沃顿商学院全套笔记-十六-

沃顿商学院全套笔记（十六）

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P36：35_品牌要素-说服力.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So we talked about a bunch of brand images and we talked about creating brand perceptions and。

how these brand elements work together。 But another part of this brand identity is to persuade consumers。

So let's focus now on this process of persuasion or changing people's attitudes。

And the dominant model that's used in this way of thinking or。

the dominant theory is called the elaboration likelihood model。

And so we'll talk a little bit about that。 And then let me focus in on the use of celebrity spokespeople because。

they're used frequently to help persuade consumers to have positive beliefs towards a brand。

So let's start off with persuasion。 What is persuasion？

It's an active attempt to change belief and attitude。

So marketers are trying to persuade you to feel favorably towards their， brands and their products。

The caveat here is that it's difficult and why is it difficult？

It's difficult for the reasons that I've mentioned all along。 People expose themselves。

pay attention to and interpret data， consistent with what they already believe。

And because they're not scientific about it and， evenly sampling and exposing themselves to all sorts of different things and。

paying attention to things that both support their prior belief and。

refute their prior belief because they're very biased in the way they take in that stimuli。

it's hard to persuade them to think differently。 That's not to say it's not possible。

but it is difficult。 So the dominant model in thinking about what's the best way to persuade consumers。

is the elaboration likelihood model。 And this model posits that there's two different routes to persuasion。

There's the systematic or central route and， there's the superficial or peripheral processing route。

The central route says that if people are motivated and they're highly involved。

and they have the opportunity and， the ability to process marketing messages。

then the way to persuade them is through central cues in messages。 In other words， cognitive cues。

things that people have to think about。 Try to make a strong argument。

In order to make a strong argument， people have to be paying attention。

they have to be motivated and they have to have the ability to process this information。

That's one way。 Many times， and this is true a lot with marketing decisions。

people just aren't motivated to think that much and。

maybe they just don't want to think that much or maybe they just don't have the ability。

they're too tired or whatever。 In that case， central processing or central route to persuasion will not work。

Then you have to use the superficial way， which is to use these peripheral cues。

And so when your opportunity， motivation， and， ability to elaborate， to cognitively process is low。

then the way to persuade people is through these peripheral cues。

Which are more automatic reactions。 People just make decisions based on these cues and。

it's not because they thought it out carefully。 So what we're saying here is that the consumer is exposed to marketing cues。

Now the first thing is you ask the question， is the consumer motivated to elaborate？

Are they going to pay attention and think about your message？ If the answer is no， they're not。

then that's low involvement。 And then don't give a message they have to think about。

use peripheral cues。 On the other hand， if there's high involvement and。

they are motivated to elaborate， then the next question you have to ask is。

do they have the ability to elaborate？ It's a message。

something that they can figure out if they think about。 And if the answer to that is yes。

then you're going to use central route。 If the answer is no。

you have to go back to the peripheral route。 Okay， so to get to central routing。

the central route where it's systematic， argument。

people have to be motivated and they have to have the ability。 If either one of them isn't true。

you got to go to peripheral cues。 So what are peripheral cues？

Peripheral cues are cues that people use in a， it's called heuristic way， that means a shortcut way。

They don't really think through it。 They just kind of say， well， if this is true。

then that must be true。 So for example， classical conditioning。

Classical conditioning says that you persuade people just by putting things， together all the time。

So the famous example is Pavlov's dogs。 The dog was conditioned to salivate whenever they heard a bell ring。

And the way it was done is the bell rang before they gave dog food。

And then every time the dog got dog food， they salivated。 After a while。

because of classical conditioning， just the ringing of the bell caused the dog to salivate。

So in the same way in marketing， if things are always together。

you always have Coke with hamburgers or Coke with McDonald's。 After a while。

you don't even think about it。 And you just say， well， I'm having a big Mac。 Let me have a Coke。

That's a kind of notion of classical conditioning。 It's not well thought out。

It's just persuaded to have a Coke because I always have had one。

Reciprocity says that you gave me something IOU。 Now that may make sense and may not。

But you're doing it just because IOU。 So a lot of times。

direct markers will do things like put a little gift， in a charity appeal。 It'll give you stamps。

or sometimes I give you a dollar。 And the idea is I gave you something。 Now you give it back to me。

It's not a cognitive argument。 It's a peripheral cue。 Consistency is another peripheral cue。

Why do you like the toothpaste you use？ A lot of times。

the reason that you like the toothpaste you use， is because that's when you always use。

That's when your mother gave you。 It's not like you did the systematic product comparison。

and you decided this is your favorite toothpaste。 You use it just because you always liked it。

That's consistency as a peripheral cue。 Social proof says， well。

I like this because everybody else likes it。 So New York Times lately has had the most emailed articles。

People read them。 Why did you read them？ Well， everybody else emailed them。 There must be good。

Or my husband chooses restaurants by the one that has the longest line。

If everybody's waiting online for this restaurant， that must be good。

That's a social proof peripheral cue。 Liking says， if you like me， then you like my ideas。

This is very important， and we'll see later for celebrity spokespeople。

If you like the celebrity spokesperson， then you're going to like what they like。

Not necessarily a rational process， but it makes sense in some ways。 Authority says。

just because I say so， you should do it。 That's another peripheral cue。

So because somebody in authority says you should do something， you should do it。

It's not because you thought it out。 It's because it meets your preferences。

It's just because someone told you to do it。 And the last peripheral cue that I'll just mention today is this peripheral cue of scarcity。

Because there aren't very many of them， it must be good。

So some marketers use this idea of scarcity to create product quality。

A modern one that's recently been using that is Lulu Lemon。 And Lulu Lemon purposely does not have。

you know， they go to stockouts easily。 If you don't get there quickly， it'll run out。

the design you might want。 And people infer from that that it's high value， high quality product。

So all of these are peripheral cues。 Not well thought out， central processing arguments。

but cues that people use to persuade themselves， of one thing or another。

So now let's think about celebrity endorsements in terms of these two roles of persuasion。

So in one way that you can use a celebrity in a central processing way。 And in that way。

the idea is going to be the celebrity is an expert。

And the reason that the celebrity endorsement matters is because that person is an expert。

and therefore there's information in that endorsement。

Celebrity is a peripheral cue is going to be because the celebrity is attractive or because。

I like the celebrity， then I want to use the products that they use。

So celebrities can be used in both ways， either in a central or in a peripheral way。

