Small Business Marketing MKTG 3373
WORDS TO KNOW
1. Accounting: The systematic organization, recording and summary of the financial
information of a business.
2. A.D.A. Principle: Process of developing Awareness, then Desire, and eventually Action in a
promotional effort.
3. Adoption Curve: Illustrates the rate different groups accept a new idea or product. Generally
divided into innovators, early adopters, early majority, late majority, and laggards.
4. Assets: Property or economic resources owned by individuals or enterprises.
5. Balance Sheet: A financial report showing the assets, liabilities, and owner equity of an
enterprise.
6. Break-Even Analysis: Calculating fixed cost and variable cost to determine the amount of
income required to break-even.
7. Business: An organization that is offering goods or services to potential buyers for profit.
8. Business Plan: A written document that tells where an organization is, where the
organization wants to go, and how the organization intends to accomplish its goals.
9. Buyer Motivation: An urgent need, a fear of loss, of other motivational triggers that might
cause a customer to buy.
10. Cash Flow Statement: A projection of what the cash requirements and the cash reserves of
the organization will be.
11. Comparative Advantage: An economic term that deals with making choices based on what
is best for the individual.
12. Contract: A binding agreement based upon the genuine assent of the parties, made for a
lawful object, between competent parties, in the form required by law, and generally
supported by consideration.
13. Convenience Goods: Products the consumer needs, but isn't willing to spend much time in
shopping for comparisons.
14. Corporation: A separate legal entity incorporated under the laws of a state for a specific
purpose.
15. Cost of Goods Sold: Cost of goods that a company buys for inventory to resell, plus other
expenses incurred in getting them to the destination.
16. Credit: The right side entry on an accounting T-account. Also, buying goods or services to
be paid for at a later date.
17. Debit: The left side entry on an accounting T-account.
18. Demographics: The study and analysis of human populations summarized into categories.
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Small Business Marketing MKTG 3373
19. Depreciation: The deterioration or expiration of an asset's usefulness.
20. Distribution Channels: Any supply chain that moves a product from original production to
final customer, including retailers, wholesalers, distributors, and other deliver methods.
21. Drips: Impressions made to potential customers to build awareness for a product.
22. Emergency Goods: Convenience goods which are purchased only when the need is great.
23. Entrepreneur: Risk Taker, Market Finder. A person who organizes, operates and assumes
the risk for a business venture.
24. Equilibrium Price: The balance between supply of a product and demand for a product
25. Equity: The right, claim or ownership in a property.
26. Expenses: Goods or services consumed in operating a business.
27. Features and Benefits: A Feature is an actual physical property or function of a product and
the Benefit represents the usefulness of the feature to the customer. The benefit is the “what’s
in it for me” part of the product.
28. Financial Statements: Summary reports of financial and accounting data like the Income
Statement and the Balance Sheet that state the financial condition of a business.
29. Four Ps of Marketing: Product, Price, Place, Promotion
30. Geographic: Marketing information based on a specific location.
31. Goals: The objective or final destination of an object or plan.
32. Good Will: Creating a positive awareness of a business.
33. Gross Profit: Net sales minus the Cost-of-Goods-Sold.
34. Heterogeneous Goods: Shopping goods that the customer sees as different and wants to
inspect for quality and suitability.
35. Homogeneous Goods: Shopping goods that the customer sees as basically the same and
wants at the lowest price.
36. Impulse Goods: Convenience goods which are bought quickly, as unplanned purchases,
because of a strongly felt need.
37. Income Statement: A financial statement showing revenues earned by a business, the
expenses incurred in earning the revenues, and the resulting net income or net loss.
38. Job Descriptions: A written guide for employees to help them understand their role in the
business.
39. Journals: Books of original entry in which transactions are first recorded and from which
transaction amounts are posted to the ledger accounts.
