Small Business Management

influencer

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

feedback

feedback The process of communicating within or to the organization about how the outputs worked or were received.

focus group

focus group A form of data gathering from a small group led by a moderator

goods

goods Physical products.

inseparability

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

pivot

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

end user

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.

ethnographic research

ethnographic research Data gathered by simple observation—seeing what consumers do, rather than asking them.

heterogeneity

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

Predetermined market segments

predetermined market segments Professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics.

primary research

primary research An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.

Product development process

product development process The procedure to organize and pursue the creation of new goods or services.

dichotomous question

dichotomous question Question that has only two possible choices; for example, "Have you shopped here before?"

long term value

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. LTV is also known as customer lifetime value or CLV.

market segmentation

market segmentation The process of dividing the market into groups that have somewhat homogeneous needs for a product or service.

market research

marketing research Systematic collection and interpretation of data to support future marketing decisions

me too products

me-too products Products essentially similar to something already on the market.

open ended questions

open-ended question Question that allows respondents to express themselves as they choose; for example, "What do you like about this book?"

outstanding customer service

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

penetrated market

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

perishability

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

target market

target market A marketing term (also called serviceable obtainable market, or SOM ) that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors. Target markets can refer to individuals or market groups called segments.

testimonial

testimonial Statement made that is allowed to be publicly repeated and attributed to the person that made it.

total available market

total available market (TAM) A marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.

total product

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.

value propotition

value proposition Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.

customer lifetime value

customer lifetime value 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. CLV is also known as long-term value or LTV.

decision maker

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

prototype

prototype 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 (e.g., with exposed wires and sharp edges) but shows the product can do what is promised. Some prototypes look like the final product, but might not be functional.

purchaser

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

purchasing process

purchasing process The sequence of steps an individual or organization goes through in making a decision to buy a product or service.

Scalar Questions

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?"

secondary research

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

segmentation

segmentation The process of dividing the market into smaller portions of people who have common characteristics.

servicable available market

serviceable available market (SAM) A marketing term that refers to the customers within the geographic reach of a firm.

4 P's of Marketing

4 Ps of marketing The four major components of a marketing effort—product, price, promotion, and placement. Sometimes called the marketing mix.

augmented product

augmented product Core product plus features that tend to differentiate it from the competition.

budget cycle

budget cycle A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization.

categorical question

categorical question Question that is answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."

churn

churn The turnover rate for your customers—the percentage of customers you typically lose after their first purchase from you.

commercialization

commercialization The process of making the new products ready for use by consumers by achieving standards of durability and performance suitable for the market and comparable to (if not better than) the competition.

core product

core product The basic description of what a product is—a bar of soap, a housecleaning service, and so on.

customer development process

customer development process The procedure to organize and pursue the finding, obtaining, and keeping of new customers.

customer job

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.

customer profile

customer profile A detailed description of an archetypal or hypothetical potential customer for a product or service, also called a customer persona.

Servicable Obtainable Market

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.

services

services Nonphysical products.

survey

survey A data-collection method using a questionnaire—in person, on the phone, on paper, or on the Internet.

tangibility

tangibility An item's capability of being touched, seen, tasted, or felt.