program
A type of license that a party acquires to allow them to have access to a business’s proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business’s name.
Franchise Model
Earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved.
Passive Income
A graphical depiction of the organizational structure of a company.
Organizational Chart
The most common type of organizational chart with higher ranking individuals situated atop the chart and lower ranking persons found below them.
Hierarchical Structure
Also known as a horizontal chart, depicts individuals along the same level, not placing greater importance to an individual’s title by placing them above any other individual.
Flat Structure
A structure with individuals grouped by their common skill-sets and also by the groups in which they work and people they may report to, usually interconnecting employees and teams with more than one manager that they would report to.
Matrix Structure
Also called the profit and loss statement or P&L, summarizes your company’s revenue and expenses.
Income Statement
This chart shows your company’s assets and liabilities.
Balance Sheet
This chart sums you expect to be coming into and going out of your business in a given time frame.
Cash Flow Statement
Relationships determined from a company’s financial information and used for comparison purposes.
Financial Ratio
When a small company decides to market existing products within the same market it has been using.
Market Penetration
When a company sells current products in a new market.
Market Expansion
When a company adds to its product line or adds new features to increase its sales and profits.
Product Expansion
Where a small company will sell new products to new markets.
Diversification Strategies
When a company purchases another company to expand its operations.
Acquisition Strategies
Closing a business, selling off assets, repaying creditors, and keeping the rest.
Liquidation
Finding another business that wants to buy yours and selling your business to them.
Acquisition
This credit does not have monthly payments of a set figure, but instead is due all at once in a lump sum payment of the full amount owed.
Noninstallment Credit
This kind of credit allows the consumer to receive a certain amount of credit to purchase one item or a few goods. One example of this is a car loan.
Installment Closed-End Credit
With this kind of credit, the consumer has a specified amount of credit she can use or not use at her leisure. Then, the consumer must pay off part of the credit she uses at the end of a period, normally a month.
Revolving Open-End Credit
The practice of strategically driving the development, market launch, and continual support and improvement of a company’s products.
Product Management
The connected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service.
Supply Chain
1st characteristic of product mix: the number of product lines the company sells.
Width of Product Mix
2nd characteristic of product mix: the total number of products or items in your company’s product mix.
Length of Product Mix
3rd characteristic of product mix: the total number of variations for each product. Variations can include size, flavor and any other distinguishing characteristic.
Depth of Product Mix
4th characteristic of product mix: how closely related product lines are to one another–in terms of use, production and distribution.
Consistency of Product Mix
5th characteristic of product mix: usually starting out with a product mix limited in width, depth and length; and have a high level of consistency.
Strategy of Product Mix
What underlies the pricing process for a product, and it should reflect a company’s marketing, financial, strategic and product goals, as well as consumer price expectations and the levels of available stock and production resources.
Pricing Objective
Used when introducing a new product that has distinct competitive advantages over similar products.
Premium Pricing
Sets prices at the bare minimum to make a small profit. The key to this is to sell a high volume of products and services at low prices.
Economy Pricing
Pricing that encourages consumer to buy products based on emotions rather than on common-sense logic. The best example is when a company prices its product at $199 instead of $200.
Psychological Pricing
Selling multiple products together for a lower price than if they were purchased separately. This is an effective strategy to move unsold items that are simply taking up space.
Bundle Pricing
