Marketing Basics
The process of grouping customers by shared characteristics (age, location, lifestyle) to target marketing.
What is market segmentation?
One of the 4 P’s that describes what you’re selling.
What is Product?
The financial statement that reports revenues, expenses, and net income for a period.
What is the Profit & Loss statement (Income Statement)?
Current assets minus current liabilities gives this short-term liquidity measure.
What is working capital?
The function of money that allows people to buy and sell goods and services.
What is medium of exchange?
The specific group most likely to buy a product that marketing targets
What is a target market?
The 4 P’s element concerned with how much customers pay.
What is Price?
The formula: Revenue minus Cost of Goods Sold equals this.
What is Gross Profit?
A ratio used to measure the amount of debt compared to equity, assets, or earnings.
What is a leverage ratio?
Physical cash that governments declare must be accepted for payments is called this.
What is legal tender (cash)?
The marketing approach that starts by identifying customer needs and builds products to meet them better than competitors.
What is the marketing concept?
The 4 P’s element describing distribution channels — where customers buy the product.
What is Place (or Channel Management)?
The main accounting record that stores all transactions organized by account.
What is the General Ledger?
This analysis compares financial data across time periods to spot trends.
What is horizontal analysis (or trend analysis)?
Money that has intrinsic value due to its material, like gold or silver.
What is commodity money?
This segmentation divides customers by lifestyle, interests, personality, and values.
What is psychographic segmentation?
An activity like social media ads or influencer campaigns intended to inform customers about a product.
What is Promotion?
The accounting equation in its standard form.
What is Assets = Liabilities + Shareholders’ Equity?
The analysis that compares line items as a percentage of a base item (like revenue) within the same period.
What is vertical analysis?
A payment method that deducts funds directly from your bank account at purchase.
what is a debit card?
The activity focused on improving a website’s ranking in search engine results to increase traffic.
What is search engine optimization (SEO)?
A combined marketing decision: setting product features, introductory pricing, local distribution in stores popular with teens, and a sampler campaign — this is an example of creating a unified...
What is marketing mix (or integrated marketing strategy)?
The accounting method that records revenues and expenses when they occur, even if cash hasn’t changed hands.
What is the Accrual Accounting Method?
The process of comparing actual results to budgeted or forecasted numbers to explain differences.
What is variance analysis?
Currency whose value is derived from government decree and public trust rather than a physical commodity.
What is fiat currency?