Ch 9- Small business marketing: customers and products

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

customer profile

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

primary research

research gathered to answer a specific marketing question- using interviewing, surveying, observation, and focus groups

customer development process

the procedure to organize and pursue the finding, obtaining, and keeping of new customers

market segmentation

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

commercialization

the process of making the new product available to customers

categorical question

a question answered by a category. Ex: your ethnicity

penetrated market (PM)

if your business is operating, your actual number of customers divided by the target market= how much of the market you have attained, and how many people are available to be sold to.

core product

the basic description of what a product is. Ex: a bar of soap. A housecleaning service etc.

product development process

the procedure to organize and pursue the creation of goods or services

marketing

the process of planning and executing the factors of product, price, promotion, and placement to satisfy the goals of the entrepreneur and the organization

idea evaluation

the process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential

target market

the segment(s) you select on which to concentrate your marketing efforts

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

outstanding customer service

"going all out" for the customer, trying to make sure the customer walks away with an exceptional experience

True

(T/F) There can be more than one target market

product, price, promotion, and placement

The 4 Ps of marketing (the marketing mix)-

1. Introduction 2. Growth 3. Maturity 4. Decline

The product life cycle (4 stages)

value proposition

The relation of product or company capabilities to customer pains and gains is in the _________you offer your customer.

heterogeneity

each time a service is provided, it will be slightly different from the previous time

goods-services continuum

enables marketers to see the relative goods/services composition of total products.

total available market (TAM)

everyone who might consider the product or service you're offering

feedback

how well the product worked, met their needs, what they liked/disliked, and if they would buy it again

perishability

if a service is not used when offered, it cannot be saved for later use

geographic, demographic, benefit, psychographic

methods for segmenting customers

service-dominated product

more non-physical products

good-dominated product

more physical products

feedback, testimonials, and sharing

non-financial benefits

services

nonphysical products

goods

physical products

scalar question

question answered by some sort of scale- ex: "on a scale of 1-10, how do you like..."

open-ended questions

question that allows respondents to express themselves as they choose

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

Long term value (LTV) / customer lifetime value (CLV)

the revenue generated by one customer over his or her lifetime dealing with one firm

budget cycle

the schedule and process for setting the schedule for making purchases by an individual or an organization - 2 more questions: - 3. Can the customers afford to buy your product/service right when you pitch it to them? - 4. If the purchase price is above that level and they need to budged for it, when do you need to pitch to them so they can make their decision, and when will they actually be able to buy from you?

serviceable obtainable market (SOM)

also called target market- people you think would be interested in your product/service. Based on pains they are suffering or gains acquiring, or others such as behavioral qualities.

tangibility

an item's capability of being touched, seen, tasted, or felt

augmented product

core product plus features that tend to differentiate it from the competition

testimonials

statements they make that they will publicly repeat and attribute to them

prototypes/ minimum viable product

the first versions of a product

target market

the name given to one of a set of nested terms for the market sizes, from most generic to most specific

purchasing process

the sequence of steps an individual or organization goes through in making a decision to buy a product or service - Consists of 2 questions: - 1. How does the individual or organization use these roles to make purchasing decisions? - 2. Who is in each role and what is important to them in making those decisions?

inseparability

the service being done cannot be disconnected from the provider of the service

churn

the turnover rate for your customers- % of customers you lose after their first purchase

dichotomous question

a question with only 2 choices

serviceable available market (SAM)

represents customers in your geographic reach. If online, could be as large as your TAM

secondary research

research already gathered from government, commercial, or academic databases and research efforts including size of market, prices, profitability

sharing

posting positive comments on social media

predetermined market segments

professionally compiled target audiences based on shared demographic, financial, shopping, and psychographic characteristics

marketing research

systematic collection and interpretation of data to support future marketing decisions

customer job

what a potential customer is trying to do- perform or complete a task, solve a problem, or achieve an outcome. The target of the job is often the key to what a proposed product or service is intended to help.