ENTREPRENEURSHIP Chapters 10, 11, 12
Survey
a data-collection method using a questionnaire- in person, on phone, on paper, or on the Internet
Letter of Credit
a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms
Direct Mail
a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are mailed directly to customers
Wholesaler
a middleman business which buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers
Diversification
a strategy whose goal is growth, based on adding new products or services to the firms existing collection of offerings
Market Penetration
a strategy whose goal is growth, based on selling existing customers a product or service they have never bought before
Manufactorers' Suggested Retail Price
a target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel
Bot
a web-based program that uses artificial intelligence techniques to automate tasks such as searches
Press Release
a written announcement intended to draw news media attention to a specific event
Closed-Ended Questions
question format that limits respondents with a list of answer choices from which they must choose to answer the question
Open-Ended Questions
questions format that allow respondents to express themselves as they choose; for example, "What do you like about this book?"
Word-of-Mouth
A means of spreading information about your business through the comments friends and customers make to other potential customers
Direct Sales
Methods of going directly to your customer in order to sell your product. Vending machines, door-to-door salespeople, leasing space at a craft fair, farmers markets, party sales, and most industrial sales
Currency
a concept in public importance which alludes to the degree to which the issue is immediate in its impact
Sales Promotion
a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests
Agent
a middleman business which represents a manufacturer's product or service to other business-to-business middleman firms
Retailer
a middleman business which sells to consumers or end-users of a product (typically in single or small quantities)
Sheltered Workshop
a nonprofit organization or institution that provides business services by using handicapped or rehabilitated workers
Press Relations
activities used to establish and promote a favorable opinion by the media
Public Relations
activities used to establish and promote a favorable opinion by the public
Value Proposition
Small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition.
Proximity
a concept in public recognition which alludes to the impact level of the issue being discussed
Succinct Message
Your key point in as few and as memorable words as possible
Power
a concept in public importance in which alludes to potential shifts in control or influence
Primary Data
-information is extremely current -take some more time and money to gather it -marketing research firms can do this for you
Microinventory
A set of goods or service that consists of only one or a few items.
Market Expansion
A strategy whose goal is growth, based on selling in areas or to groups previously not served by the business.
Contract Manufacturing
An existing firm with the correct manufacturing capabilities makes your product for you
Public Recognition
Being recognized or acknowledged by large numbers of people, similar to "fame."
Indirect Competition
Companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need; for example, indirect competition for Coca-Cola includes any other company providing items to quench thirst.
Indirect Exporting
Exporting using intermediaries such as agents, export management companies, or export trading companies.
Direct Exporting
Exporting using no intermediaries
Freight Forwarders
Firms specializing in arranging international shipments-packaging, transportation, and paperwork
Just-In-Time Inventory
Having just enough product on your shelves to meet the immediate purchases. This usually requires frequent shipment from your supplier.
Secondary Research
Information already collected for some other purpose than the current problem or questions.
Direct Response Advertising
Placing an advertisement in a magazine or newspaper, on television or radio, or in any other media. The ad contains an order blank with a phone number and e-mail or regular mail address with the intent of having the customer place an immediate order
Categorical Questions
Questions that are answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."
Dichotomous Questions
Questions that have only two possible choices; for example, "Have you shopped here before?"
Mail Order
Sales made from ads in newspapers or magazines, with purchases made online or by phone as well as by mail.
Marketing Research
Systematic collection and interpretation of data to support future marketing decisions
Search Engine Optimization
Techniques applied to web pages in order to obtain favorable placement on Internet search page results.
Keyword and Description Tags
Terms included in the hidden portion of a web page which are used by search engines such as Yahoo! and Google to describe your website and evaluate its focus and category placement.
Differential Advantage
The characteristic that separates one company from another in product, price, promotion, and/or distribution.
Manufacturer
The entity which produces a product or service to be sold
Customer Relationship Management (CRM)
The process of tracking the customer's different contacts with the firm, and using this data to help improve sales as well as the customer's experience.
Marketing Funnel
The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser.
Guerilla Marketing
The use of creative and relatively inexpensive ways to reach your customer. Examples include door-knob hangers, flyers under windshield wipers, T-shirts, balloons, and messages written on sidewalks.
