Market Planning Glossary:
Topic Category
Marketing termsReading Sections
Diagrams demonstrating AIDAAcronym used to remember the sequence of steps in making a sale:
gain the prospect’s Attention,
arouse Interest in the product or service,
arouse Desire for the product or service,
secure Action (a decision to buy or not to buy).
The emotional or other end results that your products or services provide.
"My factories make cosmetics; we sell hope." Hope is the benefit.
Businesses competing for the same market dollars as you;
may be direct (selling the same product or service in the same way to the same people)
or indirect.
Those aspects of your business which give it an edge over your competition.
Structured look at your competitors to find out how you and they differ (or do not differ).
How you stack up against your competition.
Those markets you won’t give up no matter what you have to do to keep them.
Diagrams demonstrating SWOT AnalysisSWOT stands for strengths, weaknesses, opportunities, threats.
A method of analyzing the business to decide what to stress, what to minimize, and how.
Forces a look at both internal and external forces.
Accounting Terminology:
Cash, plus other assets that can be immediately converted to cash, should equal or exceed current liabilities.
The formula used to determine the ratio is as follows:
cash plus receivables (net) + marketable securities / current liabilities
The “acid test” ratio is one of the most important credit barometers used by lending institutions, as it indicates the abilities of a business enterprise to meet its current obligations.
A scheduling of accounts receivable according to the length of time they have been outstanding.
This shows which accounts are not being paid in a timely manner and may reveal any difficulty in collecting long overdue receivables.
This may also be an important indicator of developing cash flow problems.
To liquidate on an installment basis;
the process of gradually paying off a liability over a period of time,
(i.e., a mortgage is amortized by periodically paying off part of the face amount of the mortgage).
The valuable resources, or properties and property rights owned by an individual or business enterprise.
An itemized statement that lists the total assets, liabilities, and net worth of a given business to reflect its financial condition at a given moment.
Mathematical analysis which establishes the sales point at which the business neither makes nor loses money.
The volume of sales at which the business neither makes a profit nor suffers a loss.
Capital funds are those funds that are needed for the base of the business. Usually they are put into the business in a fairly permanent form such as fixed assets or plant and equipment, or are used in other ways that are not recoverable in the short run unless the entire business is sold.
Equipment used to manufacture a product, provide a service, or sell, store, and deliver merchandise. Such equipment will not be sold in the normal course of business but will be used and worn out or be consumed over time as business is conducted.
The total funds invested in a business, including equity, debt, and retained surplus.
The actual movement of cash within a business—cash inflow minus cash outflow. A term used to designate the reported net income of a corporation plus amounts charged off for depreciation, depletion, amortization, and extraordinary charges to reserves, which are bookkeeping deductions and not actually paid out in cash. Used to offer a better indication of the ability of a firm to meet its own obligations and to pay dividends, rather than the conventional net income figure.
See liquidity.
An asset pledged to a lender in order to support the loan.
A basic or staple item, such as milk, that (in this context) is usually bought on a price basis.
Cash or other items that will normally be turned into cash within one year, and assets that will be used up in the operations of a
firm within one year.
Amounts owed that will ordinarily be paid by a firm within one year. Such items include accounts payable, wages payable,
taxes payable, the current portion of a long-term debt, and interest and dividends payable.
A ratio of a firm’s current assets to its current liabilities.
Because a current ratio includes the value of inventories that have not yet been sold, it does not offer the best evaluation of the firm’s current
status. The “acid test” ratio, covering the most liquid of current assets, produces a better evaluation.
Customers who are (all things being equal) going to stick with you.
Refers to borrowed funds, whether from your own coffers or from other individuals, banks, or institutions. It is generally secured with a note, which in turn may be secured by a lien against property or other assets. Ordinarily, the note states repayment and interest provisions, which vary greatly in both amount and duration, depending upon the purpose, source, and terms of the loan. Some debt is convertible, that is, it may be changed into direct ownership of a portion of a business under certain stated conditions.
The desire for a commodity together with the ability to pay for it; also, the amount people are ready and able to buy at a certain price.
Think "supply and demand."
The statistical study of human populations, especially with reference to size and density, distribution, and vital statistics.
Relating to the dynamic balance of a population, especially with regard to density and capacity for expansion or decline.
A marketing analysis that targets groups of prospects by factors such as sex, age, marital status, income, occupation, family size, and education (from Forecasting Sales and Planning Profits, Kenneth E. Marino).
Just split this into it's own topic
