Marketing Terms

Mission Statement

• State the purpose of the business.• Spells out the overall goals.• Provides a path• Is a guide to the decision making process

Target Market

• A group of customers that the business has decided to aim its marketing efforts and its merchandise at

• Important to stay ahead in 4 areas– Responsiveness to customers– Innovation– Quality– Efficiency

Competitive Advantage

• The ability of the business to produce goods and services more effectively than the competitors

• Important to stay ahead in 4 areas– Responsiveness to customers– Innovation– Quality– Efficiency

Psychographic

• Study of personality, values, attitudes, interests, and lifestyles of individuals

Demographics

• Characteristics of a population– Gender– Race– Age– Disabilities– Mobility– Home ownership– Employment status– Location

Business Plan

• A written document • Prepared to guide in the– Development and operation of a new business

Contingency Plan

• A back up plan in case something changes or goes wrong.

Brand

• A unique name, symbol, or design• It identifies the

• Product• Service• Company

Brand Advertising

• Build an image for a brand or company

• All that you can be– United States Army

Franchising

• A business relationship in which the developer of a business idea – Sells to others the • Rights to the business idea • The use of the business name.

Entrepreneur

• One in ten adults in the US today is an entrepreneur.

• Top three countries for having the most are:– Brazil– United States– Australia

What is an Entrepreneur

• A person who is willing to help launch a new venture or enterprise.

• Must be willing to accept full responsibility for the outcome

Ethics

• The study of principles relating to right and wrong behavior.

• Involves the standards that govern the conduct of a person.

• Comprises a person’s morality and values.

Code of Ethics

• Set of guidelines– Designed to lay out acceptable behaviors

• Increase confidence in an organization• Shows outsiders that members are committed

to following basic ethical guidelines.

Business Model

• Description of how entrepreneurs plan to make money

Prototype

• A working model of the product

Business Concept

• A clear and concise description of the business• Contains four elements– Product or Service– Customer– Benefit– Distribution

Buying Behavior

• The decision processes and actions that consumers make as they buy services and products.

• Need to understand: – Why consumers make the purchases that they make? – What factors influence consumer purchases? – The changing factors in our society.

Six Stages of Consumer Buying

• Problem Recognition– Hunger vs. food– Commercial vs. new pair of shoes

• Information Search– Memory– Friends and relatives (word of mouth)

• Evaluation of Alternatives– May decide if you want to eat Chinese (spicy vs.

bland.

Six Stages of Consumer Buying

• Purchase decision– Choose buying alternative• Product• Package• Store• Method of purchase

• Purchase• Post Purchase Evaluation– Did you make the right decision

Demand

• A relationship between the quantity of a product consumers are willing to purchase and the price.

Market Analysis

• What you need to know about the market before starting your business– Identify prospective customers– Understand their buying habits– Assess your chances for success

Buying Motives

• The reasons why people buy.

– Why do you buy what you do

Just-In-Time

• A business’s inventory level is kept low.• Resupplied as needed.

Lead Time

• The amount of time required to place an ad.

Market Potential

• The total revenue that can be gotten from the market segment that was targeted.

Market Price

• The points where supply and demand for a product are equal.

Risk

• The possibility that a loss could occur as the result of a decision or activity.

Risk Taking

• A willingness to risk the chance of failure in order to be successful.

Test Markets

• A clearly defined segment of the market to which a business wants to appeal.