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1. 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)
2. 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
3. Demarketing = Marketing to reduce demand temporarily or permanently; the aim is not to
destroy demand, but only to reduce or shift it.
4. 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
5. Need = A state of felt deprivation
6. Want = The form taken by a human need as shaped by culture and individual personality.
7. 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.
8. 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
9. 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
10. Customer value = The difference between the values the customer gains from owning and
using a product and the costs of obtaining the product.
11. 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.
12. 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.
13. Industrial markets = Markets made up of organisations which buy in order to produce
goods.
14. 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.
15. 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.
16. Relationship marketing = The process of creating, maintaining, and enhancing strong,
value-laden relationships with customers and other stakeholders.
17. Competitive advantage = The part of a firm‘s total offering which is superior to that of its.
18. Competitors = Something unique or special that a firm does or possesses that provides an
advantage over its competitors.
19. Terms of core marketing concept = needs, wants, demand, value, cost, satisfaction,
marketing, marketer, exchange, transaction, relationship.
20. Core benefit = The need that a product fulfils or the problem it solves.
21. Buyers = Those who carry out the formal arrangements for purchase, service, delivery, and
financial terms.
22. 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
23. Demands = Human wants that are backed by buying power
24. 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
25. 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
26. Non-compensatory model = A model of information processing in which a high rating for
one attribute does not offset a low rating for other
27. 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
28. Consumer socialisation process = The process by which an individual acquires the skills
needed to function in the marketplace as a consumer
29. Service market = All organisations that buy in order to produce services
30. Vertical markets = The markets on which products are tailored for specific industries
31. Horizontal markets = Markets on which products are sold to a wide range of industries
32. Utility = A measure of the satisfaction obtained through the receipt of something of value
in an exchange
33. Form utility = The usefulness attributable to the form or design of something received
34. Users = Persons within an organisation who actually put a purchased product to work
35. 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
36. Total market potential = The total possible sales of the product by all competitors
37. 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
38. Unitary demand = A given percentage change in price results in an identical percentage
change in the quantity demanded
39. Time utility = The usefulness given when something of value is received at the time it is
wanted.
40. 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
41. 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
42. 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
43. 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
44. 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
45. 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
46. 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
47. 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
48. Marketing information system = The continuously interacting structure of people,
machines, and procedures that produces information pertinent to marketing decisions
49. Marketing intelligence network = A set of procedures and sources designed to monitor the
organisations‘ external environments, particularly the competitive environment
50. 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
51. 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
52. Peripheral values = Values that reflect, but are not as deeply embedded or as fundamental
as, central values
53. Personal income = A persons total income from all sources
54. Marketing orientation = An approach to business that focuses primarily on what a firm
does to satisfy consumer‘s needs
55. 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
56. 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
57. Creativity = A quality possessed by persons that enables them to generate novel
approaches, generally reflected in new and improved solutions to problems
58. Marketing environment = The actors and forces outside marketing that affect marketing
management's ability to develop and maintain successful transactions with its target
customers
59. Macroenvironment = The larger societal forces that affect the
microenvironment demographic, economic, natural, technological, political and cultural
forces
60. 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.
61. 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
62. Economic environment = Factors that affect consumer buying power and spending patterns
63. 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
64. Natural environment = Natural resources that are needed as inputs by marketers or that are
affected by marketing activities
65. Technological environment = Forces that create new technologies, creating new product
and market opportunities
66. Political environment = Laws, government agencies and pressure groups that influence
and limit various organizations and individuals in a given society
67. Cultural environment = Institutions and other forces that affect society's basic value
perceptions, preferences, and behaviors
68. Consumer buyer behavior = The buying behavior of final consumers-individuals and
households who buy goods and services for personal consumption
69. Consumer market = All the individuals and house holds who buy or acquire goods and
services for personal consumption
70. Factors of consumer behaviour = cultural, social, personal, psychological
71. Factors of customer behaviour = environment, organisation, interpersonal relations,
personal character
72. Motivation = Persons‘ impulses to take action and the internal and external forces that
energise, mobilise, and direct their behaviour toward goals
73. 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
74. Stimulus = Anything that elicits or accelerates a physiological or psychological activity
75. Environmental stimuli = economical, technological, political, cultural
76. 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
77. Special incentives = A motivator usually used for a brief period to strengthen
representatives‘ efforts to achieve specific sales goals
78. Factors supporting purchase = choice of product, brand, supplier, timing, and size
79. Buying centre = The collective term for people who participate in purchase decisions
80. Cues = The minor stimuli that shape people‘s responses and that support the original
stimulus
81. 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
82. Low involvement decisions = Decisions generally made in an instant with little or no
influence from social or cultural forces
83. Consumer behaviour = The acts of individuals that involve buying and using products,
including the decision processes that precede and determine these acts
84. Culture = All the things, abilities and believe/everything that one generation of a society
transmits to the next
85. Subcultures = Groups that share the values and artifacts of the larger society but also have
distinctive practices, preferences, and beliefs
86. Countercultures = Subcultures whose values are in conflict with those of the wider society
