Term
| Model of business planning |
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Definition
1. Prepare a relatively easy business plan; this can be used to obtain initial funding if it is needed
2. Actually start the business
3. Refine the business plan on the basis of experience gained from running the business and use the revised plan to run the business and secure additional funding as necessary
4. Continue to grow the business - produce and market the product, hire employees as needed, etc. |
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Term
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Definition
1. poorly prepared and has an unprofessional look
2. Plan is far too slick
3. The executive summary is too long
4. Not clear where the product is in terms of development
5. No clear answer to “why would anyone ever want to buy one?”
6. There is no clear statement of the qualifications of the management team
7. Financial projections are wishful thinking |
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Term
| 5 things an entrepreneur must accomplish |
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Definition
1. Make meaning
2. Make mantra
3. Get going
4. Define a business model
5. Weave a MAT (milestones, assumptions, tasks) |
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Term
| 4 basic principles of business writing |
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Definition
1. Purposeful
2. Persuasive
3. Economical
4. Audience oriented |
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Term
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Definition
1. Prewriting - Analyze, Anticipate, Adapt
2. Writing - Research, Organize, Compose
3. Revising - Revise, Proofread, Evaluate |
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Term
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Definition
| Understandable, memorable, and effective in changing thought or behaviour |
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Term
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Definition
| Simple, Unexpected, Concrete, Credible, Emotional, Stories |
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Term
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Definition
| Major conclusion to a piece of writing that the author is trying to persuade you to accept |
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Term
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Definition
| Claims that generally do not need to be contested |
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Term
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Definition
| Statement(s) that supports the claim |
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Term
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Definition
| Combination of a claim and its support evidence |
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Term
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Definition
| Accuracy, Precision, Sufficiency, Representativeness, Authority, Clarity of Expression |
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Term
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Definition
| A logical link that fills the gap between a piece of evidence and a claim |
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Term
| Two major types of assumptions and define |
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Definition
Reality assumption - Challenge a reality assumption by presenting information that shows the author’s notion of reality as debatable or just wrong
Value assumptions - ideals, our standards of right and wrong, the way things ought to be. |
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Term
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Definition
| • Certain events or factors (causes) are responsible for bringing about other events or situations (effects). |
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Term
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Definition
| • Involves identifying customer needs and then producing the goods or services that will satisfy them while making a profit |
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Term
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Definition
| A strategy that focuses on forging long-term partnerships with customers. Companies gain these partnerships by creating customer value and offering customer satisfaction. It is less expensive to serve an existing customer than to find another. Easier to retain a customer than to find a new one. |
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Term
| Customer Relationship Management (CRM) |
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Definition
| processes that an organization uses to track and organize information regarding current and prospective customers |
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Term
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Definition
| set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition |
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Term
| Name the types of competitive advantages and what they are |
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Definition
o Cost competitive advantage: This means that a firm can produce its product for a lower cost than its competitors while maintain satisfactory profit margins.
o Differential competitive advantage: When a firm provides something unique that is valuable to buyers beyond just having a low price
o Niche competitive advantage: When a firm targets a single segment of the market within a limited geographic area |
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Term
| Consumer Decision Making Process |
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Definition
1. Need Recognition.
2. Information Search.
3. Evaluation of Alternatives.
4. Purchase.
5. Post-purchase behaviour. |
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Term
| Influences on consumer decision making |
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Definition
| Culture, Social, Individual, Psychological |
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Term
| Types of consumer buying decisions |
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Definition
| Routine response behavior, limited decision-making, extensive decision-making |
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Term
| Difference between business-to-business market and consumer market |
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Definition
o Purchase volume: Business customers by in much larger quantities than consumers.
o Number of customers: There are fewer customers for business marketers than there are for consumer marketers. This makes it much easier to monitor prospective buyers and their needs.
o Location of buyers: Business customers tend to be much more geographically concentrated than consumers.
