Entrep Mod 3
Elasticity
From economics, the idea that the market's demand for a product or service is sensitive to changes in its price
Accelerator
Goal of an accelerator is to accelerate a start up from its early stages to being ready to pitch for investment
Building
Has the advantage of having the perfect layout in the perfect location and the street appeal of a new building, but it is costly and slow
Just-in-time inventory
Having just enough product on your shelves to meet the immediate purchases.
Customer Profile
It is also called a customer persona
Captive Pricing
Setting the price for an item relatively low and then charging much higher prices for the expendables it uses
Marketing Funnel
Shows how many prospective customers it takes to find one who will make a purchase
Value Proposition
Small business owners' unique selling points that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition
Marketing Research
Systematic collection and interpretation of data to support future marketing decisions.
Primary Research
An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.
Secondary Research
An approach to researching based on the use of existing information, often from government, commercial, or academic databases and research efforts.
e-tailer
An electronic retailer; a store that exists only on the Internet.
Contract manufacturing
An existing firm with the correct manufacturing capabilities makes your product for you.
Retailer
An intermediary business that sells to consumers or end users of a product (typically in single or small quantities).
Importing
similar to exporting, but buyers and sellers are reversed
Optimum Price
the highest price that would produce your desired level of sales (or revenues) in your target market.
Product, Price, Promotion, and Placement
4 Ps of Marketing
Fulfillment center
A company that will warehouse your products and fill your customers' orders for you.
Internal Reference Price
A consumer's mental image of what a product's price should be
Influencer
A customer role describing a person or group who can make credible or recognized suggestions or recommendations to other 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
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
Survey
A data-collection method using a questionnaire -- in person, on phone, on paper or on the internet
Customer Profile
A detailed description of an archetypical or hypothetical potential customer for a product or service
Letter of credit
A document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms.
Documentary draft
A draft which can be exercised only when presented with specified shipping documents.
Sales Promotion
A form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.
Focus Group
A form of data gathering from a small group led by a moderator
Wholesaler
A intermediary business which buys (typically in large quantities) and sells (typically in smaller quantities) to businesses rather than consumers.
Purchaser
A customer role that describes an individual or institution that pays for or obtains a product or service
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 has attained so far
Total Available Market (TAM)
A marketing term that refers to all of the people or organizations who might consider a product or service being offered
Serviceable available market (SAM)
A marketing term that refers to the customers within the geographic reach of a firm
Serviceable obtainable market (SOM)
A marketing term 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.
Direct mail
A method of selling in which catalogs, brochures, letters, video, and other pieces of marketing materials are mailed directly to customers from which they can mail, call, or e-mail and order
Agent
A middleman business which represents a manufacturer's product or service to other business-to-business middleman firms.
Born international
A new firm that opens a Web site immediately, thus being exposed to customers from around the world.
Sheltered workshop
A nonprofit organization or institution that provides business services by using workers who have disabilities or who are rehabilitated.
Markup Pricing
A price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit
Heterogeneity
A quality of a service in which each time it is provided it will be slightly different from the previous time.
Inseparibility
A quality of a service in which the service being done cannot be disconnected from the provider of the service
Microinventory
A set of goods or service that consists of only one or a few items.
Manufacturers' suggested retail price
A target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel
Budget Cycle
A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization
co-working space
A type of "incubator lite" offering low-cost shared space and basic business services (Wi-Fi, desks, coffee, conference room, copier, etc.) for a daily, weekly, or monthly rental fee.
4 Ps of Marketing
Also called the marketing mix
Accelerator
An organisation that supports start ups, typically of a particular type (e.g internet, biotech, fashion, sports, women owned firms) with a financial mentoring, a variety of free or low cost support services, and other resources.
Product
Anything that is offered to the market to satisfy consumer wants, needs, and demands
Core Product
Basic description of what a product is
Price Gouging
Charging an outrageously high price for something
Off-peak pricing
Charging lower prices at certain times to encourage customers to come during slack periods
Multiple or Bonus Pack
Combing more than one unit of the same product and pricing it lower than if each unit were sold separately
Bundling
Combining two or more products in one unit and pricing it less than if the units were sold separately
Telemarketing
Contact via telephone for the express purpose of selling a product or service.
Augmented Product
Core products plus feature that tend to differentiate it from the competition
Ethnographic Research
Data gathered by simple observation -- seeing what consumers do, rather than asking them
Idea Evolution
Exhaustive process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential
Indirect exporting
Exporting using intermediaries such as agents, export management companies, or export trading companies.
Direct exporting
Exporting using no intermediaries
Freight forwarders
Firms specializing in arranging international shipments— packaging, transportation, and paperwork.
Channels
People and firms who connect producers of goods and services with customers
Direct response advertising
Placing an advertisement in a magazine or newspaper, on television or radio, or in any other media.
Distribution
Process of getting your product to your customers
Elastic Product
Product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased
Inelastic Product
Product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased
Me-too products
Products essentially similar to something already on the mark
Open-ended question
Question that allows respondents to express themselves as they choose
Dichotomous Question
Question that has only two possible choices
Categorical Question
Question that is answered by selecting the property category
Scalar Question
Question that is answered by some sort of scale
Secondary Research
Refers to using existing data or databases to gather information on the topic of interest to you
Periodic or Random Discounting
Sales conducted at either predictable or non-predictable or non-predictable intervals
Mail Order
Sales made from ads in newspapers or magazines, with purchases made online or by phone as well as by mail
Direct Marketing
Selling your goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the result
Perishability
Service exhibits perishability in that if it is not used when offered, it cannot be saved for later use
Prestige or premium pricing
Setting a price above that of the competition so as to indicate a higher quality or that a product is a status symbol.
Markup
The amount an entrepreneur adds to cost to provide a profit
Margin
The amount of profit, usually stated as a percentage of the total price
Law of Supply and Demand
The economic theory that describes how the demand for products and the supply of them affect each other
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.
Manufacturer
The entity which produces a product or service to be sold
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.
Prototype
The name given to the first model of a product or service.
Price Lining
The practice of setting three price points: good quality, better quality and best quality
Product Development Process
The procedure to organize and purse the creation of new goods or services.
Customer Development Process
The procedure to organize and pursue the finding, obtaining and keeping of new customers
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 the competition
Purchasing Process
The sequence of steps an individual or organization goes through in making a decision to buy a product or service.
Customer Job
The target of the job is often the key to what a proposed product or service is intended to help
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
Guerilla marketing
The use of creative and relatively inexpensive ways to reach your customer.
Multichannel marketing
The use of several different channels to reach your customers, for example, a Web site, direct mail, and traditional retailing.
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.
Tax accounting
An accounting approach based on specific accounting requirements set by governmental taxing agencies.
External Reference Price
An estimation of what a price should be based on advise, advertisements, or comparison shopping
Tangibility
An item's capability of being touched, seen, tasted, or felt
Direct Sales
Methods of going directly to your customer in order to sell your product
Accelerator
Most take an equity stake in the companies they help
Skimming
Setting a price at the highest level the market will bear, usually because
Odd-even pricing
Setting a price that ends in the number 5, 7, or 9
Partitioned Pricing
Setting the price for a base item and then charging extra for each additional component
Leasing
is an option with a considerably lower initial cash outlay
co-working space
rarely get any equity in the business using the space
Buying
something already in existence shortens the time and may be somewhat cheaper