SE Chapter 9

What is the purchasing process?

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

What are the two major types of questions used in surveys?

open ended and closed ended questions

What is sharing?

where people post positive comments about your product or service to their social media accounts

What is the serviceable obtainable market (SOM)?

A term (also called 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

What are the types of market segments?

- Geographic segmentation - Demographic segmentation - Benefit segmentation - Psychographic segmentation

What is augmented product?

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

What is perishability?

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

What is a testimonial?

A statement made that is allowed to be publicly repeated and attributed to the person that made it

What is primary research?

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

What is tangibility?

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

What is ethnographic research?

Data gathered by simple observation -- seeing what consumers do, rather than asking them

What is a service?

Nonphysical product

What are me-too products?

Products essentially similar to something already on the market

What are predetermined market segments?

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

What is a customer job?

The term given to what a potential customer is trying to do -- performance 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

What is churn?

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

What is 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

What is target market?

a term that refers to the group of customers I 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 individual or market groups called segments

What is the Total available market (TAM)?

refers to all the people or organizations (in one nation, region, or the world) who might consider a product or service being offered

What is a good?

A physical product

What is heterogeneity?

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

What is an open-ended question?

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

What is a 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?"

What are dichotomous questions?

Questions that have only two possible choices; for example, "Have you shopped here before?"

What is 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.

What is benefit matching?

The more closely customers' needs/pains/gains align with the features or benefits of your product or service, the happier they will be

What is the product development process?

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

What two questions does the budget cycle focus on?

1. can the customers afford to buy your product or service right when you pitch to them? 2. if the purchase price is above that level and they need to budget 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?

What are the two questions the purchasing process consists of?

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?

What is the penetrated market?

A 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

What is the serviceable available market (SAM)?

A term the refers to the customers within the geographic reach of a firm

What is secondary research?

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

What are categorical questions?

Questions that are answered by selecting the proper category; for example, "What is your enthinicity? White, African American, Hispanic, Asian, American Indian, Other."

What is 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

What is the core product?

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

What are you when you buy something and use it yourself?

The end user and the purchaser

What is a 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

What is a prototype?

The name given to the first model of a product or service. Some may be functioning, but built in a way that no consumer would buy it but shows the product can do what is promised. Some look like the final product, but might not be functional. They are made to prove aspects of the idea and are seen as the first stop along the path of product/service creation.

What are the the ways of using customer service to convert customers into fans?

- Show interest in and concern for everyone in your business — customers, employees, suppliers, and the community - Go the extra mile for these people Take time to be nice to all these people - Be honest and open in how you operate - When mistakes are made, fix them - Keep in mind the SERVICE acronym as a way to teach employees what outstanding customer service entails

What ways can you decide who might be your target customer?

- benefit matching - long-term value (TLV) or customer lifetime value (CLV) - influencer impact - minimizing

What are the nested types of markets?

- total available market - serviceable available market - serviceable obtainable market - penetrated market

What is market segmentation?

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

What is segmentation?

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

What is marketing research?

Systematic collection and interpretation of data to support future marketing decisions

What is the customer development process?

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

What is feedback?

The process of communicating within or to the organization about how the outpost worked or were recieved

What is 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 (if not better than) the competition.

What are influencers?

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

What is a decision maker?

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

What is a purchaser?

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

What is an 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

What is influencer impact?

A customer who buys your product or service and likes it is good, but one who spreads their message of happiness to the rest of the world, through word of mouth or social media, can lead to increased sales from customers you might not have known to target

What is a focus group?

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

What is long-term value (LTV)?

A marketing concept that refers to the revenue generated by one customer over his or her lifetime dealing with one firm. Higher is usually preferred. Also known as customer lifetime value

What is inseparability?

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

What is a customer profile?

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

What is a budget cycle?

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