When you're thinking about different celebrities to use to help endorse your products， there's。

certain things you want to think about。 First of all。

who's the target segment and does that target segment like that celebrity？

So that's going to be an important thing。 Then you want to think about what's the brand message and does the message of the brand。

the brand mantra fit the brand message of the celebrity。

And another thing you want to think about is how attractive is the celebrity。

Is this a popular positive celebrity because you don't want to take a celebrity that nobody， likes。

obviously。 Other considerations are how costly is it。 Celebrities can be very expensive。

Is it worth it？ Some of them are cheaper。 Maybe that's a better value for your money。 And nowadays。

very， very important is the social network。 So some of the celebrities that are chosen for endorsement is because they have a very。

very strong social network and they have a lot of followers。

And so the clout scores and those kinds of different scores are indicating the social。

connectiveness of these different celebrities。 And all of those go into the decision of which celebrity to choose。

There's another thing that's out there to rate these different celebrities。 It's called a Q rating。

And the Q rating says how appealing is the celebrity among those who do not know him。

It's the ratio of popularity and familiarity and it's conducted by a particular company。

called Marketing Evaluations。 And you can get Q ratings for different celebrities to help you judge which is a good celebrity。

and which is a celebrity that maybe isn't as strong and maybe you don't want to pay as。

much money for or something like that。 So what's the。

I think you're probably starting to get the idea of how these celebrities work。

And formally we think of it as a notion of transfer of meaning and that's the model that's。

used to indicate the effectiveness of celebrities。

So the idea is that celebrities have very charged powerful meanings and what you want。

to do is transfer the meaning of that celebrity to your product。 So advertising firms。

marketing firms， branding firms try to choose a celebrity that best。

represents the appropriate symbolic properties of the product so that that meaning from that。

celebrity will then transfer to the meaning of the product。 And celebrities are quite powerful。

There have been some FMRI studies that show that when you show an image of just a normal， person。

certain areas of the brain light up but if you show an image of a celebrity。

different areas of the brain light up。 So there's an automatic or visceral reaction to celebrities。

They just get more attention and they can be very， very effective at creating an image。

and at differentiating a brand。 If a celebrity is associated with one brand and not another。

that can be a very effective， differentiation。 And going back to this elaboration likelihood model。

when you think of the celebrity as， working in a central processing way。

we talk about that as having a credible source。 And so in that way。

the celebrity is an effective spokesperson because of your expertise and， their trustworthiness。

So one of the very effective at the time spokespeople for Nike was Tiger Woods。

Now obviously there's been some controversy around Tiger Woods in more recent time。

But when Tiger Woods was the first spokesperson for Nike Golf， he worked in two ways。

He was very credible as an endorser for golf products because he was such a successful。

golfer and obviously you think there's some expertise in his golfing ability and he knows。

what he's talking about with regard to product。 That's a central processing kind of use of Tiger Woods and that's source credibility。

He's a credible source。 The other way of thinking about Tiger Woods is he's also an attractive source。

People liked him at the time， they were very familiar with him and anything he did people。

would like。 So he was used as a spokesperson not only for golfing for Nike but he's also used for。

other products which were not necessarily based on his expertise but just based on his。

attractiveness。 And when he got into some scandal and some issues where his attractiveness was not as。

strong， some of those endorsements were dropped because he was no longer an attractive source。

The ones that tended to stay with Tiger were based more on his credibility as a source。

And you can see when you think about these different methods of persuasion why some companies。

might keep him and some companies might not want to keep him。

And the ways the celebrities and models are used in these advertisements and endorsements。

is they can say there's an explicit mode。 They can say I endorse this product。

I believe in this product。 There's an implicit mode that says well I use this product。

There's an imperative mode that says well you should use this product。

And then there just can be these co-presents that celebrities around this product。

So a lot of product placement， a lot of fashion companies give their celebrities their clothes。

to wear so that celebrity is just wearing those clothes and that is a kind of endorsement。

as well。 [Music]。

(guitar music)， [MUSIC]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P37：36_品牌重新定位.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So we've talked about lots of things with regard to brands。

We've talked about the initial positioning of a brand。

We've talked about how to create brand elements that go together to create a brand image。

And one of the things I've been emphasizing throughout the whole sessions is that。

a brand has to be updated。 A brand has to stay modern。 A brand has to adapt。

And so a very important part of branding is to think about how to reposition a brand。

You have an initial start， but maybe the times have changed， maybe the customer base has changed。

And you have to think about how can you keep this brand fresh？ How do you reposition a brand？

So we're going to talk about that now。 And it's this notion that the brand equity must be actively managed over time。

If you wait until a brand is out of date， it's much harder than to reposition the brand。 So ideally。

the best way to keep a brand fresh is to constantly think about it。

And might tweak it here and there。 Think about it all the time so that it stays fresh。

That would be the best way。 Brand meanings must be reinforced。

But sometimes they need to be adjusted just a little bit。

And new sources， new ways of identifying the equity should be identified。 Why does this happen？

Well， I can think of at least five reasons and there's probably more reasons than that。

But let's go over some of these。 One reason for a brand repositioning is that the initial positioning that you came up with。

wasn't right。 It was poorly conceived。 And you might know this because you thought this was really cool and。

customers were going to be interested but actually you didn't see the interest you， anticipated。

Or the sales are just not what you thought。 And one of the reasons is the brand is poorly conceived。

That being the case， you got to reposition the brand。

Another reason is maybe you have a perfect positioning for， a particular target audience。

But that audience is hard to reach， isn't profitable。

It was a really good idea for a really good customer segment but it wasn't a good。

business opportunity。 And so therefore you may need to reposition the brand。

Another reason may be because it just gets out of date as I mentioned over and， over。

One of the things about being a marketing professor is that things change。

You got to constantly change。 You got to keep up with things。

And so your old marketing approach might become obsolete。 Then you have to change it。

The other thing could be it might just lose its edge。 It made sense at one point。

It's just kind of old and now people want to do something new。

And it isn't really that it was wrong or that people's taste change so much。

It's just that it seems old and tired。 And so you need to do something to make it fresh。

And another idea， along those same lines is tired。

So one is more that it becomes old fashioned and the other is it just becomes old hat。

But those are similar ideas。 It just gets old。 There isn't nothing wrong with it but you really want it to be new。

And by the way， one of the really big things that happens is people go out and。

make purchases sometimes because they have needs。 And sometimes they make a new purchase just because they want something different。

something new。 And if the brand seems same old， same old。

that's not enough of a reason to go out and， make a new purchase。

So these are some of the reasons that are needed for a brand change。

There are others。 When you think about repositioning a brand。

the biggest thing you have to think about， is consistency， consistency， consistency。

So except for that one example where I told you about Google。

where they go out of their way to do things that are a little bit different each time。 Most brands。

when they do this reposition， they have to have a position that's。

consistent with the old position or at least close enough to the old positioning。

So consumers believe it。 If it's really radically different。

people won't make the connection necessarily。 There's some examples where that can work。

But most of the time， the best way to reposition a brand is to do something that's。

consistent with the brand DNA。 And so let's think about。

there's some psychological theory that can go back， behind this so I can show you why this happens。

Why consistency is generally so important。

And this is some very old research that was done on understanding why people smoke。

And it had to do with people's attitudes towards smoking。 So this is a psychological theory here。

So let's assume I'm me， I'm myself。 And let's say I smoke。

And let's say that I know that smoking causes cancer， cancer causes death， and I don't want to die。

Now if that's the case， how do I justify that I smoke？ Because there's this inconsistency。 I'm me。

I like myself， I don't want to die。 I think smoking causes cancer。 Something doesn't work。

And so what psychologists found out was that people rationalize or they do something to。

one of the links of this chain so that it is consistent。

And that's the way they can justify their behavior。

Because people like to be consistent with themselves。

So what are the ways different people kind of rationalize to allow themselves to smoke？

Well one resolution is you say， okay， I smoke， I don't want to die of cancer， I don't believe。

the data。 And so this is the kind of thing where I said you have this bias selective interpretation。

I was mentioning presidential campaigns。 There's experiments that show。

you show the same data to smokers and non-smokers and they， will interpret it differently。

So people frequently interpret the message or the data consistent with what they already， believe。

This is a theme that I've mentioned all along。 So this is a pretty well known way to rationalize the behavior。

Another way to do it is to say， no， no， I believe the data， it's pretty conclusive。

Smoking causes cancer， I really don't want to die from cancer。

So what you do is kind of lie to yourself。 And you say， you know， I don't really smoke。

I only smoke when I drink， I only smoke on vacation。

And so it doesn't really count and therefore I have no inconsistency。

People do this with diets all the time。 They make all sorts of rules。 When I'm on vacation。

food isn't fattening。 If it's a little bit burnt， I can eat as much as I want。

And there's all sorts of rules that people make。 That's that resolution where you kind of figure out a way that you can feel good about yourself。

The third resolution to this particular one says， okay， I know I smoke， I know it causes， cancer。

but you know what？ I'm going to die anyway。

And it may not be that I die from this。 All of these are consistent。

And that is a very important concept for marketers。

So if you're putting out a message when you're trying to reposition your brand that isn't。

consistent， consumers will reject it and will look for a way to rationalize the message。

so it makes sense to them。 It's a consistency theory。

There is a drive to maintain consistency within your thinking systems。

And what you do is if it's not consistent， you change whichever one is the weakest so。

that it is consistent。 So what's the famous example？ It's with Osmobile。

Osmobile was known as a car that was associated with that， with my father。

Now one thing that's probably obvious， but let me just say it here， cars are for young， people。

Cars are powerful performance。 People like young people cars， energy cars。

They don't like old people cars， okay？ So the notion that Osmobile was associated with my father was a turn-off to younger people。

Osmobile understood that。 That was obvious。 And so what they tried to do was they came out with a new ad。

new excitement， new car， to say， "No， no， we're not a funny-done car。 We're an exciting car。

This is a car for young people。"， What happened here？ There's cognitive dissonance here。

The problem is the association with dad in Osmobile was extremely strong。

The association that my dad is not exciting was extremely strong。

So the weak link here was that Osmobile cannot be an exciting car。

And that was a very strong inconsistency they couldn't fight。

It was so strongly associated with my father and fathers are so not exciting that people。

just did not believe the new ad。 It was obviously hurt even more by the ad。

And the slogan at the time was， "This is not your father's Osmobile。"， And anybody knows。

as soon as I say， "This is not my father's Osmobile，" what you're。

doing is reinforcing that it's exactly my father's Osmobile。

So this is known as one of not a good campaign。 Most marketers will say。

"You just didn't get this right。"， And you know， there was another problem here。

Think about the brand name。 It is literally called an old mobile。

That is all of this is not good and it was such a hard thing to change and to reposition。

that they actually took the car off the market， which was kind of astonishing because Osmobile。

had very， very high brand awareness， but they just could not get themselves added this。

cognitive inconsistency。 So this is a very important thing。

A better way to do it is to not wait until it's so hard to change that it's impossible。

and you have to take the product off the market。 A better way to do it is to gradually change these associations in small ways so that people。

can still maintain that brand familiarity and believe the repositioning。 So you can do it。

and I mentioned this earlier， you can do it by kind of updating the symbols。

Or maybe you can start to change the brand name and I can show you how you can show change。

the brand name slowly to reflect the evolving identity。 Or you can use different slogans。

So all of these elements that we talked about before can be subtly tweaked in order to reposition。

the brand as you need to to keep it modern。 And you can also do it if you're going to use the brand to stretch the brand to go into。

new products。 And so you might want to broaden the brand meaning so that it's more flexible and adaptable。

to go into new products。 There are two ways to do this。

One of the ways is called the just noticeable difference。

And what this says is that you make these little tweaks very subtle from point to point to point。

So they're barely noticed。 You do this say every year。 If you look over 20 years。

the difference from the first one to the last one is very， very hot。

And so there's a lot of packaging examples which we can show you where just with tiny。

little tweaks each time you still believe it's the same product。

But if you look from one version to a version 65 years later， you'll see a radical difference。

and the brand stays modern。 Many consumer package goods do this kind of just noticeable difference positioning。

Another way to do it is what's called the butterfly effect。

And what this says is that I'm going to move from one to another in a big jump。

You are going to notice that it's different。 It's not a just noticeable difference。

It's a bigger difference。 And the reason I'm going to do this is to keep it modern and new。

Because for some categories like cosmetics， like clothing， and it's the notion of clothing。

the idea of keeping it modern and keeping it fresh is part of the reason to buy。 And in that case。

