MARKETING BASICS

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

186. Marketing research department (agency) = The organisation within an advertising

agency which researches consumer attitudes for the client, performs demographic studies,
tests the effectiveness of advertising copy or packaging, or conducts research for agency
itself
187. Syndicated research services = The scheduled reports which spell out what
consumers are buying and what is happening to a product in the market place
188. Affect referral decision rule = A type of decision rule where selections are made on
the basis of overall impressions or affective summary evaluation of the various alternatives
under consideration
189. Alpha activity = A measure of the degree of brain activity that can be used to assess
an individual’s reactions to an advertisement
190. 80/20 rule = The principle that 80 percent of sales volume for a product or service
is generated by 20 percent of the customers
191. Contribution margin = The difference between the total revenue generated by a
product of brand and its total variable costs
192. Theatre tests = An expensive method of judging the effectiveness of television
commercials. Consumers groups are brought into theatres, supposedly to see pilots of
 forthcoming television series. They are asked their opinions not only of the pilots but also
of the impact and effectiveness of commercials
193. Time series analysis = Analysis that identifies and measures repetitive influences
on sales patterns over time
194. Value analysis = A cost-reduction program in which customers study each
component of a supplier’s product to determine whether it can be redesigned, standardised,
or produced more cheaply
195. Vendor analysis = The buying organisation’s systematic evaluation and rating of
prospective suppliers
196. Work load analysis = A method which establishes standards for the number of sales
calls required and the time needed to make those calls
197. Contests = Strategy that requires consumers to compete for prizes, typically by
completing some type of puzzle or stating why they like the product “in 25 words or less”
198. Cross-tabulation = The method of comparing the responses to one question with
the responses to another
199. Delphi technique = The procedure of environmental forecasting by a group of
experts who are solicited anonymously and asked to predict the likelihood and time of
occurrence of significant events
200. Experimental method = The method based on the study of the relationship between
two or more variables under controlled conditions
201. Focus group = A small number of ‘typical’ consumers who discuss their reactions
to a product concept in the presence of a group leader
202. Forecasting = The prediction of what buyers in a target market are likely to do under
a given set of conditions, such as the prediction of how much of a product will be purchased
by a particular market segment given a particular price of the product
203. Historical and quantitative forecasts = A projection of future sales based on sales
patterns and/or mathematical calculations
204. Judgement forecast = The prediction rely upon the opinions of informed
participants or outside consultants

205. Audimeter = An electric measurement device that is hooked to a television set to

record when the set is turned on and the channel to which it is tuned
206. Benchmark measures = Measures of a target audience’s status concerning response
hierarchy variables such as awareness, knowledge, image, attitudes, preferences,
intentions, or behaviour. These measures are taken at the beginning of an advertising or
promotional campaign to determine the degree to which a target audience must be changed
or moved by a promotional campaign

207. Prospecting = A systematic process of identifying new buyers

208. Irregular events = (1) Random events such as acts of God (e.g. earthquakes, fires,
floods). (2) Windfall sales contracts
209. Consumer juries = A method of pretesting advertisements by using a panel of
consumers who are representative of the target audience and provide ratings, rankings,
and/or evaluations of advertisement.

