Marketing terms definitions

Marketing Management Glossary
Introductory terms

Market = The set of all actual and potential buyers of a product or service = A group of people or organisations that have similar needs and wants, the desire to satisfy those needs and wants, the means of exchange (money) to satisfy their needs and wants, and the ability and authority to make the exchange (purchase)
Marketing = A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others
Demarketing = Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand, but only to reduce or shift it
Marketing management = The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives
Need = A state of felt deprivation
Want = The form taken by a human need as shaped by culture and individual personality
Hierarchy of needs = A system of needs which includes physiological needs, the need for satisfaction, the need for belonging and love, the need for esteem, and the need for self-actualisation
product = Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas
Service = Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything
Customer value = The difference between the values the customer gains from owning and using a product and the costs of obtaining the product
Customer satisfaction = The extent to which a product's perceived performance matches a buyer's expectations. If the product's performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted
Consumer markets = The most visible markets, which consist of individual customers who buy products for their own use or for use by other members of their households
Industrial markets = Markets made up of organisations which buy in order to produce goods
Exchange = The act of obtaining a desired object from someone by offering something in return = A transaction between two or more persons, groups, or organisations in which each party gives up something of value and receives something of value
Transaction = A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement
Relationship marketing = The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders
Competitive advantage = The part of a firm‘s total offering which is superior to that of its
competitors = Something unique or special that a firm does or possesses that provides an advantage over its competitors
Terms of core marketing concept = needs, wants, demand, value, cost, satisfaction, marketing, marketer, exchange, transaction, relationship
Core benefit = The need that a product fulfils or the problem it solves
Buyers = Those who carry out the formal arrangements for purchase, service, delivery, and financial terms
Demand = A relation among the various amounts of a product that buyers would be willing and able to purchase at possible alternative prices during a given period of time, all other remaining the same
Demands = Human wants that are backed by buying power
Compensatory decision rule = A type of decision rule for evaluating alternatives where consumers consider each brand with respect to how it performs on relevant or salient attributes and the importance of each attribute. This decision rule allows for a negative evaluation or performance on a particular attribute to be compensated for by a positive evaluation on another attribute
Compensatory model = A model which assumes that consumers judge a limited number of product attributes, that the attributes vary in importance to the consumer, and that strength in one area compensates for weakness in another
Non-compensatory model = A model of information processing in which a high rating for one attribute does not offset a low rating for other
Conjunctive decision rule = A type of decision rule for evaluating alternatives where consumers establish minimally acceptable levels of performance for each important product attribute and accept an alternative only if it meets the cut-off level for each attribute
Consumer socialisation process = The process by which an individual acquires the skills needed to function in the marketplace as a consumer
Service market = All organisations that buy in order to produce services
Vertical markets = The markets on which products are tailored for specific industries
Horizontal markets = Markets on which products are sold to a wide range of industries
Utility = A measure of the satisfaction obtained through the receipt of something of value in an exchange
Form utility = The usefulness attributable to the form or design of something received
Users = Persons within an organisation who actually put a purchased product to work
Stakeholders = Those who use company‘s products or services, those who work for the firm, those who own it, and those who are affected by it
Total market potential = The total possible sales of the product by all competitors
Total market demand = The total volume that would be brought by a defined consumer group in a defined geographical area in a defined time period in a defined marketing environment under a defined level and mix of industry marketing effort
Unitary demand = A given percentage change in price results in an identical percentage change in the quantity demanded
Time utility = The usefulness given when something of value is received at the time it is wanted

Production concept = The philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency
Product concept = The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. A detailed version of the new-product idea stated in meaningful consumer terms
Selling concept = The idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort
Marketing concept = The philosophy that business organisations achieve their profit and other goals by satisfying consumers = The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do
Social marketing (or cause marketing) = The design, implementation, and control of marketing programs calculated to influence the acceptability of social ideas = The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumer's and society's well being

Societal marketing orientation = An approach that adds a consideration to the marketing concept: the impact of a firm‘s activities on societal well-being, the very quality of life
Social marketing = The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group
Modified re-buy = The buying situation in which the buying organisation has some familiarity with the product but needs some assistance; it is buying behaviour between a strait re-buy and a new-task purchase
Marketing information system = The continuously interacting structure of people, machines, and procedures that produces information pertinent to marketing decisions
Marketing intelligence network = A set of procedures and sources designed to monitor the organisations‘ external environments, particularly the competitive environment
Marketing mix = The set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market = Marketing programs including product conception (and development), pricing decisions, promotion of the product, and distribution to consumers
Marketing control = The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that marketing objectives are achived = The process of evaluating of achieved results against established standards, and of taking corrective action to exploit opportunities or solve problems
Peripheral values = Values that reflect, but are not as deeply embedded or as fundamental as, central values
Personal income = A persons total income from all sources
Marketing orientation = An approach to business that focuses primarily on what a firm does to satisfy consumer‘s needs
Marketing and manufacturing company = A form of subsidiary organisation which handles all functions of a marketing company but also maintains a production facility for the manufacture of the product
Games = Promotional methods that require consumers to take specific actions, such as determining whether the card they received with the product contains a winning number by rubbing it with the edge of a coin, or collecting several cards to produce the winning combination
Creativity = A quality possessed by persons that enables them to generate novel approaches, generally reflected in new and improved solutions to problems
Marketing Environment and Consumer
Marketing environment = The actors and forces outside marketing that affect marketing management's ability to develop and maintain successful transactions with its target customers
Macroenvironment = The larger societal forces that affect the microenvironmentdemographic, economic, natural, technological, political and cultural forces
Microenvironment = The forces close to the company that affect its ability to serve customersthe company, suppliers, marketing channel firms, customer markets, competitors, and publics
Marketing intermediaries = Firms that help the company to promote, sell, and distribute its goods to final buyers; they include resellers, physical distribution firms, marketing service agencies, and financial intermediaries
Economic environment = Factors that affect consumer buying power and spending patterns
Engel's Laws = Differences noted over a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises
Natural environment = Natural resources that are needed as inputs by marketers or that are affected by marketing activities
Technological environment = Forces that create new technologies, creating new product and market opportunities
Political environment = Laws, government agencies and pressure groups that influence and limit various organizations and individuals in a given society
Cultural environment = Institutions and other forces that affect society's basic value perceptions, preferences, and behaviors
Consumer buyer behavior = The buying behavior of final consumers-individuals and households who buy goods and services for personal consumption
Consumer market = All the individuals and house holds who buy or acquire goods and services for personal consumption
Factors of consumer behaviour = cultural, social, personal, psychological
Factors of customer behaviour = environment, organisation, interpersonal relations, personal character
Motivation = Persons‘ impulses to take action and the internal and external forces that energise, mobilise, and direct their behaviour toward goals
Perception = selective attention, distortion recall = The process of becoming aware of phenomena, whether internal or external, tangible or intangible = The process by which people select, organize, and interpret, information to form a meaningful picture of the world
Stimulus = Anything that elicits or accelerates a physiological or psychological activity
Environmental stimuli = economical, technological, political, cultural
Stimulus-response theory = The theory which holds that organisms learn first to associate an original stimulus with another, adjacent stimulus and than to respond to that second „conditioned“ stimulus with the behaviour formerly induced by the original stimulus
Special incentives = A motivator usually used for a brief period to strengthen representatives‘ efforts to achieve specific sales goals
Factors supporting purchase = choice of product, brand, supplier, timing, and size
Buying centre = The collective term for people who participate in purchase decisions
Cues = The minor stimuli that shape people‘s responses and that support the original stimulus
High involvement decisions = Decisions that generally involve a large sum of money, have personal relevance, demand a search for information, and produce some degree of anxiety about the correctness of the product chosen
Low involvement decisions = Decisions generally made in an instant with little or no influence from social or cultural forces
Consumer behaviour = The acts of individuals that involve buying and using products, including the decision processes that precede and determine these acts

Culture = All the things, abilities and believe/everything that one generation of a society transmits to the next
Subcultures = Groups that share the values and artifacts of the larger society but also have distinctive practices, preferences, and beliefs
Countercultures = Subcultures whose values are in conflict with those of the wider society
Opinion leader = Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others
Social class = A category made up of people who share similar opportunities, economic positions, lifestyles, attitudes and behaviours
Group = Two or more people, with realted statuses and roles, who interact on the basis of shared expectations about each other‘s behaviour
Ethnic group = The social group determined by culturally transmited, learned traits
Demography = The study of the changing characteristics of human populations-factors such as vital statistics, growth, size, density, and distribution
Personality = A person’s distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her own environment
Motive (drive) = A need that is sufficiently pressing to direct the person to seek satisfaction of the need
Innovators = The first users of the new product
Early adopters = People who try a new product early in its life cycle without waiting for its acceptance by a large number of people
Early majority = People who adopt the product only after it has been accepted somewhat widely
Late majority = People who do not adopt an innovation until it is widespread use and is thoroughly accepted
Laggards = Individuals, households, or organisations that resists or never adopt the new product
Family household = A household consisting of two or more persons living together who are related by marriage or birth
Family life cycle = Various stages in family life, each with its own characteristics
Family orientation = The family into which an individual is born; the family that dares for and socialises us as children and gives us our initial class status
Family procreation = The new family established by choosing a mate and rearing children
Ideal self-concept = A view of ourselves as we would like to be
Lifestyles = Preferred patterns of living as expressed in a person‘s activities, interests, and opinions, taken as a whole
Learning = The relatively permanent changes in thought and behaviour that result from experience = Changes in an individual’s behavior arising from experience
Belief = A descriptive thought that a person holds about something
Attitude = A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Complex buying behavior = Consumer buying behavior in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands
Dissonance-reducing buying behavior = Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands
Habitual buying behavior = Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences.
