Term
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Definition
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Term
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Definition
| A car (comes with warranties and service) |
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Term
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Definition
| A restaurant– Which is more important, the food or the atmosphere and service? |
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Term
| Service Dominated Example |
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Definition
| Your taxes. You get the service of having them done, but also the papers to send in and a copy to keep. |
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Term
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Definition
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Term
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Definition
–service cannot be disconnected from the provider |
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Term
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Definition
| It doesn’t matter who you buy it from, the product is the same |
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Term
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Definition
| If you don’t sell it today you can sell it tomorrow |
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Term
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Definition
| each time the service is provided, it will be slightly different |
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Term
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Definition
–core product, plus features that tend to differentiate it from the competition
–brand names, quality levels, packaging |
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Term
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Definition
basic description of what a product is
Example: automobile |
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Term
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Definition
–The entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer. |
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Term
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Definition
–Be careful about infringing on trademarks
–Describes firm or product and is easy to remember: “Discount Furniture”
–Creative spellings are eye-catching; don’t go overboard
–Beware of selecting a name too narrow to allow the firm to grow |
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Term
| Stages of New Product Development |
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Definition
- Idea Generation/Source of Business Ideas
- Idea Screening for Business Potential
- Idea Evaluation/Feasibility Study
- Product Development
- Commercialization
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Term
| The Product Life Cyle (Introduction) |
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Definition
–Sales slowly take off and then begin to grow
–Very important to build brand awareness
–Heavy introductory marketing expenses will suppress profits
–Competition is generally low |
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Term
| Product Life Cycle (Growth) |
|
Definition
–Acceptance of the product increases rapidly
–Advertising and promotion are much less critical
–Goal in this time is to maximize market share
–Prices tend to drop as production becomes more efficient |
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Term
| Product Life Cycle (Maturity) |
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Definition
–Sales will level off and start to decline
–Profits follow suit
–Competition becomes fierce; price competition begins to rise
–Advertising will suggest new uses for the product |
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Term
| Product Life Cycle (Decline) |
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Definition
–Decline can be slow or fast, steady or unsteady
–May come from introduction of new technology
–May also be caused by a shift in consumer preferences
–Sales and profits fall during this stage |
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Term
Services go through same four stages: |
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Definition
–Easier to extend life cycle, and virtually eliminate the decline stage of a service
–Services are often much easier to change “on the run” |
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Term
| price is central to ______ strategy |
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Definition
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Term
Price is directly related to your company’s _______and sales volume |
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Definition
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Term
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Definition
–refers to the highest price that would produce your desired level of sales (or revenues) in your target market. |
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Term
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Definition
–product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased |
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Term
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Definition
–product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased |
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Term
Internal reference price |
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Definition
–a consumer’s mental image of what a product’s price should be |
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Term
External reference price |
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Definition
–an estimation of what a price should be based on advice, advertisements, or comparison shopping |
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Term
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Definition
Breakeven = Total Fixed Costs
Price – Variable Cost |
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Term
| MAP (Minimum Advertised Pricing). |
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Definition
MAP requires you not advertise below a certain price but does not regulate what the product actually sells for. |
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Term
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Definition
–Setting a price at the highest level the market will bear, usually because there is no competition at the time. |
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Term
Prestige or premium pricing |
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Definition
–Setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol. |
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Term
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Definition
–Setting a price that ends in the number 5, 7, or 9. |
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Term
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Definition
–Setting the price for a base item and then charging extra for each additional component. |
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Term
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Definition
–Setting the price for an item relatively low and then charging much higher prices for the expendables it uses. |
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Term
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Definition
–The practice of setting (usually) three price points: good quality, better quality, best quality. |
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Term
Periodic or random discounting |
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Definition
–Sales conducted at either predictable or non-predictable intervals. |
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Term
|
Definition
–Charging lower prices at certain times to encourage customers to come during slack periods |
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Term
|
Definition
–Combining two or more products in one unit and pricing it less than if the units were sold separately. |
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Term
|
Definition
–Combining more than one unit of the same product and pricing it lower than if each unit were sold separately. |
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Term
| Price-Lowering Techniques |
|
Definition
Coupons, Rebates, Loyalty and Referral Programs |
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Term
|
Definition
Allows manufacturers to give discounts directly to final consumers
Can increase sales without a “price reduction”
Allows manufacturers to gather consumer information – name, address, etc.
