ENTREP 12: FINALS

Marketing

- Refers to activities a company undertakes to promote the buying or selling of a product or service, and achieve quality delivery of customer value

- Gives information about a product or service

- Publicity of ONE that reaches MANY

- Work with the client's need

- Long term

Marketing Strategy

- Is the way a marketing activity is planned, coordinated and executed to achieve the enterprise's goals

Sales

- Close a sale

- ONE to ONE

- Satisfy a client's need with a product or service

- Quick transaction

Conversion

- Occurs when a target consumer does something in response to a call-to-action placed in an ad, offer, or notification

Conversion Rates

- Set as targets that are a means to measure the percentage of consumers who have "converted" - done a "specific action" prompted by one's marketing

1. Awareness

2. Interest

3. Desire

4. Action

Conversion Funnel

Audience

- The specific customer segment who will perform the intended conversion

Behavior

- The conversion and key performance indicator(s) aimed for

Condition

- The circumstance/tool/strategy that will spur or carry the conversion

Degree

- The identified number of targets or growth rates and/goal timeline

Marketing Mix

- Set of marketing decisions and actions that are based on and aligned to the 4 elements (4Ps) of strategic marketing

- Each component of the mix describes a set of effective marketing strategies the entrepreneur plans to execute

Product Strategies

- Strategic decisions that deal with how best to present and offer a product or service in the most marketable means possible

Marketable Packaging

- A tool for strategic product marketing used for containment, preservation, and protection, brand identity, and brand messaging (via the use and style of colors, shape, font, texture, etc.)

Labeling

- The manner by which information is displayed and conveyed by the product

Decoy and Upselling

- A strategy of influencing consumer choice by providing a third option that will most likely lead them to choose the most profitable sales target

Bundling / Cross-selling

- Is implemented when a product that complements (from a different category or vendor, but adds value to the item) is offered with the main/existing purchase

Add-ons

- Service-extras

- Choice of feature(s), protection plans, tech-support subscriptions, or product training, experience value, etc.- that cater to personal preference/taste, desire for convenience, and offer peace of mind

Price

- The amount or payment that a customer is willing and able to pay in exchange for the use or consumption of a good or service

Price Strategy

- The manner by which enterprises set prices consistent with their business objectives and appropriate to their target market

Cost-based/Mark-up Pricing

- Business decides based on Cost of Goods Sold (COGS)-> how much it spent in producing and delivering the product

- Determine the cost per good/unit, and then decide how much can be added onto the cost so that the business makes a profit (mark-up)

Value-based Pricing

- A price based on what the consumer is willing and able to pay

- Consumer feedback and perceptions are used as a benchmark

- Known market value of the product/service often set by the industry or gov't regulation

Competitive Pricing

- Setting a price based on what the competition charges (low matched, high matched, median)

- Applies when the products are closely identical and the market is highly competitive

Pscyhological Pricing

- Are supplementary strategies of setting prices to influences how customers perceive the value of a product or service

- Presenting prices that are psychologically appealing to the customer's subconscious, make products seem more affordable or attractive

Odd-end Pricing

- For most goods - 5,7,9

- "Good deal" mentality

- Also a subtle micro-revenue

Even-end/ Rounded Pricing

- For luxury or high end impressions

- 2, 4, 6, 8, 0

Price appearance

- Applicable to how prices are displayed in marketing media/ads

Anchoring

- High value first in a set of 3-4 choices

Unit differentiatiokn

- The effect of + 1 and - 1

Center stage

- Marketed price in the enter of a set of offers, emphasized for bandwagon effect

Omission of commas and zeroes

- Removing the decimals to make it look "less expensive"

Discount schemes

- Reducing the price of products in a limited time to attract more customers

Place Strategies

- The different ways that a business can ensure access, availability and quality delivery of the product into the hands of the customer

- aka distribution strategies wherein the mode of distribution of the product is decided by the organization

Direct Distribution

- From producer to customer

Indirect Distribution

- From producer to middlemen to customer

Peak Hours/ Active Days

- Identifying "When" to be accessible

Promotions

- Refers to intensive business to market communications and activities for the purpose of consumer persuasion

Consumer recognition

- Initiating brand awareness by injecting your brand's presence into the periphery of the consumer's perception, making yourself known to the target

Consumer conversion

- Consumer / users respond to the call to action posistively (Sign Up!, Click...: Send message, Buy now!, etc.)

Consumer retention

- Retaining the consumer as a repeat buyer/user

Consumer loyalty & advocacy

- Transforming the consumer/user into a marketing arm as they endorse your brand to other potential consumers

Advertising

- Any paid and public presentation of products, services, and ideas through various traditional and digital media

Personal Selling

- The use of salespersons via person-to-person tactics to actively convince customers to buy a product

-Mostly focuses on increasing sales and on-ground activation (increasing customer engagement)

Public Relations

- The act of creating a positive public image of the company's brand and maintaining "good will" towards its public, AND managing how information is disseminated to the public (ie. customers, investors, suppliers, other stakeholders) through events such as launchings, press releases, advocacies, charitable causes, competitions, etc.

Visual Merchandising

- Refers to how products are visually showcased or presented in a store/platform

Financial Planning

- A thorough evaluation of the business potential finances and expectations for the future

- Created independently or with the help of a certified financial planner

Financial Plan

- A DOCUMENT that details a business' financial circumstances and monetary goals (both short and long-term)

Start-up Budget

- A financial statement covering start-up capital and expenses for 1 year

Sales Forecast

- A financial statement that presents your sales targets per quarter (4 quarters in 1 year; basis of sales targets will be a break-even analysis)

Pro-forma Income Statement

- A summary of projected income and expenses for 1 year

Start-up Capital

- The money you raise to meet the costs of the business you plan to operate within a given time period

- Should include contingency fund

- Other investment fundings are optional

- Start-up budget should cover projections within 1 quarter up to 1 year

Start-up Costs

- Refers to all your projected expenses/costs for your business operations

Fixed Expenses

- Costs that you pay once in a long-term period; or costs that remain the same per month

Variable Expenses

- Costs that you pay for on a monthly basis; costs that are subject to more frequent changes

Break-Even Analysis

- Is a financial calculation that determines a business break-even point

Break Even Point

- Estimate of sales quantity within a period of time where if the company sell at N < _________ it is losing money if it sells > _________, it is profiting

- Basis for deciding whether a company should increase sales targets, increase prices and/or cut back on expenses

Fixed Costs / (Selling price per unit - variable costs or margin per unit)

Break Even Formula