Entrepreneurship - Chapter 7 & Business Essentials - Chapter 11

Scope

-geographic range covered by the market -Local to Global

Market Segmentation

is the process of dividing a market of potential customers into groups, or segments, based on different characteristics.

Demographic

relating to the structure of populations.

Scale

size of the market

Brand Loyalty

the tendency of some consumers to continue buying the same brand of goods rather than competing brands.

Perceptual Map

A graphic display which positions products, services, brands, or companies according to their scores of important strategic dimensions.

(industry)Decline

A life cycle stage in which sales and profits of the firm begin a falling trend.

(industry) boom

A type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time.

(industry) shake-out

A type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.

(Industry)growth

An industry life cycle stage in which customer purchases increase at a dramatic rate.

Retrenchment

An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival.

Gross Profit

Funds left over after deducting the cost of goods sold.

marketing

the action or business of promoting and selling products or services, including market research and advertising.

net profit

the actual profit after working expenses not included in the calculation of gross profit have been paid.

Strategy Process

the ideas and actions that explain how a firm will make its profit

(Industry)Introductory, growth, boom, shake-out, maturity, decline,

The life cycle stage in which the product or service is being invented and initially developed.

Industry Cycle

The normal stages that a industry goes through during the course of its life cycle in the market.

Magic Number

The post-tax income the entrepreneur personally seeks from the business.

(industry)Marurity

The third life cycle stage, marked by a stabilization of demand, with firms in the industry moving to stabilize or improve profits through cost strategies.

Marketing Mix

a combination of factors that can be controlled by a company to influence consumers to purchase its products

Target Market

a particular group of consumers at which a product or service is aimed.

Geographic

based on or derived from the physical features of an area.

Market

business term for the population of customers for your product or service

Psychographic

can be defined as a quantitative methodology used to describe consumers on psychological attributes.

Behavioral

involving, relating to, or emphasizing behavior.

Substitute Product

is a product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry.