Comprehensive Marketing, Finance, and Sales Strategies for Business Success

What is the marketing mix?

The combination of Product, Price, Place, and Promotion (or 7Ps including People, Process, Physical Evidence).

How do you build your brand?

By focusing on a clear benefit, consistent messaging, quality, ethics, and strong identity (Product/Promotion).

Name 11 pricing strategies.

Value, Prestige, Cost-Plus, Markup, Penetration, Skimming, Meet-or-Beats, Follow-the-Leader, Personalized, Variable, Price Lining.

What factors affect location choice?

Access, suppliers, climate, convenience, cost, demographics, economy, regulations, labor, competitors, visibility.

How to plan a promotion strategy?

Choose tools, set goals, target audience, and budget using % of sales, competitive, excess funds, or objective-task methods.

What is USP?

A unique selling proposition; the key benefit that differentiates your product and motivates purchases.

What can advertising achieve?

Build brand, inform, persuade, stimulate action, reinforce decisions; two types: institutional & product advertising.

Why use sales promotion?

To boost short-term response; examples: coupons, samples, contests, rebates, trade shows.

Define guerilla marketing.

Unconventional, low-cost promotional tactics.

Define buzz marketing.

Word-of-mouth marketing.

Define edutainment.

Promotional content combining education and entertainment.

What are examples of electronic/social media marketing?

E-active marketing, brand spiraling, blogs, stealth marketing, viral marketing, publicity.

How can philanthropy help?

Builds goodwill, community support, employee pride, and brand reputation.

What should a marketing plan include?

Target markets, competitive analysis, pricing, promotion, budget; marketing is a fixed cost.

What is breakeven analysis?

Determines units needed to cover fixed costs only.

What is personal selling?

Face-to-face selling to persuade customers; salespeople become entrepreneurs because they understand customer needs.

What is the main focus of a salesperson?

Identify customer needs and match them with product benefits.

What are the principles of good selling?

Prepare, think positively, keep records, avoid cold calls, make appointments, treat customers well.

How do electronic/social media help salespeople?

Provide communication channels, prospecting, networking, and customer follow-up.

What are possible customer objections?

Price, performance, service, competition, support, warranties; overcome by addressing concerns with benefits.

What are the advantages of a direct sales team?

High control and focus; disadvantage: high cost.

What are the advantages of independent reps?

Quick expansion, variable cost; disadvantage: less loyalty to your brand.

What are the advantages of outsourced customer service?

Lower cost and scalability; disadvantage: less control and weaker customer relationships.

What is customer service?

Everything a business does to keep customers happy; essential for repeat business.

What is the cost of losing customers?

Loss of revenue, jobs, reputation, and future business.

How to deal with complaints?

Acknowledge, stay calm, tell the truth, and resolve issues.

What is CRM?

Company-wide system to maximize satisfaction and profitability.

Why is CRM important?

65% of business comes from existing customers; cheaper to retain than acquire.

How does technology support CRM?

Databases track customer info, preferences, history, and follow-ups.

What is EOU?

Economics of One Unit; selling price minus variable costs.

What is seed capital?

One-time start-up investment used to open the business.

Why prepare a prototype?

To test design, function, and feasibility before production.

What is cash reserve?

Emergency funds equal to half the start-up investment.

What is payback period?

Time needed to recover start-up investment from net cash flow.

What is NPV?

Net Present Value; present value of future cash flows minus investment.

What is contribution margin?

Selling price minus variable costs.

What is the difference between fixed and variable costs?

Fixed stay constant; variable change with production.

Which is more dangerous: fixed or variable costs?

Fixed costs because they must be paid regardless of sales.

Why keep financial records?

For audits, taxes, accuracy; keep at least two copies.

What is the difference between cash and accrual accounting?

Cash records when money moves; accrual records when transactions occur.

What are the 4 financial statements?

Income statement, balance sheet, cash flow statement, owner's equity statement.

How often is each financial statement prepared?

Monthly or yearly depending on business needs.

What are the elements of an income statement?

Revenue, COGS, gross profit, expenses, EBIT, taxes, net income.

What is the double bottom line?

Profit plus mission/social impact.

What does the balance sheet show?

Assets, liabilities, and equity at a point in time.

What is the difference between current and long-term assets?

Current convert within a year; long-term take more than a year.

What is the difference between current and long-term liabilities?

Current due within a year; long-term due after a year.

What is the balance sheet formula?

Assets = Liabilities + Equity.

How can an item be a liability or equity?

If financed with debt → liability; if purchased with owner funds → equity.

What are operating financial ratios?

Ratios from income statement showing expense % of sales.

What is ROI?

Net profit ÷ total investment.

What is ROS?

Net income ÷ sales.

What do balance sheet ratios tell us?

Liquidity, leverage, financial health.

What is liquidity?

Ability to convert assets to cash.

What is current ratio?

Current assets ÷ current liabilities.

What is quick ratio?

(Cash + receivables) ÷ current liabilities.

What is the difference between debt-to-equity and debt ratio?

Debt-to-equity compares debt to equity; debt ratio compares debt to assets.