Entrepreneurship Terms

Vocabulary review of 85 key entrepreneurship and marketing terms defining branding, distribution strategies, market research, and the product life cycle.

Advertising

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Advertising Media

Means by which promotional messages are communicated to the public using words, speech or pictures

Approach

When a salesperson makes initial contact with a customer

Brand

Design, sign, symbol, words, or a combination of these, that identifies a product and differentiates it from its competitors.

Brand Insistence

Exceptional customer loyalty to a product to the degree where a substitute will not be accepted

Brand Licensing

Legal authorization by a trademarked owner to allow another company to use it's brand for a fee

Brand Mark

Element (such as color, design, picture, symbol, typeface) of a brand that cannot be expressed in words

Brand Name

Word(s) that identify not only a product, but its manufacturer/producer, such as Apple, Sony, Toyota

Brand Preference

When a customer will choose a product in the presence of competing brands, but will accept substitutes

Brand Promise

Benefits and experiences that marketing campaigns try to associate with a product in their customers' minds

Buyer Persona

semi-fictional representations of your ideal customers which should include demographic, psychographic and behavioral information

Channel Length

Number of individual entitites between the producer and the consumer

Channel of Distribution

The path that a product takes from producer or manufacturer to final user

Clientele

Regular or repeat customers of a specific business

Co-Branding Strategy

Combining two or more brands to increase customer loyalty and sales for each individual brand

Consumer

The ultimate user of a product

Consumer Good

Tangible product purchased for personal use

Decline Stage

Fourth and last stage of a product life cycle characterized by decreasing revenue and fewer customers

Demographic Segmentation

Dividing a market into smaller groups based on personal characteristics (age, sex, etc.)

Digital Marketing

any form of communication aiming to persuade people to purchase a product or service that occurs through the internet

Direct Distribution

Product moves from producer to buyer without the use of intermediaries

Distribution Intensity

The level of a product's availability within a specific market

Exclusive Distribution

When suppliers and distributors enter into an agreement that allows only one specific distributor to sell a product

Focus Group

Small number of people brought together by a moderator to discuss a particular product or topic

Forecasting

Using data from past and present and analysis of trends to plan for the future of a business

Generic Brand

A 'no-name' good that is not advertised and sold at a significantly lower price than comparable products

Geographic Segmentation

Dividing a market into smaller groups based on where people live.

Grade

Product category, quality rating or rank

Growth Stage

Second stage of the product life cycle, characterized by little competition and accelerated sales

Implied Warranty

The understanding that a sold product is fit for the purpose intended at the time of sale

Indirect Distribution

When a product moves from producer to buyer with the help of intermediaries

Institutional Promotion

Demonstrates the goodwill of an organization or individual to boost its public relation appeal

Intensive Distribution

When a supplier sells their product through as many different outlets as possible

Intermediary

Channel member that provides services as products move along channels from producers to consumers.

Introduction Stage

First stage of the product life cycle, includes heavy cost to 'educate' consumer about product

Line Contraction

Subtracting items from a product mix

Line Expansion

Adding items to a product mix

Market

A group of all potential customers, with common needs and wants and the ability & willingness to buy a product

Market Position

Ranking of a brand, product or company in terms of sales volume relative to its competitors in the same market

Market Segment

Identifiable group of individuals, businesses, or organizations, sharing one or more characteristic or need

Market Share

Percentage of total sales volume in a particular market

Marketing

The process of developing, promoting, and distributing products to satisfy customer needs and wants

Marketing Concept

States that a business must satisfy customer needs and wants in order to make a profit.

Marketing Mix

The four basic marketing strategies; price, product, place, and promotion.

Marketing Plan

Document that describes activities involved in achieving marketing objectives within a set time frame

Marketing-Information Mgmt

Monitoring the marketplace, organizing and analyzing the data and developing strategies

Mass Marketing

Using the same promotional strategy to cover all possible market segments

Maturity Stage

Longest stage of the product life cycle during which, sales peak and start to decline

National Brand

Brand owned and promoted by a large manufacturer

Objection

Hesitation or concern raised by a customer during the sales process

Positioning

Marketing a product in order to get customers to think of it in a specific way.

Price

Cost to the public of a companies products

Pricing

Area of business that determines the cost to the public of a companies products

Primary Research

Obtaining information directly for a particular problem in marketing research

Producer

Uses resources to create a product

Product

Good or service created as part of a process that serves a need or satisfies a want

Product Depth

The number of unique items in a product line

Product Life Cycle

The process that a product goes through in its existence. Introduction, Growth, Maturity, Decline

Product Line

A group of closely related products that are manufactured or sold by a business.

Product Management

Overseeing the development, marketing and sale of an item throughout the entire life cycle

Product Mix

All of the different products that a company makes or offers for sale to the public.

Product Promotion

Focuses on features and benefits to encourage the sale of a good or a service to a target market

Product Width

The number of unique product lines in a product mix

Promotion

Any form of communication a business or organization uses to inform, persuade, or remind.

Psychographic Segmentation

Dividing a market into smaller groups based on hobbies and habits

Public Relations

Systematic effort to create & maintain goodwill between a company & the public, the community, employees, customers, etc.

Qualitative Data

Descriptive information and data that can be captured but is non-numerical in nature

Quantitative Data

Numerical information that can be transformed into useable statistics

Retailer

An outlet, through which, products or services are most commonly sold to customers

Sales Promotion

Stimulation of consumer activity through contests, givaways, demonstrations and games

Sample

Observations randomly selected to represent the behaviors and characteristics of the entire group

Sampling Plan

Research outline which details which category is to be surveyed, how large the group will be and how they will be chosen

Secondary Research

Using facts that have already been collected for another purpose as a resource in aiding a marketing decision

Selective Distribution

When a supplier intentionally uses only a few retail outlets to cover a geographical area

Selling

Matching the characteristics of a product to a customer's needs and wants.

Stock Keeping Unit (SKU)

Item that is unique due to a blend of brand, size, color & model and is accounted separately from other items

Suggestive Selling

Recommending a smaller, complementary additional purchase to increase satisfaction of original purchase

Target Market

Particular market segment at which a marketing campaign is focused

Touch Point

Location or interaction of any kind between a business and its customers

Trade Character

Animals, people or objects, real or fictional, used to advertise a product

Trading Down

Adding lower priced items to a businesses product mix

Trading Up

Adding more expensive or elaborate items to a product mix

Variable

A number, or quantity that increases or decreases over time, or takes different values in different situations

Wholesaler

Business that obtains products in bulk from manufacturers, break up the groups and sell them to other intermediaries

Word-of-mouth Marketing

Spoken or written promotion of a good or service from a satisfied customer to a prospective customer.