87. Opinion leader = Person within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exerts influence on others
88. Social class = A category made up of people who share similar opportunities, economic
positions, lifestyles, attitudes and behaviours
89. Group = Two or more people, with realted statuses and roles, who interact on the basis of
shared expectations about each other‘s behaviour
90. Ethnic group = The social group determined by culturally transmited, learned traits
91. Demography = The study of the changing characteristics of human populations-factors
such as vital statistics, growth, size, density, and distribution
92. Personality = A person’s distinguishing psychological characteristics that lead to relatively
consistent and lasting responses to his or her own environment
93. Motive (drive) = A need that is sufficiently pressing to direct the person to seek satisfaction
of the need
94. Innovators = The first users of the new product
95. Early adopters = People who try a new product early in its life cycle without waiting for
its acceptance by a large number of people
96. Early majority = People who adopt the product only after it has been accepted somewhat
widely
97. Late majority = People who do not adopt an innovation until it is widespread use and is
thoroughly accepted
98. Laggards = Individuals, households, or organisations that resists or never adopt the new
product
99. Family household = A household consisting of two or more persons living together who
are related by marriage or birth
100. Family life cycle = Various stages in family life, each with its own characteristics
101. 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
102. Family procreation = The new family established by choosing a mate and rearing
children
103. Ideal self-concept = A view of ourselves as we would like to be
104. Lifestyles = Preferred patterns of living as expressed in a person‘s activities,
interests, and opinions, taken as a whole
105. Learning = The relatively permanent changes in thought and behaviour that result
from experience = Changes in an individual’s behavior arising from experience
106. Belief = A descriptive thought that a person holds about something
107. Attitude = A person’s consistently favorable or unfavorable evaluations, feelings,
and tendencies toward an object or idea
108. Complex buying behavior = Consumer buying behavior in situations characterized
by high consumer involvement in a purchase and significant perceived differences among
brands
109. Dissonance-reducing buying behavior = Consumer buying behavior in situations
characterized by high involvement but few perceived differences among brands
110. Habitual buying behavior = Consumer buying behavior in situations characterized
by low consumer involvement and few significant perceived brand differences.
111. Variety-seeking buying behavior = Consumer buying behavior in situations
characterized by low consumer involvement but significant perceived brand differences
112. Need recognition = The first stage of the buyer decision process in which the
consumer recognizes a problem or need
113. 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
114. Alternative evaluation = The stage of the buyer decision process in which the
consumer uses information to evaluate alternative brands in the choice set
115. Purchase decision = The stage of the buyer decision process in which the consumer
actually buys the product
116. Postpurchase behavior = The stage of the buyer decision process in which
consumers take further action after purchase based their satisfaction or dissatisfaction
117. Cognitive dissonance = Buyer discomfort caused by postpurchase conflict
118. New product = A good, service, or idea that is perceived by some potential
customers as new
119. Adoption process = The mental process through which an individual passes from
first hearing about an innovation to final adoption
120. 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
121. Organisational marketing = All marketing efforts directed at buyers for formal
institutions, including industrial, service, reseller, government, and not-for-profit groups
122. 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
123. Derived demand = Business demand that ultimately comes from (derives from) the
demand for consumer goods
124. Straight rebuy = A business buying situation in which the buyer routinely reorders
something without any modifications
125. Modified rebuy = A business buying situation in which the buyer wants to modify
product specifications, prices, terms, or suppliers
126. New task = A business buying situation in which the buyer purchases a product or
service for the first time
127. Packaging = The activities of designing and producing the container or wrapper for
a product
128. Systems buying = Buying a packaged solution to a problem from a single seller
129. Users = Members of the organization who will use the product or service; users
often initiate the buying proposal and help define product specifications
130. 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
131. Deciders = People in the organization’s buying center who have formal or informal
power to select or approve the final suppliers
132. Gatekeepers = People in the organization’s buying center who control the flow of
information to others
133. 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
134. 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
135. 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
136. 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
137. Supplier search = The stage of the business buying process in which the buyer tries
to find the best vendors
138. Proposal solicitation = The stage of the business buying process in which the buyer
invites qualified suppliers to submit proposals
139. Supplier selection = The stage of the business buying process in which the buyer
reviews proposals and selects a supplier or suppliers
140. 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
141. 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
142. Institutional market = School, hospitals, nursing homes, prisons and other
institutions that provide goods and services to people in their care
143. Government market = Government units-federal, state, and local-that purchase or
rent goods and services for carrying out the main functions of government
144. 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
145. 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
146. Customer types organisation = The organisation method which is based on
customer groups, such as departments responsible for marketing to each segment
147. 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
148. Merchant wholesalers = Organisations which take title to goods, and which carry
the responsibility for risk bearing and usually for performing various functions
149. 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
150. 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
151. Distribution forms of goods; shops and channels = special, shopping, convenience;
intensive, exclusive, selective
152. Marketing information system = People, equipment, and procedures to gather, sort,
analyze. evaluate, and disribute needed, timely, and accurate information to marketing
decision makers
153. Marketing intelligence = Everyday information about developments in the
marketing environment that helps managers prepare and adjust marketing plans
154. Marketing research = The systematic design, collection, analysis, and reporting of
data relevent to a specific marketing situation facing an organization
155. = The systematic and objective research for and analysis of information relevant to
the identification and solution of any problem in the field of marketing
156. Exploratory research = Research that consists of informal attempts to identify and
define problems
157. 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
158. Causal research = Marketing research to test hypotheses about cause-and-effect
relationship
159. 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.
