Dynamics Final Set

marketing

the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large

customer relationship management (CRM)

learning as much as possible about customers and doing everything you can to satisfy or exceed their expectations

product, price, place, promotion

what are the 4 Ps of the marketing mix?

product

any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers

test marketing

testing products among potential users

brand name

a word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors

placement

allowing customers to access your good and services in the easiest possible manner

promotion

all the techniques sellers use to inform people about and motivate them to buy their products or services

sociocultural, competitive, economic, technological, global

what are the five areas of the marketing environment?

consumer market (B2C)

all the individuals or households that want goods and services for personal consumption or use

business to business market (B2B)

all the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others

market segmentation

dividing the total market into groups whose members have similar characteristics

target marketing

marketing directed toward those groups an organization decides it can serve profitably

geographic segmentation

dividing the market by cities, counties, states, or regions

demographic segmentation

dividing the market by age, income, and education level

psychographic segmentation

dividing the market using the group’s values, attitudes, and interests

benefit segmentation

dividing the market by determining which benefits of the product to talk about

volume (usage) segmentation

dividing the market usage (volume of use)

mass marketing

developing products and promotions to please large groups of people

relationship marketing

keeping individual customers over time by offering them products that exactly meet their requirements

niche marketing

finding small but profitable market segments and designing or finding products for them

one-to-one marketing

developing a unique mix of goods and services for each individual consumer

problem recognition, info search, evaluate alternatives, purchase decision, post purchase evaluation

steps in the consumer decision-making process

brand

a name, symbol, or design that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors

trademark

a brand that has exclusive legal protection for both its brand name and its design

manufacturers’ brands

the brand names of manufacturers that distribute products nationally

dealer (private-label) brands

products that don’t carry the manufacturer’s name but carry a distributor’s or retailer’s name instead

generic goods

nonbranded products that usually sell at a sizable discount compared to national or private-label brands

knockoff brands

illegal copies of national brand-name goods

brand equity

the value of the brand name and associated symbols

brand loyalty

the degree to which customers are satisfied, like the brand, and are committed to further purchases

brand awareness

how quickly or easily a given brand name comes to mind when a product category is mentioned

brand preference

when consumers prefer one brand over another

brand insistence

they will not accept substitute brands

introduction, growth, maturity, decline

product life cycle (profits/sales over time)

advertising, personal selling, sales promotion, public relations

traditional promotion mix

personal selling

face-to-face presentation and promotion of goods and services

prospect and qualify, preapproach, approach, make a presentation, answer objections, close the sale, follow up

steps in the selling process

prospecting

researching potential buyers and choosing those most likely to buy

qualifying

making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message

prospect

a person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message

trial close

a question or statement that moves the selling process toward the actual close

intro (capture attention), state the idea, explain the concept, reinforce benefit, close

what are the 5 steps in selling?

sales promotion

the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

public relations

the management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance

publicity

any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller

accounting

recording, classifying, summarizing, and interpreting financial events and transactions to provide management and other interested the information they need to make good decisions

generally accepted accounting principles

GAAP: the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements

financial accounting

sharing financial statements externally to attract stockholders

managerial accounting

sharing financial statements to internal parties, not publicly

tax accounting

management determines the amount of taxes that a company owes, how to legally reduce those taxes, and analyzes the impact of business decisions on taxes

analyze source documents, record transactions, transfer entries to ledger, take a trial balance, prepare financial statements, analyze financial statements

accounting cycle (6 steps in preparing/analyzing financial statements)

balance sheet

reports a firm’s financial condition at a specific date/time and is composed of three major accounts: assets, liabilities, and owners’ equity

equity = assets - liabilities

fundamental accounting equation

assets

things businesses own

liabilites

what businesses owe

equity

value created for the owner

current assets

can be converted into cash within one year

fixed assets

long term assets that are relatively permanent

intangible assets

long term assets with value but no physical form

accounts payable

money the business owes to suppliers/vendors

notes payable

short or long-term liabilities a business owes the bank

bonds payable

long-term liabilities that must be repaid to the bank

accrued expenses

we know we have to pay something but haven’t received the bill yet

retained earnings

profits reinvested back in the business

income statement

shows a firm’s profit after costs, expenses, and taxes over a specific period of time, often one year (resources that have come in (revenue) and out (expenses); results in net income/loss)

revenue

monetary value a firm received for goods sold, services rendered, or other payments

cost of goods sold (manufactured)

measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale

gross profit (margin)

how much a firm earned by buying/making and selling merchandise

operating expenses

costs involved in operating a business (rent, utilities, salaries)

depreciation

systematic write-off of the cost of a tangible asset over its useful lifetime

statement of cash flows

reports cash receipts and disbursements related to a firm’s three major activities (operations, investments, financing) over a period of time (usually one year)

ratio analysis

the assessment of a firm’s financial condition using calculations and interpretations of financial ratios developed from the firm’s financial statements

liquidity ratios

measure a firm’s ability to turn assets into cash to pay its short-term debts

current assets/current liabilities (2.0 or above = good)

current ratio

leverage (debt) ratios

measure the degree to which a firm relies on borrowed funds in its operations

total liabilities/owner’s equity (100% or higher = more debt than equity)

debt to equity ratio

profitability (performance) ratios

measure how effectively a firm’s managers are using the firm’s various resources to achieve profits

10k report

financial report publicly filed where we share transactional data (12 months of data)

most liquid assets (cash, accounts receivable, securities, not inventory)/current liabilities

acid-test ratio

net income/total outstanding shares

earnings per share (EPS)

net income/net sales

return on assets (sales)

net income after tax/total owners’ equity

return on equity

activity ratios

measure how effectively management is turning over inventory

COGs/avg inventory

inventory turnover ratio

private accountant

works for a single firm, government agency, or nonprofit organization

public accountant

provides accounting services to individuals or businesses on a fee basis

certified public accountant (CPA)

passes a series of examinations established by the American Institute of Certified Public Accountants (AICPA)

Sarbanes-Oxley Act (Sarbox)

created new govt reporting standards for publicly traded companies and the Public Company Accounting Oversight Board (PCAOB)

Dodd-Frank Wall Street Reform and Consumer Protection Act

increased financial regulation by increasing the power of the PCAOB

audit

review and evaluation of information used to prepare a company’s financial statements

independent audit

an evaluation and unbiased opinion about the accuracy of a company’s financial statements

tax accountant

trained in tax law and responsible for preparing tax returns or developing tax strategies

not-for-profit accounting

purpose is not to generate profit, but to serve ratepayers, taxpayers, and others according to a duly approved budget

advance the NVIDIA accelerated computing platform, extend tech and platform leadership in AI, extend tech and platform leadership in computer graphics, advance the leading autonomous vehicle platform, leverage intellectual property

what are NVIDIA’s 5 business strategies?

time value of money

a dollar today is worth more than a dollar in the future (inflation, risk, opportunity costs)

corporate finance

function in a business that acquires funds for the firm and manages those funds within the firm

financial management

managing a firm’s resources to meet its goals and objectives; managers examine financial data and recommend strategies for improving financial performance

compute & networking, graphics (in 2025 compute & networking grew way more)

two business segments of NVIDIA

computer chip company, AI infrastructure company

what did Jensen say NVIDIA would transform from into