BUS 165: Chapter 9

Target Market

A marketing term that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors. Target markets can refer to individuals or segments

Influencer

A customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices

Decision Maker

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

Purchaser

A customer role that describes an individual or institution that pays for or obtains a product or service

End User

A customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life

Survey

A data collection method using a questionnaire-in person, on phone, paper, or internet

Customer Profile

A detailed description of an archetypical or hypothetical potential customer for a product or service, also called a customer persona

Focus Group

A form of data gathering done in a small group led by a moderator

Long-Term Value

A marketing concept that refers to the revenue generated by one customer over his or her lifetime dealing with one firm

Customer Lifetime Value (CLV)

A marketing concept that refers to the revenue generated by one customer over his or her lifetime dealing with one firm. Higher long-term value is usually preferred

Penetrated Market

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 has attained so far

Total Available Market

A marketing term that refers to all of the people or organizations who might consider a product or service being offered

Serviceable Available Market

A marketing term that refers to the customers within the geographic reach of a firm

Serviceable Obtainable Market

A marketing term that refers to the customers within the geographic reach of a firm who also might be interested in the firms particular product or service

Feedback

The process if communicating within or to the organizations about how the outputs worked or were received

Market Segmentation

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service

Segmentation

The process of dividing the market into smaller portions of people who have common characteristics

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 competition

Purchasing Process

The sequence of steps an individual or organization goes through in making a decision to buy a product or service

Customer Development Process

the procedure to organize and pursue the finding, obtaining, and keeping of new customers

Prototype

The name given to the first model of a product or service

Services

A nonphysical product

Goods

A physical product

Heterogeneity

A quality of a service in that each time it is provided it will be slightly different from the last time

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service

Open-Ended Questions

A question that allows respondents to express themselves as they choose, for example, "what do you like about this book?"

Dichotomous Question

A question that has only two possible choices for example, "have you shopped here before?"

Testimonial

A statement made that is allowed to be publicly repeats and attributes to the person that made it

Marketing Research

A systematic collection and interpretation of data to support future marketing decisions

Budget Cycle

A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization

Tangibility

An items capability of being seen, touched, tasted, or felt

Augmented Product

Core product plus features that tend to differentiate it from the competition

Product Development Process

The procedure to organize and pursue the creation of new goods or services

Ethnographic Research

Data gathered by simple observation - seeing what consumers do, rather than asking them

Secondary Research

Information already collected for some other purpose than the current problem or questions

4 P's of Marketing

The four elements of a marketing plan - Product, Price, Promotion (advertising), and placement (distribution)

Outstanding Customer Service

The idea of going all out for the customer or providing over-the-top service

Primary Research

New information collected to solve the problem at hand or answer the current questions

Me-Too Products

Products essentially similar to something already on the market

Predetermined Market Segments

Professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics

Categorical Question

Question that is answered by selecting the proper category, for example, "what is your ethnicity?" ;

Scalar Question

Question that is answered by some sort of scale; for example "On a scale of 1 to 5, how do you like this book?"

Perishability

Services exhibit perishability in that if not used when offered, it cannot be saved for later use

Value Proposition

Small business owners unique selling points that will be used to differentiate their products and/or services from those of the competitions

Total Products

The entire bundle of products, services and meanings of your offering. This includes extras like service, warranty, or delivery as well as what the product means to the outcome

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. The target of the job is often the key to what a proposed products or service is intended to help

Churn

The turnover rate for your customers/the percentage of customers you typically lose after their first purchase from you

Core Product

The very basic description of what the product is - a bar of soap/house cleaning service/etc.

Pivot

Typically a term describing a change of direction in the thinking of an entrepreneur or a firms, often based on new data or other findings