Chapter 4
Customer segment
a group or subgroup of potential purchases that can be approached in a coherent manner
License
a legal agreement granting you to rights to use a particular piece of intellectual property
Target market
a marketing term that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product
Pilot test
a preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have
Creativity
a process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities
Entrepreneurial alertness
a special set of observational and thinking skills that help entrepreneurs identify good opportunities
AB test
a way to check customer reaction to websites describing your product or service
Business Model
a way to identify and organize key information on a business and how it achieves its goals
Freemium
an approach to pricing, and a business model, that connects free and premium products of services
Retail arbitrage
an approach where the entrepreneur says something at a severely reduced retail price, and then resells it at a price closer to the typical price
Gain
any sort of outcome customers or potential customers would like to encounter or be able to depend on
Pain
any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face
Incremental strategy
offering a way to something slightly a little better than what it already currently is
Causal mode of entrepreneurship
one in which you think about what you need to do to cause your new product or service to come into existence
Royalty
payment to a licensor based on the number or value of licensed items sold
Substitute Combine Adapt Magnify or modify Put to other uses Eliminate Rearrange
scamper abbreviations
Opportunity Recognition
searing and capturing new ideas that lead to a business opportunity
IDEO screen
simplest and fastest ways to screen ideas
Imitative strategy
strategies that involve doing the same thing
segments
target markets can refer to individuals or market groups called __________
Feasibility
the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business
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
Licensor
the person or organization that is offering the rights
Licensee
the person retaining the rights
Customer job
the term given to what a potential customer is trying to do
SCAMPER
tool used to trigger new ideas for a business