Marketing Definitions- Virtual Business

Front 1

What is costs your store to purchase from a supplier

Back 1

Cost

Front 2

The difference between your price and the cost for a
particular product

Back 2

Margin

Front 3

The total sales (in dollars) of your store over some period of time

Back 3

Revenue

Front 4

The revenue of your store minus all expenses over some period of time

Back 4

Profit

Front 5

Setting prices based on cost. Usually prices are set as a multiple of cost, such as 1.2 times the cost.

Back 5

Cost-Oriented Pricing

Front 6

Setting prices based on what the customer is willing to pay.

Back 6

Demand-Oriented Pricing

Front 7

Setting prices based on competitors prices. Setting prices lower than a competitor will generally draw more customers to your store.

Back 7

Competition-Oriented Pricing

Front 8

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.

Back 8

Inventory

Front 9

Policy specifying the amount to of a product and when to purchase it.

Back 9

Purchasing policy

Front 10

A number that indicates that the new product should be purchased when inventory falls below a certain level

Back 10

Just-in-Time Inventory