Cash Flow

Carrier Plateau – A situation in which the likelihood of a salesperson’s receiving increased responsibility (e.g., a promotion, a bigger territory) is low. Career plateauing can lead to substantial opportunity costs for sales personnel on the company. Factors contributing to career plateau include both personal (e.g., low motivation, feelings of job burnout) and organizational (e.g., inadequate sales training, little company growth) characteristics.

Carload – The shipment by rail of a full load. This usually qualifies for lower freight rate than smaller shipments.

Carousel – The materials handling equipment that delivers the desired item to the order picker. Typically a carousel consists of a series of bins mounted on an oval track. The entire carousel rotates, bringing the bin to the operator.

Carriage Trade – An old expression that refers to a wealthy class of patrons accorded special services.

Carrier – In transportation, a car, truck, vessel, plane, helicopter, or train.

Carry Over Effects – In general the influence that is exerted on the sales of future periods by a marketing expenditure today. There is evidence enough to support a conclusion that an expenditure such as for a short advertising campaign may have a continuing effect indefinitely. The strength of the effect is dependent on so many uncontrollable variables that it is presently not predictable. Much effort is being expended continually in an attempt to develop a good model. See: Holdover Effect, Delayed Response Effect

Carry Over Models – Models in which the effect of a marketing mix variable is assumed to last beyond a single time period. A transformation often applied in modeling the effect of lagged marketing expenditures (e.g., advertising expenditures in previous periods) on the current period’s sales is the Koyc transformation. When it is assumed that the effect of the marketing expenditure decays geometrically over time (e.i., losses a constant proportion of its remaining impact in each subsequent period), then the Koyc transformation allows the analyst to estimate all of those lagged marketing expenditure effects using a single one-period-lagged-sales term to predict current sales. The transformation thus greatly simplifies the task of estimating lagged effects in sales response models. The validity of the assumptions required for the transformation to be appropriate has, however, been challenged.

Cartage – Generally applied to the charge made for hauling freight by motor vehicle (except train) over land. Usually medium to long distance. See: Drayage

Cartel – The most organized phase of Oligopoly. Pricing, Market Shares, and output levels are determined centrally. An American marketer may not legally enter into a cartel in the domestic market because of our anti trust legislation, but he is exempt as to such activity in the international markets.

Cart Wrap – A printed advertising message made of paper, designed to go around shopping carts. By the nature of users habits, this type of device is quite perishable.

Carrying Charge – he sum paid for credit service on certain charge accounts. It is an interest usually charged on the unpaid balance.

Cartel – A combination of separate firms who collusively set prices and control output with the intent of maximizing mutual profits.

Case Divider – A strip material arrange to fit in display cases or food freezers in stores, which besides helping the retailer to organize his display, carries an advertising message to the customer.

Case Wrap Around – An elaborate sales promotion piece something like a long banner, designed to go around the case of merchandise used as the base of a special display.

Cash-and-Carry Wholesaler – A wholesaler exhibiting the following features: Customers call to pick up the merchandise, cash is required with the purchase, Salespersons are not widely used to call on prospects.

Cash Budget – A projection of the cash requirements a firm will have to meet each of successive time periods. Will indicate at what points the firm will need to borrow, because a cash budget reflects buying and selling forecasts. See: Purchase Budget

Cash Commodity – Same as Spot Commodity

Cash Discount – An allowance given by a seller to a buyer provide the invoice is paid within the time limit specified in the terms of sale. Its original purpose was to induce quicker payment of the invoice. In retailing, where competition forces low margins, firms often find the cash discount is the difference between net profit or loss, so cannot afford not to take it.

Cash Flow – The change in cash position during a given period resulting from cash receipts and disbursements for that period. In general, it is equivalent to net profit plus non-cash charges such as depreciation. 2. The cash generated after tax earnings plus depreciation minus cash used within the business. Or more simply, the movement of cash into and out of the business. Where the “inflows” (receipts) have exceeded the “outflows” (disbursements) in a specified period of time, the cash flow is said to be positive and provides additional net cash. When the disbursement exceed the receipts in the specified period of time, the cash flow is said to be positive and provides additional net cash.

