ENTREP_FINALS

Need Recognition

This is triggered by internal stimuli and external stimuli 

Purchase Decision

Stage when the consumer actually buys the product 

Post-Purchase Analysis

The last stage in the buying decision process when the buyer makes a simple analysis at the back of his/her mind whatever his/her expectation has been met or not 

Unique Selling Proposition

A marketing strategy that focuses on a product’s special feature, one that is not carried by any other product or on special offerings, bonuses and promos, to entice consumer interest and attention 

Value Proposition

A promise of value to be delivered and recognized. A business or marketing statement that a company used to summarize why a consumer should buy a product or use a service  

Complex Buying Behavior

Usually manifested when consumers buy expensive goods

Simple Buying Behavior

Usually exhibited when the goods are not highly proceeding and the consumers are not deeply attached to vertical brand 

Brand Sensitive Buying Behavior

Consumers highly value branded products or those that have established certain image in the markets

Price Sensitive Buying Behavior

Consumer are mostly concerned with the price of the product instead of the brand 

Internal Influences

Personal and psychological factors that may influence the consumer’s buying decision

External Influences

Factors like cultural factors that may influence the consumer’s decision

Social Factors

Factors like family, friends, reference group, etc. that can influence a buyer’s decision

Product (7PS)

Refers to the tangible good or intangible service offered by the business to the target consumers. This is the NUCLEUS of the marketing mix, once the __________ fails to satisfy the need and wants of the consumers, the other Ps may no longer be considered. 

Price (7PS)

The amount paid by the consumers for the good or service

Price skimming approach

The new product is highly priced when introduced in the market, but is gradually reduced as competitors increase

Price penetration approach

The product in introduced with a low price 

Place (7PS)

It is where the target consumers are

Promotion (7PS)

The communications used in the marketplace to raise the awareness of the product along with its benefits to the aimed segment

People (7PS)

Assist in product positioning.  “Right” __________ refers to educational qualifications and expertise 

Packaging (7PS)

The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.

Positioning (7PS)

Refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors 

Intergraded Marketing Mix

Mixture of different Ps to position the product in the market

Exclusive Distribution

Limited to a select of dealers, usually one or few

Intensive Distribution 

Involves making a product available in as many retail outlets as possible 

Selective Distribution

Positioned between exclusive and intensive distribution 

Bookkeeping

It refers to the recording of business transactions in the books of the business

Business Transactions

A transaction is defined as an exchange of values between two parties, expressed in terms of money

Non-Financial Transactions

Business transactions that have not met all the three characteristics should NOT be recorded in the books of the entity. EX:  “Soriano hired tourist guides for a salary of P10,000 each”

Chronological Recording

It implies that the business transaction s are written in the book according to the order of their occurrence, hence the first transaction will be recorded first 

T-Account

The simplest tool used to analyze the effects of the transaction in each account

Trial Balance

is the listing of the debit and credit balances of accounts from the general ledger 

Income Statement

A structured financial statement that presents the income, expenses, and net income or loss realized during a certain period

Balance Sheet

A structured financial statement that presents the financial position of the business at a given date

Journal

The book of original entry

Ledger

The book of final entry 

Purchase Order

issued by the buyer to the seller of goods

Invoice

issued by the seller to the buyer

Official Receipt 

Indicates payment or receipt of cash 

Delivery Receipt

Evidence that the goods or services are received

Receiving Report

Used within the business upon receipt of the goods shipped by the courier or forwarder 

Check

Orders a payment of money from the current account maintained in the bank 

Voucher

Internal business document that authorizes the incurrence or payment of obligations 

ACCOUNT

a device used to record the changes (increases or decreases) in the three accounting elements, assets, liabilities and owner’s equity.

ACCOUNT TITLES

Provides the description of the type and nature of the business transactions and group into five accounting elements

ASSET

Cash, accounts receivable, notes receivable, supplies, merchandise inventory: raw materials, work in process, finished goods, property, plant and equipment, furniture and fixtures.

Cash

Money that can be paper or coin

Accounts Receivable

Collectibles from customers who made sales transaction on credit

Notes Receivable 

Collectibles supported by promissory notes

LIABILITY

Includes accounts payable, notes payable, utilities payable, salaries payable, and loans payable.

Accounts Payable

Financial obligations arising from goods purchased or services

Notes Payable

Financial obligations supported with notes 

Utilities Payable

Unpaid obligations on light and water consumptions

Salaries Payable

Unpaid salaries of the workers

Loans Payable

Unpaid bank obligations 

INCOME (OWNER’S EQUITY)

Refers to the sources wherein the business gets it earnings

Capital

Describe the original and additional investments of the owner 

Drawing

Temporary withdrawal of capital of the owner 

DEBIT

Means left side of the account, does not necessary mean addition.

CREDIT

Means right side of the account, does not necessary mean deduction

DEBIT, CREDIT

Increases in assets, drawing, and expenses are recorded on the ________ side,

while decreases are recorded on the __________ side 

CREDIT, DEBIT

Increases in liabilities, capital, and income are recorded on the ________ side,

while decreases are recorded on the _________ side 

Liabilites

Total Assets = _______ + Equity

Mark-up pricing

a strategy that allows the seller a fixed mark-up every time the product is sold.

Target-return pricing

allows a product manufacturer to recover a certain portion of his/her investment every year

Odd pricing or psychological pricing

is premised on the theory that consumers will perceive products with ________ endings as lower in price than they actually are. This includes bundles, buy one, take one, etc.

Loss leader pricing

is where products are priced lower than its production cost in order to attract customers or sell other, more expensive products.

Prestige pricing

capitalize on the high value perception or positive brand reputation of a product or service. This is usually seen in luxury brands.

Going rate pricing

is where a company prices its product at the same level or very close to its competitor’s price. Simply, it is where the business goes heads-to-heads with its competitor/s.

Promotional pricing

involves temporary reduction in the selling price of a product/service in order to induce trial or to encourage repeat purchase. This includes the use of vouchers, etc.

Service Income

General services rendered