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

236. Strategic control = The control of major strategy directions

237. Market segmentation = (1) The division of large, dissimilar populations into
smaller, more similar groups. (2) The process of subdividing large, heterogenous
(dissimilar) whole markets into smaller, homogenous (similar) parts of submarkets =
Dividing a market into distinct groups of buyers on the basis of needs, characteristics, or
behavior who might require separate products or marketing mixes
238. Market segment = A group of consumers who respond in a similar way to a given
set of marketing efforts
239. Segment marketing = Isolating broad segments that make up a market and adapting
the marketing to match the needs of one or more segments
240. Niche marketing = Focusing on subsegments or niches with distinctive traits that
may seek a special combination of benefits
241. Micromarketing = The practice of tailoring products and marketing programs to
suit the tastes of specific individuals and locations—includes local marketing and
individual marketing
242. Local marketing = Tailoring brands and promotions to the needs and wants of local
customer groups—cities, neighborhoods, and even specific stores
243. Individual marketing = Tailoring products and marketing programs to the needs
and preferences of individual customers—also labeled one-to-one marketing, customized
marketing, and markets-of-one marketing
244. Segmentation variables = Factors by which market segments are formed, e.g.,
geographic, demographic, socio-economic, behavioural, and psychographic variables
245. Geographic segmentation = Dividing a market into different geographical units
such as nations, states, regions, counties, cities, or neighborhoods
246. Demographics = A catchall term referring to particular variables describing
populations, such as age or sex
247. Age and life-cycle segmentation = Dividing a market into different age and life-
cycle group
248. Gender segmentation = Dividing a market into different groups based on sex
249. Income segmentation = Dividing a market into different income groups
250. Behaviouristic segmentation = A method of segmenting a market by dividing
customers into groups based on their usage, loyalties, or buying responses to a product or
service
251. Psychographics = The system of measurement of life styles
252. Psychogenic needs = Needs which arise from learning and socialisation
253. Behavioral segmentation = Dividing a market into groups based on consumer
knowledge, attitude, use, or response to a product
254. Benefit segmentation = A method of segmenting markets on the basis of the major
benefits consumers seek in a product or service
255. Occasion segmentation = Dividing the market into groups according to occasions
when buyers get the idea to buy, actually make their purchase, or use the purchased item
256. Intermarket segmentation = Forming segments of consumers who have similar
needs and buying behavior even though they are located in different countries
257. Target market = A set of buyers sharing common needs or characteristics that the
company decides to serve
258. Market targeting = The process of evaluating each market segment's attractiveness
and selecting one or more segments to enter
259. Differentiated marketing = The strategy of pursuing several market segments with
particular products and marketing mixes designed for the needs of each = A type of
marketing strategy whereby a firm offers products or services to a number of market
segments and develops separate marketing strategies for each
260. Undifferentiated marketing = The process opposite of market segmentation; i.e.,
marketers define their products as broadly as possible and promote a product or service to
anyone capable of making a purchase
261. Concentrated marketing = The strategy of focusing on a single, easily defined,
profitable market segment
262. Product-oriented positioning = The strategy that rests on some attribute inherent in
a product’s makeup, packaging, use, or price
263. Market positioning = Arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of target consumers
264. Product positioning = The proces by wich marketers create and image in buyers’
minds and control buyers’ perceptions of their product
265. Repositioning = The conscious effort to change consumers’ perceptions of a
product – may be in order when marketers discover that a product appeals to other market
segments
266. Consumer oriented positioning = The strategy aimed at getting the consumer to
perceive a product in some unique, personally related manner, regardless of the product’s
characteristics
267. Value proposition = The full positioning of a brand—the full mix of benefits upon
which it is positioned.
268. Marketing planning = The process through which an organisation designs the
offerings that will satisfy the needs of its target markets
269. Marketing research = The systematic and objective research for and analysis of
information relevant to the identification and solution of any problem in the field of
marketing
270. Marketing plan = A written document that contains the firm’s marketing strategy
and tactics
271. Product life cycle = The product‘s stages of development, which consist of
introductory, growth, maturity and decline stage
272. Demand curve = A curve that specifies the quantities demanded at various prices
at a given time
273. Experience curve = A curve reflecting the fact that the costs of doing something
tend to decrease as the organisation gains experience doing it
274. Fad = A cycle that is different from fashion only in the length of time, which is
relatively short
275. Fashion + A cycle usually starting with a designer‘s need to be different, and his or
her sense that the new design will be acceptable to at least a segment of the market
276. Life cycle extension = The process of finding new uses for the same product by the
same users
277. Market modification = turning non-users to users, entry on new segments, reaching
customers of competitors, more frequent and heavier use of product
278. Product modification = improvement quality, features and style of product
279. Mix modification = special and volume discounts, credit accessibility, broadening
assortment, more outlets, channels, advertising costs, change of message, media, timing,
rebates, gifts, display, territories, delivery speed, and servicing
280. Introductory stage = A stage in a product‘s life in which an innovation is alone in
the market
281. Growth stage = A stage in a product‘s life in which sales and profits grow rapidly,
competitors are attracted to the growing market, and cash flow can still be negative because
of firm‘s efforts to establish a strong market share ahead of competitors. The market is
usually turbulent in this period
282. Maturity stage = A stage in which sales growth slows, the market becomes
saturated, and profits are high but begin to decline as market leaders cut prices in order to
gain share
283. Decline stage = A stage in which total demand decreases, leading to a further
dropout of competitors until only a few remain
284. Alternatives of introductory pricing = slow, and rapid penetration, eventually
skimming
285. Concept testing = A process involving the accumulation and evaluation of
consumers‘ reactions to a new product idea before the product is actually developed
286. Market share analysis = An evaluation of the firm‘s performance in comparison to
that of its competitors
287. Relative market share = A firm‘s market share divided by the market share of its
largest competitor
288. Secular trends = The raising or falling patterns of sales over a period of years
289. Seasonal patterns = The consistent sales patterns within a year which are based on
factors such as weather or holidays
290. Growth-share matrix = A matrix that explains how market share, market growth,
and cash flows are related
291. Marketing implementation = The process that turns marketing strategies and plans
into marketing actions in order to accomplish strategic marketing objectives
292. Marketing audit = A comprehensive, systematic, independent, and periodic
examination of a company's environment, objectives, strategies, and activities to determine
problem areas and opportunites and to recommend a plan of action to improve the
company's marketing performance
293. Barrier to entry = Conditions that make difficult for a firm to enter the market in a
particular industry, such as high advertising budgets
294. Price = Both the value that buyers place on what is exchanged and the marketers’
estimates of that value
295. Target costing = Pricing that starts with an ideal selling price, then targets costs that
will ensure that the price is met
296. Fixed costs = Costs that do not vary with production or sales level
297. Variable costs = Costs that vary directly with the level of production
298. Total costs = The sum of the fixed and variable costs for any given level of
production
299. Experience curve (learning curve) = The drop in the average per-unit production
cost that comes with accumulated production experience
300. Demand curve = A curve that shows the number of units the market will buy in a
given time period at different prices that might be charged

