Ch 4 key terms
Design thinking
A customer focus approach using interviews, observation, and exercises create products and services that provide demonstrated evidence of solving customer problems
Customer segment
A group or sub group of potential purchases that can be approached in a coherent manner
Pain storming
A group thinking technique when you are asking participants about a situation, product, or service day experience. You ask them to tell you all the things about the experience that were not great... What was wrong what didn't work well what caused pain or discomfort what could have been better. Their results can help describe how to improve the product service or situation of possibly even provide alternatives to the original
Brainstorming
A group thinking technique where you ask participants about a situation or a product or service. You ask them to tell you all the things that come to mind when they think of that situation, product or service. You can ask for specifics like ways to make something better, or ways to create new versions, or ways to imagine how it would be used at other times for another situation. In this group discussion and criticism is suspended in order to generate the maximum number of ideas
License
A legal agreement granting you right 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, or those of competitors. Target markets can refer to individual or market groups called segments
Royalty
A payment to a license are based on the number or value oflicensed items sold
Pilot test
A preliminary run of a business, sales effort, program, or website with a goal of assessing How well the overall approach works and what problems that might have
Creativity
A process producing an idea or opportunity that is novel and useful, frequently derive from making connections among distinct ideas opportunities
Entrepreneurial alertness
A special set of observational and thinking skills that help entrepreneurs identify good opportunities... The ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivations to look for opportunities
IDEO screen
A technique for conducting a fascination analysis of ideas for the potential. An I DEO screen looks at three elements... Market desirability, technical feasibility, the organizational viability
A/B testing
A way to check customer reaction to website describing your product or service. Two versions of the site are posted and are served Up randomly to Prospect customers. The version of the website that gives the most commitment from customer someone kept in the list to talk to side is reversed and the two versions tested until one or vision gets consistently superior customer reactions
Business model
A way to identify and organize key information on the business and how to chiefs its goals. Business models can be analytic tools or a way to do business
Retail arbitrage
An approach to business where the entrepreneur buy something at a severely reduced retail price and then resells it at a price closer to the typical retail price
Freemium
An approach to pricing in a business model and K'NEX free and premium products or services. Typically free version is offered and users have the option to pay to move up to premium features. Popular examples include Dropbox and Angry Birds
Imitative strategy
An overall strategic approach in which the entrepreneur does more or less than others are already doing
Gain
Any sort of outcome customers are potential customers would like to encounter or be able to depend on. It is one of two driving forces creating new products or services, with the other driving force being pain
Pain
Any sort of problem, annoyance, source of aggravation, shortcoming, or sub optimal situation customers are potential customers face. This one or two driving forces of creating new product or service with the other driving force being gain
Feasibility study
Evaluates the potential of a business opportunity by saying five primary areas in debt... The overall business idea, the product/service, the industry and market, financial projections, and the plan for future action
Casual model of entrepreneurship
One or two approaches to thinking about entrepreneurship. The casual approach is one in which you want to create a particular product or service that does not yet exist, and to achieve that end, you have to cause the product or service to exist, this could mean you can or will have to learn new skills, or find others to help you achieve your end
Radical innovation strategy
Rejecting existing ideas and presenting a way to do things differently
opportunity recognition
Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas
Value proposition
Small business owners unique selling points that customers can expect from goods or services including benefits that differentiate you're offering from those of the competition
Incremental strategy
Taking an idea and offering a way to do something slightly better than it is done presently
Feasibility
The extent to which an idea is viable and realistic and the extent to which you're aware of internal and external forces that could affect your business
Conversion rate
The measure of how many visitors to your website you're actually willing to make a commitment to the product or service permitted on the site
Licensee
The person or firm that is obtaining the rights to use a particular piece of intellectual property
licenser (licensor)
The person or organization that is offering the rights to use a particular piece of intellectual property
Customer job
The term given to what a potential customer is trying to do... Perform or complete some sort of task, solve some problems, or try to achieve some outcome. The target of the job is often the key to what is proposed product or service is intended to help