Business and Marketing Terms: Definitions and Concepts
Barriers to Exit
Barriers to exit refer to the obstacles raised to companies that want to leave a sector or industry.
Barter
Barter is a commercial operation based on the exchange of property without cash payments.
Database
A database is a set of data stored on a computer or other location that is available for consultation.
Database Marketing
Database marketing uses a database that contains references to customers and prospects. This database can be expanded and analyzed to obtain accurate information.
Databases (Structure)
Databases refer to the structure and the way in which information is saved in a company. Databases reflect the organization of business information and are usually physically centralized in it or the main servers.
System Application Rates from a Particular Point
System application rates from a particular point are based on the designation of a point of origin, serving as a reference. The final price is determined by the cost of the goods plus the cost of transportation from the point of reference to the city where the order is placed.
Alternative to a Negotiated Settlement
An alternative to a negotiated settlement provides an alternative position in case the ideal agreement is not met. It also allows comparison of counteroffers from the other party with a self-standing and evaluated position.
Behavioral Research
Behavioral research is done to try to understand consumer habits.
Behavioral Segmentation
Behavioral segmentation is a study of the response or attitude of consumers towards a product.
Theory of Offer
According to the theory of offer, a company cannot fix a price below production costs nor too high a price that will not be accepted in the market.
Soft Goods
Soft goods are all goods soft to the touch. They are considered perishable goods.
Capital Goods
Capital goods are one of three groups into which industrial goods are divided. Capital assets are divided into facilities (buildings and real estate) and accessory equipment (mobile assets).
Consumer Goods
Consumer goods are products intended for use by the end user. Consumer goods are divided into “convenience goods” (commonly used products, there is little choice for the buyer), “shopping goods” (the buyer compares the products), and “unsought goods” (products the consumer does not know about or does not normally think of buying).
Fast-Moving Consumer Goods (FMCG)
Fast-moving consumer goods are everyday consumer products.
Durable Goods
Durable goods are products that offer service after repeated uses.
Real Hard Goods
Real hard goods are real hard to the touch. They are generally considered durable.
Industrial Goods
Industrial goods are goods that are sold to industry to enable it to manufacture products aimed at consumers.
Unsought Goods
Unsought goods are products that consumers do not know about or do not normally think of buying.
Blocked Markets
Blocked markets refer to those markets which, for various reasons, cannot be penetrated by companies.
Blocs
Blocs are unions of countries aimed at facilitating trade. The goal is to reduce or eliminate barriers to economic benefits for the parties involved.
Born Sellers
Born sellers are people with skills conducive to sales.
Brand Manager
A brand manager is an employee who is dedicated to only one product or family of products due to its complexity or the desire for special attention to it.
Broker
A broker is authorized to sell, buy, or lease products from a company or person. They do not take possession of the property, are usually temporary representatives, and are paid on commission.
Business Plan
A business plan is a document used to guide the company (or a division thereof) to become a profitable entity. Assessing the potential market is a main element of the business plan, including information on the size and characteristics of the potential market, sales forecasts, and potential distribution channels.
Strategic Business Planning
Strategic business planning consists of a series of steps:
- Definition of philosophy
- Choice of strategy
- Listing of the mission
- Setting goals
- Following the process
- Tactics
- SWOT analysis
Repurchase Agreement
A repurchase agreement consists of paying for a service with goods or products.
Buyer’s Market
A buyer’s market occurs when the production company is in a position of weakness in dealing with buyers.
Central Purchasing
A central purchasing company channels sales at several companies, usually in the same sector. This way, they can obtain more favorable advantages over suppliers as the volume of purchases is much higher.
Signs of Purchase
Signs of purchase occur when the buyer makes an indirect indication of their growing interest in the product being offered.
Attack of Avoidance
An attack of avoidance is a strategy used when the rival is so large that a frontal attack would be a failure. The company tries to find a place in the market where the rival is not present.