business 292 exam 3

total product approach

-Your product means more to the consumer than just the core component -Can help you get inside your customers' heads and figure out the most cost-effective "bundle" of value and cost benefits -Knowing what your product "means" to consumers will help you set an appropriate price

direct exporting

Exporting using no intermediaries

fulfillment center

a company that will warehouse your products and fill your customers' orders for you. take 10% of your sale

influencer

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

decision maker

a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

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 or work life

sales promotion

a form of communication that encourages the customer to act immediately towards a purchase, such as coupons, sales, and contests

nepotism

a management philosophy of selecting and promoting people based on family ties

meritocracy

a management philosophy of selecting and promoting people based solely on their being the most capable person for the job

price elasicity

a measure of the sensitivity of demand to changes in price. price goes down, demand goes up. price goes up, demand does down.

direct mail

a method of selling in which catalogues, brochures, letters, videos, and other pieces of marketing material are mailed directly to customers from which they can mail, call, or email an order. direct emailing is a more modern form.

agent

a middleman business which represents a manufacturer's product or service to other business-to-business middleman firms

networking

a process of finding out about potential clients from friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations

heterogeneity

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

microinventory

a set of goods or service that consists of only one or few items. they don't have enough money for a big inventory.

wholesaler

an intermediary which buys ( typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers

tangibility

an items capability of being touched, seen, tasted or felt

employee referral

an underused, low-cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit

influencer impact

best customers are the ones who buy your product and customers spread their happiness about it ot others

bundling

combining two or more products in one unit and pricing less than if the units were sold separately

telemarketing

contacting via telephone for the express purpose of selling a product or service. can either be inbound (customer calls company) or outbound (company calls customer)

on the job training

delivered to employees while they preform their regular jobs. techniques include orientations, job instruction training, apprenticeships, internships, assistants, job rotation, and coaching.

indirect exporting

exporting using intermediaries such as agents, exporting management companies, or export trading companies

just-in-time inventory

having just enough product on your shelves to meet the immediate purchases. usually requires frequent shipment from your supplier

off the job training

includes lectures, special study, videos, television conferences, case-studies, role-playing simulation, programmed instruction, and laboratory training.

virtual recruiting (employee)

independent contractors who provide specialized business services or support them from a distance through the internet, telephone, fax, or another method of communication.

what industry/business is typically a low customer contact business?

manufacturing business. commercial space might be appropriate. business incubator.

what industry/business is typically a high customer contact business?

medical offices and restaurants, three critical site selection considerations: traffic, customer ease, competition. (also parking)

internet recruiting

method of recruiting that allows you to search a resume database or post a job description on the web. a small business owner who knows exactly what they want can use filters to search vast numbers of resumes with pinpoint accuracy

direct sales

methods of going directly to your customer in order to sell your product. vending machines, door-to-door sales people, leasing space at a craft fair, farmers markets, party sales, and most industrial sales

direct response advertising

placing an advertisement in a magazine or newspaper, on television or radio, or in any other media. ad contains an order blank with a phone number and email or regular mail address with the intent of having the customer place an immediate order.

long-term value

revenue generated by one customer throughout lifetime of the firm

perishability

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

client location

services include such things as house or office cleaning, pest control, remodeling, lawn and gardening services, carpet cleaning and similar services which must be preformed at the clients house. also accountants during tax season

skimming

setting a price at the highest level the market will bear, usually because there is no competition at the time

captive pricing

setting the price for an item relatively low and then charging much higher prices for the expendables it uses

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

employee fit

the match between the needs, expectations, and culture of a small business with the expectations and the skills of the individual employee

benefit matching

the more closely the customers needs are aligned with the benefits of the product the happier they will be

guerilla marketing

the use of creative and relatively inexpensive ways to reach your customer. Ex. door knob hangers, flyers under windshield washers, t-shirts, balloons, and waving signs at passing cars.

mutually accessible location

too much specialized equipment to be readily transported. barbershops, dentist offices, video rental stores, restaurants.

probationary period

trial period in which an employee has temporary status before a formal offer to work full time is presented