Entrepreneurship Exam 2
Customer relationship management
Process of tracking customer's different contacts with the firm, and using this data to help improve sales as well as the customer's experience
Market segmentation
Procss of dividing arket into groups that have somewhat homogenous needs for a product or service
Marketing plan
Systematic writte nplan of all phases of marketing for a business, including info on product, price, distribution, and promotion strategy, as well as a clear ID of target market and competition
Diversification
Strategy whose goal is growth, based on adding new products or services to the firm's existing collection of offerings
Product expansion
Strategy whose goal is growth, based on selling existing customers a product or service they have never bought before
Market expansion
Strategy whose goal is growth, based on selling in areas or to groups previously not served by the business
Market penetration
Strategy whose goal is growth, based on selling more of firm's product or service to the existing customer base
Retained earnings
Sum of all profits and losses, less all dividends paid since the beginning of the business
Marketing research
Systematic collection and interpretation of data to support future marketing decisions
Manufacturer's suggested retail price
Target price set by manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel
Search engine optimization
Techniques applied to web pages in order to obtain favorable placement on internet search page results
Customer retention
Techniques that focus on efforts to promote satisfaction with and interest in the firm
Power
Concept in public importance which alludes to potential shifts in control or influence
Currency
Concept in public importance which alludes to the degree to which the issue is immediate in its impact
Human interest
Concept in public interest which alludes to a character to whom the public can relate
Good story
Concept in public interest which alludes to an incident with good triumphing
Cultural resonance
Concept in public interest which alludes to events with a broad appeal within the market or population
Visuals
Concept in public interest which alludes to the graphic interest held by an event
Issue recognition
Concept in public recognition which alludes to the extent to which the public is familiar with the issue or problem at hand
Trendiness
Concept in public recognition which alludes to the fit of the topic to current fashion or public interest
Proximity
Concept in public recognition which alludes to the impact level of the issue being discussed
Business entity concept
Concept that business has existence separate from that of its owners
Articulate
Concept that info flows from income statement through statements of retained earnings and owners' equity to the balance sheet
Owners' equity
Difference between assets and liabilities or business
Financial accounting
Formal, rule-based set of accounting principles and procedues intended for use by outside owners, investers, banks, and regulations
Elasticity
From economics, idea that the market's
Tax accounting
Accounting approach based on specific accounting requirements set byy gov taxing agencies
Going concern concept
Accounting concept that a business is expected to contine in existence for the foreseeable future
Managerial accounting
Accounting menthods that are specifically intended to be used by managers for planning, directing, and controlling a business
Press relations
Activities used to establish and promote a favorable opinion by the media
Public relations
Activities used to establish and promote a favorable opinion by the public
Markup
Amount an entrepreneur adds to costs to provide profit
Margin
Amount of profit, usually stated as a percentage of the total price
Viral marketing
Any electronic equivalent of word-of-mouth advertising, in which the advertiser's message spreads quickly and widely via email, website, blogs and other online tools
Public recognition
Being recognized or acknowledged by large numbers of people, similar to fame
Differential advantage
Characteristic that separates one company from aother in product, price, promotion, and/or distribution
Off-peak pricing
Charging lower prices at certain times to encourage customers to come during slack periods
Price gouging
Charging outrageously high price for something
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
Indirect competition
Companies that provide alternatives that are dissimilar to your product or service that cosumers might choose to meet a similar need
Fulfillment center
Company that will warehouse your products and fill your customers' orders for you
Internal reference price
Consumer's mental image of what a product's price should be
Telemarketing
Contact via telephone for the express purpose of selling product or service
Augmented product
Core product plus features that tend to differentiate it from competition
Ethnographic research
Data gathered by simple observation, seeing what consuers do, rater than asking them
Survey
Data-collection method using questionnaire, in person, on phone, on paper, or online
Expense
Decrease in owners' equity caused by conuming your product or serice
Referral discount
Discount given to a customer who refers a friend to the business
Letter of credit
Document issued by bank that guarantees buyer's payment for a specified period of time upon compliance with specified terms
Cognitive dissonance
Doubt that occurs after a purchase has been made, an inconsistency between experience and belief
Documentary draft
Draft which can be exercised only when presented which specified shipping documents
Law of supply and demand
Economic theory that describes how the demand for products or services and the supply of them affect each other
Total product
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
Manufacturer
Entity which produces product or service to be sold
External reference price
Estimation of what a price should be based on info external to a consumer
Contract manufacturing
Existing firm with the correct anufaturing capabilities makes your product for you
Indirect exporting
Exporting using intermediaries such as agents, export management companies, or xport trading companies
Direct exporting
Exporting using no intermidiaries
Friehgt forwarders
Firms specializing in arranging international shipments
Sales promotion
Form of communication that encourages customer to act immediately, such as coupons, sales, or contests
Focus group
Form of data gathering using small group led by moderator
Financial statements
Formal summaries of content of an accounting system's records of transactions
Target market
Group of people on which marketer focuses promotion and sales efforts
Just-in-time inventory
Having just enough product on your shelves to meet the immediate purchases
Optimum price
Highest price that will produce your desired level of sales in your intended market
Promotional mix
How much of each message conveyance you will use to sell your product as well as your objective in using each one
Perishability
If not used when offered, it cannot be saved for later use
Revenue
Increase in owners' equity caused by selling our product or service
Publicity
Info about your company and its activities that is disseminated to the public in order to going their good opinion