40. Ledgers: A group of accounts used by a business in recording its transactions.
41. Liabilities: A debt owed by a business or individual.
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Small Business Marketing MKTG 3373
42. Liquidity: The state of a firm's cash position and ability to meet maturing obligations.
43. Manufacturing Business: A business that makes product from raw materials.
44. Marketing: Identifying potential customers and developing ways to get products or services
to those potential buyers.
45. Marketing Mix: The controllable variables which a company puts together to satisfy a
target group which includes the Product, Price, Place and Promotion of goods and services.
46. Marketing Research: Gathering and analyzing data to help in making decisions as to what
kinds of products to produce and how to get those products to the customer.
47. Media: The type of mass communication used to reach an audience or market.
48. Merchandising Business: A business concern that is primarily interested in buying products
and then reselling them for a profit.
49. Money: A standard of value, a medium of exchange, a standard of deferred payment, or a
store of value.
50. Net Profit: The amount of profit after expenses are subtracted from gross profit. (Sales Cost of Goods Sold) - Operating Expenses = Net Profit.
51. Operating Policies: Written descriptions of how a business will react to various situations.
52. Opportunity Cost: The economic principle which states that if something is bought
something else has to be given up.
53. Partnership: A business organization where two or more people have equity or ownership
in a business venture.
54. Place: The distribution channel of channels used to get a product from production to final
consumer.
55. Planning: A process of deciding what objectives to pursue during a future time period and
what to do in order to achieve those objectives.
56. Posting: Transcribing the debit and credit amounts from a journal to the ledger accounts.
57. Price: The equilibrium between the cost of a product and the amount a customer is willing to
pay.
58. Pricing Formulas and Policies: The method of calculating profitable, yet competitive
selling prices for goods and services.
59. Product: The needs-satisfying agent offered by a business entity, including tangible items
and/or services.
60. Product Life Cycle: The four stages a new product goes through from beginning to end
including: market introduction, market growth, market maturity and sales decline.
61. Product Utility: The needs satisfying function of a product or service.
62. Proforma Income Statement: A realistic forecast (based on objective evidence when
possible) of future revenues and projected expenses of a business.
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Small Business Marketing MKTG 3373
63. Promotion: Communicating information between seller and potential buyer to influence
attitude, behavior, and action.
64. Psychographic: Analyzing why customers buy or exhibit certain buying behaviors.
65. Ratio Analysis: Analyzing financial information of a company as it relates to other
information of the company.
66. Return on Investment (ROI): A performance measure used to evaluate the efficiency of an
investment or to compare the efficiency of different investments.
67. Revenue: An inflow of assets (e.g., cash) in exchange for goods and services sold.
68. Service Business: A business concern where product is neither being produced or sold.
69. Shopping Goods: Products a customer feels are worth the time and effort to compare with
competing products.
70. Sole Proprietorship: A business owned by one individual.
71. Source Documents: Written records that are produced or come into a business like sales
tickets, invoice, checks and other documents that are evidence of the completion of a
business transaction.
72. Specialty Goods: Consumer goods that the customer really wants and will make a special
effort to buy.
73. Staples: Convenience goods which are bought often and routinely without much thought.
74. Strategic Planning: Long-range planning that seeks to establish the current condition of an
organization, determine what objectives need to be pursued and what barriers are in the way
of accomplishing those goals.
75. Supply Chain: a system of organizations, people, technology, activities, information and
resources involved in moving a product or service from suppliers to customers.
76. Synergy: Getting individuals to work together to produce a whole greater than the sum of
the parts.
77. Tactical Planning: Short-range planning that deals with how to overcome barriers to reach
organizational objectives.
78. Uniform Commercial Code: Laws that regulate the fields of sales, commercial paper,
secured transactions, banking, letters or credit, warehouse receipts, bill of lading and
investment securities.
79. Unique Selling Point: The quality that is different or better about a company’s product,
service or business that will make customers want to do business with that company.
80. Value Added: Any activity that increases the market form or function of the product or
service. These are things the customer is willing to pay for.
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