3 ENTREP- EXAM 3RD QUARTER

Direct Competitors

are rival firms located near you and offer the same or very similar products/services as yours.

Indirect Competitors

are competitors who offer a group of products/service, that are substitutes to your product/service.

marketing mix

is an integrated approach to strategies in offering and delivering the product/service to your target customers

Marketing Mix

• The 7Ps are employed until the entrepreneur finds the right combination that will most effectively serve the customer’s needs and wants and at the same time achieve the profitability objective.

• Entrepreneurs must use the 7Ps model to do the following: conduct a situation analysis, set objectives; conduct a SWOT analysis 

Product (or Services)

This element of the marketing mix indicates a description of the __________ or service that you are selling. Must decide on what makes your product or service distinct from that of your competitor.

Place

This element of the marketing mix pertains to the distribution strategy of your business. Refers to the where, how, and when you are going to deliver the product or service to target customers based on their needs and preference.

Price

This pertains on decisions on the pricin strategy for your product or services.

• cost

• markups and margins

• profit margin

• competitors

Net Profit Margin = Net Income / Total Revenuex 100

Cost Plus Pricing

– also called mark-up. Adding a specific mark-up to the cost to determine the selling price

Competitive Pricing

– Offering prices similar to your competitors. Also called benchmark pricing.

Bundling

- Offering one or two products at a reduced price.

Price Ceiling

– is the most a customer will pay for your product or service. This is the customer’s perception of what you have to offer, and often, this amount has been set by the competition.

Price Floor

– pertains to your assessment of how much it costs you to produce your product or service.

Promotion

This element of the marketing mix enables the entrepreneur to inform potential consumers about the product’s availability, or to educate the consumer about the product.

Communication Program

in marketing are channels and tools a company uses to communicate the necessary message to the target group.

communication program.

As an entrepreneur, you have to create awareness about the product or service by establishing an effective

People

This element of the marketing mix focuses on the role of human resources in propelling the growth of the business.

Customer Relationship Management (CRM)

 pertains to a business philosophy and a set of strategies, programs, and systems that focuses on identifying and building customer loyalty, especially with the most valued customers.

Frontliners

– are those staff members whose job involves directly interacting with customers.

Contract

– is an agreement between two or more people, which creates an obligation to do or not to do something in exchange for money or some other consideration.

Packaging

This element of the marketing mix refers to how your product or service is presented to your customers in terms of visual appeal.

Positioning

This marketing concept gives consideration to how your product or service offering is positioned in the minds of your target customers.

Positioning Statement

– a brief paragraph to describe your target market and what their specific needs or goals are. It shows that you clearly know your target market and customers.

positioning perceptual map

enables the entrepreneur to compare the competitiveness of his or her own business with competitors in the same market arena, such as in terms of quality and price.

Process improvement

is an effort taken by entrepreneurs to make core business processes better, leading to improved work output.

Reduce cost

– Looking for waste in the form of duplicate or unnecessary tasks. Looking for opportunities to better allocate resources or automate manual tasks.

Improve communication and collaboration

– This approaches focuses on you, as the entrepreneur and leader, and your relationships with people.

Branding

is the name or symbol associated with the product or service offering that communicates messages to target customers.

Trademarks

are the registered brand’s names, and they come in many forms: distinctive word, phrase, logo, internet domain name, graphic symbol, slogan, or other device to identify the source of a product and distinguish the manufacturer’s or merchant’s product from others.