Marketing 301

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Marketing

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an organizational function and a collection of processes designed to plan for, create, communicate, deliver value to customers and build effective customer relationships in ways that benefit the organization and its stakeholders

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Value

Back 2

The realization of benefits that exceed the cost of products, services, or other items

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Utility

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The satisfaction received from owning or consuming a product or service

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Need

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Necessity to meet an urgent requirement

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Want

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Desire for something that is not essential

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Demand

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Financial capacity to buy what one wants

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Brand

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Promise to deliver specific benefits associated with products or services to consumers

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Marketing Concept

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An organizational philosophy dedicated to understand and fulfilling consumer needs through the creation of value

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Consumer Relationships

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Created when businesses and consumers interact through a sales transaction of a product or services and continue based on ongoing interaction between the business and consumer

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Consumer Relationship Management (CRM)

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the activities that are used to establish, develop, and maintain customer relationships

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Customer Lifetime Value (CLV)

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the present value of all profits expected to be earned from a customer over the lifetime of his or her relationship with a company

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Product Orientation

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reflects a business focus on efficient production and distribution with little emphasis on any marketing strategy

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Sales Orientation

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Reflects a business focus on advertising and personal selling to create demand and move product inventory

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Customer Orientation

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Reflects a business focus on satisfying unmet consumer needs and wants

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Relationship Orientation

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Reflects a business focus on creating value-added relationships with suppliers and consumers

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Marketing Functions

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Activities performed within organizations that create value for specific products or services

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Exchange Functions

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activities that promote and enable transfer of ownership ex buying, selling, pricing, advertising

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Physical Functions

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Activities that enable the flow of goods from manufacturer to consumer

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ex assembling, transporting, warehousing, processing, packaging.

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Facilitating functions

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activities that assist in the execution of exchange and physical functions

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ex financing and risk-taking, marketing information and research

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4 Ps

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Product, price, place, promotion

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Marketing Environment

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Set of forces, some controllable and some uncontrollable, that influence the ability of a business to create value and attract and serve customers

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Internal Environment

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involves all of those activities that occur within the organizational functions in a business

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Internal Marketing

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The implementation of marketing practices within an organization to communicate organizational policies and practices to employees and internal stakeholders

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External Environment

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involves all activities, such as supplier and customer actions, that occur outside the organizational functions of a business

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External Marketing

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the implementation of marketing practices directed outside the business to create value and to form productive customer relationships

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Microenvironment

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Includes those forces close to a company, yet outside its internal environment, that influence the ability of a business to serve its customers

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Porters 5 Forces

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Threat of new entrants, bargaining power of suppliers, bargaining power of customers, threat of substitute products, competitive rivalry within an industry

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Macroenvironment

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Includes societal forces hat are essentially uncontrollable and influence the microenvironment of a business. Sub-environments: economic, social and cultural, competitive, legal, political, technological

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Economic Environment

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includes those factors that influence consumer purchase ability and buying behavior

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Inflation

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an increase in the price of a collection of goods that represents the overall economy

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Income levels

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average consumer earnings used to approximate national earnings

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Unemployment Levels

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number of unemployed persons divided by the aggregate labor force

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Social and cultural environment

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factors that relate marketing to the needs and wants of society and culture

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Demographics

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characteristics of human population that are used to identify markets

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Competitive Environment

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includes those factors that relate to the nature, quantity, and potential actions of competitors

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Legal environment

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includes factors that provide rules and penalties for violations, and is designed to protect society and consumers from unfair business practices snd protect businesses from unfair competitive practices

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Political Environment

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Includes factors that select national leadership, create laws, and provide a process for discourse on a wide range of issues

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Technological environment

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includes factors that influence marketing, based on scientific actions and innovation

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Consumer Markets

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are the end user of the product or service and include individuals and households that are potential or actual buyers of produces and services

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Consumer products

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products that directly fulfill the desires of consumers and are not intended to assist in the manufacture of other products

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Consumer’s surplus

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occurs when a consumer purchases a product or service at a price less than the utility of the product or service

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Business markets

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include individuals and organizations that are potential or actual buyers of goods and services that are used in, or in support of, the production of other products or services that are supplied to others

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North American Industrial Classification System (NASICS)

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classifies businesses operating in the US, Canada, and Mexico into groups based on their activities

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Business to Business (b2b)

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involves the sales of products and services from one business to another

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Derived Demand

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demand for a product or service that results from the demand for another product or service

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Buyclasses

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major classifications of business buying situations new tasks, modified rebuy, straight rebuy

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Buying center

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collection of individuals who perform specific roles in the procurement process

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initiator, influencers, buyer, decider, users, gatekeeper

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Planning Process

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series of steps businesses take to determine how they will achieve their goals

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Systems

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a group of interacting related parts that perform a specific function

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Business planning

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a decision process for people and businesses to manage systems to achieve an objective

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Business plan

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written document that defines the operational and financial objectives of a business over a particular time

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Elevator pitch

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a brief description of a product or service designed to gain attention of desired parties and to generate interest in achieving a desired outcome

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Strategic planning

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determines the overall goals of the business and the steps it will take to achieve them

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Tactical planning

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the process of developing actions for various functions within a business to support implementing a business’s strategic plan establish the business mission, identify the business vision, define the business objectives, develop the business portfolio

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Business mission

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statement that identifies the purpose of a business and what makes that business different from others

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Business vision

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a statement in a strategic plan that identifies an idealized picture of a future state a business is aiming to achieve

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Business objective

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something that a business attempts to achieve in support of an overarching strategy

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SMART

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specific, measurable, achievable, relevant, time-bound

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Portfolio analysis

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the process a business uses to evaluate the different combinations of products and services that the business offers based on its objectives

