Small Business Chapter 12

Differential advantage

The characteristic that separates one company from another in product, price, promotion, and/or distribution.

Focus group

form of data gathering from a small group led by a moderator

Secondary data

information already collected for some other purpose than the current problem

Indirect competition

Companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need; for example, indirect competition for Coca-Cola includes any other company providing items to quench thirst.

Secondary research

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

Dichotomous questions

Questions that have only two possible choices; for example, "Have you shopped here before?"

Marketing plan

a systematic written plan of all phases of marketing for a business, including information on the product, price, and distribution and promotion strategy, as well as a clear identification of the target market and competition

Ethnographic research

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

Undifferentiated strategy

A marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marketing mix.

Direct competition

Other companies that make a similar product or provide a similar service; for example, direct competition for Coca-Cola includes all other soft drink providers.

Primary research

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

Written plan

-Specific details about your target market -Present and near-future situation, including competitors -Identify differential advantage -May include financial projections

Market segmentation

-The process of dividing the market into groups that have somewhat homogeneous needs for a product or service. -Geographic, demographic, benefit

Primary data

-information is extremely current -Take some more time and money to gather it -Marketing research firms can do this for you

Bot

A Web-based program that uses artificial intelligence techniques to automate tasks such as searches.

Survey

A data-collection method using a questionnaire—in person, on phone, on paper, or on the Internet.

Open-ended questions

Questions that allow respondents to express themselves as they choose; for example, "What do you like about this book?"

Categorical questions

Questions that are answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."

Scalar questions

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

Marketing research

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

Concentrated strategy

A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group.

Differentiated strategy

A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs.