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Entrepreneur

answer

Individual who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.

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Small Business Administration (SBA)

answer

Government agency that helps prospective owners set up the businesses, obtain financing, and manage ongoing operation.

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Small Business

answer

According to the SBA, a business that is independently owned and operated, is organized for profit, and is not dominant in its field.

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goods-producing sector

answer

All businesses whose primary purpose is to produce tangible goods.

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Service-producing sector

answer

All businesses whose primary purpose is to produce service rather than a tangible good.

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Business Plan

answer

Formal document describing a proposed business concept, description of the proposed business, industry analysis, mission statement and core values, a management plan, a description of goods or services, a description of production processes, and marketing and financial plans.

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Franchise

answer

From a business ownership in which a franchiser (a seller) grants a franchisee (a buyer) the right to use a brand name and to sell its products or services.

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Executive summary

answer

Overview emphasizing the key points of a business plan to get the reader excited about the business (it is a hook).

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Mission statement

answer

Statement describing an organizations purpose or mission-its reason for existence-and telling stockholders what the organization is committed to doing.

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Core Value

answer

Statement of fundamental beliefs describing what is appropriate and important in conducting organizational activities and providing a guide for the behavior of organization members.

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Small Business Development Center (SBDC)

answer

SBA program in which centers housed at colleges and other locations provide free training and technical information to current and prospective small business owners.

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Service Corps of Retired Executives (SCORE)

answer

SBA program in which a businessperson needing advice is matched with a member of a team of retired executives working as volunteers.

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Marketing

answer

Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.

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Marketing concept

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Basic philosophy of satisfying customer needs while meeting organizational goals.

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Marketing strategy

answer

Plan for selecting a target market and creating, pricing, promoting, and distributing products that satisfy customers.

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Target Market

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Specific group of customers who should be interested in your product, have access to it, and have the means to buy it.

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Consumer Market

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Buyers who want a product for personal use

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Industrial market

answer

Buyers who want a product for use in making other products.

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Market segment

answer

Group of potential customers with common characteristics that influence their buying decisions

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Demographic segmentation

answer

Process of dividing the market into groups based on such variables as age and income

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Geographic segmentation

answer

Process of dividing a market according to such variables as climate, region and population density

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Behavioral segmentation

answer

Process of dividing consumers by behavioral variables, such as attitude toward the product, user status, or usage rate.

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Psychographic segmentation

answer

Process of classifying consumers on the basis of individual lifestyles as reflected in peoples interests, activities, attitudes, and values

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Marketing mix

answer

Combination of product, price, place, and promotion used to market products

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marketing research

answer

Process of collecting and analyzing data that is relevant to a specific market situation

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Secondary data

answer

information used in marketing decisions that has already been collected for other purposes.

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Primary data

answer

newly collected marketing information that addresses specific questions about the target market

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Focus group

answer

Group of individuals brought together for the purpose of asking them questions about a product or marketing strategy

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brand

answer

Word, letter, sound or symbol that differentiates a product from similar products on the market.

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trademark

answer

Word, symbol, or other mark used to identify and legally protect a product from being copied.

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Private branding

answer

Product made by a manufacturer and sold to a retailer who in turn resells it under its own name.

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Generic branding

answer

Product with no branding information attached to it except a description of its contents.

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manufactuerer branding

answer

Branding strategy in which a manufacturer sells on or more products under its own brand names

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brand equity

answer

Value of a bran generated by a favorable consumer experience with a product.

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brand loyalty

answer

consumer preference for a particular brand that develops over time based on satisfaction with a company´s products

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packaging

answer

Container that holds a product and can influence a consumer´s decision to buy or pass it up.

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Labeling

answer

information on the package of a product that identifies the product and provides details of the package contents.

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Skimming pricing

answer

Pricing strategy in which a seller generates early profits by starting off charging the highest price that customers will pay.

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Penetration pricing

answer

Pricing strategy in which the seller changes a low price on a new product to discourage competition and gain market share

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Cost-based pricing

answer

Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit

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Demand-based pricing

answer

Pricing strategy that bases the price of product on how much people are willing to pay for it.

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Target costing

answer

Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.

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Prestige pricing

answer

Practice of setting a price artificially high to foster the impression that it is a product of high quality.

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odd-even pricing

answer

Practice of pricing products a few cents (or dollars) under an even number

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Distribution

answer

All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.

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Intermediary

answer

Wholesaler or retailer who helps move products from their original source to the end user

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Reailers

answer

Intermediaries who buy goods from producers and sell them to consumers

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Wholesalers (distributors)

answer

Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them

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Profit margin

answer

Amount that a company earns on each unit sold

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Physical disctribution

answer

Activities needed to get a product from where it was manufactured to the customer

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Storage warehouse

answer

Building used for the temporary storage of goods.

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Distribution center

answer

Location where products are received from multiple suppliers, stored temporarily, and then shipped to their final destinations.

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Materials handling

answer

Process of physically moving or carrying goods during production, warehousing, and distrubiton

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just-in-time production

answer

System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process

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Supply chain

answer

Flow that begins with the purchase of raw materials and ends in the sale of a finished product to an end user

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Supply chain management (SCM)

answer

Process of integrating all the activities in the supply chain.

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Customer value triad

answer

Three factors that customers consider in determining the value of a product: quality, service, and price.

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Value chain

answer

Entire range of activities involved in delivering value to customers

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Promotion mix

answer

Various ways to communicate with customers, including advertising, personal selling, sales promotion, and publicity

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Advertising

answer

Paid, non personal communication designed to create an awareness of a product or company.

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Personal selling

answer

One-on-one communication with customers or potential customers

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Sales promotion

answer

Sales approach in which a company provides an incentive for potential customers to buy something

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Publicity

answer

Form of promotion that focuses on getting a company or product mentioned in a newspaper, on TV, or in some other news media

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Public relations

answer

Communication activities undertaken by companies to garner favorable publicity for themselves and their products

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Customer relationship management

answer

Strategy for retaining customers by gathering information about them, understanding them, and treating them well.

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Permission marketing

answer

Form of marketing in which companies ask customers or potential customers for permission to contact them or send them marketing materials.

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Mass marketing

answer

the practice of sending out messages to vast audience of anonymous people.

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Interruption marketing

answer

Marketing the interrupts people to get their attention (TV, Radio, Movies)

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Social media marketing

answer

The practice of including social media as part of a companys marketing program

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Product Life cycle

answer

Four stages that a product foes through over its life: introduction, growth, maturity, and decline

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External marketing environment

answer

Factors external to the firm that present threats and opportunities and that require shifts in marketing plans.

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Consumer behavior

answer

Decision process that individuals go through when purchasing or using products.

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Advertising agency

answer

Marketing consulting firm that develops and executes promotional campaigns for clients

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Product

answer

Something that can be marketed to customers because it provided a benefit and satisfies a need,

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Industry

answer

Group of businesses that compete with one another to market products that are the same or similar

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Market

answer

Group of buyers or potential buyers who share a common need that can be met by a certain product.

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niche

answer

Narrowly defined group of potential customers with a fairly specific set of needs

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Market Share

answer

Company´s portion of the market that is has targeted.

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Breakeven Analysis

answer

method of determining the level of sales at which the company will break even (have no profit or loss).

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Fixed costs

answer

Costs that don´t change when the amount of goods sold changes

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Variable costs

answer

Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis

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Contribution margin per unit

answer

Excess of revenue per unit over variable cost per unit

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Breakeven point in units

answer

Number of sales units at which net income is zero

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Project team

answer

Individuals from different functional areas assigned to work together throughout the product development process.

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Product development process

answer

Series of activities by which a product idea is transformed into a final product.

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Product concept

answer

Description of what a new product will look like and how it will work

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Prototype

answer

Physical model of a new product

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Ramp-up stage

answer

Stage in the product development process during which employees are trained in necessary production processes and new products are tested

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Patent

answer

Grant of the exclusive right to produce or sell a product, process, or invention

Exploring Business by Karen Collins (Test 1: Chapters 5, 9, 10 Vocab) – Flashcards

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