Secondary research
Info already collected for some other purpose than current problem or questions
MACRS rate
Internal revenue service acronym for the modified accelerated cost recovery system
Tangibility
Item's capability of being touched, seen, tasted, or felt
Succinct message
Key point in as few and as memorable words as possible
Liabilities
Legal obligations to give up things of value in the future
Concentrated strategy
Marketing strategy in which marketer selects one specific group of consumers and designs a marketing mix specifically for that group
Differentiated strategy
Marketing strategy in which marketer selects two or more distinct grops of consuers and designs specific marketing mixes to meet their needs
Undifferentiated strategy
Marketing strategy that uses no segmentation; assumes that all consumers have virtually identical eeds and can be reached by the same marketing mix
Word-of-mouth
Means of spreading info about your business through the comments friends and customers make to other potential customers
Liquidity
Measure of how quickly ompany can raise money through internal sources by converting assets to cash
Free ink
Mentions of your company or products in the media for which your firm did not pay
Markup pricing
Price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit
Segmentation
Process of dividing market into smaller portions of people who have common characteristics
Personal Selling
Process of selling your products and services, includes prospect and evaluate, prepare, present, close, and follow-up
Direct mail
Method of selling in which catalog, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers from which they can mail, call, or email an order
Direct sales
Methods of going directly to your customer in order to sell your product
Wholesaler
Middleman business which buys and sells to businesses rather than customers
Agent
Middleman business which represents manufacturer's product or service to other business-to-business middleman firms
Retailer
Middleman business which sells to consumers or end-users of a product
Donations
Monetary or other gifts to organizations or people who are in need
Born international
New firm that opens a website immediately, thus being exposed to customers from around the world
Primary research
New info collected to solve problem at hand or answer current questions
Mat release
News release that is typeset and thus may be photographically reproduced for inclusion in a newspaper
Service
Nonphysical product
Sheltered workshop
Nonprofit org or institution that provides business services by using handicapped or rehabilitated workers
Advertising
Often used to support corporate identify and value propositions that are established through public relations efforts
Traffic generators
Other businesses that bring customers (generate traffic) to the area
Direct competition
Other companies that make a smilar product or provide a similar service
sponsorships
Paying for a local organization's needs in exchange for recognization
Channels
People and firms who connect producers of goods and services with customers
Good
Physical product
Direct response advertising
Placing advertisement in a magazine or newspaper, on television or radio, or in any other media
Price lining
Practice of setting (usually) three price points: good quality, better quality, or best quality
Accounting equation
Statement tat assets equl liabilities pus owners' equity
Inelastic product
Product for which there are a few substitutes and for which a change in price makes very little difference in quantity purchased
Elastic product
Product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased
Me-too prodcuts
Products similar to something already on market
Predetermined market segments
Professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics
Heterogeneity
Quality of a service in which each time it is provided it will be slightly different from the previous time
Inseparability
Quality of service in which service being done cannot be disconnected from the provider of service
Categorical questions
Questions answered by selecting proper category
Scalar questions
Questions answered by some sort of scale
Open-ended questions
Questions that allow respondents to express themselves as they choose
Dichotomous questions
Questions that have only two possible choices
Depreciation
Regular and systematic reduction in income that transferes asset value to expense over time
Marketing funnel
Rule of thumb in marketing is that it takes a large number of people to be made aware of your product in order to find a purchaser
Income statement
Statement that lists revenues and expenses and shows amount of profit business makes for specified period of time
Periodic or random discounting
Sales conducted at either predictable or nonpredictable intervals
Prospects
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase
Mail order
Sales made from ads in newspapers or magazines, with purchases made online or by phone as well as by mail
Direct marketing
Selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of results
Microinventory
Set of goods or services that consists of only one or a few items
Prestige or premium pricing
Setting a price above that of the competition so as to indicate a higher quality or that a 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
Partitioned pricing
Setting price for an item relatively low and then charging much higher prices for the expendables it uses
Odd-even pricing
Setting price that ends in the number 5, 7, or 9
Value preposition
Small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition
Balance sheet
Statement of what business owns and what it owes to others and how muc value owners have invested in it
Keyword and description tags
Terms included in the hidden portion of a web page called the document head which are used by search engines such as Yahoo and Google to describe your website and evaluate its focus and category placement
Public importance
Things that are considered important to large numbers of otherwise unrelated people
Public interest
Thins that are generally considered to be beneficial to large numbers of people
Newsworthy events
To garner serious attention from the media and the public, a news story needs to deliver certain essentials that will hold their attention and keep your news in their thoughts. It should have public recognition, importance, and interest
Customer vector
Type of CRM report which segments by customer on purchases or dates of purchase
Press kit
Type of sales kit to media outlets which is focused around a press release
Guerilla marketing
Use of creative and relatively inexpensive ways to reach your customer
Multichannel marketing
Use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing
Current ratio
Value of current assets dividend by current liabilities
Cost
Vaue given up to obtain something that you want
Core product
Very basic description of what a product is (bar of soap, house-cleaning service)
Bot
Web-based program that uses artificial intelligence techniques to automate tasks such as searches
Impression
What it is called when someone notices a promotional effort
Press release
Written announcement intended to draw news media attention to a specific level
etailer
electronic retailer
