Marketing Mathematics

1
Marketing Mathematics

• A Basic Skill Needed in Life and in Any Business

2
Marketing Mathematics

• What Kind of Mathematics Do We Use in
• Business???

3
Marketing Mathematics

• Addition
• Subtraction
• Multiplication
• Division
• Fractions
• Percentages

4
Marketing Mathematics

• Addition
• Subtraction
• Multiplication
• Division
• Fractions
• Percentages
• Its Not Calculus!!

5
Marketing Mathematics

• Addition
• Subtraction
• Multiplication
• Division
• Fractions
• Percentages

6
Marketing Mathematics

• How Do We Use Mathematics in
• Business???

7
Marketing Mathematics

• Identify situations in which the ability to add
  subtract are required
• Discussion

8
Marketing Mathematics

• Identify situations in which the ability to add
  subtract are required
• Cashiers daily balance
• Daily sales summary
• Customer accounts
• Sales checks
• Counting
• Inventory

9
Marketing Mathematics

• Identify situations in which the ability to
  multiply divide are required
• Discussion

10
Marketing Mathematics

• Identify situations in which the ability to
  multiply divide are required
• Bulk pricing
• Average sales
• Extensions
• Ad time purchases
• Payment plans

11
Marketing Mathematics

• Identify situations in which the ability to
  calculate percents fractions are required
• Discussion

12
Marketing Mathematics

• Identify situations in which the ability to
  calculate percents fractions are required
• Time cards
• Discounts
• Markup
• Sales tax calculations

13
Marketing Mathematics

• Be Able to Complete a Standard Sales
  Check to 100 Accuracy

14
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Use of the sales receipt
• Customer receipt
• To determine commissions
• Planning future purchases
• Market research
• Billing information
• Calculating of taxes
• Delivery information

15
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Types of sales transactions
• Cash/Check
• Charge
• Layaway
• Discount
• Cash on Delivery COD
• Returns/Exchanges

16
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Types of sales transactions
• Cash/Check
• Charge
• Layaway
• Discounted
• Cash on Delivery COD
• Returns/Exchanges WHY???

17
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Rules to completing a sales check
• Fill in all necessary information
• Be legible accurate
• Use in correct order

18
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Making Change
• The Count-Back Method
• Announce the amount of the sale
• Place bill on register plate
• Repeat the amount tendered

19
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Making Change (Continued)
• The Count-Back Method
• Count the amount out of the register to yourself
• . . . then to the customer
• Place money in the register properly

20
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Making Change (Continued)
• The Count-Back Method
• Place the receipt in the customers hand
• Thank the customer
• Use the fewest bills coins possible!!!

21
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Making Change (Continued)
• Avoiding mistakes
• Remain calm/focused
• Be willing to start over
• Do one transaction at a time
• Never put bill in register until finished
• Enter information carefully

22
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• The Cash Drawer

23
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• The Cash Drawer
• Bills are placed flat and facing the same
  direction
• Fifties and above are placed under the register
  drawer
• Maintain an adequate change fund
• Ask for change in advance

24
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a charge sales transaction
• Very similar to a regular sales check
• Add customer account number and authorization code

25
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a charge sales transaction
  (Continued)
• First check the expiration date
• Authorize account
• Compare signature on receipt w/ signature on
  cards back
• Is everything legible?
• Return the card to customer

26
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a check transaction
• More difficult
• Just like cash, but fraudulent checks are more
  plentiful
• I cant be overdrawn, Ive still got checks in
  my checkbook.

27
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a check transaction
  (Continued)
• Your job is to prevent
• Checks are called sales drafts. Drafts are
  orders to pay. In this case, youre ordering
  your bank to pay.

28
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a check transaction
  (Continued)
• Checks are negotiable instruments meaning that
  they are transferable.
• To transfer a check, it must be endorsed
• There are special endorsements
• For Deposit Only
• Pay to the Order

29
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a check transaction
  (Continued)
• Do not accept Two-Party checks
• Check for the correct information on the check
• Compare signature on check w/ what is on their
  picture ID.

