exam review Flashcards
intrapreneurship
responsible for innovating within an existing organization
entrepreneurs
owns their own company
Enterprising people
one who seeks opportunities in all areas of life
Ways a company can encourage intrapreneurship
give your employees time
- highlight problems and how u an solve them
Why are people Intrapreneurs?
they question the status quo and wonder if there might be a better way to do things. They may also identify a gap in services,
What is business?
they question the status quo and wonder if there might be a better way to do things. They may also identify a gap in services,
Needs vs. wants
Needs are the things you can’t get by without, Wants are things that are nice to have but not absolutely necessary,
goods vs service
A good is a tangible item. A service is not a tangible or physical entity (massage)
Supply & Demand
Supply refers to the market’s ability to produce a good or service, whereas demand refers to the market’s desire to purchase the good or service
Influences influencing wants and needs
- geographic
- social environment
-education
Invention vs. Innovation
invention is the creation of a product. Innovation is if someone improves on or makes a significant contribution to an existing product,
ways to start a business
-start from scratch
- inherent / buy
-buy a franchise
factors that affect price
Costs and Expenses.
Supply and Demand.
Consumer Perceptions.
Competition.
Consumer perceptions
he opinions, feelings, and beliefs customers have about your brand
Competition
the process of strategically selecting price points for your goods or services based on competitor pricing in your market
Pricing strategy decisions
a model or method used to establish the best price for a product or service.
Psychological pricing
a strategy that uses pricing to influence a customer’s spending or shopping habits to make more or higher value sales 5.00 -4.99
effects of Technology on Small Business
Productivity
Outsourcing
Customer base
Communication - advantages and disadvantages
Venture - definition
A business enterprise in which the expectation of gain is accompanied by the risk of loss or failure.
for-profit
one that operates with the goal of making money.
example. H & M
Not-for-profit
organisations that provide services to the community and do not operate to make a profit for its member
ex. Canadian cancer society
What is a venture plan?
A business plan is a formal written document containing the goals of a business
Components of venture plan?
■ Executive summary
■ Company description
■ Description of product/service
■ Marketing plan
Executive summary
short document or section of a document produced for business purposes. It summarizes a longer report
Net income/loss formula
Total Revenues – Total Expenses = Net Income
Pricing Strategies
Consumer perceptions
Competition
Pricing strategy decisions
Price skimming
Penetration pricing
Psychological pricing
Markup pricing
price skimming
set new products high and subsequently lower then when competitors enter the market
Penetration pricing
low initial price to get customers attention
Psychological pricing
setting prices like 3.99 rather than 4
large scale
national or international more than 50 employees
small scale
local or provincial less than 50 employees
local
small business in your home town
provincial
operates in a number om towns and cities within a province ex farm boy
national
operates in more than one provence ex. Shoppers Drug mart
international
in more than one country mcdonald’s
cartersitics
the feature that belongs to a person
skill
the ability to do something well
Entrepreneurial spirit
help u take ownership of your business look at your tasks “how can we do this better”
Fad
shoots up in popularity really fast and is short lived ex. fidget spinners
trend
a direction of change
How to fads & trends help us?
interesting and relatable social media campaign. trends can organization’s long-term marketing approach and product development efforts.
Perfect competition
same product or service
indirect competition
competition between products or services in different categories
Benefits and Disadvantages of competition
can help u grow an improve your business they will make mistakes for you.
Grant from government
is a sum of money given to a business by the government to support them in establishing projects that contribute to societal development.
Cash flow positive
If a business’s cash acquired is more than cash spent
estimating revenue
calculating the amount if revenu your business is likely to earn
Break even point
the point at which total cost and total revenue are equal,
Pitch Deck - how long, what’s in it?
should be no longer than 20 slides, and it should define the problem being addressed by the new service or product,
Differences between business plan, pitch deck & elevator pitch
pitch deck - visual summary of business plan
elevator pitch: pitch with no additional support
business plan
a document that defines in detail a company’s objectives and how it plans to achieve its goals.
Angel Investor
wealthy person who invests his or her own money in a company—usually a start-up ( elon musk)
Venture Capitalist
a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake (the dragons)
Repositioning a product
the process of changing a target market’s understanding or perception of a product or service
debono hats
-BLUE - calm, organized, plan maker, goal setters
-RED- emotional, passionate, confident, go getter
-YELLOW- joyful, matavating, collaborative
-WHITE- emotionless, level headed
-BLACK - Gloomy, resilient, negative stubborn, cautious
GREEN- creative, innovative, fresh
Brand Authenticity
customers perceive a brand to be faithful and true toward itself and its consumers, and to support consumers being true to themselves’
Loyalty Card
issued by a supermarket or chain store to a customer and used to record credit points awarded for money spent in the store. ex. indigo plum card
sale promotion
marketing activity that is designed to increase sales, encourage customer loyalty, or generate brand awareness.
Contests & sweepstakes
items of value (prizes) are awarded to participating consumers by chance, with no purchase or entry fee required to win.
coupon
a voucher entitling the holder to a discount for a particular product.
Premiums & Self-Liquidating
when a consumer is expected to pay a designated monetary value for a gift or item. had to spend a certain amount to get a free item
market segmentations (STP)
Demographics
Geography
Psychographics
Socioeconomics
Consumptions patterns
Behavioural patterns
AIDA
Attention
Interest
Desire
Action
what is advertising
marketing tactic involving paying for space to promote a product, service, or cause.
6 steps of market research
- define the question
- determine the data needed
collect the data
-analyze the data
-take action
-evaluate results
7 steps of product development
- generate idea
- screen ideas
- develop a business plan
develop a product - test - market the product
- introduce the product
- evaluate customer acceptance
4 parts of market segmentation
Demographics
Geographics
Psychographics
Behavioural
SWOT
Strengths
Weaknesses
Opportunities
Threats
perfect competition
market with large number of small companies selling identical products EX. SELLING WHEAT
Monopolistic competition
a market with a large number if companies selling similar products RESTAURANTS, CONVENIENT STORES
Oligopoly
a market with a small number of large companies selling similar products LARGE AMOUNT OF MARKET CONTROL EX BELL VS ROGERS
Monopoly
a market in which a single company has complete market control. NO COMPETITION
Monopoly
a market in which a single company has complete market control. NO COMPETITION
Life Cycle of a Business
Pre-start up stage
Startup
Rapid growth stage
Maturity
Decline
Rebirth or Death
