MGMT350 Test 3
purchaser
A customer role that describes an individual or institution that pays for or obtains a product or service.
customer profile
A detailed description of an archetypical or hypothetical potential customer for a product or service, also called a customer persona.
markup
the amount an entrepreneur adds to costs to provide a profit
margin
the amount of profit, usually stated as a percentage of the total price
core product
the basic description of what a product is - a bar of soap, a housecleaning service
law of supply and demand
the economic theory that describes how the demand for products or services and the supply of them affect each other
manufacturer
the entity that produces a product or service to be sold
internal understanding
the extent to which employees, investors, and family members involved in the business know the business's purposes and operations
optimum price
the highest price that will produce your desired level of sales in your intended market
outstanding customer service
the idea of "going all out" for the customer or providing over-the-top service, not just the basic help, professionalism, and friendliness we all expect in any business transaction
prototype
the name given to the first model of a product or service
pivot
typically, a term describing a change of direction in the thinking of an entrepreneur or a firm, often based on new data or other findings
long-term value
a marketing concept that refers to the revenue (or profit) generated by one customer over his or her lifetime dealing with one firm
direct mail
a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers from which they can mail in, call in, or email an order
executive summary
a one to two (250-500 words) overview of the business, its business model, market, expectations, and immediate goals
cover letter
a one-page document on business stationary that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan
mission statement
a paragraph that describes the firm's goals and competitive advantages
scalar question
a question answered by some sort of scale - "on a scale of 1-5...?"
Manufactuer's Suggested Retail Price (MSRP)
a target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel
screening plan
also called a mini-plan, gives the basic overview of the firm and a detailed look at the financials
proof-of-concept website
an Internet-based type of business plan providing information or demonstration of a product or services designed to solicit information on customer interest
primary research
an approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation
secondary research
an approach to researching based on the use of existing information, often from government, commercial, or academic databases and research efforts
external reference price
an estimation of what a price should be based on information external to a consumer, such as advice, advertisements, or comparison shopping
data room
an online repository (dropbox) for the documentation that back ups and details the specifics of your business and business plan. The contents are very similar to those of the three-ring binder personal edition of the plan held and used by the founder
test marketing
selling your product or service in a limited area, for a limited time
premium pricing
setting a price above that of the competition to indicate a higher quality
prestige pricing
setting a price above that of the competition to indicate your product is a status symbol
skimming
setting a price at the highest level the market will bear, usually because there is no competition at the time
odd-even pricing
setting a price that ends in the number 5, 7, 9
elevator pitch
30 second/100 words or less action oriented description to create "hook"
serviceable obtainable market (SOM)
A marketing term (also called the target market) that represents the customers that a firm expects to be interested in its particular product or service, and able to be serviced by the firm.
penetrated market (PM)
A marketing term that describes the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.
total available market (TAM)
A marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.
serviceable available market (SAM)
A marketing term that refers to the customers within the geographic reach of a firm.
vision statement
A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.
tagline
Memorable catchphrase that captures the key idea of a business, its service, product, or customer. also known as a slogan
direct sales
Methods of going directly to your customer in order to sell your product. Vending machines, door-to-door salespeople, leasing space at a craft fair, farmers markets, party sales, and most industrial sales are methods of direct selling
channels
People and firms who connect producers of goods and services with customers
marketing research
Systematic collection and interpretation of data to support future marketing decisions
total product
The entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer.
external legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family.
purchasing process
The sequence of steps an individual or organization goes through in making a decision to buy a product or service.
