1.1 What is a business?
An organization or entity that produces and distributes products (goods and/or services).
What is a business?
Any physical or virtual space where sellers (businesses) interact with buyers (customers) to exchange goods and services.
What is a market?
Create the simplest working version of a product — only core features — to gather feedback
What is an minimum viable product (MVP)?
Combines liability protection of a corporation with tax benefits/flexibility of a partnership.
What is a limited liability company?
The process of grouping potential customers into segments based on shared characteristics.
What is market segmentation?
The process of collecting detailed information about markets, products, and customer behavior to guide marketing decisions.
What is market research?
Developing an identity that distinguishes a business or product, raises awareness, and builds loyalty.
What is branding?
Integrates physical and digital channels so customers can discover, buy, receive, and return seamlessly (e.g., “buy online, pick up in store,” curbside pickup, ship-from-store).
What is omnichannel?
An individual or business that purchases a good or service
What is a customer?
Buyer willingness and ability to purchase
What is demand?
The fundamental beliefs and guiding principles that shape how an individual or organization acts and makes decisions. Core values provide a moral compass for decisions and align teams around a shared purpose
What are core values?
Legal entity separate from its owners; shareholders own stock.
What is a corporation?
Dividing the market based on measurable population statistics such as age, gender, income.
What are demographics?
Numerical, measurable, answers how many/how much/how often.
What is quantitative data?
A strategy where prices are set according to customer perceptions of value, not solely on cost.
What is value based pricing?
Refers to how products are displayed and discovered online (search ranking, product detail pages, ratings/reviews, images, availability).
What is digital shelf?
When a business develops products that directly address customer problems, needs, or wants.
Problem-Solution Fit
Seller willingness and ability to produce/provide
What is supply?
Unique strengths, skills, and capabilities that allow an individual or business to outperform competitors. Core competencies determine where to focus resources and which opportunities to pursue.
What are core competencies?
Department that recruits, trains, and evaluates employees; oversee workplace compliance.
What is HR?
Dividing the market based on lifestyle, values, attitudes, and personality.
What are Psychographic factors?
Using existing external sources to learn about customers, competitors, market size, trends, segments, and PESTEL influences
What is secondary data?
Setting prices based on the cost of producing the product plus a desired profit margin.
What is cost based pricing?
Media advertising, personal selling, sales promotion, direct marketing, public relations
What is the promotional mix?
The worth or benefit of a product to customers.
What is value?
The ability of a business to outperform rivals in the same market, resulting in increased market share and profitability
What is comptetitive advantage?
Concise description of a business’s core values and long-term aspirations — what it ultimately wants to achieve.
What is a vision statement?
Connects all individuals, organizations, and resources involved in creating and delivering a product or service from origin to customer.
What is a supply chain?
The specific group of people most likely to purchase a particular product because of their wants, needs, and preferences.
What are target customers?
Collecting new data directly from potential or current customers to test your assumptions.
What is primary data?
Setting a low initial price to attract a large number of customers and quickly gain market share, often with plans to raise the price later.
What is penetration pricing?
To shape favorable public perception without direct selling, examples include press releases and media interviews
What is public relations (PR)?
The business’s ability to retain some of the value it creates in the form of revenue and profit.
What is value capture?
One company controls the entire market for a product or service
What is a monoploy?
Explains what a business does, who it serves, and how it achieves its goals.
What is a mission statement?
Restrict rivals’ access to critical resources or distribution channels.
What is a barrier to entry strategy?
A fictional, detailed description of a representative target customer
What is a customer profile?
Large-scale, structured questions to gather quantitative patterns (great for measuring preferences across a segment).
What are surveys?
selling through intermediaries participate (wholesalers, distributors, retailers, marketplaces).
What are indirect channels?
Large volumes of data collected about how customers interact with marketing messages
What is big data?