ENTP 250 Midterm

Patent

A grant by the U.S government to an inventor for an idea that is new, useful and non-obvious, giving the inventor the exclusive right to make, use, or sell his ide

Mission statement

A paragraph that describes the firm's goals and competitive advantages.

Off Peak Pricing

Charging lower prices at certain times to encourage customers to come during slack periods

Bundling

Combining two or more products in one and pricing it less than If the units were sold separately

Strategic Actions

Competitive responses requiring a major commitment of resources

Tactical Actions

Competitive responses with low resource requitements

Feasibility study

Consist of careful investigation of five primary areas: the overall business idea, the product/service, the industry and market, finance projections, and the plan for future action.

Business plan components and audiences

Cover Letter Title Page Table of Contents Executive summary The company The Industry The Market The organizations The financials The appendixes

Business model canvas Components

Customer segments: A group or subgroup of potential purchasers that can be approached in a coherent manner. Pain Gain Value Proposition: Unique selling points that customers can expect from your good or services, including benefits that differentiate your offering from those of the competition. Freemium: an approach to pricing, and a business model, that connects free and premium products or services Pilot Test: A Preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have Conversion Rate: The measure of how many visitors to your website are actually willing to make a commitment to the product or service promoted on the site. A/B Testing: a way of checking customers reaction to websites describing your product or service. Two versions (version A and Version B) of the site are posted and are served up randomly to prospective customers.

Premium Pricing

Setting a price above that of the competition to indicate a higher quality

Skimming

Setting a price at the highest level the market will bear, usually because there is no competition at the time

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

Incremental Strategy

Taking an idea and offering a way to do something slightly better than it is done presently

Radical Innovation Strategy

rejecting existing ideas, and presenting a way to do things differently

Copyrights

the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit

ISO 14001 Certification

A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Standards Organization

Supra strategies

A classic benefit combination which are designed to work where there are many small businesses in an industry, along with a few larger firms.

Focus Strategy

A generic strategy that targets a portion of the market, called a segment or niche.

General (Macro) Environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Vision statement

A simple 5-10-word sentence or tagline that expresses the fundamental idea or goal of the firm

Promotional mix: the various possible elements:

Advertising, Public Relations, Publicity, Press Relations

Primary Research

An approach to researching based on 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 for government, commercial, or academic databases and research efforts

AIDA

Attention, Interest, Desire, Action

BATNA

Best alternative to a negotiate settlement. In which the second-best outcome is identified by the parties in the negotiation to help clarify the value of achieving a successful negotiation

The generic strategies:

Differentiation, Cost and Focus

Distribution channels

Direct selling Selling through intermediaries Dual distribution And reveres logic channels

Marketing Funnel Getting Customers

Earned and Paid media, AIDA, Loop/Keep customers Loyalty Programs and update products

Four step process of the model to reduce risk

Feel: Decide you have a great idea and want to go into business to make it happen Check: Assess your ability to understand it and create it yourself. Assess the technical feasibility of the idea. Plan: If the idea is feasible, plan for making it and selling it, checking with potential customers to make sure they will buy it. If you get enough interest, keep going. Do: make the product or service and the company to sell it and get into the market.

Sustainable Entrepreneurship

Identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes

Caveat emptor

Let the buyer beware, which means to put the burden for consumer protection onto the customer

License and royalty:

License: A legal agreement granting you rights to use a particular piece of intellectual property. Royalty: A payment to a licensor based on the number or value of licensed items sold

KPIs (Key Performance Indicators)

Measures or metrics that identify the outcomes that are most important to the success of a business (sales or products produced) Events leading up to these are also usually considered key (customers coming to your store or website for sales, or number of products started)

Causal model of entrepreneurship:

One in which you wan to create a particular product or service that does not yet exist and to achieve that end, you have to cause the product or service to exist. This can mean you will have to learn new skills, or find others to help you achieve your end.

Corporations

PROS: Can have representative management Ease of raising large amounts of capital Relatively permanent, since life of the firm is not affected by loss of any shareholder CONS: Impersonal Owners have limited interest in firm's activity, except for profit High incorporation fees and high taxes, especially double income taxation

Partnership

PROS: Easy to form Division of labor and management responsibility Can use ideas and plans of more than one person CONS: Limited Life Unlimited liability for debts of the firm Each partner is responsible for the acts of every other partner

Sole Proprietorship

PROS: Secrecy Unique tax advantages Owner doesn't have to share profit CONS: Limited Capital Difficulty in obtaining credit Inadequate management and employee skills

The 4 Ps

Product, Price, Promotion, and Placement

RBI screen:

Really Big Idea. It is a fast technique for making initial assessments of prospective business ideas based on 5 questions. People: Who are you? Offering: What are you offering? Customer: Whom are you offering it to? Value Proposition: Why do they care? Distinctive Competencies: Do you have any key or core science/technology or feature?

Grow Customers

Referrals, cross selling, up-selling, un-bundling

Total available market

Refers to all of the people or organizations who might consider a product or service being offered

Radical Innovation Strategy

Rejecting existing ideas, and presenting a way to do things differently

Service Obtainable Market

Represents the customers that a firm expects to be interested in its product or service, and able to be serviced by the firm

Two risks that need to be overcome during the causal model

Risk that the new product or service can't be created That it isn't something that customers are willing to buy

SEO

Techniques applied to webpages in order to obtain favorable placement on internet search results

Service available market

The customers within the geographic reach of a firm

Price Lining

The practice of setting three price points: good quality, better quality, and best quality

Customer development process

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

Customer Relationship Management

The process of tracking the customers different contacts with the firm, and using these data to help improve sales as well ad customer experience

Marketing funnel

The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser

Trademark

a symbol, word, or words legally registered or established by use as representing a company or product.

Business model canvas

a way of identifying and organizing key information on a business and how It achieves its goals

Imitative Strategy

an overall strategic approach in which the entrepreneur does more or less what others are already doing

Environmental Scanning:

are several low-cost and relatively fast ways to monitor the environment Look for trends in the trade press of your industry Ask your customers and suppliers what they see on the horizon Keep notes on the things that bother you about the way work is done now and on how work as changed Subscribe to blogs outside your area of business

Task Environment

includes entities that directly affect a firm on a constant basis and include competitors, suppliers, and customers

Prestige Pricing

setting a rather high price to suggest high quality or high status

Penetrated Market

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

Internal Environment

the events and trends inside an organization that affect management, employees, and organizational culture