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mgmt 310- FINAL

Terms in this set (37)

What are the different ways we can gather market research?
Primary & Secondary Data
Secondary data
information has already been compiled
Advantage: less expensive and available
Disadvantages: outdated, lacks specificity, questionable validity
Sources: internal and/or external sources
Primary data
Information that is gathered specifically for the research at hand
Surveys
experimentation
What are the main questions we want to answer when conducting market research?
WHO buys
WHEN do they buy
WHY do they buy
WHERE do they buy
WHAT do they buy
HOW do they buy
When should a company conduct market research?
"Aim before you fire"
What is the difference between the law and one's ethics?
The law consists of a set of rules and regulations, whereas Ethics comprises of guidelines and principles that inform people about how to live or how to behave in a particular situation.
What are some examples of common entrepreneurial behaviors that might be construed as unethical?
Overpromising customers on orders
Conveying unjustified optimism to financiers
Using resources that are not yours
Misrepresentation
withholding/minimizing of negative information
Why are ethics so important to the entrepreneur?
Businesses are largely built upon trust
Ethical behavior leads to trust and depends on honesty
The entrepreneur is the role model for his/her employees
The entrepreneur is the face of his/her business
Ethics can be a slippery slope
Individual business owners personal lives (past and present) are being probed more extensively than ever before
What can entrepreneurs do to instill a moral code within their ventures?
Lead by example (Make ethics a part of the daily conversation and decision making)
Establish code of conduct (Formal statement of the organization's values that provides specific guidance)
Implement an ethics training program (Helps employees deal with ethical dilemmas)
What are the primary differences between angels and venture capitalists?
Angel investors are individuals who invest their own money to startups and venture capitalists are employed by a risk capital company where they invest other people's money.
Be able to match the stage/needs of the startup with the most appropriate type of venture funding (e.g., startup at conceptual stage - friends/family/fools, maybe angels) What is the appropriate source for early stage startups, mid-stage, growth stage, etc.?
NEEDS ANSWERS
What is a beachhead market?
A beachhead market is the initial customer segment you target with your venture and one of the most important strategic moves you can make in setting up the foundation of your business.
what are some of the characteristics to look for in targeting a particular beachhead market?
Some characteristics to look for are that customers are highly motivated (high problem awareness/cost), can pay, limited or vulnerable competition, high market consistency, and strong word of mouth as high-value references
** Be able to identify multiple viable segments (using grouped segmentation variables) for a given new venture idea. Of those market segments, be able to identify and make a reasoned case for a particular beachhead market.
!!!!!!!
4 Ps
Product, price, promotion, placement
**Know how to apply the 4 P's in creating and analyzing different marketing strategies as oriented toward two distinct market segments.
!!!!
What is guerilla marketing? Know examples of these types of marketing strategies from class. Why are they increasingly important for entrepreneurs?
Guerilla: using low-cost, unconventional means to convey or promote a product or an idea. Invented as an unconventional system of promotions that relies on time, energy, and imagination rather than on a big budget
What is buzz marketing? Know examples of these types of marketing strategies from class. Why are they increasingly important for entrepreneurs?
Buzz: method of selling a product by getting people to talk about it to other people, especially over the internet. Involves sophisticated word of mouth campaigns.
**Be able to compute contribution margin and breakeven point (and assess it!)
Breakeven point= total fixed costs/contribution margin
Low volume/high margin
Disadvantages:
Invite competition by creating margin space
Spend more on marketing
Lots of cash tied to working capital
Need protection to keep competition out

Advantages:
Great cushion against cost variation
More profits to reinvest in growth
Less capital intensive
Can change/adapt more quickly to demand
More brand loyalty (other competitive advantage)
High volume/low margin Disadvantages:
Vulnerable to cost inflation
Risk never achieving necessary volumes
Limited adaptive response
Limited competitive advantages
High volume/low margin Advantages:
Advantages:
Hard for others to compete
Enables companies to achieve economies of scare
Attracts customers who are price-oriented
Attract most generous venture funding
Existing customer base to whom other things can be sold
High market share
Can imitate disruption of newcomers with existing clients
What is the 'valley of death' and why is it so prominent for new ventures? Why do entrepreneurs struggle to grow their firms past a certain size?
Valley of death: dangerous interval between an innovations emergence from the laboratory and its arrival in the market place at full commercial scale when a startups need for support from investors and other institutions is at its most acute
Why do many entrepreneurs choose to start lifestyle businesses, rather than high-growth companies?
Lifestyle businesses often allow entrepreneurs to maximize enjoyment while allowing freedom, security, and control
Wink
Pea protein based frozen treat that uses all natural and dairy free ingredients. $8 a pint and contains 100 calories. None of the "sharks" on Shark Tank liked the taste. Now it's in a growing number of whole foods.
Kickstarter
crowdfunding, funds creative projects, people launch products on their site
Tesla
4 ps and how they market their products
Sprig
the food delivery
29 billion battle case
online mattress industry (casper)
Space x/world view
balloons to space, beach head markets
Apparel source inc
not so easy going green, sustainability and company values over money
What are some new, innovative methods of conducting market research?
Cultural ethnology - rooted in visual anthropology
Remove product from consumer and observe reactions/coping
**Know the components of an entrepreneur's profit model and be able to use it as a diagnostic tool for a business. Know how to assess and improve a company's economic model using this tool. Understand the relationship between margins and volumes, and how this would help determine your economic strategy. How do revenue drivers fit into this picture?
operating leverage, margins, volumes, revenue drivers (# of drivers, price flexibility)
Operating leverage- (high, med, low)
The basic question here is the extent to which the overall cost structure consists predominately of fixed costs or variable costs. So operating leverage is the ratio of total fixed cost to total variable costs at a given level of volume (say break-even volume)
Volumes-(high, med, low)
​​capture the activity levels in the business. Volumes deal with the number of transactions the business has over a period of time (e.g., daily, monthly) and the average value or quantity sold per transaction
Margins- (high, med, low)
contribution that each product or service makes towards profitability once the direct cost of that service or product has been covered. Margins are the price a customer pays minterm-36us the cost to the business of providing that product or service.
Revenue drivers (# of drivers & price flexibility)
this includes how many revenue drivers the firm has, and the degree of flexibility within these drivers. Revenue drivers refer to all of the major ways in which the company makes money.
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