I don't need the change from one to another to just be subtle。

I can make it so that it is kind of a little bit exciting and more modern， but it doesn't。

necessarily need to。 But it's more modern， but it still stays within believability。

And that's called the butterfly effect。 So it's not so extreme that I don't think it's the same thing。

but it is noticeable。 And so these are two different ones and we can show you a number of different examples。

on those two different ones。 Okay。 And then I can show you some examples of evolving trademarks。

There's the Jolly Green Giant that was kind of out of date and they made a new Jolly Green。

Giant that was fitter， more athletic， taller， stood up straighter， and looked more like a， modern。

I guess， giant。 Then there was， please don't squeeze the Charman。 And they updated that packaging。

updated that spokesperson to look more modern。 These are subtle changes。 There was another change。

Charlie the Tuna。 I mentioned him earlier。 Very fun animated character。

kind of got a little out of date， and they made him more。

modern and changed the colors a little bit， changed the perspective of him and just kind。

of made him a hippo guy。 More recently， there was a transformation on the hamburger chain， Wendy's。

And again， I know a little bit more about the market research that went into this。

There was a lot of changes here。 One of the changes here is they got out their slogan。

their slogan that used to be part of， the sign was old fashioned hamburgers。

Wendy's menu has got to be broader now。 They do more than just hamburgers。

So one of the things they pulled out was that slogan。 They changed their typeface。

They went from an old fashioned typeface to a more modern typeface。

They did find when they did the market research that the character， this Wendy character， which。

was Dave Thomas is the founder of Wendy's， it was his daughter at the time。

She's not identified with that Wendy character and they liked that Wendy character。

So they kept the character， but they made her， she used to be in a little circle and she。

used to be contained in the circle。 Now she's kind of bouncing out of the circle。

And so all of that made the logo seem more modern， more expansive。 You know。

lots of things are possible that you can get in a Wendy's now。 And with these subtle changes。

it's still very much identified as a Wendy's。 You can keep the brand， you can keep the brand modern。

but connected enough so that it doesn't。

people still know it's Wendy's and it's not a surprise。

The other kinds of ways that people have named is actually to change the brand name。

So Boston Chicken was the original name of the chain of restaurants that provides dinner， food。

Obviously Boston Chicken suggests that they're just selling chicken。 And so they。

and they sell way more than chicken。 So they change their name to Boston Market。 And in that case。

what they're doing is trying to broaden the flexibility of the brand。

Weather Channel found out that they were going to make a lot of their revenues， not off TV， anymore。

but off apps and different kinds of ways of saying weather。

So they changed their name from the weather channel to weather companies。

And Starbucks very famously changed their name from Starbucks Coffee to just their image。

They just have the image of the mermaid now。 They not only got rid of coffee。

but they kind of got rid of Starbucks。

But people still know it is Starbucks by that image。 So what's the best way to do it？ The one。

a brand that's really done a very good job of keeping themselves modern is BMW。

BMW could have been in the same situation as Osmobile because it was a product that your。

father drove。 BMW was a lot of associations。 It was a certain type of car。 It was a German car。

It was an expensive car。 And it was a car driven by the baby boomers。 At one time。

all of this was good。 In fact， BMWs were called beomers。

They were thought of as driven by the baby boomers。 But these things get old。

It could have been that the car was seen， the car design was seen as not practical。

Being a lot of money was seen as wasteful。 The baby boomers got old and they're stuffy。

And German could be seen as stodgy。 So although the association started out as positive。

if they're not carefully cultivated， they could turn negative。 How did BMW cultivate it？

They did it through a lot of sponsorships。 They not only were very careful with their advertising。

They mean performance， which is something that can stay modern。

But they also changed their design of the cars。 They had BMW sunglasses。

They sponsored high performance bikes。 They sponsored golf tournaments。

They associated their brand name with young and powerful and good imagery。

And so their associations never did turn negative and they stayed a very positive association。

Bud Wazabir is dumb that also。 This could be your father's beer。

Your father drank Bud just as much as you do。 But Bud stayed very young with their sponsorship。

with their advertising， with their clever advertising， with all of those kinds of things。

their slogans， et cetera。 And that's a way to do it by constantly positioning your product subtly。

sometimes just noticeable， sometimes a little bit bigger difference， like a butterfly effect。

but always within the。

brand DNA so that people believe the changes。

So major points here。 Consistency over time is very valuable in building strong brands。 You do。

it's kind of a fine line。 You do need to keep your brand modern。

but if you do something that threatens the consistency， chain that I was talking about。

people won't believe it。 So it's got to be something that is consistent with the brand DNA but is constantly moving。

it forward。 When you think about all the brand elements， you want them all to work in harmony。

to communicate， brand identity。 And it's important to change when it's necessary， but be careful。

Because if you do things that are too big a change or that the customer won't accept。

it just won't work。 If you really want to do a good job in keeping your brand modern。

you really have to understand， the brand mantra， the brand DNA， the brand positioning。

your target segment。 These are the things we talked about in the beginning。

You have to understand what the points of parity are， what the reference frame is。

You have to really understand what the point of differentiation is， what is strong about。

your brand， what is positive about your brand， and what is unique。

And you have to be consistent with that kind of brand image as you make these adjustments。

[MUSIC]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P4：3_细分和目标定向.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So in this section， what we'd like to talk about is that concept I mentioned earlier， segmentation。

segmentation and targeting。 And this is a critical idea for marketing and very important for。

where we're going， which is brand positioning。

It's called the STP framework， segmentation， targeting and， positioning。

And when we get to positioning， that's when we first start getting to branding。

which is where we're headed。 So the positioning process says you start with segmentation with S of STP。

And segmentation says that you identify variables that， allows one to segment the market， okay？

So we're going to figure out different schemes for。

how to break up the market into different market segments。 The second part， the T is targeting。

You would evaluate the attractiveness of each of these segments and， you choose a segment to target。

And the third piece is positioning。 Once you get your target segment， you position your brand and。

your product to meet the needs of that target segment。 STP， segmentation， targeting and positioning。

So let me just give you the idea of why this is so important to have。

segmentation targeting and positioning。

And what I'm putting up on the background now is a slide that shows you。

the importance values two different segments have for roof tiles。 So on this graphic。

you can see the yellow segment。 Doesn't think price is that important。

They don't care about whether or not it's a low price， but。

they do care about how attractive the tiles look。 And they really care about how durable the tiles are。

On the other hand， the blue segment， they care a lot about the price。 They want a low price。

