Entrepreneurship Midterm Vocab
Terms in this set (32)
The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.
An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, e.g., providing a broadcasting service or acting as an agent for a company's products.
A direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries.
Produce an idea or way of solving a problem by holding a spontaneous group discussion.
The activity of setting up a business or businesses, taking on financial risks in the hope of profit.
A document setting out a business's future objectives and strategies for achieving them.
Examine and record the area and features of (an area of land) so as to construct a map, plan, or description.
A naturally ability to do something.
The state of being a partner or partners.
The cost added by producing one additional unit of a product or service.
ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.
A set of circumstances that makes it possible to do something.
A demographically diverse group of people assembled to participate in a guided discussion about a particular product before it is launched, or to provide ongoing feedback on a political campaign, television series, etc.
Start Up Costs
Non-recurring costs associated with setting up a business, such as accountant's fees, legal fees, registration charges, as well as advertising, promotional activities, and employee training. Also called startup expenses, preliminary expenses, or pre-opening expenses.
Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service . A competitive analysis is a critical part of your company marketing plan.
Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.
A financial goal or financial target is an objective which is expressed in or based upon money. Examples include debt reduction, sufficient wealth to retire or minimisation of tax.
An insistent and peremptory request, made as if by right.
Electronic Data Interchange
EDI (Electronic Data Interchange) is the transfer of data from one computer system to another by standardized message formatting, without the need for human intervention. EDI permits multiple companies -- possibly in different countries -- to exchange documents electronically.
A partial refund to someone who has paid too much money for tax, rent, or a utility.
The practice of examining large databases in order to generate new information.
A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.
C-R-M stands for Customer Relationship Management. ... At its simplest definition, a CRM system allows businesses to manage business relationships and the data and information associated with them.
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Channels Of Distribution
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.
A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer. The marketing plan implements your marketing strategy.
Direct Mail Advertising
A marketing effort that uses a mail service to deliver a promotional printed piece to your target audience . Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters.
A person or company that makes goods for sale.
Small Business Administration
SBA has established numerical definitions of small businesses, or "size standards," for all for-profit industries. Size standards represent the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business concern.
A combination of factors that can be controlled by a company to influence consumers to purchase its products.
Rational Buying Decisions
A rational behavior decision-making process is based on making choices that result in the most optimal level of benefit or utility for the individual. Most conventional economic theories are created and used under the assumption all individuals taking part in an action/activity are behaving rationally.
An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.