Variety-seeking buying behavior = Consumer buying behavior in situations characterized by low consumer involvement but significant perceived brand differences
Need recognition = The first stage of the buyer decision process in which the consumer recognizes a problem or need
Information search = The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search
Alternative evaluation = The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set
Purchase decision = The stage of the buyer decision process in which the consumer actually buys the product
Postpurchase behavior = The stage of the buyer decision process in which consumers take further action after purchase based their satisfaction or dissatisfaction
Cognitive dissonance = Buyer discomfort caused by postpurchase conflict
New product = A good, service, or idea that is perceived by some potential customers as new
Adoption process = The mental process through which an individual passes from first hearing about an innovation to final adoption
Organisational markets = Business market = Markets which include businesses, institutions, and governments that buy products or raw materials for their own use or to make other products that they, in turn, sell = All organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Organisational marketing = All marketing efforts directed at buyers for formal institutions, including industrial, service, reseller, government, and not-for-profit groups
Business buying process = The decision-making process by which business buyers establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers
Derived demand = Business demand that ultimately comes from (derives from) the demand for consumer goods
Straight rebuy = A business buying situation in which the buyer routinely reorders something without any modifications
Modified rebuy = A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
New task = A business buying situation in which the buyer purchases a product or service for the first time
Packaging = The activities of designing and producing the container or wrapper for a product
Systems buying = Buying a packaged solution to a problem from a single seller
Users = Members of the organization who will use the product or service; users often initiate the buying proposal and help define product specifications
Influencers = People in an organization’s buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
Deciders = People in the organization’s buying center who have formal or informal power to select or approve the final suppliers
Gatekeepers = People in the organization’s buying center who control the flow of information to others
Problem recognition = The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or service
General need description = The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item
Product specification = The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item
Value analysis = An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production
Supplier search = The stage of the business buying process in which the buyer tries to find the best vendors
Proposal solicitation = The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals
Supplier selection = The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers
Order-routine specification = The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing technical specifications, quantity needed, expected time of delivery, return policies, and warranties
Performance review = The stage of the business buying process in which the buyer rates its satisfaction with suppliers, deciding whether to continue, modify or drop them
Institutional market = School, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care
Government market = Government units-federal, state, and local-that purchase or rent goods and services for carrying out the main functions of government
Organisational buying behaviour = The decision making process by which a buying group establishes the need for goods and services and identifies, evaluates and chooses among alternative brands and suppliers
Customer profile = A written record of an account, including information such as type of business, buying influences, the product mix, buying policies and practices, environmental influences, purchase criteria, and competitor analysis
Customer types organisation = The organisation method which is based on customer groups, such as departments responsible for marketing to each segment
Buy-phase concept = The concept that views organisational purchasing as a series of sequential steps proceeding from recognition of a need through evaluation of the product‘s performance in satisfying that need
Merchant wholesalers = Organisations which take title to goods, and which carry the responsibility for risk bearing and usually for performing various functions
Missionary sales people = People who perform such diverse tasks as building the organisation‘s image, cultivating relations with decision makers, giving away free samples, and presenting in-depth information about the product
Commercialisation = A process in which marketers establish full-scale production, set prices, lay out a distribution network, and make final promotion plans to introduce the product in all its markets
Distribution forms of goods; shops and channels = special, shopping, convenience; intensive, exclusive, selective
Marketing Research

Marketing information system = People, equipment, and procedures to gather, sort, analyze. evaluate, and disribute needed, timely, and accurate information to marketing decision makers
Marketing intelligence = Everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans
Marketing research = The systematic design, collection, analysis, and reporting of data relevent to a specific marketing situation facing an organization
= The systematic and objective research for and analysis of information relevant to the identification and solution of any problem in the field of marketing
Exploratory research = Research that consists of informal attempts to identify and define problems
Descriptive research = Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Causal research = Marketing research to test hypotheses about cause-and-effect relationship
Threshold effect = The concept that very few calls on any account tend not to have any effect on sales until the level of calls reaches a certain level
Qualitative research = Research which takes the form of detailed interviews with a small number of consumers or organisational buyers
Stimulated test marketing = An approach to new-product testing that does not involve the actual marketing of a new product in test sites as in the traditional test marketing, but uses special consumer reaction research instead
Quantitative research = Research based on a statistically valid sampling of a terget market
Secondary data = Facts previously collected by others, often for other purpose
Primary data = Information collected for the specific purpose at hand
Observational research = The gathering of primary data by observing relevant people, actions, and situations
Single-source data systems = Electronic monitoring systems that link consumers' exposure to television advertising and promotion (measured using television meters) with what they buy in stores (measured using store checkout scanners)
Survey research = The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
Experimental research = The gathering of primary data by seleting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
Focus group interviewing = Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization
Online (Internet) marketing research = Collecting primary data through Internet surveys and online focus groups
Screening process = The process which sifts out all ideas that are not feasible or desirable for organisation
Sample = A trial amount of a product
Quota sample = A sample selected by giving the interviewer a quota of certain number of individuals with some specific characteristic, such as a quota to interview 50 men and 50 women
Simple random sample = The process in which individual members of a population would have an equal and known chance of being selected as part of a sample
Systematic random sample = The process in which researchers choose every nth (such as every tenth or fifteenth) number after starting with a randomly selected number
Stratified random sample = A process that entails breaking the total population into strata, such as by age groups or income levels, in order to select samples within strata
Convenience sample = A sample chosen at the convenience of the researcher, such as the first 100 individuals to be found who are members of a population
Judgement sample = A sample chosen simply by the judgement of the researcher as to which individuals would be representative of the population, and about which no statistical analyses would be appropriate
Single-person household = An individual who lives alone in a separate residence
Survey method = A research method based on data gathered by asking respondents to supply facts, opinions, or other information
Questionnaire = A data collection instrument that is used for all survey methods
Structured questions = Those questions that demand brief and specific answers
Unstructured question = Questions that allow respondents a great deal of freedom and creativity in framing answers
Semi-structured question = Questions that include sentence completion items and word association tests
Statistical demand analysis = Analysis that develops relationship among marketing mix factors and environmental circumstances and sales
Marketing research department (agency) = The organisation within an advertising agency which researches consumer attitudes for the client, performs demographic studies, tests the effectiveness of advertising copy or packaging, or conducts research for agency itself
Syndicated research services = The scheduled reports which spell out what consumers are buying and what is happening to a product in the market place
Affect referral decision rule = A type of decision rule where selections are made on the basis of overall impressions or affective summary evaluation of the various alternatives under consideration
Alpha activity = A measure of the degree of brain activity that can be used to assess an individual’s reactions to an advertisement
80/20 rule = The principle that 80 percent of sales volume for a product or service is generated by 20 percent of the customers
Contribution margin = The difference between the total revenue generated by a product of brand and its total variable costs
Theatre tests = An expensive method of judging the effectiveness of television commercials. Consumers groups are brought into theatres, supposedly to see pilots of forthcoming television series. They are asked their opinions not only of the pilots but also of the impact and effectiveness of commercials
Time series analysis = Analysis that identifies and measures repetitive influences on sales patterns over time
Value analysis = A cost-reduction program in which customers study each component of a supplier’s product to determine whether it can be redesigned, standardised, or produced more cheaply
Vendor analysis = The buying organisation’s systematic evaluation and rating of prospective suppliers
Work load analysis = A method which establishes standards for the number of sales calls required and the time needed to make those calls
Contests = Strategy that requires consumers to compete for prizes, typically by completing some type of puzzle or stating why they like the product “in 25 words or less”
Cross-tabulation = The method of comparing the responses to one question with the responses to another
Delphi technique = The procedure of environmental forecasting by a group of experts who are solicited anonymously and asked to predict the likelihood and time of occurrence of significant events
Experimental method = The method based on the study of the relationship between two or more variables under controlled conditions
Focus group = A small number of ‘typical’ consumers who discuss their reactions to a product concept in the presence of a group leader
Forecasting = The prediction of what buyers in a target market are likely to do under a given set of conditions, such as the prediction of how much of a product will be purchased by a particular market segment given a particular price of the product
Historical and quantitative forecasts = A projection of future sales based on sales patterns and/or mathematical calculations
Judgement forecast = The prediction rely upon the opinions of informed participants or outside consultants
Audimeter = An electric measurement device that is hooked to a television set to record when the set is turned on and the channel to which it is tuned
Benchmark measures = Measures of a target audience’s status concerning response hierarchy variables such as awareness, knowledge, image, attitudes, preferences, intentions, or behaviour. These measures are taken at the beginning of an advertising or promotional campaign to determine the degree to which a target audience must be changed or moved by a promotional campaign
Prospecting = A systematic process of identifying new buyers
Irregular events = (1) Random events such as acts of God (e.g. earthquakes, fires, floods). (2) Windfall sales contracts
Consumer juries = A method of pretesting advertisements by using a panel of consumers who are representative of the target audience and provide ratings, rankings, and/or evaluations of advertisements
Marketing Strategies
Strategic planning = The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunites. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio, and coordinationg functional strategies
Mission statement = A statement of teh organization's purpose—what it wants to accomplish in the larger environment
Business portfolio = The collection of business and products that make up the company
Portfolio analysis = A tool by which management identifies and evaluates that various businesses that make up the company
Strategic Business Unit (SBU) = A unit of the company that has a separate mission and objectives and that can be planned independently from other company business. An SBU can be a company division, a product line within a division, or sometimes a single product or brand
Growth-share matrix = A portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share. SBU's are classified as stars, cash cows, question marks, or dogs
Product-market expansion grid = A portfolio-planning tool for identifying company growth opportunites through market penetration, market development, product development, or diversification
Market penetration = A strategy for company growth by increasing sales of current products to current market segments without changing the product
Market development = A strategy for company growth by identifying and developing new market segments for current company products
Product development = A strategy for company growth by offering modified or new prodcuts to current market segments. Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product
Diversification = A strategy for company growth by starting up or acquiring businesses outside the company's current products and markets
Marketing process = The process of (1) analyzing marketing opportunites, (2) selecting target markets, (3) developing the marketing mix, and (4) managing the marketing effort
Demand or market levels = population, potential, available, qualified, served, and penetrated
Company strategies = low cost, differentiation, focusing
Market strategies = positioning, innovation, life cycle, competition, global reach
Homogenity and heterogenity = extremes of consistency influencing pricing, targeting, and a size of target segment for product
Competitive strategies = challenger, competitive position, market leader, follower, nicher
Ansoff matrix = penetration, diversification and development of products and markets depending on new or mature markets or products
Portfolio = A collection of businesses owned and managed by a parent corporation
Individualized portfolio techniques = Portfolio techniques which develop specific company definitions of business strength, and of market attractiveness, rather than using the simpler definitions of the Boston Consulting group for those factors of market share and market growth
Stars = A company‘s ‚big winners‘ – business that hold high relative market shares in high-growth markets
Strategy = The major objectives of the organisation and a general plan for achieving these objectives
