chapter 9

Value Proposition

Small business owners unique selling points (aka benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition

services

nonphysical products

goods

physical products

categorical questions

question that is answered by selecting the proper category for example "what is your ethnicity?"

Marketing research

systematic collection and interpretation of data to support future marketing decisions

4 Ps of Marketing

the four major components of a marketing effort - product, price, promotion and placement. (AKA marketing mix)

core product

the basic description of what a product is -- a bar of soap, a cleaning service, so on

Influencers

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

Purchaser

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

End User

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

survey

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

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, higher long-term value is usually preferred

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 or service, and able to be serviced by the firm

Budget cycle

A term applies to the schedule and the process for setting the schedule for making purchases by an individual or an organization

me-too products

Products essentially similar to something already on the market

Dichotomous questions

Question that has only two possible choices for example "have you shopped her before?"

scalar question

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

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.

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 expect in any business transaction; an employee or manager who is trying to make sure the customer walks away with an exceptional experience

Commercialization

The process of making the new products ready for use by customers 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

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 give a percentage of the market the firm (or product/service) has attained so far

Total available market (TAM)

a marketing term that refers to all of the people or organization (in one nation, region, or the world) who might consider a product or service being offered

Serviceable available market (SAM)

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

heterogeneity

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

inseparability

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

open-ended questions

a question that allows respondents to answer in any way they see fit ex: "what do you like about this book?"

perishability

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

Primary research

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

Secondary research

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

tangibility

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

augmented product

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

ethnographic research

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

customer profile

detailed description of an archetypical or hypothetical potential customer for a product or service, also called a customer persona

prototypes

the name given to the first model of a product or service. Some prototypes may be functioning, but built in a way that no consumer would buy it (eg exposed wires and sharp edges) but shows the product can do what is promised. Some prototypes look like the final product, but night not be functional. Prototypes are made to prove aspects of the idea and are seen as the first stop along the path of product/service creation

Product Development Process

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

Customer Development Process

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

Purchasing process

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

customer job

the term given to what a potential customer is trying to do-perform or complete some sort of task, solve some problem, or try to achieve some outcome. the target of the job is often the key to what a proposed product or service is intended to help

pivot

typically, a term describing a change of direction in thinking of an entrepreneur or a firm, often based on new data or other findings