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.