COMMERCIAL

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MARKETING

Monica Daniel

INDEX

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REFLECTIVE ESSAY…………………………………………………………….. 3PARTIAL TEST……………………………………………………………………..4COMMERCIAL…………………………………………………………………….5

• CREDIT AND COLLECTION LETTERS………………………..7• IN-HOUSE CORRESPONDANCE…………………………….29

MARKETING…………………………………………………………………….40• BONDS………………………………………………………………..42• STOCKS AND SHARES………………………………………….50• TAKEOVERS…………………………………………………………53

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A Way to ImproveThis third unit was a way to improve for everyone in the class. Welearned as many things as we learned the units before. I think this onewas one of my best units because I put more effort in the things I do.The class work with more dedication and we all want to improve ourgrades. Either in commercial and in marketing we learned a lot ofthings.

I think that one of the most interesting topics was the one of bonds. Ireally like it because I didn´t know anything about it. Stocks and Shareswas also interesting because I learned about the companies who sellstheir equities to get capital to maintain their companies. The last topicwe learned in marketing was the one of takeovers. Even though it washard to understand and to differ from horizontal and verticalintegration, forward and backward integration, merger, and buyouts atthe end we get to know each meanings. In commercial we learned alot of business letters but I think that the one that was with a higherdegree of difficultness was the one of minutes. It was a long letter thatrecords every moment that happens in a committee meeting. In thisunit every letter was type; it was hard, however we practice efficiency,and exactitude. The credit collection was easier than other letters thatwe have made before. The portfolio this unit was a little bit difficultbecause it was a lot of work, in spite of this, it was a great way to studyfor the final exam.

In conclusion, all the things we learned this unit will be applicable forour lives. Even though we are almost finishing the year, every unit getharder than the ones before. We are almost in the last year so we haveto put all the effort necessary to graduate with a bilingual degree andwith all the good references we need for our business future lives.

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COMMERCIAL

PORTFOLIO

Mónica DanielCode: 3

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CREDIT AND COLLECTION LETTERS

Credit involves purchasing and receiving goods withoutimmediate payment. Credit transactions are common andessential in business.

Before granting credit, a company must be reasonably sureof the customer´s financial stability, her ability andwillingness to pay. There are five types of creditcorrespondence:

Applications for credit Inquiries about creditworthiness Responses about creditworthiness Letters granting credit Letters refusing credit

CREDIT LETTERS:

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VOCABULARYADEQUATE:

(adj) Sufficient, enough.

The amount of food in theparty was adequate for thepeople who assisted.

CONFIDENTIAL:

(adj) Secret, private.

The expedient of an importantcustomer must be confidential.

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DISCREET:

(adj) Showing good judgment,prudent.

A teacher must be discreetwhenever he or she doesn´tlike a student.

LIBEL:

(n) Giving an unjustlyunfavorable impression of aperson or thing.

The credit departmentcannot give a libel of aperson before knowinghis credit rating.

OUTSTANDING:

(adj) Unpaid.

The outstanding account makes the company go to bust.

REBATE:

(n) Discount, return of part ofa payment.

The insolvent customermust give a rebate for hiscredit to be clean.

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CREDIT APPLICATION

Consumer applications for charge accounts, withbusinesses such as department stores or gasolinecompanies, are usually made by filling out anapplication form. A typical form asks for home andbusiness addresses, names of banks and accountnumbers, a list of other charge accounts, and, a listof reference.

CREDIT INQUIRIESDepartment stores usually turn credit applications overto a credit bureau. It keep files on people andbusinesses whose credit references and histories theyhave investigated. They give the applicant a creditrating. The letter contains all the credit informationassures the reference that all information will remainconfidential.

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Yotuki, INC.76 North Pathway

Lake Bluff, Illinois 60897

July 23, 2014

MR. Rodrigo Rodas Industrial Plastic Corp.78 Akron AvenueMiami, Florida 57821

Dear Mr. Rodas:

In order to manufacture a new baby doll, I would like to place an order of 25 poundsof linen plastic item number 232-A in an open account according to your regularterms.

Our company has been on the market for the past three years making toys forchildren to be happy. We have had some credit accounts with some companies foryou to check our references.

The Clock Company, 55 East Main Street, Miami, Miami 87965Toy Story Store, 67 North Street, Miami, Miami 768955

Please let us know your decision about our requested credit, as well as anapproximate delivery date or our first order.

Truly yours,

Monica DanielGeneral Manager

Santizo M.

Credit Application

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Standard Electric Corporation2120 Oak Terrance

New York. New York 60433

June 18, 2014

Mrs. Sara CifuentesEastern Electric Industry750 East 58 StreetChicago, Illinois 65789

Dear Mrs. Cifuentes:

All You Can Eat Company, 52 Shaftaburg Drive, New York is applying for an openaccount in our corporation and listed you as a credit reference.

