4.01- 4.05 Foods 2 Key Terms – Flashcards
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Behavioral segmentation
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Dividing markets by identifying common responses to product features
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Demographic segmentation
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Dividing markets by characteristics people have in common such as age, gender, family size, income, or occupation
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Corporation
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A form of business organization where stock is sold to investors; it is chartered by a stare and legally operates apart from its owners
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Entrepreneur
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An individual who undertakes the risk associated with creating, organizing, and owning a businsess
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Franchise
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A legal agreement that gives an individual the right to market a company's products or services in a particular area
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Geographic segmentation
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Dividing markets by where customers are located
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Marketing
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The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy customer wants and needs
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Marketing objectives
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Goals related to the business' product, pricing, promotion, and place
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Market segmentation
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Dividing the total market into smaller, well-defined groups with similar wants and needs and similar key characteristics
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Opportunity
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An idea that has commercial value
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Partnership
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A form of business ownership in which two or more people share the assets, liabilities, and profit
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Psycho graphic segmentation
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Dividing markets by identifying common interests, attitudes, values, lifestyle, or personality traits among the individuals that constitute that market
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Sole propeietorship
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A business owned and operated by one person
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Target customers
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The people most likely to buy a specific product or service
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Venture
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A business undertaking involving risk
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Balance sheet
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A financial statement that shows what a business owns, what it owes, and how much it is worth at a particular time
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Break-even point
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The point at which the money from product sales equals the costs of making and disturbing the product
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Capacity
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The ability to repay the debit
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Capital
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An entrepreneurial characteristic that demonstrates personal investment in the business venture
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Cash flow statement
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A financial statement that shows the flow of money in and out of the business
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Contingency funds
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Cash that is set aside for unexpected needs of the business
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Distrubution
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The process of getting merchandise to the proper locations
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Feasibility analysis
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Process used to test a business idea or concept
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Income statement
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A financial statement that shows the income, expenses, and profit/loss for the business over a period of time, usually a year
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Net income
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The amount of money left after all costs and expenses have been deducted, considered to be a company's profit
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Packaging
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The covering, wrapper, or container in which merchandise is placed for retail sale
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Price
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The amount charged to customers in exchange for goods and services
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Prototype
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A working model of a product, developed before production begins
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Quality control
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The process of making sure that the goods or services produced meet specific standards
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Sales forecast
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An estimate of sales for a specified period
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Business plan
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A proposal that describes a new business. It is presented to potential investors and lenders.
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Credit unions
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Cooperatives formed by labor unions or employees for the benefit of the members
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Fixed pricing
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Pricing technique in which the organization charges the same prices to all customers regardless of the quantity of the purchase
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Government agencies
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Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates
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Label
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The product's packaging used to present information to the consumer
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Markup pricing
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Pricing strategy that adds a predetermined percentage to the cost of products
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Odd/even cent pricing
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Based on the principle that prices ending in odd numbers communicate a bargain and prices ending in even numbers communicate quality. Widely used by retailers.
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Prestige pricing
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Believing that customers equate high price with high quality, this technique sets a higher-than-average price for products in order to communicate quality and status
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Private investors
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Wealthy individuals functioning as non-professional investors who are willing to invest in local business for financial or emotional reasons and who sometimes prefer to remain anonymous
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Promotional pricing
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Involves selling a product at a temporarily lower price in order to attract customers
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Psychological pricing
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Pricing technique based on the belief that customers form their perceptions of products on price and these perceptions affect customer buying decisions
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Sales quota
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Goal assigned to a sales person for a specific period
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Secured loan
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Borrowed money that must be repaid within one year
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Unit pricing
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Stating the price of a product per unit of standard measure
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Unsecured loan
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A loan that is not guaranteed by collateral
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Venture capitalists
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Individuals or firms that invest money professionally to make, expect a large capital gain, and look for high growth potential
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Advertising
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A non-personal promotional message paid for by an identified sponsor utilizing media such as television, radio, magazines, newspapers, billboards, and direct mail
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Financial plan
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Provides projected financial statements
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Loss
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More money going out than coming in
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Net profit
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Amount of money that remains when expenses are paid
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Opportunity cost
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When resources are limited, the option that is given up when a consumer chooses one product/service over another
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Personal selling
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A form of promotion that uses planned, personalized communication in order to influence customer buying decisions and ensure satisfaction
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Promotion
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Any form of communication a business or organization uses to inform, persuade, or remind consumers about its products/services
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Public relations
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Any activity designed to create a favorable image toward a business, its products, or its policies
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Visual merchandising/display
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Coordination of the physical elements of a business or a product to project the desired image to the consumer
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Vender
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Supplier of goods or services to a business
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Collateral
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Evidence of the ability to repay debt
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Economic outlook
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Trends associated with the economy that can impact your business's sales
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Forecast
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A look into the future to determine, sales, staffing, and other unknowns
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Nonprofit corporation
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Legal entities that make money for reasons other than the owner's profit
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Policy
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Guiding principle, rules or strategy
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Portfolio
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A collection of documents, photographs, and work samples which is used to demonstrate to potential employers an individual's skills, knowledge, abilities, and professional growth in order to obtain a job
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Sales projection
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Forecast of future sales
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Short-term loan
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Borrowed money that must be repaid within one year
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Start-Up cost
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One-time expenses an entrepreneur incurs when starting a business
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Variable costs
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Expenses that may change from month depending on the needs of the business; costs that increase and decrease with the quantity of the good or service produced/sold
