Marketing Essentials Pt. 1 Ch. 1

Commission

An amount paid to an employee based on a percentage of the employee's sales

Empathize Stage of Design Thinking

Observe, engage, and empathize with customers to understand their experiences and needs.

Final Test Stage of Design Thinking

The design team reviews and refines the product. The team tests the best product solution found in the prototyping stage.

Existence Stage of Business Life Cycle

The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances.

Success Stage of Business Life Cycle

The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.

Entrepreneur

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Founder

the person who created the business

CEO (Chief Executive Officer)

the person with the highest rank in a company e.g. Mark Zuckerberg is the _____ of facebook.

Equity

(n.) the state or quality of being just, fair, or impartial; fair and equal treatment; something that is fair; the money value of a property above and beyond any mortgage or other claim

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

Pivot or Persist Stage of Business Life Cycle

A business persists with it's current strategy if needed

B2C (business-to-consumer)

A commercial exchange (e.g., products or services) between businesses and consumers conducted over the Internet.

B2B (business-to-business)

A commercial exchange (e.g., products or services) between businesses, typically enabled by the Internet or electronic means.

LLC (Limited Liability Company)

A company similar to an S corporation but without the special eligibility requirements.

Parternship

A form of business ownership in which the business is owned by two or more persons

Prototype Stage of Design Thinking

A full-scale working model used to test a design concept by making actual observations and necessary adjustments.

MVP (minimum viable product)

A version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.

Capital

An economic system based on private ownership of capital

Stakeholder

An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

Non-Profit

An organization that is set up to help those in need but not to make a profit from the business.

Stockholder

An owner of one or more shares of a corporation

Define Stage of Design Thinking

Analyze observations and information gathered during the empathize stage.

Survival Stage of Business Life Cycle

Gathering resources, managing and building operations and first-round financing

Digital Goods

Goods that can be delivered over a digital network (music, video, software, newspapers, books

Employees

Individuals who exchange work for wages or salary; in the U.S., workers who are covered by Fair Labor Standards Act regulations as determined by the IRS.

CFO (Chief Financial Officer)

Manager responsible for managing the financial risks of the corporation (and financial planning/record-keeping)

Exit Plan Stage of Business Life Cycle

Owners make a profit from selling their ownership in a successful company.

Ideate Stage of Design Thinking

The design team develops solution ideas to spark new ways of thinking. They keep the most realistic and innovative ideas that will provide the best customer satisfaction.

C Corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

COO (Chief Operating Officer)

___ is responsible for day to day operations of certain corporation; could be one hospital or thousands; oversee the entire health care organization such as dietary or respiratory

Sole Proprietorship

a business owned and managed by a single individual

S Corporation

a form of corporation that avoids double taxation by having its income taxed as if it were a partnership

Take Off Stage of Business Life Cycle

a market emerges as people produce goods not just for their own use but also to trade with others for profit

Salaried

an employee paid a predetermined amount of money every pay period regardless of the number of hours worked

Tangible

capable of being touched; real, concrete

Ecommerce

commercial transactions conducted electronically on the Internet.

Resource maturity stage of Business Life Cycle

is characterized by a stable level of sales and profits over several years

Small Business

one that is independently owned and operated for profit and is not dominant in its field

Piece Work

work paid for according to the amount produced.