We would appreciate if you would be kind to providing us information about thecredit rating the company had with you. Especially we would like to know howlong the owner, Mrs. Monica Daniel, has had an account with you and whether ornot any of her debts are past due. The requested information will be kept in thestrictest confidence.

A reply envelope is enclosed for your convenience. We hope we can help byproviding you information.

Truly yours,

STANDARD ELECTRIC CORPORATION

Eduardo RamosManager

Reyes E.Enc.

Credit Inquiry

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CREDIT RESPONSE

Companies that receive large numbers of creditinquiries often use an in-house form for responding.This is a way in which they can control the informationgiven out and, especially, limit the information toverifiable facts like: the promptness of payment andthe amount of solicited credit.

CREDIT GRANTING LETTERS

When all credit references are favorable, a letter is sentgranting credit to the customer. Notifies the customer of the credit approval Welcomes the customer and expresses appreciation Explains the credit terms and privileges Establishes goodwill and encourages further sales

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Eastern Electric Industry750 East 58 Street

Chicago, Illinois 68754

June 20, 2014

Mr. Eduardo ReyesStandard Electric Corporation2120 Oak TerranceNew York, New York 60433

Dear Mr. Reyes:

We are pleased to send you, in condition of confidence, the requested information about thecredit record concerning Ms. Monica Daniel, owner of All You Can Eat Company.

Ms. Daniel has had an exceptional credit rating with our company since she asked for an openaccount with us for the past five years. Her accounts were always paid on time.

Based on our experience we consider Ms. Daniel a creditworthy client.

Truly yours,

EASTERN ELECTRIC INDUSTRY

Sara CifuentesManager

Santizo M.

Credit Response

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Credit Granting

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CREDIT REFUSING LETTERS

Sometimes credit must be denied. A letter refusingcredit must give the customer a reason; however, in aneffort to be tactful and to protect references, thereason may be expressed vaguely. It must encouragebusiness on a cash basis. The tone must be polite and ina “you-oriented” way.

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Credit Refusing

The writer of a collection letter wants get the moneyowed and maintain goodwill. Collection letters, thereforeshould be persuasive rather than forceful, firm ratherthan demanding. The most important characteristic isthat it has to be in a way “you-oriented”. Collectionletters are usually sent in a series:

Monthly statement Collection letter 1 Collection letter 2 Final collection letter Partial payment acknowledgement

Every letter in a collection series contains certaininformation:

The amount owed How long the bill is overdue A specific action the customer may take

COLLECTION LETTERS:

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STEP 1

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The monthly statement reminds the customer ofoutstanding bills. If it is ignored, it should be followed bya second statement. The second statement shouldcontain a notice stating “past due” or “please remit”.

COLLECTION LETTER I

The second collection message, however, should still befriendly, it should seek to excuse the unpaid bill. Thetone should convey the assumption that the customerintends to pay. It may introduce action.

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__________________________________________________

COLLECTION LETTER 1__________________________________________________

Dear Mr. Smith:

Snow maystill be on the ground, but the first signs of springare already budding. And we know you will be planning yourSpring Sales soom. You may already have your order in mind.

When you send us a check for $150, now 20 past due, youwill guarantee that your next order will be promptky filled.

Oversighys, of course, do happen, buy we know you won´twant to miss the opportunity, noy only of stocking up for thecoming season, but of taking advantage of our seasonal adcampaign as well.

COLLECTION LETTER II

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The next letter in the series is still friendly, but it also nowis firm. While expressing confidence in the customer´sintention to pay. It inquiries about the reason for thedelay.

FINAL COLLECTION LETTER

Ultimately, payment must be demanded. The threat oflegal action or the intervention of a collection agency issometimes all that will motivate a customer to pay. Insome companies, an executive other than the creditmanager signs this last letter as a means of impressingthe customer with the finality of the situation.

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_________________________________________________

COLLECTION LETTER II_________________________________________________

Dear Mr. Smith:

We are truly at a loss. We cannot understand why you stillhave not cleared your balance of $175, which is now 45 daysoverdue.

Although you have been a reliable customer for 5 years, weare afraid you are placing your credit standing in jeopardy.Only you, by sending us a check today, can insre yourreputation and secure the continued convenience of buyingon credit.

We would hate to lose a valued friend, Mr. Smith

Please allow us to keep serving you.

Sincerely,

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_____________________________________________________

FINAL COLLECTION LETTER_____________________________________________________

Dear Mr. Smith:

Our Collection Department has informed me of their intention tofile suit as you have failed to answer any of our requests forpayment of $200, which is now 90 overdue.

Before taking this action, however, I would like to make apersonal appeal to your sound business judgment. I feel certainthat if you telephone me, we can devise some means to settlethis matte our of court.

