Buss1 Key Terms

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BUSS 2 Key Term Definitions ©T Ockenden Finance: Budget – A budget is regarded as a goal or a “yardstick”; it’s something a business uses in order to work to, for example: a firm may have budgeted fixed costs of £5000, they aim to either meet this budget or fall below it to operate to the desired level. Variance – Variance applies to budgets, and it is the difference between the forecasted or budgeted figure, and the actual figure that comes out at the end of a certain review period. Cash flow forecast – A cash flow forecast is a document that records the expected inflows and outflows of a business. Overdraft – Short term borrowing from a bank, a business will only take out as much money as it needs in order to cover…show more content…
PR – This is an attempt to affect a consumer’s opinion of a product without actually spending on media advertising, it can involve getting journalists to mention the product in regular publications such as newspapers and T.V magazines. Branding – Branding is the overall image that is tagged to everything a company does, it’s the thought consumers have when they see the company logo, for example, when people see the M&S sign, they automatically think high quality. Merchandising – This requires employees to visit shops where the company’s product is sold to ensure that the brand’s display looks eye-catching and tidy. An example is the dump bin displays you sometimes see at the end of shopping aisles when a new product is launched. Sales promotions – These range from little competitions you see on the actual product packaging to offers run by the shop itself such as BOGOF’s. Direct selling – This is where potential customers are approached directly. This used to be door to door sales type people, but increasingly more know it involves the use of tele sales. Advertising – Advertising is a form of promotion; there are various methods firms use, such as: T.V adverts, radio ads, billboards around town, leaflets given out in the street e.t.c. It’s the way firms get the knowledge that their product is around out there. Pricing strategies – A pricing strategy is a
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