Virtual Business – Retailing 2.0 – Flashcards
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Lesson One - Pricing: Cost
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What it costs for your store to purchase a product from a supplier.
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Lesson One - Pricing: Margin
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The difference between your price and the cost for a particular product.
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Lesson One - Pricing: Revenue
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The total sales (in dollars) of your store over some period of time.
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Lesson One - Pricing: Profit
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The revenue of your store minus all expenses over some period of time.
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Lesson One - Pricing: Cost-Oriented Pricing
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Setting prices based on cost. Usually prices are set as a multiple of cost, such as 1.2 times the cost.
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Lesson One - Pricing: Demand-Oriented Pricing
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Setting prices based on what the customer is willing to pay.
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Lesson One - Pricing: Competition-Oriented Pricing
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Setting prices based on competitor's prices. Setting prices lower than a competitor will generally draw more customers to your store.
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Lesson Two - Purchasing: Inventory
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The total amount of goods a business has. These may be in a backroom or out on the sales floor. Sometimes referred to as stock.
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Lesson Two - Purchasing: Purchasing Policy
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Policy specifying the amount of a product to purchase and when to purchase it.
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Lesson Two - Purchasing: Just-in-time Inventory
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A system, usually computerized, that links a store to suppliers so that new inventory can be purchased automatically as sales are made. Just-in-time inventory systems reduce the total amount of inventory a store must carry.
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Lesson Two - Purchasing: Reorder Point
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A number that indicates that a new product should be purchased when inventory falls below a certain level (called the reorder point).
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Lesson Two - Purchasing: Shrinkage
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The money a business loses due to broken, damaged, expired, or stolen inventory.
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Lesson Three - Staffing: Staffing
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The assignment of persons to jobs within a business.
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Lesson Three - Staffing: Staffing Level
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The number of people assigned to a job at a particular time.
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Lesson Three - Staffing: Wages
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Payments to employees based on hours or days worked.
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Lesson Three - Staffing: Cashier
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Person who collects money from customers in a retail establishment.
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Lesson Three - Staffing: Stocker
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Person who replenishes shelves in a store.
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Lesson Three - Staffing: Customer Satisfaction
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Opinion of customers about a particular aspect of a business, such as customer service.
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Lesson Four- Promotion: Promotional Mix
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A mixture of different types of promotion.
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Lesson Four- Promotion: Media
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Method used to deliver advertising messages to the public, such as TV or radio.
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Lesson Four- Promotion: Reach
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The number of people who will see or hear an advertisement.
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Lesson Four- Promotion: Cost per Thousand
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Cost to reach one thousand people through a particular media. Typically abbreviated CPM.
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Lesson Four- Promotion: Rotation
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A time period in which a business' advertisement is played one or more times each day.
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Lesson Five- Financing: Trade Credit
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This is credit offered to you by suppliers. The supplier's payment terms allow you to pay for the goods after you receive them (e.g., 30 days later).
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Lesson Five- Financing: Payment Terms
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A supplier's requirement on when to be paid. These are typically expressed in an abbreviated fashion. For example, 2/10/N/30 means you will get a 2% discount if you pay the Net (N) amount in 30 days.
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Lesson Five- Financing: Interest Rate
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The percentage of the loan amount that you must pay in interest each year (e.g. 9% per year).
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Lesson Five- Financing: Liability
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The general term for any amount owed to someone else.
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Lesson Five- Financing: Accounts Payable
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The amount a business owes to its suppliers at any point in time. This is shown as a liability on the company's balance sheet.
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Lesson Six- Market Research: Market Research
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The steps taken to collect marketing information required to make intelligent business decisions.
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Lesson Six- Market Research: Survey
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A series of questions asked to a selected group of people.
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Lesson Six- Market Research: Segment
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A group of people sharing some common attribute, such as age or occupation.
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Lesson Six- Market Research: Sample Size
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The number of people questioned in a survey. Increasing the sample size of a survey increases cost. Decreasing sample size too far reduces the accuracy of a survey.
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Lesson Six- Market Research: Primary Data
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Data collected for a specific purpose.
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Lesson Six- Market Research: Secondary Data
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Data used for a current study but obtained for another purpose or bought from another business.
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Lesson Seven - Targeted Marketing: Market
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A group of similar people with the same type of product needs or wants who may potentially buy a certain good or service.
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Lesson Seven - Targeted Marketing: Targeted Marketing
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Marketing that attempts to identify reach, and serve a particular sub-group of the entire market.
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Lesson Seven - Targeted Marketing: Direct Mail
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Advertising that is mailed to people's homes or workplaces. It is most often paper-based and may include specific offers such as coupons.
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Lesson Eight - Merchandising: Merchandising Space
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Part of the store assigned to products that are kept for selling.
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Lesson Eight - Merchandising: Point-of-Purchase Display
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Display found close to or at the register to promote impulse purchases.
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Lesson Eight - Merchandising: Impulse Products
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Products that you do not specifically go to a store to buy, but may buy them if you see them.
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Lesson Eight - Merchandising: Products of Necessity
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Products that you need and specifically enter a store to purchase.
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Lesson Eight - Merchandising: Complementary Item
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Products that are often consumed together. One of the products often enhances the other such as salsa and a chips.
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Lesson Eight - Merchandising: Related Merchandise Display
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A display containing complementary products.
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Lesson Nine - Advanced Promotion: Storefront
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The exterior of a store generally facing the street including signage and windows.
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Lesson Nine - Advanced Promotion: Ad Design
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The combination of content (offers) and artwork that makes an ad effective with customers.
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Lesson Nine - Advanced Promotion: Sales Promotion
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A limited time offer that is used to persuade customers to shop at a particular store or buy a particular product.
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Lesson Nine - Advanced Promotion: Loss Leader
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A product priced at or below cost in order to draw customers into a store. The intent is that customers will purchase other items that are priced to make a profit.
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Lesson Ten - Security: Shrinkage
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The money a business loses due to broken, damaged, expired, or stolen inventory.
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Lesson Ten - Security: Shoplifting
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Taking items from a retail establishment without paying for them.
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Lesson Ten - Security: Stolen Goods
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Products stolen by shoplifters. The value of these items us recorded on the Income Statement under Cost of Goods Sold.
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Lesson Ten - Security: Physical Inventory
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A count of all the items in a business. This is used to determine if items are missing as a result of shoplifting or other causes.
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Lesson Eleven - Supply & Demand: Supply
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The amount of goods created by producers and offered for sale in a marketplace.
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Lesson Eleven - Supply & Demand: Demand
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The amount of goods customers want to buy.
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Lesson Eleven - Supply & Demand: Equilibrium
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When two dynamic values become or stay equal to each other.
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Lesson Twelve - Financial Statements: Revenue
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Revenue is the money you collect for things you sell. Other names for Revenue include Sales and Dollar Sales. Revenue is equal to Unit Sales x Price of each unit.
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Lesson Twelve - Financial Statements: Income Statement
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The Income Statement shows your revenue and expenses for a given period of time and the difference between them-your profit. This statement, also known as the P&L (Profit & Loss), is the most frequently used financial statement. It's your main scorecard over any period -- a week, a quarter, a year. When business people refer to the "bottom line," they mean the bottom line of this statement, profit.
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Lesson Twelve - Financial Statements: Balance Sheet
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The Balance Sheet shows what you own (assets) and what you owe to others (liabilities). The difference, the worth of your company is called Equity. Your assets always balance with you Liabilities Plus Equity.
