Small business exam 3

Define Perishability

A service exhibits perishability in that if it is not used when offered, it cannot be saved for later use

Identify the three typical locations for services: at the client's location, at a mutually accessible location, and at your firm's location.

AT CLIENTS LOACTION= lawn mowing service. You go to their house and cut grass AT MUTUALLY ACCESSIBLE LOC= DENTIST, watch repair shop in a mall... At FIRMS loc= data processing, emailed things...

Define External Reference Price

An estimation of what a price should be based on information external to a consumer, such as advice, advertisements, or comparison shopping. -----Friends, competitors, shop around

Identify secondary research sources

Bizstats Economic census E-commerce statistics Expenses and expenditures Population and household statistics Mintel.com ( consumer data ) Freedonia.com (B2B focus)

Understand the various customer roles: end user, purchaser, decision maker, Influencers. Purchaser

Buying something for someone else and THEY use it

Define Guerilla marketing

CHEAP way of marketing... FLYERS, doorhangers, sidewalk chalk messages, t-shirts, balloons

Understand the various customer roles: end user, purchaser, decision maker, Influencers. End user

End user - Buying the product yourself and use the product yourself

Identify various ways to segment a market: Psychographic

Factors in marketing to target an individual customer's personality, attitudes, concerns, choices and behaviors.

the product life cycle. Decline

Falling sales and profits. CD players

Review the material on leasing - beginning on page 417-420.

NEGOTIABLE things like who pays water bill, any non-compete clauses, hours the location is open to access VS If you build everything is the way you want it

Pricing Strategies: Price lining

Offer high mid and low cost of the same/ similar item quality usually sacrificed

Understand the new product development process and the characteristics of each stage. Product Development

PROTOTYPES close representation of final product.

Understand the PESO model: paid, earned, shared, and owned.

Paid - you pay for ad placement Earned - Public relations and press relations Shared - Called word of mouth or referral advertising Owned - YOUR website, newsletters, emails, signage, etc.

Define markup

The amount an entrepreneur adds to costs to provide a profit -----Amount you want or need to make. Also magic number MATH EXAMPLE FROM CLASS = COSTS $25.20 to make MARKUP is 55% math = 25.20 x (1-.55)= 39.06

Define core product

The basic description of what a product is or company does—a bar of soap, a housecleaning service, and so on.

Define total product

The 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.

Define Optimum price

The highest price that will produce your desired level of sales in your intended market. w/ in 1 yr

Pricing Strategies: Captive pricing

low cost initially but continued use costs more--- cheap printer expensive ink

Pricing Strategies: Penetration Pricing

low price initially to get into a competitive market

the product life cycle. Intro

low sales/ profits. More innovative= slower sales. Can have high marketing costs and failure

Define services

non physical products

Pricing Strategies: Bundling

tire rotation and oil change... haircut and hair coloring ...combine and save

Understand the new product development process and the characteristics of each stage. Idea evaluation

uses FEASIBILITY ANALYSIS. exhaustive process specifying details of ideas technological feasibility, its cost, how it can be marketed, and its market potential.

Define Co-branding

when two companies combine their products

Understand the following closes: trial, assumptive, urgency, alternative. Trial

" Which credit card would you like to use to pay for that? "

Understand the following closes: trial, assumptive, urgency, alternative. Assumptive

"I'll just need your Credit card for payment"

Understand the following closes: trial, assumptive, urgency, alternative. Urgency

"This rate will end at the end of the day"

Understand the following closes: trial, assumptive, urgency, alternative. Alternative

"Would you prefer the standard or deluxe model"

Identify the guidelines for coming up good names. (Pages 340-341)

- "First thought is to name the firm after themselves" - Another issue with using your name concerns how to handle the name if you decide to sell the company -Name appropriate? - Potential Trademark infringements - Creative Spelling, but do not overdue it -Selecting a narrow name -Due diligence check for name

What are the four key factors for determining an optimum price?

1- DEMAND FOR PRODUCT/ SERVICE= HIGH DEMAND= HIGH PRICES 2- VALUE DELIVERED TO CUSTOMER= DYE YOUR OWN HAIR RISK RUINING HAIR OR PAY MORE FOR REASSURANCES FROM SALON 3- PRICES SET BY COMPETING FIRMS= COKE COSTS 1$ NOBODY IS GOING TO PAY 2$ PEPSI 4- BUSINESS STRATEGY AND PRODUCT PLACEMENT= IF YOUR MAJOR SELLING POINT (STRATEGY) IS BEING GREEN THEN YOU CAN'T USE NON GREEN MATERIALS TO MAKE YOUR PRODUCT

What are the steps in personal selling process

1. Generate and qualify leads 2. Pre-approach 3. Sales presentation and overcoming reservations 4. Closing the sale 5. Follow-up

Define Sales Promotions

A FORM OF COMMUNICATION THAT ENCOURAGES THE CUSTOMER TO ACT IMMEDIATELY, SUCH AS COUPONS, SALES, OR CONTESTS.

