1. Marketing Terms

2. Mission Statement
• State the purpose of the business.
• Spells out the overall goals.
• Provides a path
• Is a guide to the decision making process

3. Target Market
• A group of customers that the business has
decided to aim its marketing efforts and its
merchandise at
• Important to stay ahead in 4 areas
– Responsiveness to customers
– Innovation
– Quality
– Efficiency

4. Competitive Advantage
• The ability of the business to produce goods
and services more effectively than the
competitors
• Important to stay ahead in 4 areas
– Responsiveness to customers
– Innovation
– Quality
– Efficiency

5. Psychographic
• Study of personality, values, attitudes,
interests, and lifestyles of individuals

6. Demographics
• Characteristics of a population
– Gender
– Race
– Age
– Disabilities
– Mobility
– Home ownership
– Employment status
– Location

7. Business Plan
• A written document
• Prepared to guide in the
– Development and operation of a new business

8. Contingency Plan
• A back up plan in case something changes or
goes wrong.

9. Brand
• A unique name, symbol, or design
• It identifies the
• Product
• Service
• Company

10. Brand Advertising
• Build an image for a brand or company
• All that you can be
– United States Army

11. Franchising
• A business relationship in which the developer
of a business idea
– Sells to others the
• Rights to the business idea
• The use of the business name.

12. Entrepreneur
• One in ten adults in the US today is an
entrepreneur.
• Top three countries for having the most are:
– Brazil
– United States
– Australia

13. What is an Entrepreneur
• A person who is willing to help launch a new
venture or enterprise.
• Must be willing to accept full responsibility for
the outcome

14. Ethics
• The study of principles relating to right and
wrong behavior.
• Involves the standards that govern the
conduct of a person.
• Comprises a person’s morality and values.

15. Code of Ethics
• Set of guidelines
– Designed to lay out acceptable behaviors
• Increase confidence in an organization
• Shows outsiders that members are committed
to following basic ethical guidelines.

16. Business Model
• Description of how entrepreneurs plan to
make money

17. Prototype
• A working model of the product

18. Business Concept
• A clear and concise description of the business
• Contains four elements
– Product or Service
– Customer
– Benefit
– Distribution

19. Buying Behavior
• The decision processes and actions that
consumers make as they buy services and
products.
• Need to understand:
– Why consumers make the purchases that they make?
– What factors influence consumer purchases?
– The changing factors in our society.

20. Six Stages of Consumer Buying
• Problem Recognition
– Hunger vs. food
– Commercial vs. new pair of shoes
• Information Search
– Memory
– Friends and relatives (word of mouth)
• Evaluation of Alternatives
– May decide if you want to eat Chinese (spicy vs.
bland.

21. Six Stages of Consumer Buying
• Purchase decision
– Choose buying alternative
• Product
• Package
• Store
• Method of purchase
• Purchase
• Post Purchase Evaluation
– Did you make the right decision

22. Demand
• A relationship between the quantity of a
product consumers are willing to purchase
and the price.

23. Market Analysis
• What you need to know about the market
before starting your business
– Identify prospective customers
– Understand their buying habits
– Assess your chances for success

24. Buying Motives
• The reasons why people buy.
– Why do you buy what you do

25. Just-In-Time
• A business’s inventory level is kept low.
• Resupplied as needed.

26. Lead Time
• The amount of time required to place an ad.

27. Market Potential
• The total revenue that can be gotten from the
market segment that was targeted.

28. Market Price
• The points where supply and demand for a
product are equal.

29. Risk
• The possibility that a loss could occur as the
result of a decision or activity.

30. Risk Taking
• A willingness to risk the chance of failure in
order to be successful.

31. Test Markets
• A clearly defined segment of the market to
which a business wants to appeal.