Fme Exam I Review

Front 1

What are the components of the Timmons Model?

Back 1

1. Opportunity: 3Ms - Market Demand, Margin Analysis, Market Structure and Size
2. Resources: minimize and control vs. maximize and own
3. Team: experience, motivation, commitment, creativity, leadership, communication

Front 2

How is opportunity driven?

Back 2

3Ms
Market Demand - do people want it
Market Structure - enough people in the market
Marginal Analysis - Financially feasible

Front 3

What are the three laws of marketing physics?

Back 3

Overt Benefit: Benefit for customer
Dramatic Difference: Why should they believe you deliver
Real Reason to Believe: What sets you apart

Front 4

Gross Margin Equation

Back 4

Sales - Cost of Goods Sold

Front 5

Gross Margin Percentage

Back 5

Gross Margin / Sales

Front 6

Rule on Gross Margin

Back 6

For every $1 sales, the company generate X cents in profit before operating expense which equals gross margin / sales

Front 7

What are some factors that influence pricing

Back 7

- Customer ego and self image
- Location
- Seasonality
- Competition

Front 8

Components of Marketing Research

Back 8

1. Define problem & research objectives
2. Develop the research plan
3. Construct the data collection instruments
4. Collect the data
5. Analyze the data
6. Present the findings

Front 9

Financial Accounting

Back 9

Preparation & reporting of financial statement
External orientation

Front 10

Managerial Accounting

Back 10

Use of financial information to support managerial decision-making
Internal orientation

Front 11

5 Fundamental components of an Information System

Back 11

1. Hardware
2. Software
3. Data
4. Procedures
5. People

Front 12

High tech information systems

Back 12

Customer support system, keeps track of equipment, schedules, and reminds

Front 13

Low tech IT

Back 13

consists of a file of email addresses and an email program

Front 14

What is IT

Back 14

refers to products, inventions, methods and standards used for the purpose of producing information

Front 15

What is IS

Back 15

refers to the assembly of hardware, software, data, procedures, and people that produces information

Front 16

What is DBMS

Back 16

Database Management System creases, processes, and administers a database and allows for data querying

Front 17

Purpose of Pie Chart

Back 17

Compare parts of a whole to the whole

Front 18

What is histogram

Back 18

chart used to represent frequency data in statistics

Front 19

What is cross tabs

Back 19

matrix (contingency table) that displays the joint distribution of two or more variables. It merges two or more frequency distribution tables into one

Front 20

Purpose of Market Segmentation

Back 20

1. Cross tabulation show different preferences for different demographics
2. Segment by preference

Front 21

Purpose of Cluster analysis

Back 21

Groups of similar surveys together repeatedly until there are only a few groups

Front 22

What's wrong with paper filing

Back 22

1. Cumbersome
2. Takes up space
3. Data sharing difficult
4. Tough to aggregate

Front 23

Whats wrong with office and publisher

Back 23

Hard to search, share, and aggregate

Front 24

What's wrong with one spreadsheet

Back 24

Can't share it

Front 25

Why is DBMS effective?

Back 25

Single or multiple user mode
Multi-user data stored on the network

Front 26

What is CRUD and how does it help with access control

Back 26

Create and add data to database
Read specific data items
Update and change specific data
Delete specific data

Front 27

Function of Database Administration

Back 27

To manage the development, operation, and adaptation of the database. Supports larger enterprise database

Front 28

Definitions of Entrepreneurship

Back 28

1. Start a small business, reduce costs for competition
2. Identify an opportunity regardless of resources
3. "A way of thinking that is opportunity-obsessed, holistic in approach, and leadership balanced."

Front 29

Value Creation

Back 29

Creating above average returns for all stakeholders (shareholders, investors, entrepreneur, community) during a certain period

Front 30

6 Stages of Entrepreneurship

Back 30

1. Identify an opportunity
2. Develop the concept
3. Determine the resources
4. Acquire the resources
5. Implement and Manage
6. Harvest the Venture

Front 31

Formula to Calculate pricing

Back 31

price - COGS = GM

Front 32

Definition: Cost of Goods Sold

Back 32

a figure on the income statement, which reflects the cost of acquiring the raw materials to and producing a goods that are sold to the customer

Front 33

Formula: Cost of Goods Sold

Back 33

Beginning Merchandise Inventory + Purchases of Inventory (during period)- Ending Merchandise Inventory

Front 34

Definition: Gross margin

Back 34

Reveals how much a company earns taking into consideration the costs that it incurs for producing its products/services.

Front 35

Formula: Gross Margin

Back 35

Total Revenue - COGS

Front 36

4Ps of Marketing

Back 36

1. Price
2. Product
3. Place
4. Promotion

Front 37

Features vs. Benefits

Back 37

Feature = something offered by a product of service
Benefit = what this feature will do for the customer

Front 38

Quantitative Research

Back 38

What is human behavior
What, where, when
large, random samples, quantifiable data

Front 39

Qualitative Research

Back 39

Understanding human behavior
Why, how
Small focused samples from several mediums

Front 40

Primary v Seconday

Back 40

Primary = By you, Secondary = By someone else

Front 41

Why is Market Research conducted?

Back 41

1. Gain information on price, who will buy, and how much
2. Gain information about behavior of target market and their purchasing habits

Front 42

Sales Potential Analysis/Revenue Forecast Equation

Back 42

(#of people in market)(%who will buy)(#purchases per year)(# units per purchase)(selling price)

Front 43

Vertical vs. Horizontal Analysis

Back 43

Vertical = sets all figures as a percentage of sales
Horizontal = takes the same figure from two different periods and compares them in terms of a percentage or absolute-dollar value