Cash In Advance (CIA) – Payment before receipt or delivery of goods or services. used interchangeably with cash before delivery, and applies in the same instance as the latter.

Cash Market – That part of the market for a commodity in which orders are accepted for delivery at once. See: Futures Market

Cash on Delivery – It is commonly referred to as COD. The practice of collecting for the price of the merchandise plus the relevant transportation charges.

Cash Register Bank – An assortment of change for the use of the salesperson or transaction station operator. It is prepared at the end of the day by the person operating a cash register or prepared by a cashier for the cash register operation.

Cash Register Display – A small merchandiser designed to mount on cash register and to hold small items subject to frequent Impulse Buying, such as cigarettes and transparent tape.

Cash Terms – The payment of cash for the purchase of goods, usually within a certain time period.

Cash With Order (CWO) – The seller demands that cash covering the cost of merchandise and delivery accompany the customer’s order; cash before delivery and cash in advance apply similarly.

Casting Off – Estimating the amount of space copy will occupy when set in type of a given size. Often results in a determination of how many words can be used, or the size of type required for a given space. See: Copy Fitting

Catalog – A buying guide intended for long use, which so completely describes the merchandise it presents that a person can make ordering decisions directly from it. Some catalogs contain several hundred pages. When large, their cost dictates that an attempt be made to restrict their placement in the hands of prospects to whom the probability of a sale is good or with established customers.

Catalog Retailing – Offering products or services to consumers in a catalog from which orders are placed to be delivered using an appropriate transportation mode. Maybe essentially the same as mail-order, or may employ a catalog showroom.

Catalog Showroom – A retailer operating from a warehouse to which customers come to prepared to purchase and take away items which they have already selected from the retailer’s catalog. Items on display are not available to customers, but are brought from the warehouse section which is often two-thirds of the outlet’s space. It rarely deals in anything other than appliances, jewelry and other hard goods. A low cost operation rivaling the Discount House as it was originally conceived, it has been adopted by discount chains.

Categorical Method – A procedure for evaluation of sources of supply whereby the buyer keeps a record of all vendors and their products according to a list of factors to which performance grades are assigned as more experience with the suppliers is gained. Its major advantages are simplicity and low cost. Its major disadvantages are reliance on memory and subjective judgment, and the possible routinization of the process, which could lead to lack of critical consideration.    See: Cost-Ratio Method, Weighted-Point Method

Categorical Width – Applied to the number of choices an individual will consider when making product decisions. The broader the category width, the more risk the individual is evidently willing to accept that in the search for a good choice, a bad will be made instead.

Categorization – A cognitive process by which objects, events, and persons are grouped together and responded to in terms of their class membership rather than their uniqueness.

Category Killer – A type of destination store that is usually large and that concentrates on one category, thus making it possible to carry both a broad assortment and deep selection of merchandise, coupled with lower price and moderate service.

Category Manager – This manager reports to the marketing manager and is responsible for the marketing of the several brands falling under the generic product category such as coffee, dessert and oral hygiene. This manager (companies sometimes use other titles, for example, unit business manager) is responsible for maximizing the total profit form the mix of brands in the category. This may be done by allocating funds and marketing effort according to the profit potential of each brand in the mix; also deleting weak brands and adding new brands with higher profit potential. The category manager is chosen for business as well as marketing skills and works closely (sometimes as a member of a team) with other functional managers such as production, finance, and research and development to achieve maximum profitability for the product category.

CATV – Abbreviation for: Community Antenna Television System, a method whereby a signal received by an advantageously placed antenna can rely programs to subscribers through a cable. Provision is made to originate programs and commercials through the facility.

Causal Research – Sometimes used to mean the same conclusive research when the study is to determine the relationships among variables.   See: Marketing Research

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