Definitions Flashcards
Advertising
Any form of communication paid by a sponsor for the purpose of informing and persuading the target market about products, services, organizations, or ideas. By using advertising, an organization can control what is said about its products and services, and when and where the information appears.
AIDAS formula
The five successive stages of consumer responsiveness in the selling process. Attention, Interest, Desire, Action, Satisfaction
Asset
A use of funds which represents money due to the bank. Examples: loans, investments,
ALCO
Asset Liability Committee - ensures the bank’s risk, funding needs, funding sources, and gaps are managed.
Captive financing
Financing offered by the manufacturer and related entities through the dealer.
Closed-end credit
Credit for a specific purpose and for a fixed amount that is established at the beginning of the transaction, to be repaid in one or more regular payments over a set term.
Compliance
The interpretation and application of banking laws, regulations, and guidelines.
Intermediary
Distribution channel that increases the availability or convenience of a service, increases its use or the revenues from its use, or helps maintain existing users, increase use among existing users, or attract new users.
Legislation
The act or procedure of making laws
Liability
A source of funds which the bank has to pay back - deposits, fed funds borrowed.
Marketing concept
An approach to business that makes marketing an essential element of business; a methodology that enables all of an organizations divisions to focus their efforts on those activities that satisfy customers needs by providing them with products and services they want and that earn appropriate margins for the company and its shareholders.
Marketing intermediaries
A third party that helps the seller promote and distribute the product to the customer.
