Term
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Definition
*Growth sufficient to maintain the status quo is a goal of some entrepreneurs.
*Growing a business too quickly can be stressful for the small organisation.
*A ‘growth trap’ may occur when a business’s growth soaks up cash faster than it can be generated.
*Growth also puts pressure on a small business’s staff. |
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Term
| Innovation: A Path to Growth |
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Definition
*Innovation and entrepreneurship often go hand-in-hand.
*Coming up with and perfecting new products or services is often not easy.
*The risk of failure increases when innovation is the goal.
*Innovation is a means by which a business can sustain its competitive advantage. |
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Term
| Reducing the Risk of Failure While Innovating |
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Definition
*Base innovative efforts on your experience.
*Focus on overlooked products or services.
*Be sure there is a market for the product or service you are hoping to create.
*Pursue innovation that customers will perceive as adding value to their lives.
*Focus on new ideas leading to more than one product or service.
*Raise sufficient capital to launch the new product or service. |
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Term
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Definition
A value-creating position that endures over time by taking the following steps:
-Is difficult to imitate
-Creates high barriers to market entry
-Can be patented or copyrighted
-Is renewable at higher performance capabilities |
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Term
| Stages in the Competitive Advantage Life Cycle |
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Definition
*Develop: invest resources
*Deploy: boost performance
*Decline: competitors overcome advantage
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Term
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Definition
A detailed picture of what happens to a specific product’s sales and profits over time
-Helps the entrepreneur understand promotion, pricing and distribution policies must be adjusted to the product’s position on the curve.
-Highlights importance to revitalise product lines before they lose their commercial potential.
-Continuing reminder that he life cycle of a product rises then falls—innovation is necessary for a business’s survival.
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Term
| New Product Development Process |
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Definition
1.Idea Accumulation- Increasing the number of ideas under consideration
2.Business analysis- Testing to determine if an idea can be profitable
3.New product development-Sketching the plan for randing, packaging, pricing and promotion
4.Product testing- Should determine whether the P is acceptable (safe, effective, durable, etc.) |
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Term
| Building the Total Product |
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Definition
*Branding – identifying the Product
*A verbal and/or symbolic means of identifying a product.
*Brand Name
-Select a name that is easy to pronounce and remember
-Choose a descriptive name
-Use a name that is eligible for legal protection
-Select a name with promotion possibilities |
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Term
| Components of a Brand Identity |
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Definition
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Term
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Definition
*Be simple.
*Design for visibility
*Leave it open to interpretation.
*Be relentlessly consistent.
*Recognise the importance of logo design. |
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Term
| Protecting the Product Offering |
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Definition
Trademark
-An identifying feature used to distinguish a manufacturer’s product
Service Mark
-A legal term indicating the exclusive right to use a brand to identify a service |
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Term
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Definition
A promise that the product will perform at a certain level or meet certain standards
-Implied and written warranties
-Policy considerations: Cost, service capability, -competitive practices, customer perceptions, legal implications |
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Term
| Services Marketing Versus Goods Marketing |
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Definition
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Term
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Definition
• A product item is the lowest common denominator in a company’s product
mix. It refers to an individual item, such as one brand of bar soap.
• A product line is the sum of the related individual product items, but the
relationship is usually defined generically. So, two brands of bar soap are two
product items in one product line.
• A product mix is the collection of all product lines within a firm’s ownership
and control. A firm’s product mix might consist of a line of bar soaps and a
line of household cleansers.
• Product mix consistency refers to the closeness, or similarity, of the product
lines. The more product items in a product line, the greater its depth; the more
product lines in a product mix, the greater its breadth |
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Term
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Definition
1. One product/one market
2. One product/multiple markets
3. Modified product/one market
4. Modified product/multiple markets
5. Multiple products/one market
6. Multiple products/multiple market |
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Term
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Definition
Labeling
*The South African Food Labelling Regulations
-Listing of contents
-Proper care and use
Product safety
*Consumer Protection Act of 2008
-National Consumer Commission
*The South African Food Labelling Regulations
-Packaging
-Use instructions
-Disposal |
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Term
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Definition
*The Trademarks Act, No. 194 of 1993 grants exclusive rights of use of a registered non-generic name, symbol or other mark to identify a product or service.
-Trademarks are researched and then registered with the Companies and Intellectual Properties Commission.
*Loss of rights
-If the mark enters into use as a generic term.
-If the mark is not labelled with the symbols TM or®. |
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Term
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Definition
*The registered, exclusive right of an inventor to make, use, or sell an invention.
*Utility patent
-Registered protection for a new process or product’s function
*Design patent
-Registered protection for the appearance of a product and its inseparable parts
*Plant patent
-Registered protection for any distinct and new variety of plant |
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Term
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Definition
*The exclusive right of a creator to reproduce, publish, perform, display, or sell his or her works.
-Copyright notice
-Copyright symbol ©
-Year the work was published
-Copyright owner’s name |
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Term
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Definition
*Describes elements of a business’s distinctive operating image (‘look’)
*Can be protected under trademark law |
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Term
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Definition
| Integrates and coordinates the flow of materials and information needed to produce a P or S and deliver to the customer |
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Term
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Definition
Distribution -Physically moving products and establishing intermediary relationships to support such movement.
*Physical Distribution (Logistics)
-The activities of distribution involved in the physical relocation of products. |
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Term
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Definition
*Direct channel
-There are no intermediaries—the product goes directly from producer to user.
*Indirect channel
-Has one or more intermediaries between producer and user.
*Dual Distribution
-A distribution system that involves more than one channel |
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Term
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Definition
*Functions of Intermediaries
-Perform the marketing function better.
-Provide efficient distribution of the product.
Types of Intermediaries
*Merchant middlemen
-Provide more efficient means of distribution if customers are widely dispersed or if special packaging and storage are needed
*Agents/brokers
Do not take title to the goods they distribute |
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