Therefore, I ask that you get in touch with me by the 20th of themonth so that I may avoid taking steps which neither of us wouldlike.

Truly yours,

PARTIAL PAYMENT ACKNOWLEDGMENT

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A customer may offer an excuse or promise payment;he may make a partial payment arrangements. In suchcases, the series would be inappropriate.

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__________________________________________________

PARTIAL PAYMENT ACKNOWLEGMENT__________________________________________________

Dear Mr. Smith:

Thank you for your chick for $150. The balance remaining onyour account is now $450.

Since you have requested an extension, we offer you thefollowing payment plan: $150 by the 15th of the month for thenext three months.

If you have another plan in mind, please telephone my office sothat we may discuss it. Otherwise, we will expect your next checkfor $150 on September 15.

Sincerely yours,

IN-HOUSE CORRESPONDANCE

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Most of the letters discussed so far were intended to besent to people outside one´s own company. Messages tocustomers, clients, and other business associates, theyemphasized business promotion and goodwill. Butbusiness people frequently must communicate in writingwith employees of their own company. The mainpurpose of in-house correspondence is to shareinformation.

VOCABULARY

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ACCESSIBLE:

(adj) Understandable.

The information of legislationclass is accessible for all thestudents.

AGENDA:

(n) list, schedule.

Ingrid cannot livewithout her agenda.

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MOTION:

(n) proposal.

The motion in themeeting was to replacethe chairman.

PERTINENT:

(adj) Relevant.

The information of theclass of accountant ispertinent for our lives.

PRESIDE:

(v) To act as chairperson,to lead.

Eduardo preside themeeting of thecommittee.

RESOLUTION:

(n) Statement of a decisionor opinion.

His resolution was thebeginning of theproblem.

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TRANSPIRE:

(v) To take place, to happen.

The discussion transpire atthe Marriot Hotel.

VERBATIM:

(adj) In the same words.

The letter that we receivehad to be taken in a verbatimway.

THE INTEROFFICE MEMORANDUM

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The memo provides a simplified, standardized format forcommunicating information concisely. The many uses ofmemos include announcements and instructions,statements of policy, and informal reports. People who havea regular working relationship, the tome tend to be moreinformal. The memo gets to the heart of the message.

MINUTESMinutes are written record of everything that transpiresat a meeting. Who takes thorough notes during theproceedings, he prepares a draft and includes all thepertinent information. It should contain: The name of the organization The place, date, and time of the meeting Whether the meeting is a regular The name of the person presiding A record of attendance A reference to the minutes of the previous meeting An account of all reports, motions, or resolutions

made. The date, time, and place of the next meeting The time of adjournment

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GOLETA MOTORS, Inc.MEMO

TO: Penélope Louden

FROM: Monica Daniel

DATE: June 12, 2014

SUBJECT: Data Processors Vacation Schedule

The Vacation schedule for the upcoming months is the following:

• Josie Thompkins, July 1-15• Calvin Bell, July 15-29• Stephen James, July 22- August 5• Jennifer Coles, August 12-26

At least there will be three processors present except during theweek of July 22. When both Mr. Bell and Mr. James will be onvacation. I would like to know if you need me to hire a temporaryprocessor for those days.

MD

Memo

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Memo

36Minutes

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MARKETING

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BONDSCompanies finance most of their activities by wayof internally generated cash flows. They can getmoney for what they need by either issue newshares or by issuing bonds.

Bondholders get back their original investment ona fixed maturity date and receive interestpayments (the coupon). Most bonds have fixedinterest rates.

For investors, bonds are generally safer than stocksor shares, because if an insolvent or bankruptcompany sells its assets, bondholders are amongthe creditors who might get some of their moneyback.

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VOCABULARY

CASH FLOWS:

The money a companyreceives minus the moneyit spends.

The cash flow of thecompany makes itcapable of paying theloan.

EQUITY:

Part ownership of a company in the form of stocks or shares.

My aunt´s dream is having an equity at Mcdonald´s.

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MUTUAL FUNDS:

Funds operated byinvestment companiesthat invest people´smoney in various assets.

Mutual funds areimportant for thecompany not to getbankruptcy.

PENSION FUNDS:

Funds that invest moneythat will be paid to peopleafter they retire from work.

My grandmother boughther house with herpension fund.

PRINCIPAL:

The amount of capitalmaking up a bond or otherloan.

She asks for a principalof $400,000 to open hercompany.

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MATURITY:

The length of time forwhich a bond is issued untilrepaid.

The maturity day of thebond is on August 16.

COUPON:

The amount of interest that abond pays.

The coupon of the bond isfor $5,000.

BANKRUPT:

Unable to pay debts.

BANCAFE was in astate of bankruptcy.

CREDITORS:

People or institutions towhom money is owed.

The creditor of Walmart isG&T Continental Bank.