Low redemption rates decrease cost of the promotion |
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Term
Electronics rebate redemption rates are ____on average |
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Definition
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Term
|
Definition
English – price starts low and climbs (buyers compete) |
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Term
|
Definition
Dutch – price starts high and drops (buyers compete) |
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Term
|
Definition
Reverse – sellers compete against each other ("e-procurement“) |
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Term
| Bid pricing is common for _______ contracts |
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Definition
|
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Term
|
Definition
–Small business owners’ unique selling points that will be used to differentiate their products and/ or services from those of the competition. |
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Term
|
Definition
–Occasion of product use, user status, usage rate, loyalty status, readiness to purchase, and attitude toward product |
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Term
|
Definition
–Your key point in as few and as memorable words as possible
–effective |
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Term
|
Definition
–how much of each message conveyance you will use to sell your product as well as your objective in using each one |
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Term
|
Definition
–A form of communication that encourages the customer to act immediately, such as coupons, sales, or contests. |
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Term
Keyword and description tags |
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Definition
–Terms included in the hidden portion of a Web page which are used by search engines such as Yahoo! and Google to describe your Web site and evaluate its focus and category placement. |
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Term
| Personal Selling Structure |
|
Definition
| Prospect and evaluate->Prepare->Present-> Close->Follow up |
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Term
|
Definition
–Doubt that occurs after a purchase has been made.
–An inconsistency between experience and belief. |
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Term
Customer relationship management (CRM) |
|
Definition
–The process of tracking the customer’s different contacts with the firm, and using this data to help improve sales as well as the customer’s experience. |
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Term
|
Definition
–A strategy whose goal is growth, based on selling more of the firm’s product or service to the existing customer base. |
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Term
|
Definition
–A strategy whose goal is growth, based on selling existing customers a product or service they have never bought before. |
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Term
|
Definition
–A strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. |
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Term
|
Definition
–A strategy whose goal is growth, based on adding new products or services to the firm’s existing collection of offerings. |
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Term
|
Definition
–A type of CRM report which segments by customer (or customer group) on purchases or dates of purchase |
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Term
|
Definition
–Activities used to establish and promote a favorable opinion by the media. |
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Term
|
Definition
–A written announcement intended to draw news media attention to a specific event. |
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Term
|
Definition
–A concept in public recognition which alludes to the extent to which the public is familiar with the issue or problem at hand. |
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Term
|
Definition
Trendiness
Proximity
Public Importance
Power
Currency
Public Interest |
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Term
|
Definition
–A concept in public recognition which alludes to the impact level of the issue being discussed. |
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Term
|
Definition
–(1) Things that are considered important to large numbers of otherwise unrelated people
–(2) things that are of civic importance, as opposed to private or corporate entities. |
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Term
|
Definition
–A concept in public importance which alludes to the degree to which the issue is immediate in its impact. |
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Term
|
Definition
–(1) Things that are generally considered to be beneficial to large numbers of people,
–(2) civic causes and benefits, as opposed to private and corporate benefits.
–Good story, human interest, visuals, cultural resonance |
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Term
|
Definition
–Information about your company and its activities that is disseminated to the public in order to going their good opinion. |
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Term
|
Definition
†Attention – catchy headline
†Interest – pique their interest
†Desire – details of opening information
†Action – contact information |
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Term
|
Definition
| Recency, Frequency, Monetary Transactions |
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Term
|
Definition
–A set of goods or service that consists of only one or a few items. |
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Term
|
Definition
–A middleman business which buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers. |
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Term
|
Definition
–A middleman business which represents a manufacturer’s product or service to other business-to-business middleman firms. |
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Term
|
Definition
–A new firm that opens a Web site immediately, thus being exposed to customers from around the world. |
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Term
|
Definition
–Exporting using intermediaries such as agents, export management companies, or export trading companies. |
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Term
|
Definition
–Firms specializing in arranging international shipments— packaging, transportation, and paperwork. |
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Term
|
Definition
–A document issued by a bank that guarantees a buyer’s payment for a specified period of time upon compliance with specified terms. |
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Term
|
Definition
–A draft which can be exercised only when presented with specified shipping documents. |
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Term
|
Definition
At the client’s location
At a mutually accessible location
At your firm’s location |
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Term
|
Definition
–Services include such things as house or office cleaning, pest control, remodeling, lawn and gardening services, carpet cleaning, and similar services which must be performed at the client’s house
