SBM 2000/Test 2

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Anonymous
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SBM 2000/Test 2
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2012-02-20 17:10:58
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hayley howell
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Chapters 4-6
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  1. Entrepreneurship
    Chapter 4

    Exploring Your Market
  2. Markets & Marketing
    • *Market = those people or organizations that may be
    • interested in buying a product or service, have the resources to buy it, and
    • are permitted by law or regulation to do so

    *Marketing = satisfying the customer at a profit

    • -The business function that
    • identifies your customers and their wants and
    • needs

    • -The engine that drives ALL
    • business decisions
  3. Marketing Research
    • nPrimary = research conducted directly on a subject
    • or subjects

    • nSecondary = research carried out indirectly through
    • other existing resources
  4. Primary Research Methods
    nPersonal interviews

    nTelephone surveys

    nWritten surveys

    nFocus groups

    nObservation

    nTracking

    nReview of books & records
  5. Secondary Research
    Methods
    nOnline searches

    nArticle & book searches

    nCompetitor websites
  6. Visualize Your Customer
    Use market research to find out:

    nWho your potential customers are

    nWhere you can reach them

    nWhat they want and need

    nHow they behave

    nWhat the size of your potential market is
  7. Customer Research
    nSurveys

    nFocus groups

    nResearch reports
  8. Industry Research
    nInterviews

    nObservation

    nTracking

    nWritten sources of statistical data

    nBooks & articles

    nCompetitor websites

    nTrade associations & chambers of commerce
  9. Customer Decision-Making
    nAwareness

    nInformation search

    nEvaluation of alternatives

    nDecision to purchase

    nEvaluation of purchase
  10. Owning Customer
    Perception
    nFeatures create benefits.

    • nFeature = a fact about a product
    • or service

    • nBenefit = what the feature can do
    • to meet a customer’s needs

    nNeeds, wants, and demands are different.
  11. Market Segmentation
    • Market
    • segment = customers who have similar response to a certain type of marketing

    Segmentation methodsnGeographic

    nDemographic

    nPsychographic

    nBehavioral
  12. Product Life Cycle (PLC)
    Stages
    1.Introduction

    2.Growth

    3.Maturity

    4.Decline



    • Where is your
    • product/service in the PLC? Is your market saturated?
  13. Market Positioning
    • nDistinguish your product/service from others
    • offered to your market segment.

    • nGoal is to clearly communicate how your
    • product/service differs from competitors.

    nSample positioning statement:

    • (General Motors) is the
    • (leading US automobile maker) that (provides affordable cars) to (American
    • families).
  14. Chapter 5
    Developing the Right Marketing Mix
  15. Marketing Mix = the 4 Ps
    1.Product

    2.Price

    3.Place

    4.Promotion



    • Goal: Bring the right product to
    • the right place at the right price with the right promotion.
  16. Products (and Services)
    nProducts & services are defined by:

    nPhysical attributes

    nPerformance characteristics

    nPricing

    nBranding

    nDelivery
  17. Focus the Brand
    • nThe primary product benefit is “owned” by the
    • company.

    nFord’s Edsel – lacked focus, too many features è failure

    • nFord’s Mustang – tightly focused on target
    • market of 20-30 year olds è success
  18. Ways to Build a Great
    Brand
    nProvide high-quality products/services

    nMaintain high ethical standards

    nDefine the product/service clearly

    nTreat employees well

    nMake ads positive & informative

    nAssociate the company with a charity

    nBe involved in the community

    n
  19. What
    Does the Price Tell Consumers About Your Product/Service?
    nStrategies:

    nKeystoning: doubling the costs

    • nCost
    • plus: cost plus profit margin

    • nPenetration:
    • low price early in PLC to gain market share

    • nSkimming:
    • high price early in PLC before competitors enter market

    • nMeet
    • or beat the competition

    nMark-ups
  20. Place
    • nType of business affects the location that
    • works.

    nWho are your customers?

    nWhere do they shop?



