Terms

Question 1

CRM (customer relationship management)

Answer 1

This is the overall process of building and maintaining profitable customer relationships by providing superior customer value and satisfaction

How do they do this:
* Collect and organize consumer preferences
* Track consumer behaviors
* Prioritize and synchronize marketing messages
* Communicate effectively with consumers and stakeholders at every level

Key point: Is to increase the activity of the person you are selling to.

Question 2

Demographics

Answer 2

the socio-economic characteristics such as age, gender, and income that are used by companies to identify their target market, consume preferences and buying habits.

Question 3

Psychographic information

Answer 3

Psychographics is the qualitative methodology of studying consumers based on psychological characteristics and traits such as values, desires, goals, interests, and lifestyle choices. Psychographics in marketing focus on understanding the consumer’s emotions and values, so you can market more accurately.

Question 4

Price Optimization

Answer 4

Price optimization is the practice of analyzing customer and market data find the highest (optimal price) a product can be set at to achieve the highest sales, attract customers and increase profits.

Question 5

Active Listening

Answer 5

Active listening is a communication skill that involves going beyond simply hearing the words that another person speaks but also seeking to understand the meaning and intent behind them. It requires being an active participant in the communication process.

Active listening is the practice of preparing to listen, observing what verbal and non-verbal messages are being sent, and then providing appropriate feedback for the sake of showing attentiveness to the message being presented. Active listening is listening on purpose.

Question 6

GMC (Guerilla Marketing Campaign

Answer 6

An unconventional way of performing marketing activities on a very low budget that normally involves personal interaction with consumers. These campaigns are normally very eye-catching with the intention to boost sales

Question 7

Margin

Answer 7

the difference between the price at which a product is sold and the costs associated with making or selling the product (or cost of goods sold). The ratio of profit to revenue.

Question 8

Gross Margin

Answer 8

Is the % of revenue that remains after subtracting COGS. It represents the profitability of a companies core operations before accounting and other expenses.

The % of revenue that reamins

the profit made after subtracting the costs of goods sold (COGS). Profit is expressed as a %.

Question 9

Net Margin + Formula

Answer 9

the profit that remains after subtracting both the COGS and operating expenses from revenue. Expressed as a % or decimal.

Formula: (Revenue - cost sold) / Revenue

Net profit margin helps investors assess if a company’s management is generating enough profit from its sales and whether operating costs and overhead costs are under control.

Question 10

Investopedia

Answer 10

A financial media website that measures The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.

Question 11

Factor

Answer 11

Financial intermediary that collects vendors’ receivables from retailers

FACTOR is generally a lender of money (CIT - one of the biggest). A factor enables a business to survive. Net 90 - Macy’s is going to pay within 90 days. But you want it in 30 days so they are going to their factor and tell that they’re going to receive a payment in and then they can get it from the factor within 30 days. So why is the factor doing it? Because you’re paying the factor - so he earns money doing it. For example, a 2% on the payment.
If it was macys 4% interest on the loan, but if it was JC Penny (bad financial position) they could charge 6% because if they go out of business, they take the charge.

The factor is the company, - CIT is the biggest within . The factor is a very important middle man in business.
 

Question 12

Terms

Answer 12

refer to the cash discount and dating.

Question 13

Dating

Answer 13

Dating refers to the time period during which a buyer is expected to make payment to a seller. It establishes the terms for when the payment is due, often expressed in terms like “net 30” or “net 60”

Question 14

COD (Cash on Delivery)

Answer 14

payment is due when buyer receives goods

Question 15

CND

Answer 15

Cash Next Delivery

In a “CND” arrangement, the buyer is expected to pay for the goods in cash upon delivery. This means that the seller will receive the payment immediately when the goods are handed over to the buyer.

Question 16

Net 30 FOB (freight on board)

Answer 16

they’re going to pay for the shipping

Question 17

Net 30 21 MFI

Answer 17

Net 30 21 MFI - Month Following Invoice Date (21st next month)

Question 18

Invoice date

Answer 18

What is an invoice for dummies?
An invoice is a document that you send to your client after they purchase goods or services from you, both as a means of recording the sale and of requesting payment from them. S

Question 19

Net 20 EOM

Answer 19

Net 20 EOM means the total amount is due for full payment within 20 days after the end of the month.

