Lecture 7: Basic Financial and Accounting Terms (Part VI)

Pricing Strategy: A basic definition of pricing strategy for marketing purposes

is the process of modifying prices in response to changes in the market. The cost
of anything is the estimated value that consumers place on it based on available
information. Market factors, customer willingness to make payments,
competition, trade margins, expenses, and other factors are all taken into account
when determining a pricing strategy. When items are priced, a price is
determined for both ownership and use.
Private Banking: Private banking means the specialization of certain financial
services with a high personal service and quality component, which covers the
demand of an institute-specific, clearly defined wealthy private client group. A
goal among others is the individual planning and realization of long-term
personal and financial goals.
1. Wealthy private customers are the target group of private banking.
2. Tailor-made, individual services are offered.
3. The client-bank relationship is shaped by a personal character and based on
discretion and confidence.
Retail Banking: Retail banking refers to banking in which banks conduct
transactions directly with consumers rather than with corporations or other
banks. Services offered include savings and checking accounts, mortgages,
personal loans, debit cards, and credit cards.
Retail banking is becoming an increasingly complex concept to define. While
pure retail banking is generally conceived to be the provision of mass market
banking services to private individuals, it has been expanded over the years to
include, in many cases, services provided to small- and medium-sized
businesses. Some banks may also include their private banking" business in their
definition of retail banking.
Business Letter: The business letter is the most widely or commonly used form
of external written communication. It is a letter that is used by organizations to
communicate in a professional way with customers, other companies, clients,
shareholders, investors, etc. Furthermore, the business letter uses formal
language and a specific format. Companies use it to convey important
information and messages.
Accounting information: Economically, accounting information is defined as a
means by which we measure and communicate economic events. This means
accounting provides information about the economic transactions of the
organization to permit informed judgments and decisions.
Internal auditing: Internal auditing is an independent, objective assurance and
consulting activity designed to add value and improve an organization’s
operations. It helps an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluating and improving the effectiveness
of risk management, control, and governance processes.

References
Baraceros, E. (2000). Business Correspondence'2000 Ed. Rex Bookstore, Inc.
Cortes, F. J. G. (2009). The use and importance of financial planning in the German private
banking industry. GRIN Verlag.
Jayasinghe, K., Nath, N. D., & Othman, R. (2015). The public sector accounting,
accountability and auditing in emerging economies: insights, gaps and some new ways
forward. In The Public Sector Accounting, Accountability and Auditing in Emerging
Economies (pp. 1-6). Emerald Group Publishing Limited.
Muraleedharan, D. (2014). Modern banking: theory and practice. PHI Learning Pvt. Ltd.
Pickett, K. S. (2010). The internal auditing handbook. John Wiley & Sons, Inc.
Rajesh, R. (2023). Marketing Management. India: AG Publishing House.