160. Qualitative research = Research which takes the form of detailed interviews with a
small number of consumers or organisational buyers
161. 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
162. Quantitative research = Research based on a statistically valid sampling of a terget
market
163. Secondary data = Facts previously collected by others, often for other purpose
164. Primary data = Information collected for the specific purpose at hand
165. Observational research = The gathering of primary data by observing relevant
people, actions, and situations
166. 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)
167. Survey research = The gathering of primary data by asking people questions about
their knowledge, attitudes, preferences, and buying behavior
168. 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
169. 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
170. Online (Internet) marketing research = Collecting primary data through Internet
surveys and online focus groups
171. Screening process = The process which sifts out all ideas that are not feasible or
desirable for organisation
172. Sample = A trial amount of a product
173. 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
174. 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
175. 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
176. 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
177. 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
178. 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
179. Single-person household = An individual who lives alone in a separate residence
180. Survey method = A research method based on data gathered by asking respondents
to supply facts, opinions, or other information
181. Questionnaire = A data collection instrument that is used for all survey methods
182. Structured questions = Those questions that demand brief and specific answers
183. Unstructured question = Questions that allow respondents a great deal of freedom
and creativity in framing answers
184. Semi-structured question = Questions that include sentence completion items and
word association tests
185. Statistical demand analysis = Analysis that develops relationship among marketing
mix factors and environmental circumstances and sales
210. Strategic planning = The process of developing and maintaining a strategic fit
between the organization's goals and capabilities and its changing marketing opportunities.
It involves defining a clear company mission, setting supporting objectives, designing a
sound business portfolio, and coordinating functional strategies
211. Mission statement = A statement of the organization's purpose—what it wants to
accomplish in the larger environment
212. Business portfolio = The collection of business and products that make up the
company
213. Portfolio analysis = A tool by which management identifies and evaluates that
various businesses that make up the company
214. 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
215. 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
216. Product-market expansion grid = A portfolio-planning tool for identifying company
growth opportunites through market penetration, market development, product
development, or diversification
217. Market penetration = A strategy for company growth by increasing sales of current
products to current market segments without changing the product
218. Market development = A strategy for company growth by identifying and
developing new market segments for current company products
219. 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
220. Diversification = A strategy for company growth by starting up or acquiring
businesses outside the company's current products and markets
221. Marketing process = The process of (1) analyzing marketing opportunites, (2)
selecting target markets, (3) developing the marketing mix, and (4) managing the
marketing effort
222. Demand or market levels = population, potential, available, qualified, served, and
penetrated
223. Company strategies = low cost, differentiation, focusing
224. Market strategies = positioning, innovation, life cycle, competition, global reach
225. Homogenity and heterogenity = extremes of consistency influencing pricing,
targeting, and a size of target segment for product
226. Competitive strategies = challenger, competitive position, market leader, follower,
nicher
227. Ansoff matrix = penetration, diversification and development of products and
markets depending on new or mature markets or products
228. Portfolio = A collection of businesses owned and managed by a parent corporation
229. 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
230. Stars = A company‘s ‚big winners‘ – business that hold high relative market shares
in high-growth markets
231. Strategy = The major objectives of the organisation and a general plan for achieving
these objectives
232. Strategic management = The management of a strategy; it involves at least four
steps, i.e. analysing, planning, implementing, and control
233. 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)
234. 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
235. 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
302. Total costs approach = An overall examination of the costs involved in moving
finished goods from the end of the production line into customers’ hands
303. 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
304. Value-based pricing = Setting price based on buyers' perceptions of value rather
than on the seller's cost
305. Value pricing = Offering just the right combination of quality and good service at
a fair price
306. Competition-based pricing = Setting prices based on the prices that competitors
charge for similar products
307. Equilibrium (market) price = The price at the point where supply equals demand
308. Basic price = The amount marketers estimate consumers will pay for the core
product
309. List price = The amount at which a product is priced for final buyers, wheather
individual consumers or organisation
310. 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
313. Functional organisation = The organisation method which divides the marketing
operation into groups according to their assigned tasks
314. Experience-curve pricing = A strategy that takes into account the costs of
competing firms based on their experience in producing goods
315. Competiton-oriented pricing = A strategy whereby prices are set based on what a
firm’s competitors are charging
316. 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
317. Customary pricing = Pricing that matches buyer’s expectations about the costs of