301. Price elasticity = A measure of the sensitivity of demand to changes in price

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

311. Functional accounts = Accounting units which divide expenditures according to

their purpose

312. Functional (trade) discounts = Price concessions which compensate intermediaries

for providing such services as storage, handling, and selling

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

340. Seasonal discounts = Discounts granted to early or offseason buyers of products

that have peak selling periods

341. Allowance = Promotional money paid by manufacturers to retailers in return for an

agreement to feature the manufacturer's products in some way

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

349. Basing-point pricing = A geographical pricing strategy in which the seller

designates some city as a basing point and charges all customers the freight cost from that
city to the customer location, regardless of the city from which the goods are actually
shipped

350. Freight-absorption pricing = A geographical pricing strategy in which the seller

absorbs all or part of the actual freight charges in order to get the desired business

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

365. Cost/volume/profit analysis = An approach which calculates the effect on profits of

different prices, given different levels of demand in response to those prices

366. Price-off promotions = A strategy that involves temporary price reductions to

retailers with the intent that savings will be passed along to consumers

367. Non-price competition = When firm’s strategy is advanced by components of the

marketing mix other than price: the product itself, the distribution systém, or the
promotional campaign

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

375. Distribution channel = A set of interdependent organizations involved in the

process of making a product or service available for use or consumption by the consumer
or business user

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

380. Conventional distribution channel = A channel consisting of one or more

independent producers, wholesalers, and retailers, each a separate business seeking to
maximize its own profits even at the expense of profits for the system as a whole

381. Vertical marketing system (VMS) = A distribution channel structure in which

producers, wholesales, and retailers act as a unified system. One channel member owns the
others, has contracts with them, or has so much power that they all cooperate

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

383. Administered VMS = A vertical marketing system that coordinates successive

stages of production and distribution, not through common ownership or contractual ties
but through the size and power of one of the parties

384. Horizontal marketing system = A channel arrangement in which two or more

companies at one level join together to follow a new marketing opportunity

385. Hybrid marketing channel = Multichannel distribution system in which a single

firm sets up two or more marketing channels to reach one or more customer segments
386. Disintermediation = The elimination of a layer of intermediaries from a marketing
channel or the displacement of traditional resellers by radically new types of intermediaries

387. Intensive distribution = Stocking the product in as many outlets as possible

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

390. Intermodal transportation = Combining two or more modes of transportation

391. Integrated logistics management = The logistics concept that emphasizes

teamwork, both inside the company and among all the marketing channel organizations, to
maximize the performance of the entire distribution system

392. Third-party logistics provider = An independent logistics provider that performs

any or all of the functions required to get their clients' product to market

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

398. Conflict resolution = Accomodation of various channel members to decisions

designed to promote the overall goals 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

406. Distribution channels = Channels that are made up of manufacturers or service

producers and wholesalers and retailers through which products are marketed to consumers
and organisational buyers

407. Channel length = The number of levels in a distribution channel

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

412. Voluntary chains = Wholesaler-sponsored organisations of independent retailers

who practice bulk buying and similar merchandising techniques

413. Procurment costs = Inventory expenses that arise from the ordering process itself

414. Selective demand = A preference among buyers for specific brands

415. Selective distribution = A systém in which only a certain number of intermediaries,

or those of o certain type, are chosen to distribute the product

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

418. Category management = An organisational systém whereby managers have

responsibility for the marketing programs for a particular category or line of products

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

426. Corrective Advertising = An action by Federal Trade Commission whereby an

advertiser can be required to run advertising messages designed to remedy the deception
or misleading impression created by its previous advertising

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

429. Retailers = Merchants whose main business is selling directly to ultimate

consumers

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

435. Scrambled merchandising = The contemporary practice among retailers of

expanding their product lines beyond those traditionally carried, leading to competition
between types of retailers

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

439. Shopping center = A group of commercial establishments planned, developed,

owned, and managed as a unit related in location, size, and type of shops to the trade area
that it services, and providing on-site parking in definite relationships to the types and sizes
of stores it contains

440. Full-service retailers = Specialty shops, boutiques, and top-of-the-line department

stores

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

455. Franchise = A contractual association between a manufacturer, wholesaler, or

service organization (a franchiser) and independent businesspeople (franchisees) who buy
the right to own and operate one or more units in the franchise system

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

457. Franchise organization = A contractual vertical marketing system in which a

channel member, called a franchiser, links several stages in the production-distribution
process

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

464. Wholesaler = Organisations which buy products from producers or other

wholesalers and resell them to retailers or organisational buyers, or to other wholesalers

465. Limited-service wholesalers = Wholesalers who perform only selected functions

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

467. General merchandise wholesalers = Wholesaler who handle a broad range of

products, from food and drug items to plumbing supplies and automotive accessories
468. Merchant wholesaler = Independently owned business that takes title to the
merchandise it handles

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

472. Truck wholesalers = Wholesalers who pick up quantities of products at commercial

markets and deliver them to retailers in case lots

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

474. Non-store retailing = Retailing that may be conducted impersonally (through

catalogues, direct mail, and vending machines) or personally (door-to-door selling, in-
home retailing, and telephone sales)
475. Door-to-door selling = A form of direct marketing which involves personal selling
to individuals in their homes

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

478. Professional sales representatives = Territory managers whose primary task is

persuasive and creative face-to-face selling and account management

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

485. Manufacturer's sales branches and offices = Wholesaling by sellers or buyers

themselves rather than through independent wholesalers

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

489. Tying contract = An agreement between a supplier and an intermediary which

requires the intermediary to buy product B in order to also get product A
490. Common carriers = Those transportation providers which offer their services for
the use of others, and are under certain governmental regulations concerning the provision
of such services

491. Vertical marketing systems = A system in which the functions of members at

different levels in the distribution channel have been integrated under the ownership or
influence of one member in order to set shared goals and to achieve effective performance

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

495. Advertising = Any paid form of non-personal communication, usually delivered

through mass media by an identified sponsor

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

498. Direct marketing = Direct communications with carefully targeted individual

consumers to obtain an immediate response, and cultivate lasting customer relationships

499. Sales promotion = Short-term incentives to encourage the purchase or sale of a

product or service

500. Integrated marketing communications (IMC) = The concept under which a

company carefully integrates and coordinates its many communications channels to deliver
a clear, consistent, and compelling message about the organization and its products