Newsworthy Events
To garner serious attention from the media and the public, a news story needs to deliver certain essentials that will hold their attention and keep your news in their thoughts. It should have public recognition, importance, and interest.
High Customer Contact Business
businesses with high customer contact include such diverse operations as medical or legal offices, restaurants, retail establishments, dry cleaners, and other businesses that are highly dependent on being convenient to the customer
Telemarketing
contact via telephone for the express purpose of selling a product or service
Ethnographic Research
data gathered by simple observation - seeing what consumers do, rather than asking them
Focus Group
form of data gathering from a small group led by a moderator
Promotional Mix
how much of each message conveyance you will use to sell your product as well as your objective in using each one
Non-Compete
if you have a pet store in a strip mall, you'd like to be the only one there. For many types of businesses, you negotiate a clause limiting the landlord's ability to lease to a competing business
Publicity
information about your company and its activities that is disseminated to the public in order to going their good opinion
Secondary Data
information already collected for some other purpose than the current problem
Hours of Operation
mail landlords want stores open the same hours and days, and landlords of other types of properties may have some of the same desires
Low Customer Contact Business
manufactoring businesses, the headquarters of client location-based services, or remote location services
Hidden Charges
many lease include charges that do not have to be listed in the term sheet given you for the property
Predetermined Market Segments
professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics
Free Ink
mentions of your company or products in the media for which your firm did not pay
Donations
monetary or other gifts to organizations or people who are in need.
Sales Lead
people who receive a promotional impression and who give some thought to buying the product
Segmentation
process of dividing the market into smaller portions of people who have certain common characteristics
Prospects
sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase
Direct Marketing
selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the result
Importing
similar to exporting, but buyers and sellers are reversed
Customer Retention
techniques that focus on efforts to promote satisfaction with and interest in the firm
Advertising
the major way most businesses convey their message to potential customers
Market Segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Personal Selling
the process of selling your products and service
Target Market
the segment or segments you select on which to concentrate your marketing efforts
Multichannel Marketing
the use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing
Moves and Remodels
there may be a clause that gives the landlord the right to move your business elsewhere, at their discretion
Impression
to get people to buy what you are offering, you first need to make this on them
Rent Default
when you are late paying rent, all sorts of penalties and problems emerge
Use of Premises
you specify in the lease what you will sell or do at the leased location, but too exact a description could prevent you from expanding the products or services you offer
Public Importance
(1) Things that are considered important to large numbers of otherwise unrelated people, (2) Things that are of civic importance, as opposed to private or corporate entities.
Written Plan
- specific details about your target market - present and near-future situation, including competitors - identify differential advantage - may include financial projections
Public Interest
- things that are generally considered to be beneficial to large numbers of people - civic causes and benefits, as opposed to private and corporate benefits - good story, human interest, visuals, cultural resonance
Fulfillment Center
A company that will warehouse your products and fill your customers' orders for you.
Issue Recognition
A concept in public recognition which alludes to the extent to which the public is familiar with the issue or problem at hand.
Trendiness
A concept in public recognition which alludes to the fit of the topic to current fashion or public interest.
Documentary Draft
A draft which can be exercised only when presented with specified shipping documents
Concentrated Strategy
A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group.
Undifferentiated Strategy
A marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marketing mix.
Born International
A new firm that opens a website immediately, thus being exposed to customers from around the world
Marketing Plan
A systematic written plan of all phases of marketing for a business, including information on the product, price, distribution, and promotion strategy, as well as a clear identification of the target market and competition.
Customer Vector
A type of CRM report which segments by customer (or customer group) on purchases or dates of purchase
Primary Research
New information collected to solve a problem at hand or answer current questions.
Direct Competition
Other companies that make a similar product or provide a similar service; for example, direct competition for Coca-Cola includes all other soft drink providers
Sponsorships
Paying for a local organization's needs in exchange for recognition.
Channels
People and firms who connect producers of goods and services with customers
E-Tailer
an electronic retailer; a store that exists only on the internet.
Cognitive Dissonance
an inconsistency between experience and beliefs
Viral Marketing
any electronic equivalent of word-of-mouth advertising, in which the advertiser's message spreads quickly and widely via e-mail, website, blogs, and other online tools
Differentiated Strategy
A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs.
Scaler Questions
questions that are answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?"