certain items; prices reflect custom and tradition, and changes are infrequent
318. Fair trade = The practice through which producers attempt to control the retail price
of their products
319. 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
320. Discretionary income = The amount of personal income left after paying taxes, and
after paying for necessities such as food, shelter, and clothing
321. Disposable income = The amount of personal income left after taxes
322. Downward-sloping demand, the law of = The law predicting that when the price of
a good is rased, less of it is demanded
323. 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
324. 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
325. 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
326. Price fixing = When competitors, through formal contracts or collusive actions,
jointly agree upon prices
327. 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
328. Penetration = Marketers set low initial prices in an attempt to capture mass markets
329. Price lining = A manufacturer or retailer sets a limited number of prices for selected
lines of products
330. 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
331. Optional-product pricing = The pricing of optional or accessory products along
with a main product
332. 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
333. By-product pricing = Setting a price for by-products in order to make the main
product's price more competitive
334. Product bundle pricing = Combining several products and offering the bundle at a
reduced price
335. Discounts = The reduction from the list price to be paid by consumers which
represents the revenue source for intermediaries
336. Cash discounts = Price reductions given to buyers who pay for purchases within a
stated period; they are not cash payments
337. Quantity discount = A price reduction to buyers who buy large volumes
338. Cumulative quantity discounts = A discount that applies to one buyer’s orders over
a specified time-perhaps 6- or 12- month period
339. Functional discount = A price reduction offered by the seller to trade channel
members who perform certain functions such as selling, storing, and record keeping
342. Segmented pricing = Selling a product or service at two or more prices, where the
difference in prices is not based on differences in costs
343. 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
344. Reference prices = Prices that buyers carry in their minds and refer to when they
look at a given product
345. 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
346. 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
347. Uniform-delivered pricing = A geographical pricing strategy in which the company
charges the same price plus freight to all customers, regardless of their location
348. 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
351. Geografic pricing = Pricing decisions which account for who takes responsibility
for transportation charges-the seller or the buyer
352. 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
353. Patronage reward = Cash or other award for the regular use of a certain company's
products or services
354. Cents-off coupons = Coupons that offer buyers minor price reductions at the point
of sale
355. Premium price differential = The additional money consumers will pay for the
augmented product
356. Promotional discounts = Discounts for encouraging promotion and sales efforts by
intermediaries
357. Bonus packs = Special packaging that provides consumers with extra quantity of
merchandise at no extra charge over the regular price
358. Prestige pricing = When the seller internationally sets prices at levels high enough
to connote an image of quality status
359. Multiple-unit pricing = A form of promotional pricing where the product is priced
for more than one unit, such “as two for one” sale
360. 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
361. Price discrimination = Selling the same product to different customers for different
price
362. Non-cumulative quantity discounts = Price concessions based on quantity ordered
on each individual sale
363. 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”.
364. 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
368. Push money = Special bonuses paid by a marketer to an intermediary’s sales force
369. 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
370. Rebates = A promotional method which provides for financial returns to buyers
from the manufacturer after the purchase has taken place
371. 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
372. Price pack (cents-off deal) = Reduced price that is marked by the producer directly
on the label or package
373.
374. 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
376. Channel level = A layer of intermediaries that performs some work in bringing the
product and its ownership closer to the final buyer
377. Direct marketing channel = A marketing channel that has no intermediary levels
378. Indirect marketing channel = Channel containing one or more intermediary levels
379. Channel conflict = Disagreement among marketing channel members on goals and
roles—who should do what and for what rewards
382. Corporate VMS = A vertical marketing system that combines successive stages of
production and distribution under single ownership—channel leadership is established
through common ownership
388. Exclusive distribution = Giving a limited number of dealers the exclusive right to
distribute the company's products in their territories
389. Selective distribution = The use of more than one, but fewer than all, of the
intermediaries who are willing to carry the company's products
393. Transit time = The time from receipt of the order to delivery of the goods
394. Combined transportation modes = A transportation method which utilises more
than one type of carrier
395. 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
396. Horizontal conflict = The conflict which arises between wholesalers and retailers
of the same level and type in a channel
397. Intertype conflict = The conflict which occurs when different kinds of
intermediaries are part of the distribution channel
399. Horizontal integration = The process which brings together a number of channel
members at the same level and puts them under single ownership
400. Place utitility = The usefulness gained when something of value is received where
it is wanted
401. Retailing = All activities involved in selling goods or services directly to final
consumers for their personal, nonbusiness use
402. Specialty store = A retail store that carries a narrow product line with a deep
assortment within that line
403.