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

503. Word-of-mouth influence = Personal communication about a product between

target buyers and neighbors, friends, family members, and associates
504. Prospect = A potential (but not yet) customer

505. Initial approach = The first contact by a salesperson with a prospect, usually to
arrange a meeting

506. Informal information = The mixture of unorganised, irregular daily

communications which flows to most of us in contemporary society

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

509. Communications flow = The movement of information through the channels of

distribution; includes the flow of promotion from manufacturers through intermediaries to
consumers, and the flow of market information from consumers back through
intermediaries to manufacturers

510. 5-Ws model of communication = A model of the communications process that

contains five basic elements” who? (source), says what? (message), in what way?
(channel), to whom? (receiver), and with what effect? (feedback).
511. Cognitive processing = The process by which an individual transforms external
information into meaning or patterns of thought and how these meanings are used to form
judgements or choices about behaviour

512. Cognitive dissonance = A state of psychological tension or post-purchase doubt

that a consumer may experience after making a purchase decision. This tension often leads
the consumer to try to reduce it by seeking supportive information

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

515. Communication objectives = Goals that an organisation seeks to achieve through

its promotional program in terms of communication effect such as creating awareness,
knowledge, image, attitudes, preferences, or purchase intentions

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

517. Classical conditioning = A learning process whereby a conditioned stimulus that

elicits a response is paired with a neutral stimulus that does not elicit any particular
response. Through repeated exposure, the neutral stimulus becomes to elicit the same
response as the conditioned stimulus
518. Conditioned response = In classical conditioning, a response that occurs as a result
of exposure to a conditioned stimulus

519. Conditioned stimulus = In classical conditioning, a stimulus that becomes

associated with and unconditioned stimulus and capable of evoking the same response or
reaction as the unconditioned stimulus

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

527. Source = The communicator sending a message to other party or parties

528. Receiver = The person who decodes the message transmited by the source

529. Counterargument = A type of thought or cognitive response a receiver has that is

counter or opposed to the position advocated in a message

530. Encoding = The process by which a source chooses signs and symbols to construct
a message

531. Decoding = The process of translating or interpreting the symbols of a message to

derive its meaning

532. Coverage = A measure of potential audience that might receive an advertising

message through a media vehicle
533. Feedback = The response or reaction that a receiver may give the source as a result
of messages

534. Source credibility = The extent to which the source of a communication is

believable to the target audience

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

556. Attractiveness = A source characteristic that makes him or her appealing to a

message recipient. Source attractiveness can be based on similarity, familiarity, or
likability
557. Influencers = People whose expertise or opinions have a bearing on the purchase
decision

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

560. Pulsing (or flighting) = A strategy of unevenly timed exposure af advertisments

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

565. All-you-can-afford approach = The strategy of setting the advertising budget as

high as possible

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

571. Salesperson = An individual acting for a company by performing one or more of

the following activities: prospecting, communicating, servicing, and information gathering

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

578. Telemarketing = Using the telephone to sell directly to customers

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

589. Relationship marketing = The process of creating, maintaining, and enhancing

strong, value-laden relationships with customers and other stakeholders

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

593. Business-to-business advertising = Advertising used by one business to promote

the products and/or services it sells to another business

594. Attitude toward the ad = A message recipient’s affective feelings of favorability or

unfavorability toward an advertisement

595. Advertising appeal = The basis or approach used in an advertising message to

attract the attention or interest of consumers and / or influence their feelings toward the
product, service, or cause

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

600. Advertising campaign = a comprehensive advertising plan that consists of a series

of messages in a variety of media that centre on a single theme or idea

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

607. Advertising specialities = Items used as giveaways to serve as a reminder or

stimulate remembrance of a company or brand such as calendars, T-shirts, pens, key tags,
and the like. Specialities are usually imprinted with a company or brand name or other
identifying marks such as address and phone number

608. Advertising substantiation = A Federal Trade Commission regulatory program that

requires advertisers to have documentation to support the claims made in their
advertisements