Define Internal Reference Price

A consumer's mental image of what a product's price should be based on experience and the consumer's estimate of what the comparative value might be. ----- What you think the price should be

Define 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. --- Most widely used of the many pricing methods MATH EXAMPLE FROM CLASS = COSTS $25.20 to make MARKUP is 55% math = 25.20 x (1-.55)= 39.06

Identify various ways to segment a market: Benefit

A product or service's customer-oriented strengths; statements of a valuable product or service feature, with an emphasis on what the customer gets from the products

Define Heterogeneity

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

Define Inseparability

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

Table 10.1 review

Commercials -- Online/social media video Product placements -- Exposure of your product or service Radio -- Commercials / infomercials Sponsorships - -Sponsorships in ads and commercials Sales promotions -- Coupons, customer sales mailings, contests, sweepstakes In-store promotions -- sale displays / pop up displays, QR codes Out-of-home ad placements --Shelter ads, wall posters, search engine results placements and portal ads

Define Augmented product

Core product plus features that tend to differentiate it from the competition.

Describe the various primary research methods: Ethnographic research

Data gathered by simple observation-seeing what customers do, rather than asking them

Understand the various customer roles: end user, purchaser, decision maker, Influencers. Decision Maker

Determines which product or service will be bought for the end users

Low customer contact business

EMPLOYEE ACCESS IS MORE CRITICAL, BUSINESS PARKS.

Pricing Strategies: Odd-Even pricing

END in 9, 7, or 5. Makes people feel better

Multichannel Marketing

Giving customer choice DIRECTLY contacting= contacting customer by every way you can imagine, calling, emailing, mailing, sending catalogues, INDIRECTLY= website, billboards

Define prospects

Individuals interested in your products/service and ready to buy

Define Influencer

Individuals that produce content on social media platforms with the idea of getting a circle of readers and subscribers to buy into a product or service

Define impression

Influencing people to buy a service/product

Identify the factors to consider in selecting your business location.

KNOW YOUR MARKET (TARGET AUDIENCE) , IF YOU HAVE FRIEND FAMILY SET UP IN THAT TOWN FOR REFERENCES, DON'T RENT IF LOCATION IS TOO EXPENSIVE, ZONING LAWS PREVENT IT.

Define Hashtag

Key word or topic

High customer contact business

LOTS OF PPL, NEED PARKING, TRAFFIC FLOW, BY A POPULAR STOR

Identify various ways to segment a market: Geographic

Location in which to operate business

Understand the various customer roles: end user, purchaser, decision maker, Influencers. Influencer

People or groups with the ability to make suggestions or recommendations to people in any role

differentiate btwn Primary and Secondary research

Primary research - Is gathered to answer a specific marketing question Secondary research - Has already been gathered for another reason, can be just as useful

What are the 4P's of marketing (marketing mix)?

Product Price Promotion Place

Define newsworthy events

Public recognition, Public importance, Public interest (three essentials)

Close ended questions (definition)

Questions that allows respondents to answer in only certain ways

Examples of Sales promotions

Rebates, loyalty program, referral rebate

Understand the new product development process and the characteristics of each stage. Idea Generation

SCAMPER model for ideas, needs or wants

Pricing Strategies: Prestige pricing

Set price above the competition to indicate your product is a STATUS SYMBOL

Pricing Strategies: Premium pricing

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

Pricing Strategies: Skimming pricing

Setting a price at the highest level the market will bear

Identify some of the ways a company can maintain outstanding customer service. (pg. 291-292)

Show interest in and concern for everyone in your business-customers, employees, suppliers, and the community alike. Going the extra mile Being courteous / nice Be honest and open in how you operate When mistakes are made fix them

Define marketing funnel

Shows how many prospective customers it takes to find one who will make a purchase

Define outstanding customer service.

The idea of "going all out" for the customer or providing over the top service, not just the basic help, professionalism, and friendliness we all except in any business transactions; an employee or manager who is trying to make sure the customer walks away with an exceptional experience

Define Customer Relationship Management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Market Segmentation

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service

Define search engine optimization

The process of improving your website so that it attracts more visitors from search engines

Understand the new product development process and the characteristics of each stage. 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... Try to be unique. Can get contracts (CONSIGNMENT APPROACH)

What is the purchasing process?

The sequence of steps of an individual or org. Goes through in making a decision to buy a product or service

Define Domain name

The web address of your business website

Value proposition

Unique selling points that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition

Define Co-marketing

Where two companies with similar audiences combine their marketing efforts to improve impact

Describe the various primary research methods: Survey

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

Describe the various primary research methods: Focus group

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

the product life cycle. Growth

acceptance of product grows rapidly, prices drop. Advertising and promotion LESS crucial

Define Tangibility

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

Define word of mouth

customer referrals

target market

group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors.

Pricing Strategies: Off-peak pricing

hotels charge more during holidays and less when its 100degrees in Texas

Identify various ways to segment a market: Demographic

income, ethnicity, gender identification, education level, marital status

Define goods

physical products

Open ended question (definition)

question that allows respondents to express themselves as they choose

Define Brand

represents how a company's name, logo, and design are defined as belonging to the company

Understand the new product development process and the characteristics of each stage. Idea screening

scale of 1-5 based on , customer desirability, technical feasibility, business viability.

Product lifestyle Vs Service lifestyle

service usually don't decline they adapt

the product life cycle. Maturity

slowing of growth, sales level off. Use ads, promos to keep sales up. Can be in maturity for long time like COKE

Define Viral Marketing

social media presence