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DIVIDENDS:

Payments by companies totheir shareholders.

Apple Company has topay dividends to it´sshareholders.

MARKET MAKERS:

Business that buy and sellsecurities.

In New York there is alot of market makers.

BID:

The price at which abuyer is prepared to buya security at a particulartime.

The shares of MACMAKEUP will be ontakeover bid nextweek.

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OFFER PRICE:

The price at which aseller is prepared to sell asecurity at a particulartime.

The offer price for theshare of SamsungCompany is very high.

YIELD:

The rate of income aninvestor receives from asecurity.

He asks for a very highpercentage of yield.

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SOARED:

To rose quickly.

The gasoline soared itsprice a lot.

TO KICK START:

To revive or stimulatesomething.

We have to kick start theprice of the merchandise.

BENCHMARK:

A standard used whencomparing other things.

We have to take as abenchmark for ourcompany a successfulone.

RECESSION:

A period when the economyis contracting. (depression,slump)

The recession of USAaffected all the world.

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RALLY:

An improvement or increase inprices.

Food is in a rally momentwhen gasoline is expensive.

DEFAULTING:

Falling to repay a doubt.

With a defaultingsituation he wasunable to pay his loan.

TO GO BUST:

Another word for goingbankrupt.

Bancafe was with a lotof loans so it has to gobust.

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STOCKS AND SHARES

• Successful companies can issue stocks or shares toraise capital to expand their operations.

• Selling stocks for the first time is called an IPO (InitialPublic Offer) and a flotation.

• Stocks and shares are also known as equity orequities.

• A period during which most stocks are rising is calleda bull market and one in which most of them fall isvalue is a bear market.

• Companies either distribute part of their profits toshareholders as an annual dividend or keep theprofits in the company, which also causes the valueof the stocks to rise.

• Stocks markets are measured by stock indexes whichshow changes in the average prices of a selectedgroup of important stocks.

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VOCABULARY

TO RISE AFTER PREVIUSLY FALLING:

The vertical up and down movementof shares in a company.

Shares in a company suffer amoment when it rise afterpreviously fall.

TO RISE A LITTLE:

When stocks go up after falling a lot.

The company was almost in bankrupt, but then the stocks and shares rise a little.

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TO RISE A LOT:

After falling a lot thestocks and shares rise alot.

After loosing a lot ofmoney Apple Companyrise a lot and succeed.

TO FALL A LITTLE:

In a raising moment thestocks and shares fall alittle.

After Cayalá opens itsdoor in Guatemala,Oakland fall a little.

TO FALL A LOT:

When stock and sharesfall a lot and go bust.

Blockbuster fall a lotafter all the movieswere sell on street.

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TAKEOVERS

• Horizontal integration: Acquiring a competitor

in the same field of activity.

• Merge: To combine the two companies to form

a single new one.• Vertical integration:

Companies can also acquire businesses

involved in other parts of their supply chain.

• Backward integration: involves acquiring suppliers of raw

materials or components.

• Forward integration: is buying distributors or

retail outlets.• Raid: involves buying as

many of a company´s stocks as possible on

the stock market.

Successful companies have to findways of using their profits.Sometimes it is easier to take overother companies with existingproducts and customers.

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BANCO G&T CONTINENTAL

The G&T Bank opens its doors on

September 3, 1962 and it has been

open for 48 years.

The Continental Bank opens

its doors on October 15, 1990.

The merge between these

banks happen on October 4, 2000.

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VOCABULARY

DIVERSIFY:

To become more varied ordifferent.

M.A.C brand has todiversify its productsbecause there are somany brands of makeupin the market.

RETAILS OUTLETS:

Places where goods aresold.

Oakland Mall is anexample of a retailoutlet.

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CONTROLLING INTEREST:

A sufficient number of stocksin a company to be able todecide what to do.

The chairman in acompany has a controllinginterest.

LISTED COMPANIES:

Public companies whosestocks are traded on a stockexchange.

Mcdonald´s is in thelisted companies forselling shares.

FEES:

Amounts of moneypaid for services.

Fees for teachingaccountability arereally good.

CONGLOMERATES:

Companies that own or controlseveral smaller businesses sellingvery different products orservices.

P&G is an example of aconglomerate.

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SYNERGY:

The combined power or value of agroup of things working togetherwhich is greater than the totalpower or value achieved wheneach is working separately.

The synergy of the team makesthe company achieved its goals.

MARKET CAPITALIZATION:

The total value of acompany on the stockexchange.

The market capitalization of Walmart is of 50%.

SUBSIDIARIES:

Companies that are ownedby a larger parent company.

The owner of the store“Zara” has a lot ofsubsidiaries.

PENSION FUNDS:

A sum of money reservedto pay a company´s retiredemployees.

IGGS has a program ofpension funds for theones who paid theservice.

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