609. Affirmative disclosure = A U.S. Federal Trade Commission program whereby

advertisers may be required to include certain types of information in their advertisements
so consumers will be aware of all consequences, conditions, and limitations associated with
the use of product or service

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

614. Characterisation attributes = Those attributes used in advertising which associate

the product with the kind of people who use it

615. Pioneer advertisements = Advertisements that that increase primary demand for the
product that bring nonusers into the users category

616. Direct action advertisements = Advertisements designed to move consumers and

customers to take some immediate action

617. Emotional advertisements = Advertisements that attempt to create moods that will
subsequently be associated with the product

618. Financial-relation advertising = Advertising which portrays the corporation as

fiscally sound and run by forward-looking management
619. Competitive advertisements = Advertisements that create selective demand-that is,
a preference for the advertiser’s brand as opposed to a competitors

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

621. Reinforcement advertisements = Advertisements that booster and enhance

satisfaction with purchases already made

622. Reminder advertisements = Advertisements that aim at reinforcement by keeping

the product in the buyers’ minds

623. Delayed-action advertising = The advertisements which attempt to influence

consumer attitudes and preferences, thus helping to set the stage for a purchase

624. Slice-of-life advertisements = Advertisements that show the product being used by
‘ordinary people’ in very common settings or engaged in everyday activities

625. Trade advertisements = Advertisements for the purpose of influencing

intermediaries either to stock a product or to advance it through distribution channels on
its way to ultimate consumers
626. Informative advertisements = Advertising for the purpose of creating knowledge of
the product

627. Testimonial advertisements = Advertisements that attempt to get consumer to

identify with someone who claims that he or she uses and likes the product

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

630. Vehicles = Specific outlets within a larger advertising medium

631. Industrial advertisements = Advertising to promote goods and services for business
and organisational use

632. Co-operative advertising = A form of promotion in which the manufacturer makes

available to the wholesaler-or more commonly to the retailer- a fund intended to help cover
the costs of the channel member’s advertising which features the manufacturer’s brand

633. Corporate advertising = Campaigns formerly known as public opinion, image, or

institutional advertising-media space or time bought for the benefit of the corporation
rather than of any of its products
634. Creative strategy = The primary message to be communicated by the advertising
campaign. This is the major responsibility of the advertising agency

635. Creative tactics = A determination of how and advertising message will be

implemented so as to execute the creative strategy

636. Creative boutiques = Small agencies specialising in the creative work for an
advertising campaign

637. Creative service department = The section of an advertising agency which is

responsible for the creation, design, and production of whatever will appear or be heard on
radio or television or in print

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

655. Brand manager = The individual in an organisation responsible for planning,

implementing, and controlling the marketing program for a particular brand. Brand
managers are sometimes referred to as product managers
656. Brand competitors = Other companies which also manufacture the same product

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

674. Persuasive lables = Lables which have promotional intent

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

676. Percentage-of-sales method = Setting the promotion budget at a certain percentage

of current or forecasted sales or as a percentage of the unit sales price

677. Competitive-parity method = Setting the promotion budget to match competitors'

outlays

678. Objective-and-task approach = An approach in which marketers establish

advertising objectives, than calculate the costs of the methods selected to achieve these
goals in order to arrive at a budget

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

682. Storyboards = Sketches, written copy, and directions used to communicate a

television commercial’s message

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

689. Animatic = A preliminary version of a commercial whereby a videotape of the

frames of a storyboard is produced along with an audio soundtrack

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

694. Clutter = The non-program material that appears in a broadcast environment,

including commercials, promotional messages for shows, public service announcements,
and the like
695. Bleed pages = Magazine advertisements where the printed area extends to the edge
of the page, eliminating any white margin or border around the ad

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

699. Consumer-franchise-building promotions = Sales promotion activities that

communicate distinctive brand attributes and contribute to the development and
reinforcement of brand identity

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

701. Direct-response television marketing = Direct marketing via television, including

direct-response television advertising or infomercials and home shopping channels
702. Online marketing = Marketing conducted through interactive online computer
systems, which link consumers with sellers electronically

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."

