Chapter 4

Customer segment

a group or subgroup of potential purchases that can be approached in a coherent manner

License

a legal agreement granting you to rights to use a particular piece of intellectual property

Target market

a marketing term that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product

Pilot test

a preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have

Creativity

a process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities

Entrepreneurial alertness

a special set of observational and thinking skills that help entrepreneurs identify good opportunities

AB test

a way to check customer reaction to websites describing your product or service

Business Model

a way to identify and organize key information on a business and how it achieves its goals

Freemium

an approach to pricing, and a business model, that connects free and premium products of services

Retail arbitrage

an approach where the entrepreneur says something at a severely reduced retail price, and then resells it at a price closer to the typical price

Gain

any sort of outcome customers or potential customers would like to encounter or be able to depend on

Pain

any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face

Incremental strategy

offering a way to something slightly a little better than what it already currently is

Causal mode of entrepreneurship

one in which you think about what you need to do to cause your new product or service to come into existence

Royalty

payment to a licensor based on the number or value of licensed items sold

Substitute Combine Adapt Magnify or modify Put to other uses Eliminate Rearrange

scamper abbreviations

Opportunity Recognition

searing and capturing new ideas that lead to a business opportunity

IDEO screen

simplest and fastest ways to screen ideas

Imitative strategy

strategies that involve doing the same thing

segments

target markets can refer to individuals or market groups called __________

Feasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

Conversion rate

the measure of how many visitors to your website are actually willing to make a commitment to the product or service promoted on the site

Licensor

the person or organization that is offering the rights

Licensee

the person retaining the rights

Customer job

the term given to what a potential customer is trying to do

SCAMPER

tool used to trigger new ideas for a business