    • nGoal: Find a location affordable for you yet
    • also convenient for customers.
  21. Promotion
    • nUsing
    • advertising + publicity to get your market message to your customers



    • nAdvertising
    • (purchased): billboards, TV ads, magazine ads



    • nPublicity
    • (free): mentions in media such as articles, stories on TV, etc.
  22. Promotional Ideas
    nAdvertising specialties

    nBanner ads

    nBillboards

    nBlogs

    nBroadcast media

    nBrochures

    nBusiness cards

    nCatalogs

    nCoupons

    nDirect mail

    nDirectories

    • nFlyers
    • nNetworking

    nNewsletters

    nPrint media

    nPromotional clothing

    nPublic speaking

    nSamples/demos

    nSpecial events

    nSponsorships

    nTelemarketing

    nToll-free numbers

    nWebsites
  23. Marketing Materials
    • nExamples include brochures, posters, order
    • forms, business cards, & invoices.

    nShould reinforce competitive advantage

    nServe 3 functions

    • 1.Help you organize
    • your thinking

    • 2.Enable you to teach
    • others in company about the business

    • 3.Enable you to sell
    • product/service
  24. Media
    nPrint

    nTelevision


    nRadio

    nWeb

    nProvide reach & frequency
  25. Advertising
    • nPaid print advertising includes newspapers,
    • magazines, newsletters, & Yellow Pages & other directories.

    nPrint advertising components

    nHeadline (title)

    nDeck (subhead)

    nCopy (text)

    nGraphics (photos or drawings)

    nLogo
  26. Publicity
    nUse media to generate publicity

    nMail/fax pitch letter and press release

    • nPitch letter “pitches” the story of your
    • business

    • nPress release provides facts to answer: who,
    • what, when,where,
    • why, how?

    nFollow up with phone call

    n
  27. Philanthropy
    • nGiving
    • money, time, advice, skills to help minimize or eliminate social,
    • environmental, or political problems

    • nFoundations
    • are nonprofits that raise funds for charities that assist people, animals, the
    • environment, and other causes.

    • nMany
    • philanthropic foundations were started by entrepreneurs.

    • nPhilanthropy
    • creates goodwill: reputation, name recognition, positive
    • customer relations.
  28. Cause-Related Marketing
    • nInspired
    • by commitment to a social, environmental, or political cause

    • nSimple
    • way to work philanthropy into your business

    nExamples:


    1.Donate fixed % of revenue to charity

    2.Donate product/service

    3.Encourage employees to volunteer
  29. Marketing as a Fixed
    Cost
    • nMarketing costs are money that is needed to
    • drive sales.

    nShould not be budgeted as a percent of sales

    • nCalculate Breakeven Units to determine
    • whether the business is selling enough to cover the marketing costs

    • nBreakeven units = Fixed Costs (per month or per year)/Gross
    • profit per unit
  30. Chapter 6
    Smart Selling and Effective Customer Service
  31. Many Great Entrepreneurs
    Started as Salespeople
    • nRay
    • Kroc, founded McDonald’s



    • nBilly
    • Durant, founded General Motors



    • nKing
    • C. Gillette, invented safety razor



    • nAristotle
    • Onassis, sold tobacco wholesale before becoming multimillionaire in shipping
    • business
  32. Essence of Selling Is
    Teaching
    • nTeach customers about the benefits of your product
    • or service, don’t just tell them about its features.

    nListen to customers: Their complaints teach you how to improve your business.
  33. Principles of Selling
    • §Make a good personal
    • impression

    • §Know your product or
    • service

    • §Believe in your product or
    • service

    §Know your field

    §Know your customers

    • §Prepare your sales
    • presentation

    §Think positively

    §Keep good records

    §Make no truly “cold” calls

    §Make appointments

    • §Treat everyone you sell to
    • like gold
  34. Sales Call
    • A sales call is an appointment with a
    • potential customer to explain/demonstrate your product or service. During the
    • call:
    • Focus on the customer

    • Listen to uncover
    • customer needs

    • Be honest about it if
    • your product or service will not meet those needs
  35. 8-Step Sales Call
    1.Prepare yourself mentally

    • 2.Greet the customer
    • politely

    • 3.Show the product or
    • service

    4.Listen to customer

    • 5.Deal with
    • objections…always acknowledge them

    6.Close the sale

    7.Follow up

    • 8.Ask for new customer
    • referrals
  36. Sales Call Behaviors of

    Successful Salespeople
    • 1. Let the
    • customer talk more than you do. You
    • are there to learn about the customer’s needs.