708. Webcasting = The automatic downloading of customized information of interest to

recipients' PCs, affording an attractive channel for delivering Internet advertising or other
information content
709. Integrated direct marketing = Direct-marketing campaigns that use multiple
vehicles and multiple stages to improve response rates and profits

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

711. Controlled circulation basis = Distribution of a publication free to individuals a

publisher believes are of importance and responsible for making purchase decisions or are
prescreened for qualification on some other basis

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

716. Specialty products = Products perceived by consumers as having unique qualities,

to the point that no substitutes are acceptable
717. Unsought products = Those products that consumers do not consciously want or
actively seek out

718. Industrial products = Products purchased by an organisation for use either in other
products or in its own operations

719. Product levels = potential, augmented, expected generic, core benefit

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

726. Augmented product = A good, service, or idea enhanced by its accompanying

benefits; synthesis of what the seller intends and the buyer perceives

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

728. Innovation = A product which is perceived in the marketplace as being innovative

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

730. Homogeneous shopping products = Products among which consumers perceive

little difference in the core benefits

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

736. Service intangibility = A major characteristic of services—they cannot be seen,

tasted, felt, heard, or smelled before they are bought

737. Service inseparability = A major characteristic of services—they are produced and

consumed at the same time and cannot be separated from their providers, whether the
providers are people or machines

738. Service variability = A major characteristic of services—their quality may vary

greatly, depending on who provides them and when, where, and how

739. Service perishability = A major characteristic of services—they cannot be stored

for later sale or use
740. Service-profit chain = The chain that links service firm profits with employee and
customer satisfaction

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

745. Product orientation = A philosophy of business which focuses primarily on a firm’s

own resources and products

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

754. New product development = The development of original products, product

improvements, product modifications, and new brands through the firm's own R&D efforts
755. Idea generation = The systematic search for new-product ideas

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

759. Marketing strategy development = Designing an initial marketing strategy for a

new product based on the product concept

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

761. 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

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

763. Commercialization = Introducing a new product into the market

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

765. Sequential product development = A new-product development approach in which

one company department works to complete its stage of the process before passing the new
product along to the next department and stage

766. Simultaneous (or team-based) product development = An approach to developing

new products in which various company departments work closely together, overlapping
the steps in the product-development process to save time and increase effectiveness

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

771. Product disparagments = Making false or deceptive comparisons or distorted claims

concerning a competitor’s product, services, or property

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

779. Product mix = A company’s total offering of individual products

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

794. Competitor-centered company = A company whose moves are mainly based on

competitors' actions and reactions

795. Customer-centered company = A company that focuses on customer developments

in designing its marketing strategies and on delivering superior value to its target customers

796. Market-centered company = A company that pays balanced attention to both

customers and competitors in designing its marketing strategies

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

804. Discontinuous innovation = An innovation which truly changes how we do what

we have long been doing

805. Diffusion process = A process consisting of communication about, and acceptance

of, the innovation throughout the social system over a period of time
806. Income distribution = How thoroughly the income in a nation is spread through the
population

807. Direct exporting = Refers to the marketing firm’s active efforts to sell its products,
made domestically, in foreign markets

808. Direct investments = An arrangement under which an international marketer invests

the funds necessary to build or purchase its own facilities in the host country

809. Diseconomies of scale = The effort to increase production results in inefficiencies,

such as having to pay higher labour costs for overtime or having to pay more for scarce
resources

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

811. Environmental monitoring = A systematic group of activities designed to anticipate

changes in external variables that will affect the organisation’s ability to meet its goals

812. Geographical organisation = The organisation method based on management by

region, state, area, nation, or global sector

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

818. Contract manufacturing = A joint venture in which a company contracts with

manufacturers in a foreign market to produce its product or provide its service

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

822. Standardized marketing mix = An international marketing strategy for using

basically the same product, advertising, distribution channels, and other elements of the
marketing mix in all the company's international markets

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

825. Product adaptation = Adapting a product to meet local conditions or wants in

foreign markets

826. Product invention = Creating new products or services for foreign markets

827. Communication adaptation = A global communication strategy of fully adapting

advertising messages to local markets
828. Whole-channel view = Designing international channels that take into account all
the necessary links in distributing the seller's products to final buyers, including the seller's
headquarters organization, channels among nations, and channels within nations