o Direct distribution: Business sales tend to be made directly to the buyer, because sales involve large quantities. Consumer goods are likely to be sold through intermediaries such as wholesalers and retailers. |
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Term
| Name three trends and describe them |
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Definition
• Internet Marketing Research - Allows rapid access to business intelligence and thus allows for better and faster decision making
• Scanner-Based Research - A system for gathering information from a single group of respondents by continuously monitoring the
• Loyalty cards - Cards issued by a manufacturer, service organization, or retailer that give discounts to loyal and frequent shoppers
• One-To-One Marketing - Creating a unique marketing mix for every customer |
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Term
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Definition
| identifying consumer needs, then producing the goods/services that will satisfy them while making profit for the organization |
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Term
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Definition
| strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction |
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Term
| Bases of market segmentation |
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Definition
| Geographic, Demographic, Customer Type, Psychographic |
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Term
| Perceptual Mapping and Preference Analysis |
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Definition
| Determine which of the segments will be the target market by finding the biggest gap between how the customer perceives the competition meets their needs (perceptual mapping) and what they really want (preference analysis) |
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Term
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Definition
| Finding a distinct position for your product in your customers’ mind that communicates your product as one with a unique benefit. |
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Term
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Definition
| Convenience, Shopping, Specialty, Unsought |
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Term
| Types of convenience goods/services |
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Definition
| Staples, Impulse goods, emergency goods |
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Term
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Definition
| Any good or service, along with its perceived benefits, which create value for customers |
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Term
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Definition
| Introduction, Growth, Maturity, Decline |
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Term
| Strategies for "Introduction" stage |
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Definition
Encourage trial
Establish competitive advantage
Establish distribution network
Build brand awareness
Set introductory pricing |
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Term
| Strategies for "Growth" stage |
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Definition
Get triers to repurchase, attract new customers
Maintain product quality
Solidify distribution relationships
Provide information
Maintain prices |
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Term
| Strategies for "Maturity" stage |
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Definition
Seek new users or uses
Modify product
Provide additional incentives to ensure support
Reposition product
Reduces prices to meet competition |
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Term
| Strategies for "Decline" stage |
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Definition
Reduce marketing expenses, keep loyal customers
Maintain product
Eliminate trade allowances
Eliminate most advertising and sales promotion
Maintain prices |
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Term
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Definition
• Profit maximization
• Achieving a Target Return on Investment
• Value pricing |
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Term
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Definition
| A certain dollar amount is added to a product’s cost to arrive at the retail price |
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Term
| Product pricing strategies and what they are |
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Definition
• Price Skimming - For new products entering the market, the distributor can price it high and then over time lower the price.
• Penetration Pricing - Offering new products at low pricing with the hope of achieving large sales volume
• Leader Pricing - Pricing products below the normal mark-up or below cost to attract new customers to a store that they would not usually stop at
• Bundling - Grouping two or more related products and pricing them as one
• Odd-even Pricing - Psychologically odd pricing is viewed as a bargain and even pricing is viewed as something with quality
• Prestige Pricing - Raising the price of the product so that consumers view at as being something prestigious |
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Term
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Definition
• Agents and brokers
• Industrial distributors
• Wholesalers
• Retailers |
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Term
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Definition
• Multiple channels - When a producer selects two or more channels to distribute the same product it is called dual distribution
• Non-traditional channels - Helps differentiate the firm’s product from the competition
• Strategic channel alliances - Enables the producer to deliver products through another manufacturer’s already established channel |
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Term
| Function of distribution channels |
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Definition
• Channels reduce the number of transactions
• Channels ease the Flow of Goods
• Channels perform needed functions |
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Term
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Definition
• Creating awareness
• Getting consumers to try products
• Providing information
• Keeping loyal customers
• Increasing the amount and frequency of use
• Identifying target customers |
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Term
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Definition
Advertising
Personal selling
Sales promotion
Public Relations |
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Term
| Integrated Marketing Communications (IMC) |
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Definition
| Involves carefully coordinating of all promotional activities to produce a consistent, unified message that is consumer focused |
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Term
| Factors that affect the Promotional Mix |
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Definition
o The nature of the product
o Market characteristics
o Available funds
o Push and Pull strategies |
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Term
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Definition
| A promotional strategy in which a manufacturer uses an aggressive personal selling approach to wholesalers and retailers in the hope of having them put your product on store shelves |
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Term
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Definition
| A promotional strategy in which a manufacturer focuses on stimulating consumer demand for a product through heavy advertising; with the hope that consumers would go asking at their local retailers for the product and then because they don’t have it on shelves, they would ask the manufacturer to sell it to them |
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Term
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Definition
• Incorporating more technology at all levels
• Yield Managements Systems (YMS) help companies maximize their revenues
• Category Management |
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Term
| Total Product Concept includes: |
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Definition
o Brand
o Package
o Service
o Warranty
o Delivery |
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Term
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Definition
| A collection of perceptions in the mind of the consumer |
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Term
| Stages of brand name recognition |
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Definition
Non-recognition
Brand recognition
Brand recall / awareness
Brand preference
Brand loyalty |
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Term
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Definition
o Cost based - mark-up
o Competitive based - market share
o Important that the price supports the CBP |
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Term
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Definition
o Market protection
o Market domination
o Market stabilization
o Product line promotion, bundling
o Price lining
o Customer attraction
o Image enhancement |
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Term
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Definition
| Non-personal sales presentation that is paid for by an identified sponsor |
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Term
| Objectives of advertising |
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Definition
Aware of your product.
