Marketing Mathematics

# Marketing Mathematics

## Marketing Mathematics

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##### Presentation Transcript

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 • It’s 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: • Cashier’s 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 customer’s 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 card’s 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 can’t be overdrawn, I’ve 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, you’re 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: • Operator’s 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