Question 20

3/10 net 30

Answer 20

3/10 net 30 means a 3% discount if a customer pays within 10 days. Otherwise, the total amount is due within 30 days of the invoice date.

Question 21

ROG (Receipt of Goods)

Answer 21

can have two different meanings depending on the context:

1. the physical movement of goods or materials into a warehouse or distribution center, or
2. the document required to confirm receipt of materials to the warehouse or distribution center from the supplier or manufacturer.

refers to the formal acknowledgment or confirmation that a person or business has received a shipment or delivery of goods. It signifies the moment when the recipient takes physical possession of the items they ordered or were expecting. This acknowledgment is important for verifying the quantity and condition of the goods and is often a necessary step before making payments or further processing the received items.

Question 22

Business Plan

Answer 22

A document that defines in detail a company’s objectives and how it will achieve them.

What Is a Business Plan? A business plan is a document that defines in detail a company’s objectives and how it plans to achieve its goals. A business plan lays out a written road map for the firm from marketing, financial, and operational standpoints. Both startups and established companies use business plans.

Question 23

FOB (free / freight on board)

Answer 23

The vendor pays all transportation costs and owns the merchandise until it arrives at the place designated by the buyer.
* Point where ownership of merchandise transfers
* Point where responsibility of shipping expenses transfers

Question 24

Same Store Figures:

Answer 24

same-store sales figures are expressed as a percentage that indicates the relative amount of revenue increase or decreases over 1 year. (on the Exam)

For example, a same-store sales figure of 7% indicates that total dollar revenues at a retail chain’s existing locations increased by 7% over the same given time period from the previous year.

Question 25

AUR Average Unit Retail

Answer 25

the average selling price for an item within a specific period of time. Used to compare sales between different categories.
What a store will look at to decide who gets more space vs. less space.

You have to be careful when you calculate it, 99-> 103 -> 105 (5% fall off) -> 109.9 (20% fall off)

Question 26

Low Hanging Fruit:

Answer 26

Projects or tasks that employees can complete easily and quickly before moving onto more challenging work.

Question 27

Customer Service Metrics

Answer 27

Customer service metrics are the units of measuring the state of your customer’s happiness levels, which in turn indicates if your customers will buy more, respond well to, and advocate for your brand. The top customer service metrics you should measure are: Customer Satisfaction (CSAT), Customer Effort Score (CES)
KPI - key performance indicators

Question 28

Strategic Plan

Answer 28

A high-level document outlining an organization’s long-term goals, strategies, and initiatives to fulfill its mission and achieve its vision over several years.

 Includes; vision and mission statements, and SWOT analysis.

Question 29

Channels of distribution

Answer 29

the network of businesses or intermediaries through which a good or service passes until it reaches the final buyer or end consumer.

Question 30

Omnichannel definition

Answer 30

An approach which all channels are integrated so the consumer has a seamless unified and consistent experience no matter where they shop a brand.

Question 31

A.A.R.P (American Association of Retired Persons)

Answer 31

non-profit, non-biased organization that works to address the needs and interests of middle-aged to elderly people in the US. Their purpose is to enhance the quality of life of older adults.

Question 32

Chapter 7 (bankruptcy)

Answer 32

Is known as “liquidation” of a business. Requires you sell some assets to pay creditors.

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is a legal process in the United States where individuals or businesses who are unable to repay their debts can seek relief by having their non-exempt assets sold to pay off creditors.

Chapter 7 bankruptcy is a way for people and businesses to get a fresh financial start when they can’t pay their debts. It works by selling some of their belongings to pay off as much debt as possible. This process is managed by a court-appointed person. It can affect a person’s credit for a long time, and not everyone qualifies. It’s usually done in a few months.