404. Supplies = Items that are not incorporated into the buying organisation’s
products;goods needed to keep everyday operations going
405. 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
408. 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
409. Channel width = The number of intermediaries found at the same level in the
channel
410. Direct channels = The channels in which producers sell directly to final buyers; no
intermediaries are involved
411. Multiple channles = Cannels which include different kinds of intermediaries at the
same level
413. Procurment costs = Inventory expenses that arise from the ordering process itself
416. Position = A product’s category and its relative standing within that category
417. 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
419. Product category organisation = The organisation method that assigns marketing
tasks by product category or brand
420. Slotting fees = Payments demanded by retailers before they will accept new
products and find "slots" for them on the shelves
421. 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
422. Product line exclusivity = An agreement that the agency will not work on a
competing product for the duration of the relationship
423. 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
424. 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
425. 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
427. Reseller markets = Firms that acquire goods and services in order to sell them again
428. 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
430. 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
431. Retailer co-operatives = Centralised buying organisations set up by retailers
themselves
432. 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
433. 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
434. Strait commission = A financial incentive based solely on sales results; each
increment of sales increases the commission
436. Supermarkets = Self-selection stores that sell a complete range of food and other
items from various departments
437. Superstores = Stores that go well beyond combination stores by carrying such
nonfood items as garden supplies, alcoholic beverages, books, housewares, and hardware
438. Urban shopping malls = Collections of shops and department stores located in or
near central business districts
441. Department stores = Stores characterised by wide and deep product mixes;
individual departments within store; mid- to upper-level prices; and extensive services
442. Discount houses = Stores that are much like department stores except that their
primary appeal is low price
443. Discount store = A retail institution that sells standard merchandise at lower prices
by accepting lower margins and selling at higher volume
444. Hypermarché = A very large store (80.000 square feet and up) that adds furniture,
appliances, and clothing to the items found in superstores
445. Specialty stores = Stores characterised by narrow product mixes with deep product
lines, a high level of personal services, and relatively high prices
446. Category killer = Giant specialty store that carries a very deep assortment of a
particular line and is staffed by knowledgeable employees
447. 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
448. Combination store = Store that carry over-the-counter and prescription drugs in
addition to food items
449. Self-selection retailers = Stores that provide few services or sales personnel and sell
mostly staples and homogenous shopping goods
450. Off-price retailer = Retailer that buys at less-than-regular wholesale prices and sells
at less than retail
451. Independent off-price retailer = Off-price retailer that is either owned and run by
entrepreneurs or is division of larger retail corporation
452. 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
453. 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
454. Chain stores = Two or more outlets that are owned and controlled in common, have
central buying and merchandising, and sell similar lines of merchandise
456. 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
458. 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
459. District sales manager = A line executive who plans, directs, and controls the
activities of field salespeople
460. Central business districts = Areas where many retailers are clustered together to
také advantage of each other’s traffic
461. Warehouse showrooms = Stores that are located on low-rent, suburban sites, and
focus on medium-priced furniture and appliances
462. Limited-service retailers = Some department store chains and limited-line stores
that concentrate on heterogeneous shopping products
463. Wholesaling = All activities involved in selling goods and services to those buying
for resale or business use
466. 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
469. Sorting out = The process by which wholesalers and retailers separate quantities of
products into sizes, colours, quality grades, and so on
470. Cash-and-carry wholesalers = Wholesalers who emphasise reduced costs for small
retailers, but do not provide credit or delivery
471. Specialty wholesalers = Wholesalers who have the most restricted inventories,
focusing on items such as health foods or electric motors
473. 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
476. 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
477. Cost per customer purchasing = A cost effectiveness measure used in direct
marketing based on the cost per sale generated
479. 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
480. Broker = A wholesaler who does not take title to goods and whose function is to
bring buyers and sellers together and assist in negotiation
481. Selling agents = Agents who distribute the entire output of a manufacturer
482. 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
483. Freight forwarders = Agencies which provide a combining service by which partial
shipments (usually under 500 pounds) are assembled from several customers
484. Industrial sales people = People who sell goods and services used for producing
other goods or for rendering other services
486. Vending machines = A form of non-store, non-personal selling which takes to the
extreme the transaction between consumer and machine
487. String streets = Major thoroughfares along which are found random collections of
almost every kind of store
488. Support personnel = People who aid efforts of professional sales representatives
and order takers
492. Backward integration = The approach by which the intermediaries acquire control
over manufacturers
493. Forward integration = The approach in which the manufacturers acquire control
over wholesalers and retailer.
494. 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
496. Personal selling = Personal presentation by the firm's sales force for the purpose of
making sales and building customer relationships
497. Publicity = A form of promotion composed of newsworthy messages sent through
the media on a non-paid basis
501. Buyer-readiness stages = The stages consumers normally pass through on their way
to purchase, including awareness, knowledge, liking, preference, conviction, and purchase
502. 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
505. Initial approach = The first contact by a salesperson with a prospect, usually to
arrange a meeting
507. 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
508. 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
513. Cognitive responses = Thoughts that occur to a message recipient while reading,
viewing, and/or hearing a communication
514. Compliance = A type of influence process where a receiver accepts the position
advocated by a source to obtain favorable outcomes or avoid punishment
516. AIDA model = A model that depicts the successive stages a buyer passes through
in the personal selling process including: attention, interest, desire, and action
520. 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
521. DAGMAR = An acronym that stands for defining advertising goals for measured
advertising results. An approach to setting goals and objectives developed by Russell
Colley
522. ASI recall test = A day-after recall test of television commercials (formerly known
as Burke test)