Strategic management = The management of a strategy; it involves at least four steps, i.e. analysing, planning, implementing, and control
80/20 principle = A “law” which states that 80 percent of business in a territory comes from 20 percent of accounts- and, controversely, that only 20 percent of business comes from the other 80 percent of accounts (which is in reality only approximate)
Marketing strategy = An overall statement of an organisation‘s goals in terms of markets (Who are our customers) and products (What are we selling) = The marketing logic by which the business unit hopes to achieve its marketing objectives
Strategic business unit = A single business with its own unique goal or mission, its own products or services, its own identifiable group of customers, its own competitors, its own resources, and a responsible manager
Strategic control = The control of major strategy directions
Market segmentation = (1) The division of large, dissimilar populations into smaller, more similar groups. (2) The process of subdividing large, heterogenous (dissimilar) whole markets into smaller, homogenous (similar) parts of submarkets = Dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes
Market segment = A group of consumers who respond in a similar way to a given set of marketing efforts
Segment marketing = Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments
Niche marketing = Focusing on subsegments or niches with distinctive traits that may seek a special combination of benefits
Micromarketing = The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations—includes local marketing and individual marketing
Local marketing = Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores
Individual marketing = Tailoring products and marketing programs to the needs and preferences of individual customers—also labeled one-to-one marketing, customized marketing, and markets-of-one marketing
Segmentation variables = Factors by which market segments are formed, e.g., geographic, demographic, socio-economic, behavioural, and psychographic variables
Geographic segmentation = Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods
Demographics = A catchall term referring to particular variables describing populations, such as age or sex
Age and life-cycle segmentation = Dividing a market into different age and life-cycle group
Gender segmentation = Dividing a market into different groups based on sex
Income segmentation = Dividing a market into different income groups
Behaviouristic segmentation = A method of segmenting a market by dividing customers into groups based on their usage, loyalties, or buying responses to a product or service
Psychographics = The system of measurement of life styles
Psychogenic needs = Needs which arise from learning and socialisation
Behavioral segmentation = Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
Benefit segmentation = A method of segmenting markets on the basis of the major benefits consumers seek in a product or service
Occasion segmentation = Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Intermarket segmentation = Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
Target market = A set of buyers sharing common needs or characteristics that the company decides to serve
Market targeting = The process of evaluating each market segment's attractiveness and selecting one or more segments to enter
Differentiated marketing = The strategy of pursuing several market segments with particular products and marketing mixes designed for the needs of each = A type of marketing strategy whereby a firm offers products or services to a number of market segments and develops separate marketing strategies for each
Undifferentiated marketing = The process opposite of market segmentation; i.e., marketers define their products as broadly as possible and promote a product or service to anyone capable of making a purchase
Concentrated marketing = The strategy of focusing on a single, easily defined, profitable market segment
Product-oriented positioning = The strategy that rests on some attribute inherent in a product’s makeup, packaging, use, or price
Market positioning = Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Product positioning = The proces by wich marketers create and image in buyers’ minds and control buyers’ perceptions of their product
Repositioning = The conscious effort to change consumers’ perceptions of a product – may be in order when marketers discover that a product appeals to other market segments
Consumer oriented positioning = The strategy aimed at getting the consumer to perceive a product in some unique, personally related manner, regardless of the product’s characteristics
Value proposition = The full positioning of a brand—the full mix of benefits upon which it is positioned.
Marketing planning = The process through which an organisation designs the offerings that will satisfy the needs of its target markets
Marketing research = The systematic and objective research for and analysis of information relevant to the identification and solution of any problem in the field of marketing
Marketing plan = A written document that contains the firm’s marketing strategy and tactics
Product life cycle = The product‘s stages of development, which consist of introductory, growth, maturity and decline stage
Demand curve = A curve that specifies the quantities demanded at various prices at a given time
Experience curve = A curve reflecting the fact that the costs of doing something tend to decrease as the organisation gains experience doing it
Fad = A cycle that is different from fashion only in the length of time, which is relatively short
Fashion + A cycle usually starting with a designer‘s need to be different, and his or her sense that the new design will be acceptable to at least a segment of the market
Life cycle extension = The process of finding new uses for the same product by the same users
Market modification = turning non-users to users, entry on new segments, reaching customers of competitors, more frequent and heavier use of product
Product modification = improvement quality, features and style of product
Mix modification = special and volume discounts, credit accessibility, broadening assortment, more outlets, channels, advertising costs, change of message, media, timing, rebates, gifts, display, territories, delivery speed, and servicing
Introductory stage = A stage in a product‘s life in which an innovation is alone in the market
Growth stage = A stage in a product‘s life in which sales and profits grow rapidly, competitors are attracted to the growing market, and cash flow can still be negative because of firm‘s efforts to establish a strong market share ahead of competitors. The market is usually turbulent in this period
Maturity stage = A stage in which sales growth slows, the market becomes saturated, and profits are high but begin to decline as market leaders cut prices in order to gain share
Decline stage = A stage in which total demand decreases, leading to a further dropout of competitors until only a few remain
Alternatives of introductory pricing = slow, and rapid penetration, eventually skimming
Concept testing = A process involving the accumulation and evaluation of consumers‘ reactions to a new product idea before the product is actually developed
Market share analysis = An evaluation of the firm‘s performance in comparison to that of its competitors
Relative market share = A firm‘s market share divided by the market share of its largest competitor
Secular trends = The raising or falling patterns of sales over a period of years
Seasonal patterns = The consistent sales patterns within a year which are based on factors such as weather or holidays
Growth-share matrix = A matrix that explains how market share, market growth, and cash flows are related
Marketing implementation = The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
Marketing audit = A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunites and to recommend a plan of action to improve the company's marketing performance
Barrier to entry = Conditions that make difficult for a firm to enter the market in a particular industry, such as high advertising budgets
Price
Price = Both the value that buyers place on what is exchanged and the marketers’ estimates of that value
Target costing = Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met
Fixed costs = Costs that do not vary with production or sales level
Variable costs = Costs that vary directly with the level of production
Total costs = The sum of the fixed and variable costs for any given level of production
Experience curve (learning curve) = The drop in the average per-unit production cost that comes with accumulated production experience
Demand curve = A curve that shows the number of units the market will buy in a given time period at different prices that might be charged
Price elasticity = A measure of the sensitivity of demand to changes in price
Total costs approach = An overall examination of the costs involved in moving finished goods from the end of the production line into customers’ hands
Break-even pricing (target profit pricing) = Setting price to break even on the costs of making and marketing a product; or setting price to make a target profit
Value-based pricing = Setting price based on buyers' perceptions of value rather than on the seller's cost
Value pricing = Offering just the right combination of quality and good service at a fair price
Competition-based pricing = Setting prices based on the prices that competitors charge for similar products
Equilibrium (market) price = The price at the point where supply equals demand
Basic price = The amount marketers estimate consumers will pay for the core product
List price = The amount at which a product is priced for final buyers, wheather individual consumers or organisation
Cross-elasticity of demand = The degree to which the quantity of one product demanded will increase or decrease in response to changes in the prices of another product
Functional accounts = Accounting units which divide expenditures according to their purpose
Functional (trade) discounts = Price concessions which compensate intermediaries for providing such services as storage, handling, and selling
Functional organisation = The organisation method which divides the marketing operation into groups according to their assigned tasks
Experience-curve pricing = A strategy that takes into account the costs of competing firms based on their experience in producing goods
Competiton-oriented pricing = A strategy whereby prices are set based on what a firm’s competitors are charging
Flexible pricing = Charging different prices to different customers usually based on negotiations and bargaining; it is rare but not unknown in the USA in consumer marketing, but is more prevalent in organisational marketing
Customary pricing = Pricing that matches buyer’s expectations about the costs of certain items; prices reflect custom and tradition, and changes are infrequent
Fair trade = The practice through which producers attempt to control the retail price of their products
Skimming = A strategy that is characterised by a high initial prices and promotional expenditures; the intent is to “skim the cream” from the market before anyone else can serve it
Discretionary income = The amount of personal income left after paying taxes, and after paying for necessities such as food, shelter, and clothing
Disposable income = The amount of personal income left after taxes
Downward-sloping demand, the law of = The law predicting that when the price of a good is rased, less of it is demanded
Upward-sloping supply, the law of = The law stating that when the price of a good is rased (at the same time that all other things are held constant), more of it will be produced
Elastic demand = A given percentage change in price results in a greater percentage change in the quantity Elasticity of demand = The degree to which the quantity produced and sold will increase in response to changes in price demanded
Uniform delivered pricing = Freight charges are added to the base price of the product such as that all buyers pay the same price regardless of their location
Price fixing = When competitors, through formal contracts or collusive actions, jointly agree upon prices
Warranty = The producer’s assurance that the product will meet buyers’ expectations or that buyers will be compensated in some way if the product fails to meet expectations
Penetration = Marketers set low initial prices in an attempt to capture mass markets
Price lining = A manufacturer or retailer sets a limited number of prices for selected lines of products
Product line pricing = Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices
Optional-product pricing = The pricing of optional or accessory products along with a main product
Captive-product pricing = Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera
By-product pricing = Setting a price for by-products in order to make the main product's price more competitive
Product bundle pricing = Combining several products and offering the bundle at a reduced price
Discounts = The reduction from the list price to be paid by consumers which represents the revenue source for intermediaries
Cash discounts = Price reductions given to buyers who pay for purchases within a stated period; they are not cash payments
Quantity discount = A price reduction to buyers who buy large volumes
Cumulative quantity discounts = A discount that applies to one buyer’s orders over a specified time-perhaps 6- or 12- month period
Functional discount = A price reduction offered by the seller to trade channel members who perform certain functions such as selling, storing, and record keeping
Seasonal discounts = Discounts granted to early or offseason buyers of products that have peak selling periods
Allowance = Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
Segmented pricing = Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
Psychological pricing = A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product
Reference prices = Prices that buyers carry in their minds and refer to when they look at a given product
Promotional pricing = Pricing that paves the way for a good old-fashioned sale; prices of selected items are lowered in an effort to attract customers
F.O.B. Pricing = F.O.B. stands for “free on board” and is followed by the designation “factory” or “destination” to indicate at what point the buyer assumes treight costs and title to the product
Uniform-delivered pricing = A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location
Zone pricing = A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone, the higher the price
Basing-point pricing = A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped
Freight-absorption pricing = A geographical pricing strategy in which the seller absorbs all or part of the actual freight charges in order to get the desired business
Geografic pricing = Pricing decisions which account for who takes responsibility for transportation charges-the seller or the buyer
Premiums = Gifts to paying customers; they are generally claimed throughthe mail by sending the marketer a number of proof-of-purchase lables or box tops
Patronage reward = Cash or other award for the regular use of a certain company's products or services
Cents-off coupons = Coupons that offer buyers minor price reductions at the point of sale
Premium price differential = The additional money consumers will pay for the augmented product
Promotional discounts = Discounts for encouraging promotion and sales efforts by intermediaries
Bonus packs = Special packaging that provides consumers with extra quantity of merchandise at no extra charge over the regular price
Prestige pricing = When the seller internationally sets prices at levels high enough to connote an image of quality status
Multiple-unit pricing = A form of promotional pricing where the product is priced for more than one unit, such “as two for one” sale
Predatory pricing = The practice by which large firms set extremely low prices in an effort to undercut small competitors and drive them out of business
Price discrimination = Selling the same product to different customers for different price
Non-cumulative quantity discounts = Price concessions based on quantity ordered on each individual sale
Odd-even pricing = The practice which assumes that consumers will perceive prices such as $9.95 as being “$9 and something” ratner than as “almost $10”.
