Agriculture Reference
In-Depth Information
promotion In marketing, an element of the marketing mix; all activities related to com-
municating the fi rm's offering to the market; in human resource management, advance-
ment in job responsibilities or position.
proprietorship See sole proprietorship .
prospecting In selling, the process of identifying and locating potential customers.
psychographic segmentation A market segmentation approach based on classifying or
categorizing customers or potential customers by a combination of their psychological
profi les and demographic data.
psychological pricing A pricing method that involves establishing prices that are emo-
tionally satisfying because they carry the perception of good value, e.g., two for 99 cents
instead of 50 cents each.
p ublic relations An element of a fi rm's promotion (market communications) strategy; the
management and maintenance of a favorable public image of the organization as it
relates to its customers; somewhat unique as a form of market communications as the
target audience is infl uenced in an indirect way.
purchasing All tasks involved in procuring the raw materials and inputs necessary to meet
the requirements of the production schedule.
q uality The degree to which a set of defi ned characteristics of a product or service fulfi lls
known requirements. The common element of the business defi nitions is that the quality
of a product or service refers to the perception of the degree to which the product or
service meets the customer's expectations.
q uick ratio A fi nancial ratio measuring liquidity; refl ects a fi rm's ability to meet cash
needs with funds that are quickly available; (cash + marketable securities + accounts
receivable) / total current liabilities.
r atio analysis A method of fi nancial statement analysis that uses relationships between
key accounting data to better understand the relative position of an organization.
raw materials Basic goods from which other products are made.
r eference value In pricing, the price of a competing product or the closest substitute;
forms the starting point for an economic value pricing strategy.
reorder point When the warehouse inventory of a product reaches a certain, agreed-upon
level of depletion
responsibility The obligation to see a task through to its completion.
resumé A written summary of the personal, educational, and professional qualifi cations of
a person seeking employment.
return on assets (ROA) ratio A fi nancial ratio measuring profi tability; measures the
return to the total investment in the business; (net income after taxes + interest
expense) / total assets.
r eturn on equity (ROE) ratio A fi nancial ratio measuring profi tability; measures the
return to the owner's investment in the business; (net income after taxes / owner's
equity).
return on investment (ROI) pricing A pricing method where a mark-up suffi cient to earn
a specifi ed return on investment is added to the basic cost of an individual product or
service.
return on investment (ROI) ratio In the profi tability analysis model, a measure of return
to assets where interest expense has been subtracted from net profi t (net profi t after
taxes) / total assets; more broadly, a general term referring to any of a class of fi nancial
ratios measuring profi tability or the return on some type of investment: (profi t /
investment).
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