30
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to complete a check transaction
  (Continued)
• Remember, if they can check your merchandise, you
  can check their checks.

31
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
• Why do stores hate to do return transactions?

32
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
• Why do stores hate to do return transactions?
• Because money is leaving the store instead of
  coming in!!!

33
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• Do store have to do returns?
• Why do stores do returns?

34
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• Do store have to do returns?
• No
• Why do stores do returns?
• Trust loyalty

35
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• What other options are available to a salesperson?

36
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• What other options are available to a
  salesperson?
• Exchange
• Credit to their account
• Gift certificate

37
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• Types of exchanges
• Even Exchange
• Uneven Exchange

38
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• Return Polices
• Wrapping?
• Length of time?
• Damage?
• Receipt?
• Sale item?

See examples next
39
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• Return Polices
• Dress shirt is unwrapped?
• Kept for one month?
• Bottom of shoes scuffed?
• It was a gift, no receipt?
• 50 off sale, but . . . ?

Role Play
40
Marketing Mathematics

• Be able to Complete a Standard Sales Check to
  100 accuracy
• Be able to conduct a customer return transaction
  (Continued)
• What business forms must be changed
• Inventory
• Cash register balance
• Commissions
• Income statements

41
Marketing Mathematics
42
Marketing Mathematics

• Be able to operate a computerized cash register
• Cash register purposes
• Calculate accurately
• Provide customer receipt
• Provide records for store
• Display work to customer
• Speed purchase
• Cash security
• Inventory records
• Merchandise ordering

43
Marketing Mathematics

• Be able to operate a computerized cash register
• Common cash register keys
• Operators key
• Locks
• Initiate reads
• X read
• Z read
• Indicates function

44
Marketing Mathematics

• Be able to operate a computerized cash register
• Common cash register keys
• Keyboard
• Receipt
• Receipt feed
• Journal feed
• Date/No.
• Numeric keys
• Dept. keys

45
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Common cash register keys
• Keyboard
• /NS
• TX/M
• X
• Item Corr.
• C
• Retn MDSE
• R/A

Continued
46
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Common cash register keys
• Keyboard
• /NS No Sale
• TX/M Tax Mod.
• X Extension
• Item Corr. Corrections
• C Clear
• Retn MDSE Returns
• R/A Account Returns

Continued
47
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Types of Cash Registers
• Keyboard
• PO
• Vali Date
• Chg.
• ST
• Doll Disc
• AT/TL

Continued
48
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Types of Cash Registers
• Keyboard
• PO Paid Out
• Vali Date Validate
• Chg. Charge sale
• ST Subtotal
• Doll Disc Discount
• AT/TL Amt Tendered

Continued
49
Marketing Mathematics

• Be able to operate a computerized cash register
• Common cash register types
• Manual Key Entry
• Numeric keys
• Function keys
• Optical Scanning
• Uses wand to read
• UPC (Universal Product Codes)

50
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Be able to verify a Change Fund
• A change fund is the amount of an operator
  starts the day with
• Amounts vary between 100 and 150 depending on
  customer habits sales volume
• The make-up depends on the prices charged by the
  store

51
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Be able to verify a Change Fund
• Verify your change fund at the start of each day
• Buy Change during the day in advance of running
  out.
• Pennies 50 .50
• Nickels 40 2.00
• Dimes 50 5.00
• Quarters 40 10.00
• Dollars 25 25.00

Continued
52
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Be able to Tally the days sales balance
  the register at days end
• End the day by totaling the coin, currency,
  charge slips, checks in the register
• Subtract the change fund
• Make allowances for returns, corrections, paid
  out transactions

53
Marketing Mathematics

• Be able to operate a computerized
  cash register
• Be able to Tally the days sales balance
  the register at days end
• Compare the tape of the days transactions with
  your totals
• Record overage or
  underages
• Turn in Tally
• Make change fund for tomorrow

Continued
54
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations

55
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Homework
• Read Chapter 12, Pages 194 205
• Read Chapters 29 30, Pages 512
  539

56
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Role of banks
• Security
• Money Management.