Cost-plus pricing = A strategy that assumes a basic cost per unit and then adds a markup to provide a margin that covers overhead costs and returns a profit
Cost/volume/profit analysis = An approach which calculates the effect on profits of different prices, given different levels of demand in response to those prices
Price-off promotions = A strategy that involves temporary price reductions to retailers with the intent that savings will be passed along to consumers
Non-price competition = When firm’s strategy is advanced by components of the marketing mix other than price: the product itself, the distribution systém, or the promotional campaign
Push money = Special bonuses paid by a marketer to an intermediary’s sales force
Quantity discounts = Price concessions that are based either on number of units purchased or on the total dollar amount; they are used to encourage larger orders from a single buyer
Rebates = A promotional method which provides for financial returns to buyers from the manufacturer after the purchase has taken place
Cash refund offer (rebate) = Offer to refund part of the purchase price of a product to consumers who send a "proof of purchase" to the manufacturer
Price pack (cents-off deal) = Reduced price that is marked by the producer directly on the label or package

Self-liquidator = The consumer must pay a small charge for the premium to help cover the marketer'’ expenses; if this charge completely covers a marketer'’ costs, the premium is called a self-liquidator
Place
Distribution channel = A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user
Channel level = A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
Direct marketing channel = A marketing channel that has no intermediary levels
Indirect marketing channel = Channel containing one or more intermediary levels
Channel conflict = Disagreement among marketing channel members on goals and roles—who should do what and for what rewards
Conventional distribution channel = A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole
Vertical marketing system (VMS) = A distribution channel structure in which producers, wholesales, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate
Corporate VMS = A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership
Administered VMS = A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties but through the size and power of one of the parties
Horizontal marketing system = A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
Hybrid marketing channel = Multichannel distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Disintermediation = The elimination of a layer of intermediaries from a marketing channel or the displacement of traditional resellers by radically new types of intermediaries
Intensive distribution = Stocking the product in as many outlets as possible
Exclusive distribution = Giving a limited number of dealers the exclusive right to distribute the company's products in their territories
Selective distribution = The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products
Intermodal transportation = Combining two or more modes of transportation
Integrated logistics management = The logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system
Third-party logistics provider = An independent logistics provider that performs any or all of the functions required to get their clients' product to market
Transit time = The time from receipt of the order to delivery of the goods
Combined transportation modes = A transportation method which utilises more than one type of carrier
Vertical conflict = The conflict which occurs between members above and below each other in the distribution channel-between the manufacturer and intermediaries, or between intermediaries such as wholesalers and retailers
Horizontal conflict = The conflict which arises between wholesalers and retailers of the same level and type in a channel
Intertype conflict = The conflict which occurs when different kinds of intermediaries are part of the distribution channel
Conflict resolution = Accomodation of various channel members to decisions designed to promote the overall goals of the distribution channel
Horizontal integration = The process which brings together a number of channel members at the same level and puts them under single ownership

Place utitility = The usefulness gained when something of value is received where it is wanted
Retailing = All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use
Specialty store = A retail store that carries a narrow product line with a deep assortment within that line

Supplies = Items that are not incorporated into the buying organisation’s products;goods needed to keep everyday operations going
Supply = A relation showing the various amounts of a commodity that a seller would be willing and able to make available for sale at possible alternative prices during a given period of time, all other things remaining the same
Distribution channels = Channels that are made up of manufacturers or service producers and wholesalers and retailers through which products are marketed to consumers and organisational buyers
Channel length = The number of levels in a distribution channel
Channel strategy = Decisions which center on choosing and attracting the most effective types and the most efficient number of distributors in the best georgaphical locations
Channel width = The number of intermediaries found at the same level in the channel
Direct channels = The channels in which producers sell directly to final buyers; no intermediaries are involved
Multiple channles = Cannels which include different kinds of intermediaries at the same level
Voluntary chains = Wholesaler-sponsored organisations of independent retailers who practice bulk buying and similar merchandising techniques
Procurment costs = Inventory expenses that arise from the ordering process itself
Selective demand = A preference among buyers for specific brands
Selective distribution = A systém in which only a certain number of intermediaries, or those of o certain type, are chosen to distribute the product
Position = A product’s category and its relative standing within that category
Category development index (CDI) = An index that is calculated by taking the percentage of a product category’s total sales that occur in a given market area as compared to the percentage of the total population on the market
Category management = An organisational systém whereby managers have responsibility for the marketing programs for a particular category or line of products
Product category organisation = The organisation method that assigns marketing tasks by product category or brand
Slotting fees = Payments demanded by retailers before they will accept new products and find "slots" for them on the shelves
City zone = A category used for newspaper circulation figures that refers to a market area composed of the city where paper is published and contiguous areas similar in character to the city
Product line exclusivity = An agreement that the agency will not work on a competing product for the duration of the relationship
Polarity retailing = The concept stating that the successful forms of retailing is at the extremes; either the large mass merchandisers whith highly efficient operations, or the very small “boutique” retailers with a very deep line of merchandise in a very limited product line
Multilevel merchandiser = Those corporate retail chains which, by dint of size, have integrated backward and have achieved strong control over (if not ownership of) their wholesalers as well as their manufacturers
Cease and desist order = An action by the U.S. Federal Trade Commission that orders a company to stop engaging in a practice that is considered deceptive or misleading until a hearing is held
Corrective Advertising = An action by Federal Trade Commission whereby an advertiser can be required to run advertising messages designed to remedy the deception or misleading impression created by its previous advertising
Reseller markets = Firms that acquire goods and services in order to sell them again
Special sales representatives = People who promote the product directly to those who purchase it, to intermediaries, or to those who recommend it, but who do not actually take orders
Retailers = Merchants whose main business is selling directly to ultimate consumers
Wheel of retailing concept = A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced
Retailer co-operatives = Centralised buying organisations set up by retailers themselves
Convenience stores = Stores featuring convenience: long store hours (often 24 hours each day), ease of access, and quick shopping for items such as bread, milk, eggs, cigarettes, and newspapers
Off-price retailers = Stores that differ from other discounters in that they feature, almost exclusively, name-brand and designer label apparel at prices significantly below those in department and specialty stores
Strait commission = A financial incentive based solely on sales results; each increment of sales increases the commission
Scrambled merchandising = The contemporary practice among retailers of expanding their product lines beyond those traditionally carried, leading to competition between types of retailers
Supermarkets = Self-selection stores that sell a complete range of food and other items from various departments
Superstores = Stores that go well beyond combination stores by carrying such nonfood items as garden supplies, alcoholic beverages, books, housewares, and hardware
Urban shopping malls = Collections of shops and department stores located in or near central business districts
Shopping center = A group of commercial establishments planned, developed, owned, and managed as a unit related in location, size, and type of shops to the trade area that it services, and providing on-site parking in definite relationships to the types and sizes of stores it contains
Full-service retailers = Specialty shops, boutiques, and top-of-the-line department stores
Department stores = Stores characterised by wide and deep product mixes; individual departments within store; mid- to upper-level prices; and extensive services
Discount houses = Stores that are much like department stores except that their primary appeal is low price
Discount store = A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume
Hypermarché = A very large store (80.000 square feet and up) that adds furniture, appliances, and clothing to the items found in superstores
Specialty stores = Stores characterised by narrow product mixes with deep product lines, a high level of personal services, and relatively high prices
Category killer = Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees
Convenience store = A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods
Combination store = Store that carry over-the-counter and prescription drugs in addition to food items
Self-selection retailers = Stores that provide few services or sales personnel and sell mostly staples and homogenous shopping goods
Off-price retailer = Retailer that buys at less-than-regular wholesale prices and sells at less than retail
Independent off-price retailer = Off-price retailer that is either owned and run by entrepreneurs or is division of larger retail corporation
Factory outlet = Off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer's surplus, discontinued, or irregular goods
Warehouse club = Off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees
Chain stores = Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise
Franchise = A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system
Franchisor = Suppliers of products and management and marketing expertise that grant franchisees (dealers) the right to run a chain-like retailing establishments in return for fee and royalty arrangements
Franchise organization = A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process
In-home retailing = Selling that usually takes the form of a small party given by a hostess or host to allow friends and neighbours to examine and order a product line
District sales manager = A line executive who plans, directs, and controls the activities of field salespeople
Central business districts = Areas where many retailers are clustered together to také advantage of each other’s traffic
Warehouse showrooms = Stores that are located on low-rent, suburban sites, and focus on medium-priced furniture and appliances
Limited-service retailers = Some department store chains and limited-line stores that concentrate on heterogeneous shopping products
Wholesaling = All activities involved in selling goods and services to those buying for resale or business use
Wholesaler = Organisations which buy products from producers or other wholesalers and resell them to retailers or organisational buyers, or to other wholesalers
Limited-service wholesalers = Wholesalers who perform only selected functions
Full-service wholesalers = Organisations which provide almost all the functions of intermediaries and generally are divided into three subgroups: general merchandise wholesalers, single-line wholesalers, and specialty wholesalers