They don't really care that much about how it looks and。

they don't care that much about how long the tiles last。 If you did not segment this market。

the optimal thing to do would be to give average value to everything。

And what you would do therefore is not please anybody。

The average value here would be not a low enough price for。

the people who care about low price and not enough durability for。

the people who care about durability。 In some sense， I think of that as the lukewarm tea。

You can have hot tea and ice tea and if you give average， it's lukewarm tea and nobody's happy。

So one of the reasons to segment the market is if you don't。

you tend to try to reduce costs and go to the average value and， you're not meeting anybody's needs。

Going back to that concept of customer focused marketing。

if I want to give you exactly what you want， I need to segment the market。

And what you'll see is there's a heterogeneity or differences in preferences。

And then I need to choose or target which one of these segments I want to。

deliver to and deliver value to that segment。 And for example， in this case。

if I delivered durable tiles to the yellow segment。

they would be willing to pay a higher price for that and I could be very profitable。

But if I went to a lukewarm thing， I might not sell to anyone。

So segmentation means I divide the market up into market segments。 In fact。

let me just define it formally here。 Market segmentation is the process of dividing up the market into distinct subsets。

Where any subset could conceivably be selected。 And then you pick one of those market segments to be your target and。

you reach or you deliver to that customer segment。

that market segment with a distinct marketing mix。 Remember what the marketing mix is？ The four P's。

product， place， promotion， and price。 And what that says is when I'm looking at these different segments。

they may want different products。 It may make sense to advertise to them differently。

It may make sense to price differently。 It may make sense to deliver at a place decision or。

distribute to them differently。 And so that's the definition of market segment。 Very。

very critical idea in marketing。 So the question is how can I divide up the market？

And you might understand the idea that I'm going to go after market segments。

And I'm going to choose one of them and， then I'm going to give a unique product package or marketing mix to one of those segments。

Maybe you understand that concept。 But then the question is well。

what are the different ways to segment the market？ And there are actually lots of different ways。

The most common way that people most usually think about is to divide up。

the market on characteristics of the customer。 So intuitively you might think about demographics。

Well， men and women like different things。 So let's make a female product and a male product。

Or old people like things that are different than young people。

Or rich people have different needs than poor people。

So one of the segmentation schemes that people frequently think about are。

characteristics of the customer。 Another one though。

which doesn't really focus on characteristics of the customer， says well。

people like different things than products。 They focus on different benefits。 So in running shoes。

some people care about comfort。 Some people care about aesthetics。

Some people care about technology。 And so it might make sense to divide up the market or segment the market on。

the benefits that people seek。 A third way to think about it is how do people purchase？

Maybe they purchase online。 Some people purchase online。 Some people like to go to physical stores。

Some people like to use their phones。 Or some people purchase very frequently。

Some people only purchase once a year。 Some people like to switch around。

Other people like to be loyal。 All of these are different characteristics that you can use to segment the market。

Let me just give you a few examples of some of the interesting ways that people。

have segmented the market just to give you some ideas。 One of the ones。

people talk about demographics。 So they talk about old versus young， male versus female。

city dwellers versus， country dwellers。 Another thing that-- and I'm sure you've heard of this。

You may not know it by this term。 Another way to think about it is cohort analysis。

And what cohort analysis says， it's not really whether you're young or old。

It's the life experiences that you've experienced as a cohort。

And in particular， it's very important what happens when you're coming of age。 Right around 14， 15。

16， 17， 18， those kind of-- those things that hit you at that time， of your life are critical。

And they frame you as a generation。 And so this is the idea you've heard probably of baby boomers。

That's a cohort。 Baby boomers were born。 There's two cohorts of baby boomers。

There's ones that are born about 1950 and then the ones that are born about 1960。

And those-- that cohort of baby boomers all come of age at a certain time。

Certain things happen when they come of age。 And they react as a generation。

Generation X is another cohort。 And what you're hearing about nowadays really is generation Y。

People who are coming of age now， these are the kids who are in college。 They think of generation Y。

millennials。 And why do we really focus on the current generation？ Who's in college now？

What's that current generation？ Marketers are very interested in the generation as they come of age when they're in college。

or when they're this age。 Because many times you make purchases at this age and then you're loyal to those brands。

over time。 So it's-- marketers feel like it's very。

very important to get in those people's consideration， sets right at this time。

And so they spend a lot of time studying the cohort of today。 And today's cohort is generation Y。

Generation Y is very different from all the other generations。 First of all。

it's a generation that was completely brought up on the computer。 They think about free content。

They think about the social environment。 They're totally comfortable social network。

Everything's wireless。 They think about things being designed exactly for them。

They're totally used to customization。 This is a generation。

electronic generation that's quite different from their parents， and from generations beforehand。

And you really need to understand generation Y or the millennials in order to market to， them。

What they don't like is mass marketing。 They don't like any kind of restricted access。

They don't like things that are going down the beaten path。 They like new。 They like different。

They like customized。 Millennials are big shoppers。

But many times they co-purchase with their parents。

Some of the millennials still live with their and are supported by their parents。

They think about information electronically。 They are not readers of paper newspapers。

They don't care about print anymore。 They're very。

very comfortable multitasking and co-creating with the product。 They're very connected。

And the millennials tend to be socially responsible。

So if you're segmenting the market by cohorts and you decide to target the millennials。

you would have to design a targeted product or position your brand in a specific way to。

meet the needs of the millennials。

Another way that markets tend to be segmented are by geography。

It turns out that people who are similar tend to live together in the same neighborhoods。

And there are different ways to segment。 There's a segmentation scheme called PRISM that actually defines the entire country based。

on these geographic clusters。 And they're not defined necessarily about where they are。

So you could have a geographic cluster with some characteristic sets in California。

And people who live in New York may be in that same cluster。 So people who live， say。

in Beverly Hills， California may be similar to people who live， in Scarthdale， New York。

And those two may be in the same cluster， even though they're separated by 3，000 miles。

So the PRISM clustering or ZIP clustering says， if you tell me your ZIP code， and I'm。

giving you a United States example， but this kind of notion of geographic segmentation is。

true around the world。 People who are similar tend to live in neighborhoods that are similar。

And so you tell me where you live。 I have some ideas of the kinds of things you might like。

the products you might like， the， clothes you might wear， the media you may attend to， et cetera。