Question 33

Chapter 11 (bankruptcy)

Answer 33

Is known as “reorganization” for businesses that allows them to maintain day-to-day operations while creating a plan to pay creditors.

Examples:
 Toys R Us
 Brooks Brothers

Chapter 11 bankruptcy is a legal process that allows businesses to restructure and continue operations while getting relief from overwhelming debts. It gives them a chance to negotiate with creditors, develop a plan to repay or settle debts, and potentially emerge as a healthier, more financially stable entity. This process is more complex and costly than other types of bankruptcy, and it’s typically used by larger businesses facing financial challenges.

Question 34

Value added

Answer 34

the extra value created over and above the original value of something that is added as it passes through each stage of production.

Question 35

Outsourcing

Answer 35

the business practice of hiring a party outside a company to preform services or create goods that were traditionally preformed in-house by the company’s own employees and staff.

Question 36

GDP (Gross Domestic product)

Answer 36

a economic indicator that measures the total monetary value of all goods and services produced within a country’s borders over a specific period of time, typically a year or a quarter. It’s used to assess and compare the economic performance of different countries or the overall economic health of a nation.

Question 37

Sales budget

Answer 37

is a financial plan that outlines a company’s projected sales revenues over a specific period, typically a fiscal year. A fundamental component of budgeting of a business.

It focuses on two things—the number of products sold and the price at which they are sold—to predict how the company will perform

Question 38

Branding

Answer 38

refers to the process of creating a distinctive and unique identity for a product, service, company, or individual. It involves developing a set of characteristics, values, and associations that distinguish it from competitors in the eyes of consumers.

At the the most basic level, branding is made up of a company’s name and logo, visual design, mission, and tone of voice

Question 39

Sales quota

Answer 39

the performance expectation that sellers must achieve during a set time period to earn their target incentive pay.

is a specific target or goal set for salespeople or teams to achieve in terms of revenue, units sold, or other performance metrics within a defined period, typically a month, quarter, or year. Meeting or exceeding these targets often leads to bonuses or incentives

Question 40

Market penetration

Answer 40

is a strategy aimed at increasing a company’s sales and market share by selling more of its existing products or services to its current customer base or by entering new segments of its existing market.

a measure of how much a product or service is being used by target customers compared to the total estimated market for that product or service

Question 41

Black swan

Answer 41

The Black Swan Theory refers to those events which are difficult to predict in the normal course of business. They are random, unexpected, but high-impact events. These events are considered outliers, because there is no past data which can point towards its occurrence in the foreseeable future.

• 9/11 attacks

Question 42

Bench marks

Answer 42

something that serves as a comparative standard by which others may be measured or judged against. Business benchmarking is the process of comparing industry and general business best practices against your own to identify performance gaps and achieve competitive advantages.

Question 43

Needs identification

Answer 43

recognizing and understanding what consumers require or desire, so that a business can provide products or services that meet those needs effectively. It’s a basic personal selling technique that is used to understand how your products will be of value to a consumer.

Question 44

Prospecting

Answer 44

the first step in the sales process, which consists of identifying and quantifying potential customers (aka prospects), with the aim of turning them into actual paying customers

Question 45

Customer lifetime value (CLV)

Answer 45

is the estimated total value that a customer is expected to bring to a business over the entire duration of their relationship with that business.

It factors in revenue generated and associated costs.

Question 46

MBO (Management by Objectives)

Answer 46

A management system that measures employees’ performance against a series of set targets or goals to gauge their overall performance I their role.

Question 47

Needs Assessment

Answer 47

Is a part of the strategic planning process that identifies what criteria (needs or gaps) that must be met to go from the current outcome to a desired outcome.

Question 48

Output Measures

Answer 48

A numerical measurement reflecting the amount of products produced or services delivered (does not address the value or impact of the work)

Question 49

Qualitative Data

Answer 49

Non-numerical data that often describes qualities or characteristics and is often based on observations, opinions, or feelings. (eye Color)

Question 50

Quantitative Data

Answer 50

Numerical information that can be measured or counted. It deals with quantities and amounts, allowing for precise analysis and comparison. (height)