Terms in this set (40)
Anything of value owned by a business
Claim against a firm's assets by a creditor
Claims of the stockholders against the assets, excess assets over liabilities
Basic Accounting Equation
Assets = Liabilities + Owners Equity
Double entry bookkeeping
Each individual Transaction has an offsetting transaction
Financial record of a company's revenues and expenses, as well as profits over a period of time
Statement of a firms financial position
Indicate how well a company can cover short term costs
current assets/current liabilities
Current assets -inventory/liabilities
Net working capital
assets - liabilities
Refer to overall financial health
Debt to Equity
total liabilities/total shareholders or owners equity
Debt to asset
Refer to how well a company is doing
Net income margin
Return on asset ratio
Return on investment ratio
Net Profit Before Taxes
Return on sales ratio
Net Profit Before Taxes
Sales to asset ratio
Time interest coverage ratio
How well your company is using resources
Accounts receivables turnover
Credit sales/Accounts recievable
Number of days inventory
Average inventory * 365/COGS
Number of days of accounts receivable
Average accounts receivable * 365/ Net sales
Total asset turnover
Describe the need for marketing information.
Marketing decision makers use the data to identify and solve marketing related problems.
Explain the nature and scope of the marketing information system (MIS) management function.
An MIS consists of people, equipment, and procedures to gather, sort, analyze, and distribute needed, timely, and accurate information to marketing decision makers.
Describe the use of technology in the marketing-information management function.
Technology has enabled marketers to:
1. Profile customer behavior
2. Prioritize accounts
3. Generate sales leads
4. Assess promotions by tracking consumer response patterns
Describe the use of technology in the product/service management function.
1. online surveys
2. electronic distribution system (just-in-time)
3. customer tracking system
4. inventory control system
Communicate core values of product/service.
1. What your "product/service" stands for
2. The values it embraces
Define competitive advantage.
Set of resources or capabilities that allows firms to consistently outperform their rivals.
Define corporate branding.
A corporate brand can be used as one of the following:
1. Company name purely for legal purposes
2. Company name to provide 'support to brands'
3. Company name under which products are sold
Position corporate brands.
1. Marketing Objectives (creation of a new brand)
2. HR Objectives (Talent Recruitment)
3. Financial Objectives (Investor Solicitation)
4. Business Environment Objectives (Competition)
Describe the need for Financial Information
Records must be kept:
1. To construct the necessary statements
2. To be able to compare budget figures to see if you are on target
3. To provide adequate opportunities for management to analyze sales & marketing activities.
4. To satisfy the requirements of IRS, which requires record keeping
Financial Analysis Applications
Financial Analysis help managers understand:
1. If your business is making a profit
2. Compare your firm's current performance with past performance.
3. Project future performance
4. Compare your firm's results with the results of other firms in your industry.