FAQs & More | Glossary

Glossary
Alpha Testing Testing new products to make sure that they work in customers’ hands. Frequently, company personnel and/or friendly customers participate in these tests.
Beta Testing Testing your product or service with real customers to make sure that it meets their needs.
B-2-B, B-2-C When a business sells to another business, it sells B-2-B; when a business sells to a customer, it sells B-2-C.
Breakeven Analysis The calculation of the point at which revenues equal expenses. A useful tool for determining at what point a new product or service will be profitable.
Business Case This describes, in business terms, the benefit a concept will provide the company. Frequently, a business case is made by evaluating the benefits and costs of the project.
Cost of Goods Sold (COGS) The direct costs of producing a product or service. You have to make more than the COGS to make a return on investment (ROI).
Commodity A product becomes a commodity when it no longer competes on differentiation, but solely on price. At this point, the product or service earns low margins.
Cycle Time The length of time it takes to deliver a new product or service, from idea to commercialization.
Innovation The process of creating and delivering new consumer value in the marketplace.
Intellectual Property (IP) Knowledge that someone owns and can potentially use to make a profit.
Market Research Research to better understand the market or a particular sub-group (segment) of the market.
Product The item offered for sale. It is not always a physical object, but could be a service, subscription, lease, etc.
Product Development A term encompassing all activities done in support of creating a product, from identifying the market opportunity to launching the product in the marketplace.
Profit and Loss (P&L) The basic calculation of “money in/money out” in a project or business.
Return on Investment (ROI) A measurement of the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used to compare a company's profitability or to compare the efficiency of different investments.
Target Market A particular group of customers at which a product or service is aimed.