General merchandise wholesalers = Wholesaler who handle a broad range of products, from food and drug items to plumbing supplies and automotive accessories
Merchant wholesaler = Independently owned business that takes title to the merchandise it handles
Sorting out = The process by which wholesalers and retailers separate quantities of products into sizes, colours, quality grades, and so on
Cash-and-carry wholesalers = Wholesalers who emphasise reduced costs for small retailers, but do not provide credit or delivery
Specialty wholesalers = Wholesalers who have the most restricted inventories, focusing on items such as health foods or electric motors
Truck wholesalers = Wholesalers who pick up quantities of products at commercial markets and deliver them to retailers in case lots
Drop shippers = Organisations which take bulk orders from industrial users, other wholesalers, or retailers; they then order the desired products from manufacturers, who ship directly to the customers
Non-store retailing = Retailing that may be conducted impersonally (through catalogues, direct mail, and vending machines) or personally (door-to-door selling, in-home retailing, and telephone sales)
Door-to-door selling = A form of direct marketing which involves personal selling to individuals in their homes
Direct marketing = (1) A form of nonstore retailing in which a promotional message is delivered directly to potential customers, who respond directly to the company rather than through a traditional point of sale such as store. (2) Nonstore sales to consumers and organisational buyers via mail and telephone. (3) Direct communications with carefully targeted individual consumers to obtain an immediate response, and cultivate lasting customer relationships
Cost per customer purchasing = A cost effectiveness measure used in direct marketing based on the cost per sale generated
Professional sales representatives = Territory managers whose primary task is persuasive and creative face-to-face selling and account management
Agents (brokers) = Intermediaries who help bring manufacturers and retailers together and arrange sales for a commission payment; they do not také legal title to products
Broker = A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation
Selling agents = Agents who distribute the entire output of a manufacturer
Commission merchants = Merchants who receive goods on consignment from producers, také the merchandise to a central market, sell at the best price possible, deduct their commission, and remit the balance to the producer
Freight forwarders = Agencies which provide a combining service by which partial shipments (usually under 500 pounds) are assembled from several customers
Industrial sales people = People who sell goods and services used for producing other goods or for rendering other services
Manufacturer's sales branches and offices = Wholesaling by sellers or buyers themselves rather than through independent wholesalers
Vending machines = A form of non-store, non-personal selling which takes to the extreme the transaction between consumer and machine
String streets = Major thoroughfares along which are found random collections of almost every kind of store
Support personnel = People who aid efforts of professional sales representatives and order takers
Tying contract = An agreement between a supplier and an intermediary which requires the intermediary to buy product B in order to also get product A
Common carriers = Those transportation providers which offer their services for the use of others, and are under certain governmental regulations concerning the provision of such services
Vertical marketing systems = A system in which the functions of members at different levels in the distribution channel have been integrated under the ownership or influence of one member in order to set shared goals and to achieve effective performance
Backward integration = The approach by which the intermediaries acquire control over manufacturers
Forward integration = The approach in which the manufacturers acquire control over wholesalers and retailers
Promotion
Marketing communications mix (promotion mix) = The specific mix of advertising, personal selling, sales promotion, public relations, and direct-marketing tools a company uses to pursue its advertising and marketing objectives
Advertising = Any paid form of non-personal communication, usually delivered through mass media by an identified sponsor
Personal selling = Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
Publicity = A form of promotion composed of newsworthy messages sent through the media on a non-paid basis
Direct marketing = Direct communications with carefully targeted individual consumers to obtain an immediate response, and cultivate lasting customer relationships
Sales promotion = Short-term incentives to encourage the purchase or sale of a product or service
Integrated marketing communications (IMC) = The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
Buyer-readiness stages = The stages consumers normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction, and purchase
Personal communication channels = Channels through which two or more people communicate directly with one another, whether face to face, by telephone, by mail, or via the Internet
Word-of-mouth influence = Personal communication about a product between target buyers and neighbors, friends, family members, and associates
Prospect = A potential (but not yet) customer
Initial approach = The first contact by a salesperson with a prospect, usually to arrange a meeting
Informal information = The mixture of unorganised, irregular daily communications which flows to most of us in contemporary society
Perceptual map = The result of the process when marketers ask a representative group of buyers within a market segment to compare brands in a certain category
Communication = The process of sharing meaning through the use of symbols = The passing of information, exchange of ideas, or processes of establishing shared meaning between a sender and a receiver
Communications flow = The movement of information through the channels of distribution; includes the flow of promotion from manufacturers through intermediaries to consumers, and the flow of market information from consumers back through intermediaries to manufacturers
5-Ws model of communication = A model of the communications process that contains five basic elements” who? (source), says what? (message), in what way? (channel), to whom? (receiver), and with what effect? (feedback).
Cognitive processing = The process by which an individual transforms external information into meaning or patterns of thought and how these meanings are used to form judgements or choices about behavior
Cognitive dissonance = A state of psychological tension or post-purchase doubt that a consumer may experience after making a purchase decision. This tension often leads the consumer to try to reduce it by seeking supportive information
Cognitive responses = Thoughts that occur to a message recipient while reading, viewing, and/or hearing a communication
Compliance = A type of influence process where a receiver accepts the position advocated by a source to obtain favorable outcomes or avoid punishment
Communication objectives = Goals that an organisation seeks to achieve through its promotional program in terms of communication effect such as creating awareness, knowledge, image, attitudes, preferences, or purchase intentions
AIDA model = A model that depicts the successive stages a buyer passes through in the personal selling process including: attention, interest, desire, and action
Classical conditioning = A learning process whereby a conditioned stimulus that elicits a response is paired with a neutral stimulus that does not elicit any particular response. Through repeated exposure, the neutral stimulus becomes to elicit the same response as the conditioned stimulus
Conditioned response = In classical conditioning, a response that occurs as a result of exposure to a conditioned stimulus
Conditioned stimulus = In classical conditioning, a stimulus that becomes associated with and unconditioned stimulus and capable of evoking the same response or reaction as the unconditioned stimulus
Communication task = Under DAGMAR approach to setting advertising goals and objectives, something that can be performed by and attributed to advertising such as awareness, comprehension, conviction and action
DAGMAR = An acronym that stands for defining advertising goals for measured advertising results. An approach to setting goals and objectives developed by Russell Colley
ASI recall test = A day-after recall test of television commercials (formerly known as Burke test)
Central route to persuasion = One of two routes to persuasion recognised by the elaboration likelyhood model. The central route to persuasion views a message recipient as very active and involved in the communications process and as having the ability and motivation to attend to and process a message
Absolute costs – The actual total cost of placing an ad in a particular media vehicle.
Follow up = The final selling step which involves actions after the sale to ensure that the order is received on time and as specified
Two-step communication = The notion that communications flow from the media to opinion leaders, and then from opinion leaders to other members of society
Source = The communicator sending a message to other party or parties
Receiver = The person who decodes the message transmited by the source
Counterargument = A type of thought or cognitive response a receiver has that is counter or opposed to the position advocated in a message
Encoding = The process by which a source chooses signs and symbols to construct a message
Decoding = The process of translating or interpreting the symbols of a message to derive its meaning
Coverage = A measure of potential audience that might receive an advertising message through a media vehicle
Feedback = The response or reaction that a receiver may give the source as a result of messages
Source credibility = The extent to which the source of a communication is believable to the target audience
Channel (medium) = The vehicle for transmitting a message = The method or medium by which communication travels from a source or sender to a receiver
Copy platform = A document that specifies the basic elements of the creative strategy such as the basic problem or issue the advertising must address, the advertising and communication objectives, target audience, major selling idea or key benefits to communicate, campaign theme or appeal, and supportive information or requirements
Copywriters = Individuals who help conceive the ideas for ads and commercials and write the words or copy for them
Body copy = The main text portion of a print ad. Also often referred as a copy
Billings = The amount of client money agencies spend on media purchases and other equivalent activities. Billings are often used as a way of measuring the size of advertising agencies
Cost per rating point = A computation used by media buyers to compare the cost effeciency of broadcast programs that divides the cost of commercial time on a program by the audience rating
Cost per thousand = A computation used in evaluating the relative cost of various media vehicles that represents the cost of exposing 1000 members of target audience to an advertising message
Account executive = The individual who serves as the liasion between the advertising agency and the client. The account executive is responsible for managing all of the services the agency provides to the client and representing the agency’s point of view to the client
Reach = The proportion of the target audience who will see an advertisement at least once
Gross ratings point (GRP) = A unit of reach times frequency; thus, a GRP of 1 indicates that 1 percent of target market audience saw the advertisement once
Adjacencies = Commercial spots purchased from local television stations that generally appear during the time periods adjacent to network programs
Frequency = The number of times, on average, that each person reached will see or hear the advertisement
Average frequency = The number of times the average household reached by a media schedule is exposed to a media vehicle over a specified period
Average quarter-hour figure (AQH) = The average number of persons listening to a particular station for at least five minutes during 15-minute period
Average quarter-hour rating = The average quarter-hour figure estimate expressed as a percentage of the population being measured
Average quarter-hour share = The percentage of the total listening audience tuned to each station as a percentage of the total listening audience in the survey area
Recall tests = Tests of print advertisements which do not assists the respondent’s memory by providing the ads themselves
Concave downward function = An advertising /sales response function that views the incremental effects of advertising on sales as decreasing
Creative execution = The process involved in deciding how the message is to be said in an advertisement
Recognition test = Test of effectiveness of print advertising which measures the ability to recognise an advertisement when presented