523. 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
524. Absolute costs – The actual total cost of placing an ad in a particular media vehicle.
525. Follow up = The final selling step which involves actions after the sale to ensure
that the order is received on time and as specified
526. Two-step communication = The notion that communications flow from the media
to opinion leaders, and then from opinion leaders to other members of society
528. Receiver = The person who decodes the message transmited by the source
530. Encoding = The process by which a source chooses signs and symbols to construct
a message
535. Channel (medium) = The vehicle for transmitting a message = The method or
medium by which communication travels from a source or sender to a receiver
536. 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
537. Copywriters = Individuals who help conceive the ideas for ads and commercials
and write the words or copy for them
538. Body copy = The main text portion of a print ad. Also often referred as a copy
539. 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
540. 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
541. 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
542. 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
543. Reach = The proportion of the target audience who will see an advertisement at
least once
544. 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
545. Adjacencies = Commercial spots purchased from local television stations that
generally appear during the time periods adjacent to network programs
546. Frequency = The number of times, on average, that each person reached will see or
hear the advertisement
547. Average frequency = The number of times the average household reached by a
media schedule is exposed to a media vehicle over a specified period
548. Average quarter-hour figure (AQH) = The average number of persons listening to
a particular station for at least five minutes during 15-minute period
549. Average quarter-hour rating = The average quarter-hour figure estimate expressed
as a percentage of the population being measured
550. 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
551. Recall tests = Tests of print advertisements which do not assists the respondent’s
memory by providing the ads themselves
552. Concave downward function = An advertising /sales response function that views
the incremental effects of advertising on sales as decreasing
553. Creative execution = The process involved in deciding how the message is to be
said in an advertisement
554. Recognition test = Test of effectiveness of print advertising which measures the
ability to recognise an advertisement when presented
555. Reference group = Groups to which people turn in order to measure the
acceptability of what they do
558. 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
559. 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
561. Gatekeepers = Those who can control information flow to members of the buying
center-and to prospective suppliers
562. Promotion = All aspects of the marketing mix designed to communicate with and
influence target markets
563. Promotion strategy = A communication plan designed to bring about desired buyer
behaviours by employing a mix of the four elements of promotion
564. 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
566. Arbitrary allocation = A method for determining the budget for advertising and
promotion based on arbitrary decisions of executives
567. 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
568. 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
569. Point-of-purchase (POP) promotion = Display and demonstration that takes place
at the point of purchase or sale
570. 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
572. 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
573. Product sales force structure = A sales force organization under which salespeople
specialize in selling only a portion of the company's products or lines
574. Customer sales force structure = A sales force organization under which
salespeople specialize in selling only to certain customers or industries
575. 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
576. Outside sales force = Outside salespeople who travel to call on customers. Also
known as field sales force
577. Inside sales force = Inside salespeople who conduct business from their offices via
telephone or visits from prospective buyers
579. Team selling = Using teams of people from sales, marketing, engineering, finance,
technical support, and even upper management to service large, complex accounts
580. Sales quotas = Standards set for salespeople, stating the amount they should sell
and how sales should be divided among the company's products
581. 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
582. Prospecting = The step in the selling process in which the salesperson identifies
qualified potential customers
583. 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
584. 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
585. 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
586. Handling objections = The step in the selling process in which the salesperson seeks
out, clarifies, and overcomes customer objections to buying
587. Closing = The step in the selling process in which the salesperson asks the customer
for an order
588. 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
590. Consumer-oriented sales promotion = Sales promotion techniques that are targeted
to the ultimate consumer such as coupons, samples, contests, rebates, sweepstakes, and
premium offers
591. Clients = The organisations with the products, services, or causes to be marketed
and for which advertising agencies and other marketing promotional firms provide services
592. Advertising objective = A specific communication task to be accomplished with a
specific target audience during a specific period of time
596. Creative execution style = The manner in which a particular advertising appeal is
transformed into a message
597. 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
598. 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
599. Carryover effect = Delayed or lagged effect whereby the impact of advertising on
sales can occur during a subsequent time period
601. Advertisers = The identified sponsors who pay to promote their goods, services,
and ideas to target audiences
602. 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
603. 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
604. Advertising creativity = The ability to generate fresh, unique, and appropriate ideas
that can be used as solutions to communication problems
605. Advertising manager = The individual in the organisation who is responsible for
the planning, co-ordinating, budgeting, and implementing of the advertising program
606. 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
610. Image advertising = Advertising which aims to establish a positive identity for the
corporation or to rebut criticism
611. Advocacy or issue advertising = Advertising which takes a stand on some issue on
behalf of the advertiser; is not designed to promote products
612. 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
613. 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
615. Pioneer advertisements = Advertisements that that increase primary demand for the
product that bring nonusers into the users category
617. Emotional advertisements = Advertisements that attempt to create moods that will
subsequently be associated with the product
620. 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
624. Slice-of-life advertisements = Advertisements that show the product being used by
‘ordinary people’ in very common settings or engaged in everyday activities
628. Flighting (or pulsing) = The strategy of unevenly timed exposures of advertising
629. 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
631. Industrial advertisements = Advertising to promote goods and services for business