Interested in your product.
Desire your product.
Act on your product. |
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Term
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Definition
o Increase credibility of source
o Develop a clear message
o Use most effective medium |
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Term
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Definition
| Cost of advertising divided by the number of consumers the medium will reach |
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Term
| How are all advertising, personal selling, and sales promotion and publicity integrated in the IMC |
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Definition
| o IMC is integration marketing communication. It is the careful coordination of all promotional activities to deliver the same CBP to the customer. Advertising, sales promotion, PR and publicity are all forms of the promotional mix. Advertising and personal selling can be combined to generate more leads, reduce cost of all sales, reach ‘inaccessible’ people (the ones that don’t answer the phone or door), and maintain brand image in buyer’s mind. This along and all other sales promotion, PR and publicity, should send to the consumer the same message about the product. If there are conflicting messages between these components then the consumer will be confused about the product |
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Term
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Definition
| Classify summarize and analyze data - prepare financial reports - use reports to make decisions |
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Term
| Financial vs. Managerial Accounting |
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Definition
o Financial: The focus is on preparing external financial statements that are used by outsiders to assess the financial strength of the business.
o Managerial: The focus is on providing financial information that managers can use to make decisions internally about current and future operations |
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Term
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Definition
o Accountants expand their role: Take an active role in advising their clients on systems and procedures, accounting software, and changes in accounting regulations.
o Valuing knowledge assets: The value of intellectual capital
o Canada moves to IFRS |
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Term
| What is ASPE, GAAP and IFRS |
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Definition
• ASPE: Accounting Standards for Private Enterprise.
• GAAP: Generally Accepted Accounting Principles.
• IFRS: International Financial Reporting Standards. |
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Term
| Key differences between ASPE/GAAP and IRFS |
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Definition
o Relevancy vs. Reliability: Fair value vs. historic cost of an asset.
o Title of statements: Statement of financial position / Statement of Comprehensive Income.
o Order of Assets: It is in reverse – non-current comes before current. |
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Term
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Definition
| Shows the scope and opinion, and qualifications. |
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Term
| How can a profitable company fail? |
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Definition
| • A profitable company can go bankrupt because the profit that is received is mostly in the form of receivables. This money is not cash, and if it is not collected in adequate time, then it will not be possible to pay off accounts payable and the company will go bankrupt. |
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Term
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Definition
| Current Assets / Current Liabilities |
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Term
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Definition
| Current Assets – (Inventories + Supplies + Prepaid Expenses) / Current Liabilities |
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Term
| Rule of thumb for current ratio and why |
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Definition
2:1 to 4:1
If it is not 2:1, then the company is going to have trouble paying its liabilities in the short-term.
It if is greater than 4:1, then the money is being underutilized. |
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Term
| Rule of thumb for acid test ratio and why |
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Definition
| Rule of thumb is that it should be greater than 1:1, more accurate measure because the only assets that would actually be used in day-to-day operations would be cash and accounts receivables, and this ratio disregards the other needed current assets |
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Term
| Accounts Receivables Turnover |
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Definition
| Annual (credit) sales / Avg. A/R |
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Term
| Average Collection Period |
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Definition
| Avg. accounts receivable x 365 days / annual (credit) sales |
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Term
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Definition
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Term
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Definition
| 2% discount if you pay in 10 days |
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