–As the firm grows, it may outgrow its home-based headquarters |
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Term
| Mutually accessible location |
|
Definition
–Too much specialized equipment to be readily transported
–A need for at least some client involvement
–Barbershops, dentist offices, video rental stores restaurants |
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Term
|
Definition
–A nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers |
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Term
|
Definition
–data gathered by simple observation – seeing what consumers do, rather than asking them |
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Term
|
Definition
–Questions that are answered by some sort of scale; for example, “On a scale of 1 to 5, how do you like this book?” |
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Term
|
Definition
–Questions that have only two possible choices; for example, “Have you shopped here before?” |
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Term
|
Definition
–A Web-based program that uses artificial intelligence techniques to automate tasks such as searches. |
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Term
|
Definition
–A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs. |
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Term
|
Definition
†Under the accrual method, transactions are counted when the order is made, the item is delivered, or the services occur, regardless of when the money for them (receivables) is actually received or paid. In other words, income is counted when the sale occurs, and expenses are counted when you receive the goods or services. |
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Term
|
Definition
Under the cash method, income is not counted until cash (or a check) is actually received, and expenses are not counted until they are actually paid. |
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Term
|
Definition
–An accounting approach based on specific accounting requirements set by governmental taxing agencies. |
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Term
|
Definition
–A formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators. |
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Term
|
Definition
–The concept that a business has an existence separate from that of its owners. |
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Term
|
Definition
–The accounting concept that a business is expected to continue in existence for the foreseeable future. |
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Term
|
Definition
–whatever value is left after all liabilities have been paid. |
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Term
| Only two reasons to do accounting |
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Definition
1.To produce information that is useful to you for managing your business
2.To meet legal or contractual requirements |
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Term
|
Definition
–the Modified Accelerated Cost Recovery System
–lets taxpayers depreciate more of the cost earlier |
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Term
Five common financial statements |
|
Definition
–Income statement
–Statement of retained earnings
–Statement of owner’s equity
–Balance sheet
–Cash flow statement |
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Term
|
Definition
–The sum of all profits and losses, less all dividends paid since the beginning of the business. |
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Term
|
Definition
–The concept that information flows from the income statement through the statements of retained earnings and owners’ equity to the balance sheet. |
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Term
|
Definition
–A business’s ability to manage cash flows in such a manner that the company can respond appropriately to unexpected opportunities and needs. |
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Term
|
Definition
–Generally Accepted Accounting Principles are the standardized rules for accounting procedures
–used in all audits and submissions of accounting reports to the government. |
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Term
|
Definition
–The purchase and sale of land, buildings, equipment, and securities. |
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Term
Cost-volume-profit analysis |
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Definition
–A managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales (volume) to maximize profits.
–Variable, fixed costs |
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Term
|
Definition
–The point at which total costs equal gross revenue. |
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Term
|
Definition
–indicates estimated or hypothetical information |
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Term
Cost of goods sold budget |
|
Definition
–A schedule that shows the predicted cost of product actually sold during the accounting period. |
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Term
Activity-based cost estimates |
|
Definition
–An accounting method which assigns costs based on the different types of work a business does in order to sell a particular product or service. |
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Term
|
Definition
–The difference between an actual and budgeted revenue or cost |
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Term
|
Definition
–The process of determining the effect of price and quantity changes on revenues and expenses. |
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Term
| Favorable variances would result in |
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Definition
| profits being greater than budgeted, all other things being equal; |
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Term
| Unfavorable variances would result in |
|
Definition
| profits being less than budgeted, all other things being equal. |
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Term
|
Definition
–The time that is required for a business to acquire resources, convert them into product, sell the product, and receive cash from the sale.
–Also called operating cycle |
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Term
|
Definition
–Money held in checking and savings accounts. |
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Term
|
Definition
–Stocks and bonds that are traded on an open market. |
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Term
|
Definition
–Notes issued by credit-worthy corporations. |
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Term
|
Definition
–Any person or business entity who possesses a security. |
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Term
|
Definition
2.Cash can be obtained from investments the business has made, such as stocks, bonds, land, buildings, or equipment |
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Term
| cash flow from operations |
|
Definition
1.Cash can be obtained by selling the products and services of the business and collecting cash from customers. |
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Term
|
Definition
–The sum of cash inflows and cash outflows recorded in the firm’s accounting records.
