vocab
Long term borrowing similar to selling shares, but with the promise of repaying the amount lent at a fixed period in time, usually for a set amount of interest
Debentures
setting price by adding a fixed amount to the cost of making or buying the product.
cost-plus pricing
Current assets - current liabilities=
working capital
the collection of information about consumer buying behavior and their opinions about products
Qualitative
individuals or organizations identified by a business as the customers or consumers of their products
target market
An item is bought on finance, repayments are made each month until the final payment when the item becomes the property of the firm
hire purchase
information about the product is communicated to consumers to create product awareness and attract their interest.
informative advertising
gross profit margin
gross profit/sales revenue
the firm decides what to produce and then tries to find buyers for the product.
product-oriented
selling the same product to the whole market
Mass marketing
A share in the business is sold to an individual or another business. This money then used to purchase new assets
Issuing shares
a group of people that represents the target market selected to take part in market research.
sample
ROCE
return on Capital employed
net profit/capital employed
a plan to achieve the marketing objectives using a given level of resources.
marketing strategy
setting a price similar to that of competitors' products which are already established in the market.
Competitive pricing
Money kept in the business by the owners
retained profit
the pattern of sales of a product from introduction to its withdrawal from the market.
product life cycle
Current ratio
current assets/current liabilities
marketing activities to extend the maturity stage of a product.
Extension strategies
marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business's products.
promotions
Items are bought from suppliers on a ‘buy now pay later’ basis
Trade credit
shops and other outlets that sell goods and services to the final customer
retailer
total assets - current liabilities
a name, image or symbol that distinguishes a product from competitors' products
Brand
the special feature of a product that sets it apart from competitors' products.
unique selling point