Reference group = Groups to which people turn in order to measure the acceptability of what they do
Attractiveness = A source characteristic that makes him or her appealing to a message recipient. Source attractiveness can be based on similarity, familiarity, or likability
Influencers = People whose expertise or opinions have a bearing on the purchase decision
Pull strategy = A strategy through which marketers aim mass promotional efforts at consumers and customers with the intent to create demand which pulls the product through the channels = A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand, which pulls the product through the channels
Push strategy = A strategy through which personal selling and sales promotion are directed at channel members, who then promote product to consumers = A promotion strategy that calls for using the sales force and trade promotion to push the product through channels
Pulsing (or flighting) = A strategy of unevenly timed exposure af advertisments
Gatekeepers = Those who can control information flow to members of the buying center-and to prospective suppliers
Promotion = All aspects of the marketing mix designed to communicate with and influence target markets
Promotion strategy = A communication plan designed to bring about desired buyer behaviours by employing a mix of the four elements of promotion
Promotion mix = The blend of promotional elements selected and the extent to which each is used to influence product market, push-pull, readeness and a life cycle
All-you-can-afford approach = The strategy of setting the advertising budget as high as possible
Arbitrary allocation = A method for determining the budget for advertising and promotion based on arbitrary decisions of executives
Build-up approach = A method of determining the budget for advertising and promotion by determining the specific tasks that have to be performed and estimating the costs of performing them. See objective and task method
Cost plus system = A method compensating advertising agency whereby the agency receives a fee based on the cost of the work it performs plus an agreed amount for profit
Point-of-purchase (POP) promotion = Display and demonstration that takes place at the point of purchase or sale
Contests, sweepstakes, games = Promotional events that give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort
Salesperson = An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering
Territorial sales force structure = A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line
Product sales force structure = A sales force organization under which salespeople specialize in selling only a portion of the company's products or lines
Customer sales force structure = A sales force organization under which salespeople specialize in selling only to certain customers or industries
Workload approach = An approach to setting sales force size in which the company groups accounts into different size classes and then determines how many salespeople are needed to call on each class of accounts the desired number of times
Outside sales force = Outside salespeople who travel to call on customers. Also known as field sales force
Inside sales force = Inside salespeople who conduct business from their offices via telephone or visits from prospective buyers
Telemarketing = Using the telephone to sell directly to customers
Team selling = Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
Sales quotas = Standards set for salespeople, stating the amount they should sell and how sales should be divided among the company's products
Selling process = The steps that the salesperson follows when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up
Prospecting = The step in the selling process in which the salesperson identifies qualified potential customers
Preapproach = The step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call
Approach = The step in the selling process in which the salesperson meets and greets the buyer to get the relationship off to a good start
Presentation = The step in the selling process in which the salesperson tells the product "story" to the buyer, showing how the product will make or save money for the buyer
Handling objections = The step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying
Closing = The step in the selling process in which the salesperson asks the customer for an order
Follow-up = The last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business
Relationship marketing = The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders
Consumer-oriented sales promotion = Sales promotion techniques that are targeted to the ultimate consumer such as coupons, samples, contests, rebates, sweepstakes, and premium offers
Clients = The organisations with the products, services, or causes to be marketed and for which advertising agencies and other marketing promotional firms provide services
Advertising objective = A specific communication task to be accomplished with a specific target audience during a specific period of time
Business-to-business advertising = Advertising used by one business to promote the products and/or services it sells to another business
Attitude toward the ad = A message recipient’s affective feelings of favorability or unfavorability toward an advertisement
Advertising appeal = The basis or approach used in an advertising message to attract the attention or interest of consumers and / or influence their feelings toward the product, service, or cause
Creative execution style = The manner in which a particular advertising appeal is transformed into a message
Affect referral decision rule = A type of decision rule where selections are made on the basis of an overall impression or affective summary evaluation of the various alternatives under consideration
Consent order = A settlement between a company and the Federal Trade Commission whereby an advertiser agrees to stop the advertising or practice in question. A consent order is for settlement purposes only and does not constitute an admission of guilt
Carryover effect = Delayed or lagged effect whereby the impact of advertising on sales can occur during a subsequent time period
Advertising campaign = a comprehensive advertising plan that consists of a series of messages in a variety of media that centre on a single theme or idea
Advertisers = The identified sponsors who pay to promote their goods, services, and ideas to target audiences
Advertising agency = A firm that specialises in the creation, production, and placement of advertising messages and may provide other services that facilitate the marketing communication process
Clipping service = A service which clips competitors’ advertising from local print media allowing the company to monitor the types of advertising they are running or to estimate their advertising expenditures
Advertising creativity = The ability to generate fresh, unique, and appropriate ideas that can be used as solutions to communication problems
Advertising manager = The individual in the organisation who is responsible for the planning, co-ordinating, budgeting, and implementing of the advertising program
Big idea = A unique idea for an advertisement or campaign that attracts consumers’ attention, gets a reaction, and sets the advertiser’s product or service apart from the competition
Advertising specialities = Items used as giveaways to serve as a reminder or stimulate remembrance of a company or brand such as calendars, T-shirts, pens, key tags, and the like. Specialities are usually imprinted with a company or brand name or other identifying marks such as address and phone number
Advertising substantiation = A Federal Trade Commission regulatory program that requires advertisers to have documentation to support the claims made in their advertisements
Affirmative disclosure = A U.S. Federal Trade Commission program whereby advertisers may be required to include certain types of information in their advertisements so consumers will be aware of all consequences, conditions, and limitations associated with the use of product or service
Image advertising = Advertising which aims to establish a positive identity for the corporation or to rebut criticism
Advocacy or issue advertising = Advertising which takes a stand on some issue on behalf of the advertiser; is not designed to promote products
Advocacy advertising = Advertising that is concerned with the propagation of ideas and elucidation of social issues of public importance in a manner that supports the position and interest of the sponsor
Continuity = The strategy of scheduling the advertising evenly over the weeks and months of the year = Media scheduling strategy where a continuous pattern of advertising is used over the time span of the advertising campaign
Characterisation attributes = Those attributes used in advertising which associate the product with the kind of people who use it
Pioneer advertisements = Advertisements that that increase primary demand for the product that bring nonusers into the users category
Direct action advertisements = Advertisements designed to move consumers and customers to take some immediate action
Emotional advertisements = Advertisements that attempt to create moods that will subsequently be associated with the product
Financial-relation advertising = Advertising which portrays the corporation as fiscally sound and run by forward-looking management
Competitive advertisements = Advertisements that create selective demand-that is, a preference for the advertiser’s brand as opposed to a competitors
Comparative advertising = The practice of either or indirectly naming one or more competitors in advertising message and usually making a comparison on one or more specific attributes or characteristics
Reinforcement advertisements = Advertisements that booster and enhance satisfaction with purchases already made
Reminder advertisements = Advertisements that aim at reinforcement by keeping the product in the buyers’ minds
Delayed-action advertising = The advertisements which attempt to influence consumer attitudes and preferences, thus helping to set the stage for a purchase
Slice-of-life advertisements = Advertisements that show the product being used by ‘ordinary people’ in very common settings or engaged in everyday activities
Trade advertisements = Advertisements for the purpose of influencing intermediaries either to stock a product or to advance it through distribution channels on its way to ultimate consumers
Informative advertisements = Advertising for the purpose of creating knowledge of the product
Testimonial advertisements = Advertisements that attempt to get consumer to identify with someone who claims that he or she uses and likes the product
Flighting (or pulsing) = The strategy of unevenly timed exposures of advertising
Aerial advertising = A form of outdoor advertising where messages appear in the sky in the form of banners pulled by aeroplanes, skywriting, and on blimps
Vehicles = Specific outlets within a larger advertising medium
Industrial advertisements = Advertising to promote goods and services for business and organisational use
Co-operative advertising = A form of promotion in which the manufacturer makes available to the wholesaler-or more commonly to the retailer- a fund intended to help cover the costs of the channel member’s advertising which features the manufacturer’s brand
Corporate advertising = Campaigns formerly known as public opinion, image, or institutional advertising-media space or time bought for the benefit of the corporation rather than of any of its products
Creative strategy = The primary message to be communicated by the advertising campaign. This is the major responsibility of the advertising agency
Creative tactics = A determination of how and advertising message will be implemented so as to execute the creative strategy
Creative boutiques = Small agencies specialising in the creative work for an advertising campaign
Creative service department = The section of an advertising agency which is responsible for the creation, design, and production of whatever will appear or be heard on radio or television or in print
Full-service advertising agency = The type of advertising agency that has the resources to offer its clients a wide range of services, including the four most basic services: account management/marketing, creative, media, and research
Agency evaluation process = The process by which a company evaluates the performance of its advertising agency. This process includes both financial and qualitative aspects
In-house agencies = Advertising agencies owned by the advertiser, which perform the functions of a full-service advertising agency
Costs per thousand (CPM) = The media cost of reaching 1000 persons, used to compare across media vehicles
Copyright = The exclusive legal right to reproduce, publish, and sell a literary, musical, dramatic, or artistic work
Lables = A lable encompasses any printed information on the packaging that describes the product
Informative lables = Lables that tell the consumer about the product’s ingredients, use, dating, and so on
Brand = A name, term, symbol, or design or a combination of them that is intended to identify the goods or services of one seller or group of sellers and to differentiate them from products of competitors
Brand equity = The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships
Brand extension = Using a successful brand name to launch a new or modified product in a new category
Co-branding = The practice of using the established brand names of two different companies on the same product
Forms of fighting brands = national, own, private, product, family, blanket
Brand development index (BDI) = An index that is calculated by taking the percentage of a brand’s total sales that occur in a given market as compared to the percentage of the total population in the market
Brand extension strategy = The strategy of applying an existing brand name to a new product
Brand loyalty = Preferences by a consumer for a particular brand that results in continual purchase of it
Evoked set = The subset of available brands of a product class which a consumer considers appropriate alternatives, and from which a choice is made
Family brands = The assignment of the same or similar names to multiple products made by the same company in which the name of the company is often employed
Brand manager = The individual in an organisation responsible for planning, implementing, and controlling the marketing program for a particular brand. Brand managers are sometimes referred to as product managers
Brand competitors = Other companies which also manufacture the same product
Brand image = The overall concept of the product as perceived by consumers
Brand insistence = The phenomenon that occurs when consumers demand a certain product and will go out of their way to get it
Brand mark = The part of a brand which can be recognised but is not utterable
Brand name = The part of a brand which can be vocalised-the utterable
Brand non-recognition = The fact that people do not know the existence of the brand
Brand recognition = The simple awareness that a product exists, apart from competing products
Brand preference = The attitude taken by consumers who have tried a brand and have at least moderately positive attitudes toward it
Brand rejection = The rejection of a brand by a consumer who has negative experience with it
Individual brands = Brands which have no obvious connection with the parent company
Business libel = Making an unfair or untrue written statement about a competitor
Business slander = Making an unfair or untrue oral statement about a competitor
Trade character = A brand mark that represents a human being or an animal associated with a product
Trade name = The name under which a company chooses to conduct its business, which may or may not also be a brand name
Trade promotions = Promotional methods that spur action on the part of channel members, such as additional orders from retailers or a special push by a wholesaler to promote one manufacturer’s products
Trade shows = Special gathering of buyers and sellers of a line of products, usually once per year, where new products can be shown and orders taken for a selling season
Trademark = A brand or part of a brand that is given legal protection because it is capable of exclusive appropriation
Private(store) brands = Brands of products made by manufacturers for sale by intermediaries under a label of the intermediary’s own choice = A brand created and owned by a reseller of a product or service
Persuasive lables = Lables which have promotional intent
Affordable method = A method determining the budget for advertising and promotion where all other budget areas are covered and remaining monies are available for allocation
Percentage-of-sales method = Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
Competitive-parity method = Setting the promotion budget to match competitors' outlays
Objective-and-task approach = An approach in which marketers establish advertising objectives, than calculate the costs of the methods selected to achieve these goals in order to arrive at a budget
Combination rates = A special rate discount offered for advertising in two or more periodicals. Combination rates are often offered by publishers who own both morning
Commission system = A method of compensating advertising agencies whereby the agency receives a specified commission (traditionally 15 percent) from the media on any advertising time or space it purchases
Selling position = The specific promotional idea used to present the product to buyers in the target market
Storyboards = Sketches, written copy, and directions used to communicate a television commercial’s message
Sweepstakes = A promotional method in which consumers fill out a form to enter a random drawing for prizes
Bait-and-switch promotion = A practice through which the retailer brings buyers to the store with advertising for a bargain price on a product which is not in adequate supply with the intent of switching the buyer to a higher priced product
Coupon = Certificate that gives buyers a saving when they purchase a specified product
In-pack coupons = coupons that are affixed to the product and allow savings on a future purchase
Affiliates = Local television stations that are associated with a major network. Affiliates agree to preempt time during specified hours for programming provided by the network and carry the advertising contained in the program
Barter syndication = The offering of television programs to local stations free or at a reduced rate but with some of the advertising time pre-sold to national advertisers. The remaining advertising time can be sold to local advertisers
Animatic = A preliminary version of a commercial whereby a videotape of the frames of a storyboard is produced along with an audio soundtrack
Broadcast media = Media that use the airwawes to transmit their signal and programming. Radio and television are examples of broadcast media
Agate line = Unit of newspaper space measurement, 1 column wide by 1/14 inch deep. Thus 14 agate lines = 1 column inch
Alternative media = A term commonly used in advertising to describe support media
Audiotex = The use of telephone and voice information services to market, advertise, promote, entertain, and inform consumers
Clutter = The non-program material that appears in a broadcast environment, including commercials, promotional messages for shows, public service announcements, and the like
Bleed pages = Magazine advertisements where the printed area extends to the edge of the page, eliminating any white margin or border around the ad
Classified advertising = Advertising that runs in newspapers and magazines that generally contains text only and is arranged under subheadings according to the product, service, or offering. Employment, real estate, and automotive ads are the major forms of classified advertising
Formal sales training = A process used to give new salespeople product knowledge, skill in selling, information about markets and competition, and guidance on company policies and practices
Close = Obtaining the commitment of the prospect in a personal selling transaction
Consumer-franchise-building promotions = Sales promotion activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity
Direct-mail marketing = Direct marketing through single mailings that include letters, ads, samples, foldouts, and other "salespeople with wings" sent to prospects on mailing lists
Direct-response television marketing = Direct marketing via television, including direct-response television advertising or infomercials and home shopping channels
Online marketing = Marketing conducted through interactive online computer systems, which link consumers with sellers electronically
Commercial online services = Services that offer online information and marketing services to subscribers who pay a monthly fee
Electronic commerce (e-commerce) = The general term for a buying and selling process that is supported by electronic means
Corporate Web site = Web site that seeks to build customer goodwill and to supplement other sales channels rather than to sell the company's products directly
Marketing Web site = Web site designed to engage consumers in an interaction that will move them closer to a purchase or other marketing outcome
Online ads = Ads that appear while subscribers are surfing online services or Web sites, including banners, pop-up windows, "tickers," and "roadblocks."
Webcasting = The automatic downloading of customized information of interest to recipients' PCs, affording an attractive channel for delivering Internet advertising or other information content
Integrated direct marketing = Direct-marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits
Cost per order (CPO) = A measure used in direct marketing to determine the number of orders generated relative to the cost of running the advertisement
Controlled circulation basis = Distribution of a publication free to individuals a publisher believes are of importance and responsible for making purchase decisions or are prescreened for qualification on some other basis
Product
Product = Anything and organisation or individual offers for exchange that may satisfy customers’ or consumers’ needs or the marketer’s own needs
Consumer product = Product bought by final consumer for personal consumption
Convenience products = Products that are widely available, usually inexpensive, and frequently purchased = Consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort
Shoping products = Goods and services that consumers shop for, comparing quality, suitability, style, price, and other factors
Specialty products = Products perceived by consumers as having unique qualities, to the point that no substitutes are acceptable
Unsought products = Those products that consumers do not consciously want or actively seek out
Industrial products = Products purchased by an organisation for use either in other products or in its own operations
Product levels = potential, augmented, expected generic, core benefit
Core product = The basic good or service purchased, aside from its packaging or accompanying services
Functional attributes = Things that a product or service does for consumers
Total quality management (TQM) = Programs designed to constantly improve the quality of products, services, and marketing processes
Emergency products = Those products that are usually purchased as the result of urgent needs
Staple = Goods which buyers give litle thought when purchasing, other than noting the need for the item and picking it up
Generic products = Products which are not branded, are simply packed, and usually are priced well below both manufacturer’s and private brands
Augmented product = A good, service, or idea enhanced by its accompanying benefits; synthesis of what the seller intends and the buyer perceives
Product quality = The ability of a product to perform its functions; it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes
Innovation = A product which is perceived in the marketplace as being innovative
Impulse products = Those products which the consumer buys without having established intention to buy, often feature on racks arranged prominently and enticingly around checkout counters in supermarkets, drugstores, and variety stores
Homogeneous shopping products = Products among which consumers perceive little difference in the core benefits
Heterogeneous shopping products = Products that differ from each other on important dimensions, such as style, design, and personal taste, for which such dimensions tend to outweight price in the purchasing decision
Durable goods = The tangible items that can be expected to survive multiple use
Loss leaders = (or price leaders) = Products advertised below the retailer’s costs to increase customer traffic
Implied warranties = Unwritten warranties that indicate that the product is in good condition and is suitable for the purpose for which it was bought
Services = Activities, benefits, or satisfactions that are offered to satisfy consumers’ and customers’ needs
Service intangibility = A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought
Service inseparability = A major characteristic of services—they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines
Service variability = A major characteristic of services—their quality may vary greatly, depending on who provides them and when, where, and how
Service perishability = A major characteristic of services—they cannot be stored for later sale or use
Service-profit chain = The chain that links service firm profits with employee and customer satisfaction
Internal marketing = Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction
Interactive marketing = Marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer–seller interaction
Servicing = The maintenance of the product in working order so that its benefits are not diminished
Industrial services = Services purchased for use in producing the buyer’s products or, more frequently, for use in general operation
Product orientation = A philosophy of business which focuses primarily on a firm’s own resources and products
Product line = A grouping of products managed and marketed as a unit because they have similar functions, are distributed in similar ways, or fall within the certain price range. Length, breath, depth and kontinuum is distinguished.
Product line breath = The number of product lines in the product mix of an organisation
Product line depth = The number of individual items within each product line
Line extension = Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes
Product class = All the brands of a good and service offered by all competitors to meet a basic consumer need
Balanced product portfolio = A proper mix of new, growing, and mature products whose sales provide the cash flow to ensure long-term prosperity
Variety discrepancy = The difference between the number of different products produced by marketers and the variety desired by consumers
Product competitors = Companies which are filling the same market needs with a slightly different offering
New product development = The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts
Idea generation = The systematic search for new-product ideas
Idea screening = Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible
New product concept = A detailed version of the new-product idea stated in meaningful consumer terms
Concept testing = Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Marketing strategy development = Designing an initial marketing strategy for a new product based on the product concept
Business analysis = A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
Product development = A strategy for company growth by offering modified or new prodcuts to current market segments. Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product
Test marketing = The stage of new-product development in which the product and marketing program are tested in more realistic market settings = The process in which the product is actually introduced into selected geographical markets where developers can observe how consumers and dealers react to the handling, use, and promotion of the product
Commercialization = Introducing a new product into the market
Product development process = The process comprising of series of steps involved in getting a product on the market: idea generation, screening, feasibility studies, prototype development, test marketing, and commercionalisation
Sequential product development = A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage
Simultaneous (or team-based) product development = An approach to developing new products in which various company departments work closely together, overlapping the steps in the product-development process to save time and increase effectiveness
New-product business plan = A plan that includes estimates for new-product development, submitted by marketing, production, and accounting personnel
New-task buying = The situation generated by an unfamiliar problem with an old product or the need for a new product in the buying process
Worldwide product division = A form of organisation under which each of the company’s major product lines, or business units, is responsible for the marketing of its product throughout the world
Product ladder = The concept that states that consumers perceive brands of a product to be arrayed from top to bottom in terms of their familiarity and preference
Product disparagments = Making false or deceptive comparisons or distorted claims concerning a competitor’s product, services, or property
Product adaptation = A global marketing strategy whereby the product is adapted to foreign market needs, but the promotional program used in the domestic market is used in foreign markets
Product invention = A global marketing strategy whereby a new product is created specifically for the needs of the foreign market, and is then promoted to this market
Adoption process = A process which is made up of the stages that individuals, households, or organisations go through in accepting an innovation
Product elimination = Withdrawal of a product from the normal market place
Product line extension = Development of greater depth by adding new product varieties
Product manager (brand manager) = The person who is responsible for initiating, developing, and implementing product or product line plans
Product-market matrix = A visual means of defining a business by its markets and by the products directed towards those markets
Product mix = A company’s total offering of individual products
Creative selling = A type of sales position where the primary emphasis is on generating new business
International Marketing
Customer lifetime value = The amount by which revenues from a given customer over time will exceed the company's costs of attracting, selling, and servicing that customer
Customer delivered value = The difference between total customer value and total customer cost of a marketing offer–"profit" to the customer
Total customer cost = The total of all the monetary, time, energy, and psychic costs associated with a marketing offer
Value chain = A major tool for identifying ways to create more customer value
Value-delivery network = The network made up of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system
Quality = The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
Competitor analysis = The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid
Competitive marketing strategies = Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage
Benchmarking = The process of comparing the company's products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance
Market leader = The firm in an industry with the largest market share; it usually leads other firms in price changes, new product introductions, distribution coverage, and promotion spending
Market challenger = A runner-up firm in an industry that is fighting hard to increase its market share
Market follower = A runner-up firm in an industry that wants to hold its share without rocking the boat
Market nicher = A firm in an industry that serves small segments that other firms overlook or ignore
Competitor-centered company = A company whose moves are mainly based on competitors' actions and reactions
Customer-centered company = A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers
Market-centered company = A company that pays balanced attention to both customers and competitors in designing its marketing strategies
Marketing company = A form of subsidiary organisation which markets, sell, and service the firm‘s products in the host country
Derived demand = The demand based on expectations of upcoming demand for other industrial or consumer products
Better Business Bureau (BBB) = An organisation established and funded by businesses that operates primarily at the local level to monitor activities of companies and promote fair advertising and selling practices
Promotion adaptation = A global marketing strategy whereby the product sold in domestic markets is not altered in any important ways, but market communications are adapted to local conditions
Dual adaptation = A global strategy whereby both the product and the promotional programs are adapted to foreign market conditions
Dumping = Selling a product in a market other than a home market at prices below the cost of making and delivering them to that market
Product invention = A global marketing strategy whereby a new product is created specifically for the needs of the foreign market, and is then promoted to that market
Discontinuous innovation = An innovation which truly changes how we do what we have long been doing
Diffusion process = A process consisting of communication about, and acceptance of, the innovation throughout the social system over a period of time
Income distribution = How thoroughly the income in a nation is spread through the population
Direct exporting = Refers to the marketing firm’s active efforts to sell its products, made domestically, in foreign markets
Direct investments = An arrangement under which an international marketer invests the funds necessary to build or purchase its own facilities in the host country
Diseconomies of scale = The effort to increase production results in inefficiencies, such as having to pay higher labour costs for overtime or having to pay more for scarce resources
Economies of scale = More efficient operations and multiple uses of resources result in decreasing costs; average variable costs and thus average total costs also decline
Environmental monitoring = A systematic group of activities designed to anticipate changes in external variables that will affect the organisation’s ability to meet its goals
Geographical organisation = The organisation method based on management by region, state, area, nation, or global sector
Global marketing = Refers to any marketing that involves two or more nations
Government markets = The purchasing or leasing of goods and services in order to carry out government functions and to further the public purpose
Exporting = Entering a foreign market by sending products and selling them through international marketing intermediaries (indirect exporting) or through the company's own department, branch, or sales representatives or agents (direct exporting).
Joint venturing = Entering foreign markets by joining with foreign companies to produce or market a product or service
Licensing = A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty
Contract manufacturing = A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service
Management contracting = A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products
Joint ownership = A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control
Direct investment = Entering a foreign market by developing foreign-based assembly or manufacturing facilities
Standardized marketing mix = An international marketing strategy for using basically the same product, advertising, distribution channels, and other elements of the marketing mix in all the company's international markets
Adapted marketing mix = An international marketing strategy for adjusting the marketing mix elements to each international target market, bearing more costs but hoping for a larger market share and return
Straight product extension = Marketing a product in a foreign market without any change
Product adaptation = Adapting a product to meet local conditions or wants in foreign markets
Product invention = Creating new products or services for foreign markets
Communication adaptation = A global communication strategy of fully adapting advertising messages to local markets
Whole-channel view = Designing international channels that take into account all the necessary links in distributing the seller's products to final buyers, including the seller's headquarters organization, channels among nations, and channels within nations
Export department = An organisational for used by firms which are primarily exporting their products to foreign markets, rather than maintaining marketing organisations abroad
Export trading company = An organisation which provides its exporting expertise and facilities to many small and medium-size firms that could not otherwise engage in multinational marketing
Indirect exporting = A form of global marketing that takes the least effort on the part of the seller; relies on the efforts of export agents who sell the product abroad, often without the specific knowledge of the manufacturer
Tariff = A tax levied by a government against certain imported products. Tariffs are designed to raise revenue or to protect domestic firms
Quota = A limit on the amount of goods that an importing country will accept in certain product categories
Embargo = A ban on the import of a certain product
Exchange controls = Government limits on the amount of foreign exchange with other countries and on the exchange rate against other currencies
Nontariff trade barriers = Nonmonetary barriers to foreign products, such as biases against a foreign company's bids or product standards that go against a foreign company's product features
Economic community = A group of nations organized to work toward common goals in the regulation of international trade
Countertrade = International trade involving the direct or indirect exchange of goods for other goods instead of cash
Collateral services = Companies that provide companies with specialised services such as package design, advertising production, and marketing research
Central organisational structure = A method of organising for international advertising along with other marketing activities such as sales, marketing research, and planning are divided along functional lines and are run from one central marketing department
Express warranty = A warranty written in terms that specify exactly what claims and guarantees the producer is offering
Foreign sales force = An organisational form for global marketing in which the marketer maintains a sales organisation abroad to sell to foreign markets, but not have its own subsidiary companies abroad
Foreign subsidiaries = An organisational form in which the global marketer establishes its own companies in foreign markets in order to market, and sometimes manufacture, in those markets
International division = A form of organisation under which a special division of the company is responsible for the marketing of all the firm’s products throughout the world
Joint ownership = An arrangement whereby an international marketer and an organisation in the host country create third organisation which they own jointly
Joint venture = An agreement between a marketing organisation and another organisation, in the host country, through which the tasks of producing and marketing a product are shared
Licensing agreement = An agreement under which an organisation in the host country is given the right to make the marketer’s patented (or patentable) product for sale in that market
Consumerism = An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
Environmentalism = An organized movement of concerned citizens, businesses, and government agencies to protect and improve people's living environment
Environmental sustainability = A management approach that involves developing strategies that both sustain the environment and produce profits for the company
Enlightened marketing = A marketing philosophy holding that a company's marketing should support the best long-run performance of the marketing system
Consumer-oriented marketing = A principle of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer's point of view
Innovative marketing = A principle of enlightened marketing that requires that a company seek real product and marketing improvements
Value marketing = A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments
Sense-of-mission marketing = A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms
Deficient products = Products that have neither immediate appeal nor long-run benefits
Pleasing products = Products that give high immediate satisfaction but may hurt consumers in the long run
Salutary products = Products that have low appeal but may benefit consumers in the long run
Desirable products = Products that give both high immediate satisfaction and high long-run benefits
Balance sheet = A financial statement that shows assets, liabilities, and net worth of a company at a given time
Operating statement (profit-and-loss statement, income statement) = A financial statement that shows company sales, cost of goods sold, and expenses during a given period of time
Gross sales = The total amount that a company charges during a given period of time for merchandise
Cost of goods sold = The net cost to the company of goods sold
Gross margin = The difference between net sales and cost of goods sold
Operating ratios = Ratios of selected operating statement items to net sales that allow marketers to compare the firm's performance in one year with that in previous years (or with industry standards and competitors in the same year).
Return on investment (ROI) = A common measure of managerial effectiveness--the ratio of net profit to investment
Markup = The percentage of the cost or price of a product added to cost in order to arrive at a selling price
Markdown = A percentage reduction from the original selling price

Interpersonal Communication:
Communication = The exchange of information using a shared set of symbols
Noise = Anything that distorts a message by interfering with the communication process
Encoding = Translating information into a message in the form of symbols with a shared meaning
Channel = The observable carrier of the message
Oral communication = Communication in which the sender’s voice is used as the channel
Written communication = Communication in which the channel involves written language
Receiving = Registration of a message by one or more of receiver’s senses
Decoding = Interpreting what a message means
Non-verbal communication = Communication through a channel that does not use words
Body language = Gestures, facial experessions, and other movements and positions of the body
Personal space = The area around a person that the person feels a right to control (intimate, personal, social, public one)
Feedback

Others KNOWN
UNKNOWN
Johari window = A grid that describes tendencies for facilitating or hindering interpersonal communication

Formal communication = Communication that flows along the organisation’s lines of authority or task responsibility
Upward communication = Message directed toward (interpret to) a higher level in the hierarchy (problems and exceptions, suggestions for improvements, performance reports, grievance and disputes, financial and accounting)
Downward communication = Message directed (influence) to one or more receivers at a lower level in the hierarchy (Implementation of goals, strategies, and objectives, job instructions, procedures and practices, performance feedback, indoctrination
Lateral communication = Message directed to (co-ordinate) someone at the same level in the hierarchy (intradepartmental problems solving, interdepartmental co-ordination, staff advice to line departments)
Communication network = The patterns of directions in which information flows in an organisation
Chain network = Communication network in which information travels up and down through the hierarchy
Y network = Communication network in which information flows upwards and downwards through the hierarchy, widening to encompass the number of employees reporting to a supervisor
Wheel network = Communication network in which information flows to and from a single person
Circle network = Communication network in which employees communicate only with adjoining members of the organisation
All-channel network = Communication network in which information flows upward, downward, and laterally among all members of the group
Informal communication = Communication outside the organisation’s formally authorised channels
Grapevine = Network for informal communication
Old-boy network = An exclusive group that wields power through shared information
Jargon = Terms that have a precise meaning among specialists but are unfamiliar to non-specialists
Frame of reference = Combination of experiences and expectations giving rise to a particular mind/set
Filtering = Tendency to put a message in the most favourable terms possible, downplaying bad news and dwelling on successes
Supportive communication = A style of communicating that delivers a message accurately while supporting and enhancing the relationship between the parties to the communication
Active listening = Accepting responsibility for the accurate understanding of a message by helping the sender clarify its meaning
Richest channel
Physical presence (face-to-face) Interactive channels (telephone, electronic media)
Best for ambiguous, difficult, developmental messages