–Usually called the cash account |
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Term
|
Definition
–The sum of deposits and withdrawals recorded in a bank’s accounting records. |
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Term
|
Definition
–The sum of money that has actually been received and paid out of a depositor’s account. |
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Term
|
Definition
–An entity that processes checks and electronic fund transfers for banks and other financial organizations. |
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Term
|
Definition
–Delays in the movement of money among depositors and banks. |
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Term
|
Definition
–An accounting process that identifies the causes of all differences between book and bank balances. |
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Term
|
Definition
–A reduction in the bank account of a merchant by a credit card company. |
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Term
Cash disbursements budget |
|
Definition
–A schedule of the amounts and timings of payments of cash out of a business. |
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Term
|
Definition
–A schedule of the amounts and timings of the receipt of cash into a business. |
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|
Term
Most common ways employees
steal cash |
|
Definition
1.Larceny
2.Skimming
3.Phony disbursements |
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|
Term
Deposits and progress payments |
|
Definition
–Cash payments received before product is completed or delivered. |
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Term
Discounts for prompt payment |
|
Definition
–A reduction in sales price provided to credit customers for paying outstanding amounts in a timely manner. |
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Term
|
Definition
–Revenue-producing tasks and activities related to, but not part of, the primary strategy of a business. |
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Term
|
Definition
–Borrowing money secured by a firm’s accounts receivable. |
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Term
|
Definition
–Percentage discounts from gross invoice amounts provided to encourage prompt payment. |
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Term
|
Definition
–The practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being sold. |
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Term
|
Definition
–The practice of trading goods and services without the use of money. |
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Term
|
Definition
–A method of controlling the timing of cash outflows that is invisible to suppliers and vendors. |
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|
Term
Gaming the payment process |
|
Definition
–Using methods to appear to be paying bills on time, when in fact payment is being delayed or avoided. |
|
|
Term
|
Definition
–A financial crisis that is caused by a business growing faster than it can be financed. |
|
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Term
|
Definition
Managing director of Garage Technology Ventures, an early-stage venture capital firm
Columnist for Entrepreneur Magazine and Forbes
Author of nine books including The Art of the Start, Selling the Dream, and The Macintosh Way.
Previously, he was an Apple Fellow at Apple Computer, Inc. |
|
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Term
|
Definition
A person who has been designated as such by Apple Computer in recognition of their extraordinary technical or leadership contributions
Each Apple Fellow acts as a leader and a visionary, guiding the company in their particular area of expertise.
The Apple Fellowship has been awarded so far to very few individuals |
|
|
Term
| According to Guy Kawasaki |
|
Definition
Approximately 10 million business are formed each year
Approximately 3000 businesses per year get venture capital funding
You will be the primary source of the start up funds for you business
Besides you funding will come from the three Fs
–Friends
–Family
–Fools
Do not start a business because it is a “hot” industry
Start a business that you love
If you are not willing to put your hands in people’s mouths don’t become a dentist
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|
Term
| Sources of Financing for Small Businesses |
|
Definition
The number one source is from the owners (or potential owners) themselves.
The other major sources include family and friends, credit cards, trade credit, banks, and other commercial lenders |
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Term
|
Definition
–Money contributed to the businesses in return for part ownership of the business. |
|
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Term
|
Definition
–A legal “artificial” entity that is formed by filing specific documents with a state government. |
|
|
Term
Limited liability company (LLC) |
|
Definition
–A legal form of business organization that is created by filing required documentation with a state government.
–have a choice, under federal tax law, of being taxed as either corporations or partnerships. |
|
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Term
|
Definition
–A legal form of business organization that is created by filing required documentation with a state government;
–one or more partners may have no liability for the debts and actions of the partnership. |
|
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Term
|
Definition
–A business owned by a single individual who is responsible for all debts and claims against the business. |
|
|
Term
|
Definition
–The percentage amount that the payout of an investment differs from original cost
–Calculated as (payout − investment + dividends)/ investment. |
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Term
|
Definition
1.You will reduce your own exposure to financial loss
2.Your business will not have increased costs in the form of interest
3.Bringing outside investors into an existing business can often reenergize it by providing new ideas, procedures, and processes |
|
|
Term
Community development organization |
|
Definition
–An organization authorized by the SBA to make insured loans to small businesses that are expected to increase economic activity within a specific geographic area. |
|
|
Term
Small business investment companies |
|
Definition
–Private businesses that are authorized to make SBA insured loans to start-ups and small businesses. |
|
|
Term
|
Definition
character
captial
collertal
conditions |
|
|
Term
|
Definition
–An organization that supports startup technology businesses by providing inexpensive office space, a variety of support services, and resources
–most are associated with universities. |
|
|
Term
|
Definition
–Something of value given or pledged as security for payment of a loan
–may consist of financial instruments, such as stocks, bonds, and negotiable paper, or of physical goods, such as trucks, machinery, land, or buildings. |
|
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Term
|
Definition
–Direct reductions in the amount of taxes that must be paid, dependent upon meeting some legal criteria. |
|
|
Term
|
Definition
tax abatements
Grants
Tax Credits
Economic Development Agency
Foundation |
|
|
Term
Economic development agency |
|
Definition
–A government organization that works to increase economic activity in the form of job opportunities within a specific geographic area. |
|
|
Term
Weighted average cost of capital (WAC) |
|
Definition
–The expected average future cost of funds. |
|
|
Term
|
Definition
–A measure of the amount of debt relative to total investment. |
|
|
Term
Optimum capital structure |
|
Definition
–The ratio of debt to equity that provides the maximum level of profits. |
|
|
Term
|
Definition
–The SEC’s term for individuals with a net worth greater than $1 million or a personal annual income of at least $200,000 in each of the two most recent years
–who are therefore qualified to make private equity investments in businesses. |
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