57
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Money substitutes
• Bank checks
• Travelers checks
• Drafts (bank to bank checks)
• Money orders
• Cashiers checks
• Debit cards
• Credit cards (Store cards vs. Bank cards)
• Loans

58
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Other services
• Deposit boxes
• Counseling
• Business
• Personal
• Real estate/Stocks
  Bonds
• Community service

59
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Checking
• Terms
• Interest
• Payee
• Drawer
• Drawee

60
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Checking
• Terms
• Interest Income
• Payee To Whom
• Drawer Writer of the check
• Drawee The bank

61
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Specialty terms
• Signature Authorization Card
• Taxpayer ID

62
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Why do people save money? ( others dont)
• ________________
• ________________
• ________________
• ________________

63
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Why do people save money?
• For major purchases
• Emergencies
• Retirement
• ???

64
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Earning Interest on Savings
• Why do we get interest income from a bank?
• Because they let others use your money to make
  them and themselves make money.

65
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Earning Interest on Savings
• Start early
• Save at least 10 of gross income

66
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Saving Concepts
• Rate of Return the percentage of increase in
  the value of your savings.
• Simple vs. Compounding Interest earning income
  on interest income.

67
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Types of Savings Accounts
• Regular Savings Accounts
• Certificates of Deposit (CDs)
• Maturity Dates
• Money Market Funds
• Also called Mutual Funds

68
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Pros of Saving Accounts
• Insurance through the FDIC
• Federal Deposit Insurance Corporation
• Up to ??? K
• Liquidity

69
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Savings
• Saving Account Basics
• Cons of Saving Accounts
• Low Rates of Return
• Very little risk
• Inflation Risk
• 2 return 4 inflation? Ouch!!!
• Fees
• Min. balance, Account Fees, Taxes

70
Marketing Mathematics

• Be able to describe the role of banks in our
  business operations
• Accounts
• Checking
• Homework
• Read Chap 29, pages 512 518

71
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• A check is a written order directing a bank to
  pay money on demand to the person/company named
• Once the bank pays the money, the check is
  canceled meaning the debt has been paid.

72
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• A check can be endorsed meaning sign over to
  another party.
• Society is moving more in the direction of debit
  cards allowing funds to be removed from another
  persons account immediately.

73
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Types of Accounts
• Regular Checking for customers who write only a
  few checks a month do not keep high balances.
  Allows for ATMS and Direct Deposit.

74
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Types of Accounts
• Interest Bearing Allows the customer to earn
  interest income from the funds left in the
  checking account

75
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Types of Accounts
• Joint Account Allows two or more people to
  write checks on the account.

76
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Account Security
• Signature Card

77
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Account Services
• Overdraft Protection is for when the client is
  overdrawn.
• Stop Payment
• Online Banking
• Debit Cards

78
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Keeping Track of Financial Transactions
• Writing a Check
• Parts of a Check
• See diagram next page
• Check Register a log of customer transactions

79
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Checking Account Basics
• Parts of a Check

80
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Making Deposits
• Deposit Slips
• Keep Your Receipts
• Use the ATM
• Watch for Endorsements
• For Deposit Only

81
Marketing Mathematics

• Be able to describe the role of banks in our
  businesss operations
• Accounts
• Checking
• Reconciling Your Bank Statement
• Confirming that your records agree with the
  banks records.
• Balancing Your Checkbook
• Outstanding Checks Deposits
• Fees (Bank and ATM)
• Interest

82
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Homework
• Read Chap 28, pages 496 - 507
• Complete the Crossword Puzzle Provided
• On the Puzzle sheet, answer any one Critical
  Thinking question from the text. Use complete
  sentences. Summarize the question in the first
  sentence.