    • 2. Ask the
    • right questions. Be a friend. Your goal is
    • to uncover problems your product/service could solve.



    • 3. Wait to
    • offer products and solutions until later in the call. You cannot offer a solution until you know
    • your customer’s needs and problems.
  37. Analyze Your Sales Calls
    After each call, ask yourself:

    • nDid
    • the customer open up to me?



    • nWhich
    • of my questions helped the customer describe his/her needs?



    • nWas I
    • able to make a good case for my product or service?



    • nDid I
    • improve my relationship with my potential customer?
  38. Analyze Your Sales Calls
    After each call, ask yourself:

    • nDid
    • the customer open up to me?



    • nWhich
    • of my questions helped the customer describe his/her needs?



    • nWas I
    • able to make a good case for my product or service?



    • nDid I
    • improve my relationship with my potential customer?
  39. Turn Objections into
    Advantages
    • §Study objections you have
    • received

    • §Group into categories and
    • develop objection-proof answers for each

    §Price

    nPerformance

    • nFollow-up
    • service

    nCompetition

    nSupport

    nWarranties
  40. Use Technology to Sell
    nMultimedia demonstrations

    nWebsite

    nEmail & blogs

    nWebinars & audio conferences

    nDigital planners & sales software

    nPDAs for order placement & inquiries
  41. The “One Minute Sales
    Call”
    nKeep it clear & concise

    nWrite it down

    • nPractice delivering
    • it.
    • The pitch needs to sound natural & unrehearsed.

    nGet constructive feedback

    • nRemember – listen to the customer!
    • Don’t just use the pitch!
  42. Customer Service Is
    Keeping Customers Happy
    • §Know your customers by
    • name

    §Deliver products on time

    • §Help customer carry
    • product to the car

    • §Suggest a less expensive
    • product that might meet the customer’s need

    • §Provide a full refund when
    • a customer is dissatisfied

    • §Listen politely & with
    • empathy to customer complaints
  43. Positively Outrageous
    Service*
    nRandom & unexpected

    nOut of proportion

    nInvolves the customer personally

    nCreates positive word of mouth



    n

    * T. Scott Gross
  44. Costs of Losing a
    Customer
    • §Loss of current dollars
    • customer was spending with your business

    §Loss of jobs

    §Loss of reputation

    §Loss of future business
  45. Customer Complaints

    are Valuable
    • nAlways
    • acknowledge & address complaints and criticism. Complaints are a valuable
    • source of market research!



    • nNever
    • overreact to negative remarks from customers. Do not take these personally.



    • nAlways
    • tell the truth about any negative aspect of your product or service. When you
    • admit a negative, you gain customers’ trust.
  46. nAlways
    acknowledge & address complaints and criticism. Complaints are a valuable
    source of market research!



    nNever
    overreact to negative remarks from customers. Do not take these personally.



    nAlways
    tell the truth about any negative aspect of your product or service. When you
    admit a negative, you gain customers’ trust.
    • Your customer service
    • should always reinforce your marketing and competitive advantage.
    • nIf your competitive advantage is speedy
    • service, make sure your employees move fast.



    • nIf your competitive advantage is a cozy
    • atmosphere, employees should not rush customers.
  47. Collect Market Research
    Via Customer Service
    • nInclude
    • brief market surveys with purchases.



    • nAsk
    • selected customers to fill out longer surveys, offering a discount as
    • incentive.



    • nHave
    • employees regularly ask customers if they are satisfied with product/service.



    • nKeep
    • database of customer contact info, preferences, previous purchases, etc.
  48. Build Long-Term
    Relationships with Customers
    • §Stay in touch via website and email in
    • addition to more traditional ways

    • §Offer customers birthday discounts, special
    • shopping days, & other benefits

    • nAsk
    • customers to refer you to new customers

    • nA
    • successful business is built on repeat customers.

    n

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