operational plan
a business plan designed to be used internally for management purposes
informational plan
a business plan that gives potential customers or suppliers information about the company and its product or service
key employee/partner plan
a business plan that provides information on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees
internal reference price
a consumer's mental image of what a product's price should be based on experience and the consumer's estimate of what the comparative value might be
influencer
a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices
decision marker
a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained
survey
a data-collection method using a questionnaire - in person, on phone, on paper, or on the Internet
referral discount
a discount given to a customer who refers a friend to the business
business plan
a document designed to detail the major characteristics of a firm - its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes on the firms present and future
new entrant business
a firm whose product or service is established elsewhere, but is new to this market
pioneering business
a firm whose product or service is new to the industry or is itself creating a new industry
invention plan
business plan that provides information to potential licensees. Focuses on the details of an invention, including intellectual property rights
price gouging
charging an outrageously high price for something
off-peak pricing
charging lower prices at certain times to encourage customers to come during slack periods
multiple or bonus pack
combining more than one unit of the same product and pricing it lower than if each unit were sold separately
bundling
combining two or more products in one unit and pricing it less than if the units were sold separately
telemarketing
contact via telephone for the express purpose of selling a product or service
augmented product
core product plus features that tend to differentiate it from the competition
end user
customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life
elasticity
from economics, the idea that the market's demand for a product or service is sensitive to changes in its price
preselling
involves introducing your future product to potential customers and taking orders for later delivery
elastic product
product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased
inelastic product
product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased
me-too products
products essentially similar to something already on the market
periodic discounting
sales conducted at predictable intervals, such as before major holidays
mail order
sales made from ads in newspapers or magazines, with purchases taken online or by phone as well as by mail
pitch
the name given to the formal presentation of a slideshow summarizing your business plan given before judges or potential investors or partners
pitch deck
the name of a slideshow presentation that summarizes a business or more often a business plan
research and development (R&D)
the part of a business (and a business plan) that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market
risks
the parts of a business or business plan that expose the firm to any kind of loss - profits, sales, reputation, assets, customers, and so on
just-in-time inventory
the practice of purchasing and accepting delivery of inventory only after it has been sold to the final customer
pricing lining
the practice of setting (usually) three price points, good quality, better quality, best quality
product development process
the procedure to organize and pursue the creation of new goods or services
customer development process
the procedure to organize and pursue the finding, obtaining, and keeping of new customers
due diligence
the process of investigating a business to determine its value and potential for investment
commercialization
the process of making the new products ready for use by consumers by achieving standards of durability and performance suitable for the market and comparable to the competition
fulfillment center
A company that will warehouse your products and fill your customers' orders for you.
budget cycle
A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization
co-working space
A type of "incubator lite" offering low-cost shared space and basic business services (Wi-Fi, desks, coffee, conference room, copier, etc.) for a daily, weekly, or monthly rental fee.
wholesaler
An intermediary that sells products to other organizations such as retailers, manufacturers, and hospitals.
indirect exporting
Exporting using intermediaries such as agents, export management companies, or export trading companies.
direct exporting
Exporting using no intermediaries
freight forwarders
Firms specializing in arranging international shipments-packaging, transportation, and paperwork
direct response advertising
Placing an advertisement in a magazine or newspaper, on television or radio, or in any other media. The ad contains an order blank with a phone number and e-mail or regular mail address with the intent of having the customer place an immediate order
letter of credit
a document issues by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms
documentary draft
a draft that can be exercised only when presented with specified shipping documents
sales promotion
a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests
focus group
a form of data gathering from a small group led by a moderator
born international
a new firm that opens a website immediately, thus being exposed to customers from around the world
sheltered workshop
a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers
markup pricing
a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit
proprietary technology
a product or service or an aspect of one that is kept as a trade secret or is protected legally using patent, copyright, trademark, or service mark
heterogeneity
a quality of a service in which each time it is provided it will be slightly different from the previous time
inseperability
a quality of a service in which the service being done cannot be disconnected from the provider of the service
open-ended question
a question that allows respondents to express themselves as they choose
dichotomous question
a question that has only two possible choices - "yes" or "no"
categorical question
a question that is answered by selecting the proper category - "what is your ethnicity?"
random discounting
a sale run on a schedule that is unpredictable to the customer
signature block
a snippet of text, typically inserted at the bottom of an email, that contains contact information for the sender of the email
private placement memorandum (PPM)
a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments
e-tailer
an electronic retailer; a store that exists only on the internet.
contract manufacturing
an existing firm with the correct manufacturing capabilities makes your product for you
agent
an intermediary business that represents a manufacture's product or service to other business-to-business intermediary firms
retailer
an intermediary business that sells to consumers or end users of a product
accelerator
an organization that supports start-ups, typically of a particular type (Internet, biotech, fashion, sports) with a financial investment, free or inexpensive office space, mentoring, a variety of free or low-cost support services, and other resources
ethnographic research
data gathered by simple observation - seeing what consumers do, rather than asking them
traffic generators
other businesses that bring customers to the area
direct marketing
selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the results
partitioned pricing
setting the price for a base item and then charging extra for each additional component
captive pricing
setting the price for an item relatively low and then charging much higher prices for the expendables it uses
value proposition
small business owners' unique selling points (benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition
working capital
the cash immediately available to the firm for the day-to-day expenses and operations of the firm
microinventory
the purchase of inventory only after a sales is made; very typical with Internet firms
customer job
the term given to what a potential customer is trying to do - perform or complete some sort of task, solve some problem, or try to achieve some outcome.
guerrilla marketing
the use of creative and relatively inexpensive ways to reach your customers (doorknob hangers, flyers under windshield wipers, T-shirts, balloons)
multichannel marketing
the use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing