consumers terminology term 1 (entrepreneurship)

Target group?

Group of people the business expects to purchase its products

Feasibility study?

Analysis you use to determine the appeal of a business idea and how likely it is to succeed

Concept testing?

Process of introducing a product or service to consumers and finding out what they think of it

Needs identification?

Method of gathering information to help you find out what gaps exists within your target market

Investor?

Any person or business that lends an entrepreneur money to start a business

Surveys?

Feedback from consumers using questionnaires, online forms or telephone calls

The marketing process

Process that has a beginning and a middle, but almost never has an end because businesses are always working to modify, improve and perfect their products as well as the way in which they are presented to customers.

Or

Range of processes that aim to discover unfulfilled customer wants and produce and market products that satisfy these wants.

Strategy?

Plan to achieve a long-term goal

Target marketing?

Breaking the market into segments and then directing your market efforts at one segment

Market segment?

Group of customers with commons needs and interests, who differ from other groups and who will respond similarly to a marketing action

Competitive advantage?

When you have something special that your competitors don’t have

Production costs/primary costs ?

Adding all the costs of a product by adding the costs off the recourses that went into making the product

Material costs?

Cost of the materials/ingredients needed to produce the product

Labour costs?

Cost of the wages you pay to people who work for you to make the product

Overhead costs?

• Rent of the premises

• Electricity and water

• Maintenance and replacing equipment

• Clean costs

• Administrative costs

• Transport and delivery

• Faulty or damaged goods

Wages?

Amount paid to an employee every week according to the number of hours worked

Salary?

Fixed amount paid to an employee every week according to the number of hours worked

Capital?

Money used to start a business

Break-even?

Number of products you need to sell to cover all the expenses of the business

Variable costs?

Costs vary or change during the production process like direct materials cost/ingredients/raw materials, maintenance or replacement of equipment

Fixed costs?

Rent, salaries, electricity and insurance stay the same regardless how many items you sell

Gross profit?

Difference between the selling price and the production cost and overheads

Unit price?

Profit = selling price - (production cost + overhead costs)

Selling price?

Amount that you are going to sell the product and service for (must include production cost, overheads and profit)

Break-even-point?

Number of items that must be made and sold to cover all of a business’s expenses/production costs