AP Business Principles with Personal Finance Unit 1

Market-Led Business

• A business that focuses on product innovation regardless of customer needs.

• A business that finds out what customers want and then provides it.

• A business that prioritizes cost-cutting over customer satisfaction.

• A business that relies solely on market trends without customer feedback.

Artisan Processes

• Require skilled labor and attention to detail.

• Are automated and require minimal human intervention.

• Focus on mass production and efficiency.

• Are primarily based on digital technology.

Appearance

• The aesthetics or physical details of the product.

• The functionality and usability of the product.

• The price and affordability of the product.

• The brand reputation and market presence.

Minimum Viable Product (MVP)

• The most advanced version of a product with all features included.

• The simplest version of the product idea, with only core features, and may be a sketch, a description, or a model.

• A product that has been fully tested and is ready for market launch.

• A prototype that includes only aesthetic features without functionality.

Value

• The monetary worth of a product or service.

• The tangible and intangible benefits that the company promises to provide to/for customers, and how useful their products and processes will be for them.

• The total cost incurred by a company to produce a product.

• The market demand for a product or service.

Business

• An organization that only sells goods.

• An entity that produces and distributes products, inclusive goods and/or services.

• A group of individuals working together for a common goal.

• A non-profit organization that does not sell products.

Customer

• An individual or business that purchases a good or service.

• A person who sells products to consumers.

• A company that provides services to other businesses.

• An organization that manufactures goods for sale.

Characteristic

• A feature or quality belonging to a person, place, or thing that can serve as a means to identify it.

• A temporary state of being that can change over time.

• An emotional response to a specific situation or event.

• A physical object that can be touched or seen.

Quality

• The basic nature of the product or the degree of excellence that it possesses.

• A measure of the quantity of a product.

• The total cost of production for a product.

• The speed at which a product is delivered.

Value Proposition

• Explains how a product fills a need, solves a problem, or caters to a customer's preferences, and builds a case for why it's greater than other products.

• Describes the pricing strategy of a product in relation to its competitors.

• Outlines the marketing channels used to promote a product to potential customers.

• Defines the target demographic for a product based on age and income.