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

834. Embargo = A ban on the import of a certain product

835. Exchange controls = Government limits on the amount of foreign exchange with
other countries and on the exchange rate against other currencies

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

837. Economic community = A group of nations organized to work toward common

goals in the regulation of international trade

838. Countertrade = International trade involving the direct or indirect exchange of

goods for other goods instead of cash

839. Collateral services = Companies that provide companies with specialised services
such as package design, advertising production, and marketing research

840. Central organisational structure = A method of organising for international

advertising along with other marketing activities such as sales, marketing research, and
planning are divided along functional lines and are run from one central marketing
department

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

843. Foreign subsidiaries = An organisational form in which the global marketer

establishes its own companies in foreign markets in order to market, and sometimes
manufacture, in those markets

844. International division = A form of organisation under which a special division of

the company is responsible for the marketing of all the firm’s products throughout the
world

845. Joint ownership = An arrangement whereby an international marketer and an

organisation in the host country create third organisation which they own jointly

846. Joint venture = An agreement between a marketing organisation and another

organisation, in the host country, through which the tasks of producing and marketing a
product are shared

847. Licensing agreement = An agreement under which an organisation in the host

country is given the right to make the marketer’s patented (or patentable) product for sale
in that market

848. Consumerism = An organized movement of citizens and government agencies to

improve the rights and power of buyers in relation to sellers
849. Environmentalism = An organized movement of concerned citizens, businesses,
and government agencies to protect and improve people's living environment

850. Environmental sustainability = A management approach that involves developing

strategies that both sustain the environment and produce profits for the company

851. Enlightened marketing = A marketing philosophy holding that a company's

marketing should support the best long-run performance of the marketing system

852. Consumer-oriented marketing = A principle of enlightened marketing that holds

that the company should view and organize its marketing activities from the consumer's
point of view

853. Innovative marketing = A principle of enlightened marketing that requires that a

company seek real product and marketing improvements

854. Value marketing = A principle of enlightened marketing that holds that a company
should put most of its resources into value-building marketing investments

855. Sense-of-mission marketing = A principle of enlightened marketing that holds that

a company should define its mission in broad social terms rather than narrow product terms
856. Deficient products = Products that have neither immediate appeal nor long-run
benefits

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

861. Operating statement (profit-and-loss statement, income statement) = A financial

statement that shows company sales, cost of goods sold, and expenses during a given period
of time

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).

866. Return on investment (ROI) = A common measure of managerial effectiveness--

the ratio of net profit to investment

867. Markup = The percentage of the cost or price of a product added to cost in order to
arrive at a selling price

868. Markdown = A percentage reduction from the original selling price

869. Communication = The exchange of information using a shared set of symbols

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

874. Written communication = Communication in which the channel involves written

language

875. Receiving = Registration of a message by one or more of receiver’s senses

876. Decoding = Interpreting what a message means

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)

883. Downward communication = Message directed (influence) to one or more receivers

at a lower level in the hierarchy (Implementation of goals, strategies, and objectives, job
instructions, procedures and practices, performance feedback, indoctrination

884. Lateral communication = Message directed to (co-ordinate) someone at the same

level in the hierarchy (intradepartmental problems solving, interdepartmental co-
ordination, staff advice to line departments)

885. Communication network = The patterns of directions in which information flows

in an organisation

886. Chain network = Communication network in which information travels up and

down through the hierarchy

887. Y network = Communication network in which information flows upwards and

downwards through the hierarchy, widening to encompass the number of employees
reporting to a supervisor

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

890. All-channel network = Communication network in which information flows

upward, downward, and laterally among all members of the group

891. Informal communication = Communication outside the organisation’s formally

authorised channels

892. Grapevine = Network for informal communication

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

895. Frame of reference = Combination of experiences and expectations giving rise to a

particular mind/set

896. Filtering = Tendency to put a message in the most favourable terms possible,
downplaying bad news and dwelling on successes

897. Supportive communication = A style of communicating that delivers a message

accurately while supporting and enhancing the relationship between the parties to the
communication

898. Active listening = Accepting responsibility for the accurate understanding of a

message by helping the sender clarify its meaning