Ch 9- Small business marketing: customers and products
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
customer profile
a detailed description of an archetypal or hypothetical potential customer for a product or service, also called a customer persona
primary research
research gathered to answer a specific marketing question- using interviewing, surveying, observation, and focus groups
customer development process
the procedure to organize and pursue the finding, obtaining, and keeping of new customers
market segmentation
the process of dividing the market into groups that have somewhat homogeneous needs for a product or service
commercialization
the process of making the new product available to customers
categorical question
a question answered by a category. Ex: your ethnicity
penetrated market (PM)
if your business is operating, your actual number of customers divided by the target market= how much of the market you have attained, and how many people are available to be sold to.
core product
the basic description of what a product is. Ex: a bar of soap. A housecleaning service etc.
product development process
the procedure to organize and pursue the creation of goods or services
marketing
the process of planning and executing the factors of product, price, promotion, and placement to satisfy the goals of the entrepreneur and the organization
idea evaluation
the process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential
target market
the segment(s) you select on which to concentrate your marketing efforts
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
outstanding customer service
"going all out" for the customer, trying to make sure the customer walks away with an exceptional experience
True
(T/F) There can be more than one target market
product, price, promotion, and placement
The 4 Ps of marketing (the marketing mix)-
1. Introduction 2. Growth 3. Maturity 4. Decline
The product life cycle (4 stages)
value proposition
The relation of product or company capabilities to customer pains and gains is in the _________you offer your customer.
heterogeneity
each time a service is provided, it will be slightly different from the previous time
goods-services continuum
enables marketers to see the relative goods/services composition of total products.
total available market (TAM)
everyone who might consider the product or service you're offering
feedback
how well the product worked, met their needs, what they liked/disliked, and if they would buy it again
perishability
if a service is not used when offered, it cannot be saved for later use
geographic, demographic, benefit, psychographic
methods for segmenting customers
service-dominated product
more non-physical products
good-dominated product
more physical products
feedback, testimonials, and sharing
non-financial benefits
services
nonphysical products
goods
physical products
scalar question
question answered by some sort of scale- ex: "on a scale of 1-10, how do you like..."
open-ended questions
question that allows respondents to express themselves as they choose
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
Long term value (LTV) / customer lifetime value (CLV)
the revenue generated by one customer over his or her lifetime dealing with one firm
budget cycle
the schedule and process for setting the schedule for making purchases by an individual or an organization - 2 more questions: - 3. Can the customers afford to buy your product/service right when you pitch it to them? - 4. If the purchase price is above that level and they need to budged for it, when do you need to pitch to them so they can make their decision, and when will they actually be able to buy from you?
serviceable obtainable market (SOM)
also called target market- people you think would be interested in your product/service. Based on pains they are suffering or gains acquiring, or others such as behavioral qualities.
tangibility
an item's capability of being touched, seen, tasted, or felt
augmented product
core product plus features that tend to differentiate it from the competition
testimonials
statements they make that they will publicly repeat and attribute to them
prototypes/ minimum viable product
the first versions of a product
target market
the name given to one of a set of nested terms for the market sizes, from most generic to most specific
purchasing process
the sequence of steps an individual or organization goes through in making a decision to buy a product or service - Consists of 2 questions: - 1. How does the individual or organization use these roles to make purchasing decisions? - 2. Who is in each role and what is important to them in making those decisions?
inseparability
the service being done cannot be disconnected from the provider of the service
churn
the turnover rate for your customers- % of customers you lose after their first purchase
dichotomous question
a question with only 2 choices
serviceable available market (SAM)
represents customers in your geographic reach. If online, could be as large as your TAM
secondary research
research already gathered from government, commercial, or academic databases and research efforts including size of market, prices, profitability
sharing
posting positive comments on social media
predetermined market segments
professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics
marketing research
systematic collection and interpretation of data to support future marketing decisions
customer job
what a potential customer is trying to do- perform or complete a task, solve a problem, or achieve an outcome. The target of the job is often the key to what a proposed product or service is intended to help.