And what we find out， and we'll talk about later on in one of the other parts of this。

program when David Bell comes and talks to you， that it turns out that where you live。

physically also affects your online behavior。 So location is a very。

very important variable in thinking about segmentation。

And there are lots of maps that can divide up， say， the New York City， for example， into。

a block by block by block segmentation scheme and show different consumer behavior by blocks。

in New York City。 That's how tight the segmentation geographic segmentation can be。

Once you define your segmentation variables， then you need to select a target segment。

And so what makes a segment attractive？ You need to balance the attractiveness of the segment with your capability to deliver。

to that segment。 And you need to constantly monitor whether the actual buyers that you're targeting are。

matching what you think that they should be doing。 So how do you pick this segment？

You determine the attractiveness of the segment。 How big is it？ How much growth is there？

How much money do they have to spend？ How stable is it？

All of these are signs of an attractive segment。 Then you think about， well。

how good are you at meeting the needs of that segment？

What's your current position with respect to that segment？

How easy is it for you to address the needs of that segment？ And then you think about， well。

what about the competition？

How many people are going after that segment？ What's the strength of the competitors？

So are there potential competitors coming in？ And what you want to do is pick the most attractive segment where you have a differential。

advantage over the competition。 That's the best target segment for you to consider。

And so what you're looking for is you're going to divide the segment。

This is a graph that shows you。 You can have low to high segment attractiveness。

You can have low to high competitive strength。 And the best segment to go after or to target would be the most attractive segment where。

you are strongest relative to the competition。 That's perfect。

Sometimes you can't get the perfect segment。 And so you may choose something that's a little bit less attractive but still something。

that you think would be profitable。 [MUSIC]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P48：0_1 1 1 财务报告概述.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

Hello， I'm Professor Brian Boucher and welcome to the first video in an Introduction to Financial。

Accounting。 In this video we're going to provide an overview of the financial reporting landscape。

What's required in financial reporting， who makes the rules， who enforces the rules。

what are the basic set of financial statements。 We've got a lot to get to in this course and I'm really excited so let's get started。

Let's start with a definition。 Marketing is a system for recording information about business transactions to provide summary。

statements of a company's financial position and performance to users who require such information。

Wow， please tell me the whole video won't be this boring。 I sure hope not。

but to spice things up a little bit， I will bring in some virtual。

students every now and then to ask questions or make pithy comments。 Anyway。

this definition has three parts。

The first part is recording transactions。

This part turns out to be a big deal as not everything a business does gets recorded in。

the financial statements and sometimes it'll seem like nothing's happening yet we'll need。

to record a transaction anyway。

The second part is about providing summary statements。

Large companies have billions and billions of transactions every year。

If they made them available to you in a gigantic database， your first question would be how。

can I summarize all this into one or two summary numbers。

And the third part focuses on users because different user groups would want different。

summary numbers。 So most companies have to keep three sets of books。

Our focus in this course will be the first set of books or financial accounting。

This standardized set of statements is geared towards external users like investors， creditors。

customers， suppliers， competitors， and any other stakeholder or person that has interest。

in the company。 However， these financial statements are not used to determine taxes。

There's a separate set of books based on tax rules that are used to compute how much taxes。

a company has to pay。 These rules are often quite different from what we do in the financial statements。

Finally， there's managerial accounting。 This provides customized reports for internal decision making。

We're not going to cover this topic in this course， but I wanted to make you aware of the。

fact that the financial accounting that we do talk about is generally not used for internal。

decision making instead there are other kinds of numbers that are looked at。

So， what are the financial reporting requirements？

The Securities and Exchange Commission or SEC requires periodic financial statement filings。

Companies must file an annual report or 10K once a year。

This includes a full set of financial statements with a substantial amount of additional disclosure。

This thing generally runs two to three hundred pages。

The other three quarters of the year firms must file a quarterly report or 10Q， which has。

a full set of financial statements but less required disclosure than the annual report。 If anything。

material happens between quarter ends。

Companies must file an 8K or current report。

Material information is generally viewed as anything important enough to move stock price。

which means companies file these quite often。 They don't require the financial statements。

just an update of whatever major corporate。

event has happened， something like top manager resigns or you lose a big customer or there's。

a lawsuit or something along those lines。

All of these filings have to be prepared in accordance with generally accepted accounting。

principles or GAP。

Excuse me， does this stuff only apply to US companies？ That's a good question。

I should note that this will be a US-centric course because I'm out of US business school。 However。

the things that we cover will be applicable globally。 So for instance。

even though we're talking about SEC filing requirements in the US， every。

country in the world that has a securities market has filing requirements like an annual， report。

The only difference you might see internationally is instead of a quarterly report， some countries。

require semi-annual reporting。 This also only formally applies to public companies。

but private companies that need to go to， a bank to borrow money oftentimes are required to provide financial statements on a quarterly。

or annual frequency because the banks are so used to getting financial statement information。

in that format and in that frequency。 So this is a pretty universal set of filing requirements that apply to public and private。

companies around the world。 These periodic filing requirements create much of the tension in financial accounting。

For example， let's say we ship goods to a customer in one quarter， but we collect cash。

in the next quarter。

When did the sale occur？ Was it when we shipped the goods or collected the cash？

Let's say we buy some equipment in one quarter and then use it to manufacture goods over the。

next 23 quarters。

And is the expense occur when we pay cash to buy the equipment or as we use it over the。

next 23 quarters？ A lot of what we're going to do in this course is try to figure out what quarter to put various。

business activities into when we put together the financial statements。

So who makes the rules？ Generally accepted accounting principles or GAP are established by the US Congress。

but。

they're usually too busy trying to do things like investigating steroids in baseball or。

figuring out whether they should shut down the US government again， that they don't have。

time to do accounting standards。 So they delegate to the Securities and Exchange Commission。

but they're often too busy trying。

to catch the bad guys so they don't have time to make the rules。

So they delegate to the Financial Accounting Standards Board or FASB， which is a seven person。

board in Norwalk， Connecticut that has the authority to make accounting rules in the US。

Now sometimes they're even too busy to make all the rules and so there's an emerging issues。

task force and the AICPA that can also have a hand in making accounting rules or a US。

GAP。 Now this is just in the US。 Internationally there are international financial reporting standards or IFRS that are established。

by the International Accounting Standards Board or IASB which is based in London and are。

now required in over a hundred countries including all of the EU。

But as of now， US GAP is still required for US firms。

So basically there are two big sets of accounting standards in the world。

But the good news is for almost all of the introductory accounting topics that we look。

in in this course， there's a very high degree of overlap in the two standards。

Why doesn't the US just switch to IFRS？ Do you think there will ever be one global accounting standard？

Finally in the summer of 2008 the SEC came out with a road map that would move US firms。

to IFRS by basically now。 But then what happened was Lehman Brothers won bankrupt。

the financial crisis hit and， the road map dropped way off the SEC's radar screen。

So for the foreseeable future we're going to have two big sets of standards in the world。

US GAP and IFRS。 But as I just mentioned the good news is the two standards are getting closer to each other。

all the time， the FASB and IASB are working together on any new standards。

So all the stuff that we talk about that's under US GAP in this course will be very similar。

to what you would see under IFRS。 So who's responsible for financial reporting？

Management is responsible for preparing financial statements。 Wait。 What？

That is like a professor allowing students to give themselves their own grade。 Management gets NA+。

Yes that's correct。 We allow managers to put together their own financial statements because they have the。

most information about what happened in the company。

And we hope that they use their discretion in financial reporting to better communicate。

their activities。 However it is important to remember that they may use this discretion to try to manipulate。

their perceptions and we need to be on the lookout for such opportunistic behavior。

So we put in a number of checks and balances to try to curb managers opportunistic behavior。

First， the audit committee of the board of directors provides oversight of management's。

accounting process。 However， this is not a foolproof check on managers behavior。

One of the biggest financial statement funds ever was Enron and the head of their audit。

committee was a guy whose full time job was accounting professor。

Which means you could put someone like me on the board and still have these kinds of problems。

So then the auditors are hired by the board to express an opinion about whether the statements。

are prepared in accordance with GAAP。

This again is not foolproof because in the case of Enron their auditor Arthur Anderson。

signed off on some of the more aggressive things they did。

And part of the reason was because they were being hired by Enron to approve their accounting。

If they lost Enron because of the disagreement over their accounting then they would have。

lost the biggest company in Houston and would have had to go to the second biggest company。

in Houston which is exactly who knows what the second biggest company in Houston is and。

that's why they wanted to make sure to keep Enron。

The next line of defense is the SEC and other regulators who will take action against the。

firm if any violations of GAAP or other rules are found。

Now these bodies tend to be very reactive instead of proactive and it's often times after。

someone else has brought the fraud to the public's attention that they launched their。

investigation。 So by and large it's information intermediaries like stock analysts。

institutional investors。

and the media that provide the biggest check on managers behavior by either exposing or。

fleeing firms with questionable accounting。

But by the time one of these parties get involved it's a very public issue， the stock price。

drops and you're in bad shape if you're an investor or employee of the company。

So in the end the only party that's really going to look out for your interest in terms。

of understanding and trusting financial statements is you which is why it's really important。

that you learn some basics in terms of reading financial statements。

So what are the required financial statements？

Well there's four of them。 First there's a balance sheet which gives a company's financial position which is its。

listing of all its resources and obligations on a specific date。

And there's the income statement which provides the result of operations over a period of time。

using accrual accounting。 By over a period of time we mean between two balance sheets so either a quarter or a year。

And by accrual accounting it means we're going to recognize things in the income statement。

based on business activities not based on cash flows。

Because we have a separate statement for cash flows， the statement of cash flows which will。

give you all the sources and uses of cash over a period of time。

And then finally there's the statement of stockholders equity which provides changes。

in stockholders equity over a period of time。

Okay， could we get an example？ This is pretty abstract。 Yes。

in fact I have an extended example where we go through a simple business and see what。

the different financial statements can tell us about what's going on at the business。

But it takes another ten minutes or so to avoid this being a long first video why don't。

we cut it off here and we'll pick it up in the next video。 I'll see you then。 See you next video。

[BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P49：1_1 1 2 财务报告示例.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

Hello， I'm Professor Brian Boucher and welcome back。 In this video。

we're going to take a look at what the financial statements can tell us， about a business。 To do so。

we're going to look at a very simple business with just a few transactions to see。

how those transactions would affect the required financial statements。

I'm going to throw a lot of concepts at you in this video， but it's meant to be an overview。

We're going to go through all of these concepts again later on in the course。 Let's get started。

The example we're going to look at is Dave's car transport service。

So Dave starts a business to transport expensive cars。

On December 1st， 2015， he receives $50，000 cash from issuing common stock。

He also borrows $80，000 from a bank and will buy a$100，000 truck。

The truck will be used for 48 months with a $4，000 salvage value。

Excuse me， Professor。 The land is salvage value。 Just hold on a little bit。

We'll get to that a little later。 Dave also pays $12。

000 cash upfront to rent office space for the next year。

During the month of December， Dave's company moves two cars。 The clients will pay them $40。

000 within 30 days。

Dave also pays his employees $10，000 of wages。

Now it's December 31st and the bank wants to see some financial statements。

The bank wants to see financial statements because they want an answer to the question。

Did the company make money during December？

Now there's a number of different ways that we could try to answer this question。

The first way would be to just look at all the cash flows。

So if we take the facts and look at the cash flows， Dave's company received $50，000 cash。

from issuing stock， borrowed $80，000 from the bank and bought$100，000 worth of truck。

They paid $12，000 cash upfront to rent office space for a year。

They paid wages of $10，000 during December and they did not collect any cash from customers。

during the month。 So if we add it all up， they had a net cash inflow of $8，000。

But as it turns out， this is a really bad way to figure out whether the company made。

money or not for December。

What is wrong with that？ This is how a teenager would do accounting。

You get an allowance from your parents， borrow some money from your parents， spend a bunch。

of money， end the month with money in the bank， it's a pretty good month。

But this doesn't work so well for companies。 All the company would have to do to post better performance in the system would be to borrow。

more money or sell more stock。 A better way to look at cash flows would be to separate them into whether they come from。

operating the business or investing for the future or financing for the long term。

Let's try organizing the cash flows by the source or use of the cash。

So let's start with cash flows from operating the business。

This would be cash that was paid for the rent， the cash that was paid for the wages。

We didn't actually collect anything from customers。

So the net cash flow from operating the business was a cash outflow of $22，000。

Then we could look at cash required to invest in the business for the long term。

So the company spent $100，000 cash to buy a truck， which resulted in a total cash outflow。

from investing activities of $100，000。

And then finally we can look at cash used to finance the business。

So the company received $50，000 in cash initiative and common stock。 They borrowed$80。

