Business Definitions – G

goodwill – When a company purchases another company for more than the value of its assets — which is quite common — the difference is recorded as an asset named “Goodwill.” This is not a general term for the value of a brand, for example, but a very specific accounting term. For example, if one business buys another business for $1 million then it needs to show the $1 million spent as an asset. If there are only $500 thousand in real assets, the accounting result should be $500,000 in real assets purchased and another $500,000 in “Goodwill.”

gross margin – The difference between total sales revenue and total cost of goods sold (also called total cost of sales). This can also be expressed on a per unit basis, as the difference between unit selling price and unit cost of goods sold. Gross margin can be expressed in dollar or percentage terms.

gross margin percent – Gross margin divided by sales, displayed as a percentage. Acceptable levels depend on the nature of the business. There are providers who can deliver standard gross margins for different types of industries based on SIC (Standard Industry Classification) codes that categorize industries.

guerrilla marketing investment strategy – This is a inverse approach to traditional marketing budgeting. Levinson states: Invest 10% in the “universe” Invest 30% in you prospects Invest 60% in your customers.

guerrilla marketing – Examples of mini, maxi,and non-media tools: Mini: canvassing, personal letters, calls, circulars, brochures, classified ads, Maxi: yellow pages and signs Non-Media: public relations, advertising.

guerrilla marketing concept – Effective and pragmatic marketing can be done with limited resources and should focus on meeting the needs of existing customers in everything that is done, while building the base of prospects through creating additional awareness within the market.