Four P's: Product Flashcards
The process of planning and executing
Marketing
What are the 4 P’s of marketing?
- Place
- Product
- Price
- Promotion
Goods or stock of goods which are held for resale at a profit.
Different meanings:
1. Monetary value of goods owned
2. Quality of goods on hand
3. Fifo, Lifo, weighted average
Inventory (merchandise)
1. Accounting meaning
2. Management meaning
3. Accounting inventory costing
How the product helps achieve the firm’s objective
Product strategy
Product strategy:
Collection of a firm’s products; all available to customers
-Ex. A binder of all caskets
Product mix
Product strategy:
A group of related product items
Ex. Wood caskets, steel caskets, ect
Product line
Product strategy:
Individual item or version
Product item
Product strategy:
Number of product lines that a company has
Product line width
Product strategy:
Average number of product items in each line
Product line depth
What are some things to consider when selecting a vendor?
-Product quality and options
-Competitive pricing
-Purchasing terms
-Customer service (managerial, merchandising, customer assistance)
-Delivery service options
-Consignment opportunities
-Product line insurance (insurance, protects against a product causing damage, bodily injury or property damage)
Type of inventory control where a company does not maintain a continual track of item levels and COGS
-Generally for smaller businesses
-Does a physical count
Periodic inventory
Type of inventory control where a company keeps a continual track of inventory and calculation of COGS
-Generally for big businesses
-“Let the computers work”
Perpetual inventory
What is the inventory turnover equation?
Inventory turnover = COGS / Average inventory
What is the age of inventory equation?
Age of inventory = Days in a year (365) / Inventory turnover
Inventory control method where consumers buy in bulk
-The quantity to be purchased minimized total cost
Economic order quantity (EOQ)
