Chapter 9 Terms

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 the phone, on paper, or on the 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 from a small group led by a moderator.

customer lifetime value

A marketing concept that refers to the revenue (or profit) generated by one customer over his or her lifetime dealing with one firm. Higher long-term value is usually preferred. CLV is also known as long-term value or LTV.

long-term value (LTV)

A marketing concept that refers to the revenue (or profit) generated by one customer over his or her lifetime dealing with one firm. Higher long-term value is usually preferred. LTV is also known as customer lifetime value or CLV.

target market

A marketing term (also called serviceable obtainable market, or SOM) that refers to the group of customers in the area you plan to serve or who would be likely to be interested in your product, or those of competitors. Target markets can refer to individuals or market groups called segments.

serviceable obtainable market (SOM)

A marketing term (also called the target market) that represents the customers that 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.

heterogeneity

A quality of service in which each time it is provided it will be slightly different from the previous time.

inseparability

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

budget cycle

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

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.

augmented product

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

ethnographic research

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

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.

open-ended question

Question that allows respondents to express themselves as they choose.

dichotomous question

Question that has only two possible choices.

categorical question

Question that is answered by selecting the proper category.

scalar question

Question that is answered by some sort of scale.

testimonial

Statement made that is allowed to be publicly repeated and attributed to the person that made it.

marketing research

Systematic collection and interpretation of data to support future marketing decisions.

core product

The basic description of what a product is - a bar of soap, a house cleaning service, and so on.

total product

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

4 Ps of marketing

The four major components of a marketing effort - product, price, promotion, and placement. Sometimes called the marketing mix.

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; and employee or manager who is trying to make sure that the customer walks away with an exceptional experience.

prototype

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

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, an keeping of new customers.

feedback

The process of communicating within or to the organization about how the outputs worked or were received.

market segmentation

The process of dividing the market into groups that have somewhat homogenous 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 (if not better than) the competition.

purchasing process

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

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 product 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.

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.

services

nonphysical products.

goods

physical products.