Week 10-11 Flashcards
is a company’s plan to sell or advertise a product or service.
is an overview of how a business or organization will
articulate its value proposition to its customers.
marketing strategy
explains the organization’s current purpose and how it will achieve its goals,
defines the organization’s business, its objectives, and
how it will reach these objectives.
Mission Statement
describes the organization’s future goals and aspirations.
are often more future-oriented than mission statements.
where the organization aspires to go.
Vision Statement
are measurable goals that businesses set to achieve through their marketing campaigns.
Marketing objectives
improving the unique product value proposition
customers will see the product as more desirable and be willing to pay a price premium, therefore, sales revenue will be increased.
Financial objectives
are specific, measurable, achievable, relevant, and time-bound goals that help you achieve your marketing goals.
SMART marketing objectives
Make your goal clear and easy to understand.
Specific
Identify metrics that you can use to track your progress.
Measurable
Make sure your goal is realistic and achievable within your company’s constraints.
Achievable
Set a deadline for your goal. This will help you stay on track and ensure your team feels a sense of urgency.
Time-bound
Consider how your objective will help you achieve a larger goal.
Relevant
are the gaps between financial measurements, like revenue and costs or profits and revenue.
Increasing margins
increase its revenue to finance business
growth, employee salaries and bonuses or to expand into other markets.
Increasing revenue
Companies sometimes set an objective to decrease the cost of goods sold.
can help the company increase profit margins by addressing the direct expenses for each product the company sells.
Reducing COGS
costs are any operational costs that are crucial to the business. For example, utility costs, labor and materials costs are overhead expenses.
are any operational
costs that are crucial to the business.
Reducing overhead
is the amount of cash or “liquid” assets a company has at any time. like machinery or stocks, that the company can sell quickly to gain a large amount of cash. For example, a manufacturing company’s
production machinery might be its liquid assets,
Improving liquidity
Companies might seek to increase their net revenue, which is the revenue the company earns after it pays taxes.
helps the business keep more of the money it earns for reinvesting, providing more liquidity for the business or growing its operation.
Increasing net revenue
is a common objective for startups or small businesses that aren’t turning a profit yet.
measures how much the company earns
before it calculates the true cost of running the business.
Calculating EBITA (Earnings Before Interest Taxes and Amortization)
Companies may invest in specific projects or innovative processes. Some companies also invest in stocks to increase their assets and liquidity.
Maximizing ROI
is a measurement of the ratio of company
profitability and capital efficiency. It measures the amount of profit the company earns in relation to the capital it employs to create that profit.
Maximizing ROCE ( Return on Capital Employed)
the amount of money that “flows” through a company. It includes how much revenue a company earns, how much it spends on various projects,
Improving cash flow
is a measurement of the company’s cash after it pays all of its debts, operational costs and other expenses.
Increasing net profits
measurement of the ratio between all of
the company’s debts and its equity. “Equity” refers to the total amount of money a company could return to its investors if it liquidated all of its assets.
Reducing debt-to-equity ratio