and organisational use
636. Creative boutiques = Small agencies specialising in the creative work for an
advertising campaign
638. 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
639. Agency evaluation process = The process by which a company evaluates the
performance of its advertising agency. This process includes both financial and qualitative
aspects
640. In-house agencies = Advertising agencies owned by the advertiser, which perform
the functions of a full-service advertising agency
641. Costs per thousand (CPM) = The media cost of reaching 1000 persons, used to
compare across media vehicles
642. Copyright = The exclusive legal right to reproduce, publish, and sell a literary,
musical, dramatic, or artistic work
643. Lables = A lable encompasses any printed information on the packaging that
describes the product
644. Informative lables = Lables that tell the consumer about the product’s ingredients,
use, dating, and so on
645. 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
646. 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
647. Brand extension = Using a successful brand name to launch a new or modified
product in a new category
648. Co-branding = The practice of using the established brand names of two different
companies on the same product
649. Forms of fighting brands = national, own, private, product, family, blanket
650. 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
651. Brand extension strategy = The strategy of applying an existing brand name to a
new product
652. Brand loyalty = Preferences by a consumer for a particular brand that results in
continual purchase of it
653. Evoked set = The subset of available brands of a product class which a consumer
considers appropriate alternatives, and from which a choice is made
654. 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
657. Brand image = The overall concept of the product as perceived by consumers
658. Brand insistence = The phenomenon that occurs when consumers demand a certain
product and will go out of their way to get it
659. Brand mark = The part of a brand which can be recognised but is not utterable
660. Brand name = The part of a brand which can be vocalised-the utterable
661. Brand non-recognition = The fact that people do not know the existence of the
brand
662. Brand recognition = The simple awareness that a product exists, apart from
competing products
663. Brand preference = The attitude taken by consumers who have tried a brand and
have at least moderately positive attitudes toward it
664. Brand rejection = The rejection of a brand by a consumer who has negative
experience with it
665. Individual brands = Brands which have no obvious connection with the parent
company
666. Business libel = Making an unfair or untrue written statement about a competitor
667. Business slander = Making an unfair or untrue oral statement about a competitor
668. Trade character = A brand mark that represents a human being or an animal
associated with a product
669. Trade name = The name under which a company chooses to conduct its business,
which may or may not also be a brand name
670. 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
671. 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
672. Trademark = A brand or part of a brand that is given legal protection because it is
capable of exclusive appropriation
673. 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
675. 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
679. 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
680. 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
681. Selling position = The specific promotional idea used to present the product to
buyers in the target market
683. Sweepstakes = A promotional method in which consumers fill out a form to enter
a random drawing for prizes
684. 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
685. Coupon = Certificate that gives buyers a saving when they purchase a specified
product
686. In-pack coupons = coupons that are affixed to the product and allow savings on a
future purchase
687. 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
688. 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
690. Broadcast media = Media that use the airwawes to transmit their signal and
programming. Radio and television are examples of broadcast media
691. Agate line = Unit of newspaper space measurement, 1 column wide by 1/14 inch
deep. Thus 14 agate lines = 1 column inch
692. Alternative media = A term commonly used in advertising to describe support
media
693. Audiotex = The use of telephone and voice information services to market,
advertise, promote, entertain, and inform consumers
696. 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
697. 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
698. Close = Obtaining the commitment of the prospect in a personal selling transaction
700. 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
703. Commercial online services = Services that offer online information and marketing
services to subscribers who pay a monthly fee
704. Electronic commerce (e-commerce) = The general term for a buying and selling
process that is supported by electronic means
705. 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
706. Marketing Web site = Web site designed to engage consumers in an interaction that
will move them closer to a purchase or other marketing outcome
707. Online ads = Ads that appear while subscribers are surfing online services or Web
sites, including banners, pop-up windows, "tickers," and "roadblocks."
710. 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
712. Product = Anything and organisation or individual offers for exchange that may
satisfy customers’ or consumers’ needs or the marketer’s own needs
713. Consumer product = Product bought by final consumer for personal consumption
714. 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
715. Shoping products = Goods and services that consumers shop for, comparing
quality, suitability, style, price, and other factors
718. Industrial products = Products purchased by an organisation for use either in other
products or in its own operations
720. Core product = The basic good or service purchased, aside from its packaging or
accompanying services
721. Functional attributes = Things that a product or service does for consumers
722. Total quality management (TQM) = Programs designed to constantly improve the
quality of products, services, and marketing processes
723. Emergency products = Those products that are usually purchased as the result of
urgent needs
724. Staple = Goods which buyers give litle thought when purchasing, other than noting
the need for the item and picking it up
725. Generic products = Products which are not branded, are simply packed, and usually
are priced well below both manufacturer’s and private brands
727. 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
729. 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
731. 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
732. Durable goods = The tangible items that can be expected to survive multiple use
733. Loss leaders = (or price leaders) = Products advertised below the retailer’s costs to
increase customer traffic
734. Implied warranties = Unwritten warranties that indicate that the product is in good
condition and is suitable for the purpose for which it was bought
735. Services = Activities, benefits, or satisfactions that are offered to satisfy consumers’
and customers’ needs
741. 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
742. Interactive marketing = Marketing by a service firm that recognizes that perceived
service quality depends heavily on the quality of buyer–seller interaction
743. Servicing = The maintenance of the product in working order so that its benefits
are not diminished
744. Industrial services = Services purchased for use in producing the buyer’s products
or, more frequently, for use in general operation
746. 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.