000 from a bank， which was a net cash inflow from financing activities。

of $130，000。 We still get the same bottom line of$8，000。

but now we've organized the cash flows based。

on whether we're operating the business， investing in the business or financing the。

business。 And this is exactly what the statement of cash flows will look like。

It's going to report the cash transactions for the company over a period of time， like。

the month of December， split up into operating activities， which are transactions related。

to providing goods or services or other normal business activities， investing activities。

which are transactions related to the acquisition or disposal of long-lived assets， and financing。

activities which are transactions related to owners or creditors。

Another way to try to answer the question of whether the company made money in December。

is to look at accounting income。 Money income tries to look at business activities rather than cash going in or out。

For example， we actually did move two cars during December。

Even though we haven't got paid cash yet， we're likely to get paid cash， so why not。

book revenue of $40，000 to recognize the cash that we'll eventually get from providing。

the service of moving the cars。 Even though we paid $100，000 for a truck。

we're going to use that truck over four years。

So why not allocate the cost of the truck over the four years？ So we have a $100。

000 truck with a $4，000 salvage value。

Savage values how much we think the truck will be worth when we're done with it。

So let's take that $96，000 of value that we're going to use up， divide it by 48 months。

and recognize a $2，000 expense of using the truck each of the next 48 months。

We paid $12，000 cash up front to rent office space for a year， but we've only been in there。

for one month。 So why not just show one month of expense $1，000 rather than the full$12。

000 of cash。

that we paid up front。

We paid $10，000 of cash to employees for wages。 That was all due to work they provided this month。

so we'll show that all as a wages expense。

That gives us something called net income。

Net income is a measure of whether we priced our service， moving cars， high enough to cover。

all of the costs or expenses of running the business， all the costs of moving the cars。

And this is what the income statement is going to tell us。

It's going to give us the results of operations over a period of time using this notion of。

a cruel accounting where recognition is tied to business activities not to cash flows。

We'll have revenues which are increases in owners' equity from providing goods or services。

and we'll talk more about what owner's equity is in a little bit。

We'll have expenses which are decreases in owner's equity which are incurred in the process。

of generating these revenues。

It's the cost of doing business。 The bottom line or the difference between revenues and expenses is going to be called。

net income， which is also called earnings or net profit。

And it's important to note that it does not equal the change in cash because it's giving。

you a measure based on business activities not purely cash flow。

This does not make any sense。 What is this depreciation stuff？ We didn't spend $2，000 on a truck。

We spend $100，000。 Okay， just give me a few videos。

It'll take a little bit to explain all this to you。 Just hang in there。 Fine。

So there are two different statements for this month's results。 Which one is better？

Which should we use？ I once heard that Cash is king。 I am going to only use the cash flow statement。

No no no no。 We'll talk about this more but you definitely want to use both statements because they tell。

you different things。 Let's take a look at how these two statements provide different pictures of what happened。

with the company。 So starting with revenue that tells you that you moved cars during the period and you're。

eventually going to get paid $40，000 from customers whereas the zero in the cash flow。

statement says that you actually didn't get any cash this period。

For the truck， the cash flow statement tells you that you spend $100，000 cash on a truck。

The accounting income says that the cost of the truck used up this period to generate。

revenue is only $2，000 because we're spreading it over the whole time that we're going to。

use the truck。 For rent， our cash flow statement said we paid $12。

000 cash this period for rent but our accounting。

income says that we only used up one month of that。

We still have $11，000 that we haven't used up that we'll use up over the next 11 months。

Sometimes the expenses and the cash flow are the same as in the case of wages here but as。

you can see from the cash from operations and the income you're getting very different。

pictures。 Cash flow from operations of negative $22。

000 says that you spent more cash than you had come。

in based on these operating activities。

The net income though says that you priced your service high enough to cover all the。

costs of providing the service which even though didn't get you cash this period should。

lead to positive cash flow in the future。

The next statement that we're going to preview is the balance sheet which provides the financial。

position of Dave's car transport company at the end of the month。

By financial position we mean all the resources and obligations。

So the resources are what we call assets。

So what are the assets or resources of Dave's company？ Well they have $8。

000 of cash in the bank at December 31， 2015。

They have something called an accounts receivable of $40，000 that's the cash owed by customers。

on December 31st and that's an asset because it's going to eventually turn into cash when。

you collect from the customers。

Another asset is prepaid rent。 Remember that Dave paid $12，000 for years of rent。

One month has been used up but they still have 11 months of prepaid rent。

This is an asset because they can occupy the space for another 11 months without paying。

any additional cash。

And then of course there's the truck which is an asset of $98，000 that's the original。

cost of at $100，000 minus that$2，000 that we depreciate it。

We'll talk more about this later on。 So it gives us total assets or resources of $157，000。

Now we can look at all the obligations or claims on these resources which are the liabilities。

and stockholders equity。 Dave owes the bank $80，000 at December 31， 2015。

That's a liability called bank debt。

There's $50，000 of stockholders investment as of December 31。

This is a stockholders equity called common stock。

And then there are retained earnings of $27，000。 Many earnings represent all of the net income or accounting income that's been created over。

the life of the company minus any dividends that have been paid out which we'll talk about。

later。 And when we add it all up the obligations are the same as the resources of $157，000。

And this is characteristic of the balance sheet which always has to balance hence the， name。

I am truly lost。 When is this video going to end？ I'm sorry I know I've thrown a lot of new concepts at you in this video but don't worry。

we're going to go over everything again in more detail。

So just hang in there and there's only a couple more slides and we're done。

So as I was saying this financial statement is called the balance sheet。

It's going to report the financial position of the company， its resources and obligations。

on a specific date。 We've got assets which are resources owned by the business that are expected to provide。

future economic benefits。 Stakeholders are claims on those assets by creditors or non-owners that represent an obligation。

to make future payments of cash， goods or services。

Stakeholders equity or owner's equity are claims on the assets by the owners of the business。

Those come from two sources， contribute a capital which arise when you sell shares and。

retained earnings which arise when you operate the business。

We're going to talk about these a lot more in the next few videos。

The last statement is the statement of stockholders equity and we're going to get to this later。

Hopefully that gave you a good overview of what the financial statements are trying to， tell us。

We are now going to start looking at the financial statements in more detail starting in the。

next video with the balance sheet and the balance sheet equation。 I'll see you then。

See you next video。 。 [ Silence ]。