Summary Entrepreneurship and Small Business Management_MNE3701_2017

How do the three marketing philosophies differ?

Respuesta: There are 3 marketing philosophies which are 1. product orientation - focus on the product 2. sales orientation - focus on selling and advertising 3. consumer orientation - focus on the needs of the consumer

Identify the 4 components of a formal marketing plan

Respuesta: 1. Market analysis 2. Sales forecast 3. The competition 4. Marketing strategy

Key term - Marketing Research Explain?

Respuesta: The gathering, processing, interpreting and reporting of market information. Entrepreneurs can: - hire an expert - use the internet – especially for obtaining secondary market research data - the cost / benefit trade-offs of marketing research

Name the 3 major categories of e-commerce business models?

Respuesta: 1. business to business (B2B) 2. business to consumer (B2C) 3. consumer to consumer (C2C)

Name at least 4 benefits of e-commerce for the start-up?

Respuesta: - e-commerce allows any business access to customers almost anywhere - small firms do not need all the resources - sales cycle is shortened/ compressed e.g. credit card sales - one on one customer relationship possible through (e-CRM)

Name the 3 types of Distribution Channels

Respuesta: ● direct (from the producer directly to the end user) ● indirect distribution (the inclusion of intermediaries) ● dual distribution (more than one channel)

1. Which of the following is not a reason why organizations analyse customers? a. to determine the needs of customers b. to identify changing needs c. to identify the organization’s weaknesses d. to understand the expectations of customers e. all the above are reasons

Respuesta: c. to identify the organization’s weaknesses

------ benefit is the sensory excitement that customers experience from using a product or service. a. experiential b. social c. emotional d. psychic e. functional

Respuesta: a. experiential

3. Backward segmentation implies that customers are segmented on the basis of a. demographics b. behavioral differences c. geographic variables d. psychographics e. all the above dimensions

Respuesta: b. behavioral differences

A customer segment is a group of customers, who meet the following requirements, except: a. sufficient size b. accessible c. measurable d. profitable e. all of the above are requirements

Respuesta: d. profitable

1. A customer is different from a consumer. Do you agree with this statement? Justify your answer

Respuesta: Customer Customer is the one who buys your product/service. In simple terms he/she is the purchase of the product/service, he pays for getting the product. A customer may or may not use it for self. Eg. A person buying milk is a customer, a retailer buying milk to re-sale it is a customer, a company buying milk to serve its employee is a customer. Consumer Consumer is the one who uses/consumes your product/service. It is not necessary that a consumer should purchase the product/service. If any other person buys the product which is consumed by other person then the other person is the consumer and the buyer is the customer. Eg. A person drinking milk purchased by some other person is a consumer.

give the 6 W-model of customer analyses

Respuesta: •Whoare current and potential customers? •What do customers do with our products? •Where do customers purchase our products? •When do customers purchase? •Why do customers select our product? •Why do potential customers not purchase our product?

Customer value Perceived benefits –costs = value name 4 benefits and 2 cost to the customer

Respuesta: BENEFITS •Functional •Image •Social •Service •Emotional •Experiential COSTS •Monetary •Time •Psychic energy

name the steps on Segmentation research

Respuesta: • Gather raw data from customers • Interpret raw data in terms of customer needs • Organise needs into a hierarchy: o Primary needs o Secondary needs • Establish relative importance of needs • Reflect on results

what are the Factors influencing attractiveness of segments

Respuesta: •Size and growth potential of segment •Profitability of segment •Resources and skills of organisation •Intensity of competition •Compatibility with organisation’sobjectives and strategy •Cost of reaching segment •Synergy with other segments •Opportunities and threats in macroenvironment