Entrepreneurship – Market Analysis, Market Research, and Marketing Mix (Vocabulary)

Vocabulary flashcards covering key terms and definitions from the notes.

Market Research

Design, collection, and analysis of relevant data arranged systematically to solve a specific marketing problem.

The Need for Market Research

Understanding changes in consumer tastes, overview of economic conditions, and insights on whether to reschedule or wait for demand.

The Purpose of Market Research

Understanding consumers’ needs, minimizing risk of business failure, and forecasting trends.

Advertising Research

Predicting or tracing the effectiveness of an advertisement for a product or service.

Commercial Eye Tracking

Analyzing visual behaviors and trends among target consumers.

Customer Satisfaction Research

Feedback from customers who have purchased the product to gauge satisfaction.

Distribution Channel Audit

Assessing a distributor or retailer’s purchase patterns and levels of product purchases.

Internet Strategic Intelligence

Using the Internet (chats, forums, blogs) to obtain honest product reviews.

Test Marketing

Releasing a small, controlled quantity of a product to gauge market acceptance.

Qualitative Research Method

Data gathering through observation and unstructured questioning to understand why/how decisions are made.

Customer Interview

Communication with customers to gather information about ideas or experiences.

Job Interview

Formal discussion to assess a candidate’s qualifications for a job.

Focus Groups

In-person discussions to understand consumer feelings toward a product or service.

Online Focus Groups

Online versions of focus groups, offering convenience and cost efficiency.

Observation

Usability testing, in-store observation, and mystery shopping as data sources.

Survey Research

A quantitative method using surveys to gather primary data on various topics.

Experiments or Field Trials

Scientific testing of variables, conducted in controlled or natural settings.

Value Proposition

A business or marketing statement describing the worth offered to customers.

Value Proposition Model

A six-step process: Market, Value Experience, Offerings, Benefits, Alternative and Differentiation, Proof.

Market (in Value Proposition Model)

Understanding the market context and customer needs that shape the value proposition.

Value Experience

The perceived value customers experience from the offerings.

Offerings

The products or services provided to meet customer needs.

Benefits

The advantages or value customers gain from the offerings.

Alternative and Differentiation

The alternatives available to customers and how the offering differentiates from them.

Proof

Evidence that supports the claimed value proposition.

Value Life Cycle

The sequence of stages through which value is created and delivered to customers.

Value Creation

Creating a product and its components (Key Partners, Key Activities, Key Resources).

Value Appropriation

Innovating the product and offering choices for customers to select.

Value Consumption

Customers patronize the product and experience its value and benefits.

Value Renewal

Improving the product to better match changing preferences and increase value.

Value Transfer

Customers switch to other stores or products when value does not meet expectations.

Target Market Profiling

Gathering detailed demographic, geographic, socioeconomic, and psychographic information about customers.

Demographic Information

Variables such as age, gender, race, and civil status.

Geographic Information

Target market location and where products/services are served.

Socioeconomic Information

Income, education, occupation, and household description.

Psychographic Information

Hobbies, interests, and lifestyles of the target market.

Marketing Mix

A set of seven interrelated variables used to implement a marketing strategy.

Product (in Marketing Mix)

Item produced to satisfy needs, with a lifecycle of growth, maturity, and after-sales performance.

Product Classification – Tangibles

Items with actual physical presence.

Product Classification – Intangibles

Items with no physical presence; can be felt indirectly.

Strategy Development (Stages in Product Development)

Deciding on effective strategies before creating a new product.

Generation of Ideas

Concepts for new products from various sources.

Screening and Evaluation

Evaluating ideas for feasibility and alignment with objectives.

Business Analysis

Analyzing profit projections, risks, and customer feedback.

Product Development

Introducing the product to the market; production and branding tasks.

Market Testing

Testing the product in a small market before broader launch.

Commercialization

Launching the product to a larger market (local or international).

Place

Location in the business process where management, storage, logistics, and order processing occur.

Distribution Channels

Set of interdependent organizations that make a product available to end consumers.

Direct Distribution

Manufacturer sells directly to end consumers.

Indirect Distribution

Sales through intermediaries (wholesalers/retailers).

Dual Distribution

Combining direct and indirect selling channels.

Reverse Channels

Flows from end consumer to intermediary and beyond for recycling/repurposing.

Intermediaries

Middlemen who help distribute products to the market.

Wholesaler

Buys in bulk and sells to retailers.

Retailer

Purchases at low price to resell for profit.

Distributor

Obtains products from the manufacturer and distributes to retailers/endpoints.

Agent

Brings buyers and sellers together and earns commissions.

Intensive distribution

Distributing to as many retail outlets as possible.

Selective distribution

Distributing upscale products through selective channels.

Exclusive distribution

Only one retailer is allowed to sell the product.

Price

The revenue-generating element of the marketing mix.

Pricing Strategies

Ways to set prices: costs, competition, or perceived value.

Cost-plus Pricing

Pricing based on total costs plus a markup.

Competitive pricing

Pricing based on competitors’ prices.

Value-based pricing

Pricing based on perceived value to customers.

Price skimming

Launching with high prices for new products.

Penetration pricing

Setting low prices to gain market share.

Promotion

Promoting products to attract customers and build loyalty.

Advertising

Creating awareness and information through traditional media.

Personal Selling

Direct personal interaction to persuade customers.

Sales Promotions

Tactics to increase demand through media and non-media methods.

Public Relations and Sponsorships

Maintaining relationships and long-term effects with customers.

Direct Marketing

Directly communicating with customers (mobile, flyers, catalogs, outdoor ads).

Promotional Marketing in the Digital Era

Digital-era promotions via social media, content marketing, affiliate, email, and SEO.

Social Media Marketing

Using social platforms to promote products and services.

Content Marketing

Creating and sharing valuable information to attract customers.

Affiliate Marketing

Third parties earn commissions by promoting products.

Email Marketing

Direct emails to build brand and customer loyalty.

Search Engine Optimization (SEO)

Techniques to increase online visibility across search types.

People

The human element crucial to marketing; recruitment matters.

Internal recruitment

Filling positions with current employees.

Promotions (recruitment)

Shifting employees to higher positions with more responsibility.

Transfers

Moving employees between departments.

Employee Referrals

Current employees refer candidates for job openings.

External Recruitment

Hiring candidates from outside the organization.

Employment Agencies

Organizations that match candidates with employers.

Advertisements (recruitment)

Job vacancies described and announced through media.

Walk-ins

Prospective candidates invited to apply on a set date/time.

Packaging or Physical Evidence

Packaging and store ambiance, signage, and packaging shaping brand image.

Elements of Product Packaging

Key visuals, color, and information included on packaging.

Visual elements

Graphics, layout, and typography on packaging.

Color combinations

Color choices influencing brand recognition.

Informational elements

Information such as nutrition, usage, ingredients, and storage.

Functions of Packaging

Protecting, informing, providing convenience, and ensuring security.

Protection

Protects the product and supports logistics.

Information (packaging)

Essential product information on packaging.

Convenience

Packaging aids storage, transport, and use.

Security

Seal integrity and tamper-evidence to preserve safety.

Positioning

Marketing tool to tailor a product to a target group.