747. Product line breath = The number of product lines in the product mix of an
organisation
748. Product line depth = The number of individual items within each product line
749. 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
750. Product class = All the brands of a good and service offered by all competitors to
meet a basic consumer need
751. Balanced product portfolio = A proper mix of new, growing, and mature products
whose sales provide the cash flow to ensure long-term prosperity
752. Variety discrepancy = The difference between the number of different products
produced by marketers and the variety desired by consumers
753. Product competitors = Companies which are filling the same market needs with a
slightly different offering
756. Idea screening = Screening new-product ideas in order to spot good ideas and drop
poor ones as soon as possible
757. New product concept = A detailed version of the new-product idea stated in
meaningful consumer terms
758. Concept testing = Testing new-product concepts with a group of target consumers
to find out if the concepts have strong consumer appeal
760. 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
762. 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
764. 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
767. New-product business plan = A plan that includes estimates for new-product
development, submitted by marketing, production, and accounting personnel
768. 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
769. 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
770. 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
772. 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
773. 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
774. Adoption process = A process which is made up of the stages that individuals,
households, or organisations go through in accepting an innovation
775. Product elimination = Withdrawal of a product from the normal market place
776. Product line extension = Development of greater depth by adding new product
varieties
777. Product manager (brand manager) = The person who is responsible for initiating,
developing, and implementing product or product line plans
778. Product-market matrix = A visual means of defining a business by its markets and
by the products directed towards those markets
780. Creative selling = A type of sales position where the primary emphasis is on
generating new business
781. 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
782. Customer delivered value = The difference between total customer value and total
customer cost of a marketing offer–"profit" to the customer
783. Total customer cost = The total of all the monetary, time, energy, and psychic costs
associated with a marketing offer
784. Value chain = A major tool for identifying ways to create more customer value
785. 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
786. Quality = The totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs
787. 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
788. Competitive marketing strategies = Strategies that strongly position the company
against competitors and that give the company the strongest possible strategic advantage
789. 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
790. 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
791. Market challenger = A runner-up firm in an industry that is fighting hard to increase
its market share
792. Market follower = A runner-up firm in an industry that wants to hold its share
without rocking the boat
793. Market nicher = A firm in an industry that serves small segments that other firms
overlook or ignore
797. Marketing company = A form of subsidiary organisation which markets, sell, and
service the firm‘s products in the host country
798. Derived demand = The demand based on expectations of upcoming demand for
other industrial or consumer products
799. 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
800. 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
801. Dual adaptation = A global strategy whereby both the product and the promotional
programs are adapted to foreign market conditions
802. 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
803. 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
807. Direct exporting = Refers to the marketing firm’s active efforts to sell its products,
made domestically, in foreign markets
810. 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
813. Global marketing = Refers to any marketing that involves two or more nations
814. Government markets = The purchasing or leasing of goods and services in order to
carry out government functions and to further the public purpose
815. 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).
816. Joint venturing = Entering foreign markets by joining with foreign companies to
produce or market a product or service
817. 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
819. 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
820. 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
821. Direct investment = Entering a foreign market by developing foreign-based
assembly or manufacturing facilities
823. 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
824. Straight product extension = Marketing a product in a foreign market without any
change
826. Product invention = Creating new products or services for foreign markets
829. Export department = An organisational for used by firms which are primarily
exporting their products to foreign markets, rather than maintaining marketing
organisations abroad
830. 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
831. 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
832. Tariff = A tax levied by a government against certain imported products. Tariffs
are designed to raise revenue or to protect domestic firms
833. Quota = A limit on the amount of goods that an importing country will accept in
certain product categories
836. 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
839. Collateral services = Companies that provide companies with specialised services
such as package design, advertising production, and marketing research
841. Express warranty = A warranty written in terms that specify exactly what claims
and guarantees the producer is offering
842. 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
854. Value marketing = A principle of enlightened marketing that holds that a company
should put most of its resources into value-building marketing investments
857. Pleasing products = Products that give high immediate satisfaction but may hurt
consumers in the long run
858. Salutary products = Products that have low appeal but may benefit consumers in
the long run
859. Desirable products = Products that give both high immediate satisfaction and high
long-run benefits
860. Balance sheet = A financial statement that shows assets, liabilities, and net worth
of a company at a given time
862. Gross sales = The total amount that a company charges during a given period of
time for merchandise
863. Cost of goods sold = The net cost to the company of goods sold
864. Gross margin = The difference between net sales and cost of goods sold
865. 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).
867. Markup = The percentage of the cost or price of a product added to cost in order to
arrive at a selling price
870. Noise = Anything that distorts a message by interfering with the communication
process
871. Encoding = Translating information into a message in the form of symbols with a
shared meaning
872. Channel = The observable carrier of the message
873. Oral communication = Communication in which the sender’s voice is used as the
channel
877. Non-verbal communication = Communication through a channel that does not use
words
878. Body language = Gestures, facial experessions, and other movements and positions
of the body
879. Personal space = The area around a person that the person feels a right to control
(intimate, personal, social, public one)
880. Johari window = A grid that describes tendencies for facilitating or hindering
interpersonal communication
881. Formal communication = Communication that flows along the organisation’s lines
of authority or task responsibility
882. 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)
888. Wheel network = Communication network in which information flows to and from
a single person
889. Circle network = Communication network in which employees communicate only
with adjoining members of the organisation
893. Old-boy network = An exclusive group that wields power through shared
information
894. Jargon = Terms that have a precise meaning among specialists but are unfamiliar
to non-specialists
896. Filtering = Tendency to put a message in the most favourable terms possible,
downplaying bad news and dwelling on successes