83
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Personal Financial Planning means spending,
  saving, investing your money so you can enjoy
  the kind of lifestyle you want.
• Financial Goals are Critical buy a car, save
  for college, socialize, pay your bills, A plan to
  retire, etc.

84
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Steps to Financial Planning
• Determine your financial situation
• List your savings
• Monthly income
• Monthly expenses
• Debts

85
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Steps to Financial Planning
• Determine your financial goals
• Spend or save?
• Wants needs?
• Work now or later?
• Education?

86
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Steps to Financial Planning
• Identify possible courses of action
• Theres more than one way to skin a cat.
• Evaluate your alternatives
• Gather needed information
• Consider pros, cons, risk

87
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Steps to Financial Planning
• Implement your financial action plan
• Identify your objectives
• Determine needed tactics
• Review revise your plan
• Needs situations change
• Update your plan as needed

88
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• Making Financial Decisions
• Sources of Financial Information
• Internet research of company information (Annual
  Reports).
• Publications
• Business Week
• Wall Street Journal
• The New York Times
• Financial Times

89
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• Making Financial Decisions
• Understanding Risk
• Every financial decision has a certain amount or
  risk. You must be able to accept possible losses.
• Types of Risk
• Inflation a general increase in the cost of
  goods services
• Interest Rate Interest rates rise fall which
  will effect your cost return.

90
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• Making Financial Decisions
• Understanding Risk
• Every financial decision has a certain amount or
  risk. You must be able to accept possible losses.
• Types of Risk (Cont.)
• Income Risk Your income may rise fall over
  time. You could lose a job. Your or a family
  members health may fail for a time, or you could
  get a raise!

91
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• Making Financial Decisions
• Understanding Risk
• Every financial decision has a certain amount or
  risk. You must be able to accept possible losses.
• Types of Risk (Cont.)
• Personal Risk Dont put yourself in a risky
  situation unnecessarily for minimal benefit. For
  example, driving for 24 hours straight to save
  plane fare

92
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• Making Financial Decisions
• Understanding Risk
• Every financial decision has a certain amount or
  risk. You must be able to accept possible losses.
• Types of Risk (Cont.)
• Liquidity Risk The ability to withdraw savings
  or investments in a timely manner without lose of
  value.

93
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• The Importance of Budgeting
• Money Management is a method of planning to get
  the most from ones money (Getting the biggest
  bang for the buck)
• A budget is a plan for using your income in a way
  that best meets your wants needs.
• A good budget will help you
  set priorities for spending
  saving and keep track of
  your money?

94
Marketing Mathematics

• Be Able to Manage Your Personal
  Finances
• The Importance of Budgeting
• Preparing a Budget
• Set your financial goals
• What do I want to accomplish monthly, yearly, for
  the next five years?
• Whats important to me?
• Are my goals practical?
• Estimate your income
• Actual money you earn
• Gross pay, net pay, deductions

95
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• The Importance of Budgeting
• Preparing a Budget
• Budget for unexpected expenses savings
• Unexpected expenses medical, damages
• Save for major purchases
  future needs (college?)
• Budget for fixed expenses
• Fixed expenses (necessary)
  such as rent, insurance,
  car loans, food, etc.
• Often stay the same over time
• Allow for depreciation expense

96
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• The Importance of Budgeting
• Preparing a Budget
• Budget for variable expenses
• Variable expenses change and can be controlled
  more readily. They include dining out, phone
  charges, entertainment, gifts, etc. Often called
  discretionary.
• Record what you spend
• Determine the difference
  between actual expenses
  vs. budgeted expenses
• Surpluses deficits

97
Marketing Mathematics

• Be Able to Manage Your Personal Finances
• The Importance of Budgeting
• Preparing a Budget
• Review Spending Saving Patterns
• Budgeting is a continual process. Review each
  month consider changes.