BUS ADM 292 - EXAM 3

end user

a customer role that describes the person who eventually makes actual use of a product/service in his or her personal/work life

survey

a data-collection method using a questionnaire (in person, over the phone, on paper, or via the internet)

customer profile

a detailed description of an archetypical or hypothetical potential customer (also called a customer persona)

secondary research

an approach to researching based on the use of existing information, often from government, commercial, or academic databases, and research efforts

contract manufacturing

an existing firm with the correct manufacturing capabilities makes your product for you

product

anything that is offered to the market to satisfy consumer wants, needs, and demands (goods, services, people, ideas)

core product

basic description of what a product is (a bar of soap, a housecleaning service, etc.)

job description

defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position

employee referral

an underused, low-cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit

captive pricing

setting the price for an item relatively low and then charging much higher prices for the expendable it uses

nonexempt

a federal government descriptor of employees under the Fair Labor Standards Act who get an hourly wage and time-and-a-half for overtime

purchaser

a customer role that describes an individual or institution that pays for or obtains a product/service

focus group

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

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

co-working space

a type of "incubator lite" offering low-cost shared space and basic business services (Wi-Fi, desks, coffee, conference room, copier, etc.) for a daily, weekly, or monthly rental fee

primary research

an approach to researching based on gathering of new information, using techniques such as interviewing, surveying, and observation

job analysis

includes the job itself, the tasks of the job, the critical tasks, and the critical competencies

channels

people and firms who connect producers of goods and services with customers

fulfillment center

a company that will warehouse your products and fill your customers' orders for you

internal reference price

a consumer's mental image of what a product's price should be based on previous knowledge

influencer

a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices

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 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/service being offered

serviceable available market (SAM)

a marketing term that refers to the customers within the geographic reach of a firm

price gouging

charging an 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

open-book policy

concept that key employees should be able to see and understand a firm's financials

telemarketing

contact via telephone for the express purpose of selling a product/service (can be inbound or outbound)

ethnographic research

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

idea evaluation

exhaustive process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential

indirect exporting

exporting using intermediaries such as agents, export management companies, or export trading companies

direct exporting

exporting using no intermediaries

freight forwarders

firms specializing in arranging international shipments (packaging, transportation, and paperwork)

elasticity

from economics, the idea that the market's demand for a product or service is sensitive to changes in its price

leasing

has the advantage of being considerably cheaper than buying or building

building

has the advantage of having the perfect location and the street appeal of a new building

buying

has the advantage of shortening the time and may be somewhat cheaper than building

just-in-time inventory

having just enough product on your shelves to meet the immediate purchases

mutually accessible

location where services are done when there is too much specialized equipment to be readily transported (barbershops, dentist offices, video rental stores, restaurants)

client's location

location where services such as cleaning, pest control, remodeling, lawn, and some accounting, are done

low customer contact business

manufacturing business; commercial space might be appropriate

internet recruiting

method of recruiting that allows you to search a resume database or post a job description to the web

direct sales

methods of going directly to your customer in order to sell your product (vending machines, door-to-door salespeople, leasing space at a craft fair, farmers' markets, etc.)

direct response advertising

placing an advertisement in a magazine/newspaper, on television or radio, or in any other media; ad contains an order blank with a phone number and email/mail address with the intent of having the customer place an immediate order

distribution

process of getting your product to your customers

elastic product

product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased

inelastic product

product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased

me-too products

products essentially similar to something already on the market

open-ended question

question that allows respondents to express themselves as they choose (ex: what do you like about this product?)

dichotomous question

question that has only two possible choices (ex: have you ever shopped with us before?)

categorical question

question that is answered by selecting the proper category (ex: what is your ethnicity?)

scalar question

question that is answered by some sort of scale (ex: on a scale of 1 to 5...)

psychological contract

refers to employees' beliefs about the promises between the employee and the firm; beliefs are based on the perception that promises have been made in exchange for certain employee obligations

mail order

sales made from ads in newspapers or magazines, with purchases made online or by phones as well as by mail

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

odd-even pricing

setting a price that ends in the number 5, 7, or 9

partitioned pricing

setting the price for a base item and then charging extra for each additional component

importing

similar to exporting, but buyers and sellers are reversed

value proposition

small business owners' unique selling points (or benefits) that customers can expect from your goods/services

marketing research

systematic collection and interpretation of data to support future marketing decisions

law of supply and demand

the economic theory that describes how the demand for products/services and the supply of them affect each other

total product

the entire bundle of products, services, and meanings of your offering (includes extras like service, warranty, delivery, etc.)

optimum pricing

the highest price that would produce your desired level of sales (or revenues) in your target market

employee fit

the match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee

purchasing process

the sequence of steps an individual/organization goes through in making a decision to buy a product/service

guerilla marketing

the use of creative and relatively inexpensive ways to reach your customer

multichannel marketing

the use of several different channels to reach your customers, for example, a web site, direct mail, and traditional retailing

high customer contact business

three critical site selection considerations (traffic, customer ease, competition)

one-the-job training

training delivered to employees while they perform their regular jobs (orientations, job instruction training, apprenticeships, internships, etc.)

off-the-job training

training including lectures, special study, videos, television conferences, case studies, simulation, lab training, etc.

probationary period

trial period in which an employee has temporary status before a formal offer to work full time is presented

customer job

what a potential customer is trying to do (perform or complete some sort of task, solve a problem, or try to achieve some outcome)

product perishability

describes a service that if not used when offered, it cannot be saved for later use

living wage

the amount needed for a person (or family of a particular size) to meet the basic necessities of life from a single job

margin

the amount of profit, usually stated as a percentage of the total price

price lining

the practice of setting (usually) three price points: good quality, better quality, best quality

product development process

the procedure to organize and pursue the creation of new goods/services

customer development process

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

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

decision-maker

a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

letter of credit

a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms

exempt

a federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries

sales promotion

a form of communication that encourages the customer to act immediately towards a purchase, such as coupons, sales, or contests

serviceable obtainable market (SOM)

a marketing term (also called the target market) that represents the customers that a firm expects to be interested in its particular product/service

direct mail

a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers from which they can mail, call, or email an order

agent

a middleman business which represents a manufacturer's product/service to other business-to-business middleman firms

born international

a new firm that opens a web site immediately, thus being exposed to customers from around the world

markup pricing

a price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit

product heterogeneity

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

product inseparability

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

microinventory

a set of goods or service that consists of only one or a few items

budget cycle

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

external reference price

an estimation of what a price should be based on outside resources (advice, advertisements, or comparison shopping)

wholesaler

an intermediary business which buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers

product tangibility

an item's capability of being touched, seen, tasted, or felt

accelerator

an organization that supports start-ups, typically of a particular type with a financial investment, free or inexpensive office space, mentoring, a variety of free or low-cost support services, and other resources

augmented product

core product plus features that tend to differentiate it from the competition

virtual employees

independent contractors who provide specialized business services or support from a distance, through the internet, telephone, fax, or another method of communication