Essay on Mgmt 2150 2nd test Review 201514

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Pages: 6

Mgmt 2150 2nd test Review
Ch. 6
The Purpose of a Business Plan.
Business Plan = a document that presents the basic idea for the venture and includes descriptions of where you are now, where you want to go, and how you intend to get there and Consider personal aspirations before beginning.
Three basic objectives for a business plan is 1. To identify the nature and the context of the business opportunity, 2.To outline the approach the entrepreneur plans to use.3.To recognize factors that will determine whether the venture will be successful 4. Plan will be used differently by insiders and outsiders.

Preparing a Business Plan.
The Content and Format of a Business Plan.
Cover Page,
Table of Contents,
Executive Summary Synopsis ,
Industry, Target Customer, and Competitor Analysis,
Company Description,
Product/Service Plan ,
Marketing Plan,
Operations and Development Plan ,
Management Team,
Critical Risks,
Financial Plan,
Appendix of Supporting Documents and could include assumptions underlying the project and Résumés of the management team.
Ch. 7
Small business Marketing = business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user and that satisfy the targeted user.
Core product/service = fundamental benefit or solution sought by customers.
Actual product/service = basic physical product/service that delivers those benefits.
Augmented product/service = basic product/service plus any extra or unsolicited benefits to the consumer that may prompt a purchase.
Marketing Philosophies Make a Difference.
Three different marketing perspectives is to Production-oriented philosophy = emphasizes the product as the single most important part of the business.
Sales-oriented philosophy = emphasizes pushing the product.
Consumer-oriented philosophy = centers on the consumer and his/her needs.
A Consumer Orientation—the Right Choice.
This philosophy is most consistent with long-term success
Why might a business choose not to use this philosophy= 1.State of competition, 2. Weak in marketing ability, 3.Too focused on the present.
Market analysis = process of locating and describing potential customers.
Marketing mix = combination of product, pricing, promotion, and distribution activities.
The Nature of Marketing Research is Gathering, processing, interpreting, and reporting of market information and Estimate projected costs and compare costs with benefits.
Steps in the Marketing Research Process.
Step One: Identifying the Informational Need.
Step Two: Searching for Secondary Data – market information that has been previously compiled.
Step Three: Collecting Primary Data
Primary data – new market information that is gathered by the firm conducting the research.
Observational Methods.
Questioning Methods.
Surveys – mail, telephone the Web, personal interview.
Step Four: Interpreting The Data Gathered - Must be transformed into useful information.
Understanding Potential Target Markets
Market = a group of customers or potential customers who have purchasing power and unsatisfied needs.
Market Segmentation and Its Variables
Market segmentation = division of a market into several smaller groups with similar needs.
Segmentation variables = parameters used to distinguish one form of market behavior from another.
Benefit variables = specific characteristics that distinguish market segments according to the benefits sought by customers.
Demographic variables = specific characteristics that describe customers and their purchasing power.
Marketing Strategies Based on Segmentation Considerations
The Unsegmented Strategy (mass marketing) = a strategy that defines the total market as the target market.
The Multisegment Strategy = strategy that recognizes different preferences of individual market segments and develops a unique marketing mix for each.
The Single-Segment Strategy = strategy that recognizes the existence of several distinct market segments but