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BCG Growth

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market matrix

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Stars

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represent products or services with high growth and high market share

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Cash Cows

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products or services with high market share and low growth opportunities

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Question marks

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products or services with low relative market share in a sector with high growth

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Dogs

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products or services with low relative market share in a low-growth sector

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Balanced scorecard

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a management system that relates a business’s vision and mission to individual business activities consumer perspective, internal business perspective, innovation and learning perspective, and financial perspective

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Marketing planning

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includes those activities devoted to accomplishing marketing objectives

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Marketing objective

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something that a marketing function is attempting to achieve in support of a strategic business plan

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Marketing audit

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comprehensive review and assessment of a business’s marketing environment

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Marketing strategy

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statement of how a business intends to achieve its marketing objectives

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Target market

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group of customers that a business determines is the most viable for its products or services

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Marketing Mix

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group of marketing variables that a business controls with the intent of implementing a marketing strategy directed at a specific target market

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Product strategy

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identifies the product and service portfolio, including packaging, branding, and warranty for its target market

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Place strategy

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identifies where, how, and when products and services are made available to target customers

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Pricing strategy

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identifies what a business will charge for its products or services

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Promotion strategy

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identifies how a business communicates product or service benefits and value to its target market

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Marketing plan

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a document that includes and assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initiatives

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SWOT analysis

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a tool that helps identify business strengths, weaknesses, opportunities, and threats

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Return on marketing investment (ROMI)

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the impact on business performance resulting from executing specific marketing activities

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Society

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community, nation, or group that shares common traditions, institutions, activities, and interests

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Gross Domestic Product

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measures the total dollar value of goods and services a country produces within a given year

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Nongovernmental organizations (NGOs)

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groups of private individuals that monitor the behavior of markets or governments

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Culture

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the shared values, beliefs, and preferences of a particular society

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Consumerism

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the organized efforts on the part of consumer groups or governments to improve the rights and power of buyers in relation to sellers

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Boycotts

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when consumers refuse to do business with a company or nation in order to signal their disapproval of its actions and encourage change

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Environmentalism

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organized movement of citizens, businesses, and government agencies to protect and improve our living environment

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Environmental sustainability

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achieving financial objectives while promoting the long-term well-being of the earth

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Green marketing

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marketing efforts to produce more environmentally responsible products and services

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Organic foods

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grown naturally without the use of pesticides or synthetic fertilizers

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Laws

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rules of conduct or action prescribed by an authority, or the binding customs or practices of a community

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Regulations

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rules or orders issued by an official government agency that has proper authority and which carry the force of law

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Puffery

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claims of product superiority that cannot be proven as true or false

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Exaggerated claims

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extravagant statements made in advertising, either explicitly or implicitly, that have no substantiation or reasonable basis in truth

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Social responsibility

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concern for how a person’s or company’s actions might affect the interests of others

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Corporate social responsibility (CSR)

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philosophy that encourages decision makers to take into account the social consequences of their business actions

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Sustainability

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practices that combine economic growth with careful stewardship of our natural resources and the environment

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Social marketing concept

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marketing techniques may be employed for more than selling things and making a profit

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Ethics

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system of moral principles and values, as well as moral duties or obligations

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Marketing ethics

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rules for evaluating marketing decisions and actions based on marketers’ duties or obligations to society

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Global marketing

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all marketing activities conducted at an international level by individuals or businesses

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Globalization

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the outcome of cultures intermingling, sharing experiences, news, and commerce

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Glocal

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describes a company that acts either globally, locally, or both, as needed

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Global Marketing environment

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the environment in different sovereign countries, with characteristics distinct to the home environment of an organization, influencing decisions on marketing activities

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International companies

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companies that have no investment outside their home country other than the direct purchase of products or services that are, essentially, importers and exporters

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Multinational companies

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companies that maintain assets and operations in more than one country and concentrate on adapting products and services to the specific needs of each country

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Global companies

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companies that maintain assets and operations in more than one country and concentrate on penetrating multiple countries with a minimally customized marketing mix

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Outsourcing

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procuring certain services from third-party suppliers to decrease labor costs, access human capital not readily available within the business, or implement specific strategies

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Offshoring

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type of outsourcing in which business activities are completed in another country

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Purchasing power parity (PPP)

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model of exchange rate determination stating that the price of a good or service in one country should equal the price of the same good or service in another country, exchanged at the current rate

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Economic communities

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groups of countries that agree to take certain actions to manage resources of good and services by lowering tariff barriers and promoting trade among members

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Trade agreements

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treaties between countries to create a free trade area where business can be conducted without tariffs or other barriers

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European Union (EU)

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economic and political partnership among 27 European countries

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North American Free Trade Agreement (NAFTA)

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established in 1994 as a trading partnership among the US, Canada, and Mexico

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Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR)

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trading partnership among the US, DR, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua that represents the first free trade agreement between the US and a group of smaller developing economies

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World Trade Organization (WTO)

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est 1995 as the preeminent organization dealing with the rules of trade at a global or near-global level

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Tariff

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schedule of duties (or fees) applied to goods and services from foreign countries

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Quotas

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limits on the amount of product that can be imported into a country

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Dumping

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practice of selling a product in a foreign country for a price less than either the cost to make the product or the price in the home country

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Non-tariff barriers (NTBs)

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restrictions on imports that are not in the usual form of a tariff

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Exchange controls

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Types of controls that governments put in place to ban or restrict the amount of a specific currency that is permitted to be traded or purchased

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Balance of Trade

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difference between the monetary value of exports and imports of output in an economy over a specific period

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Trade surplus

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occur when the value of exports exceeds the value of imports

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Trade deficit

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occur when the value of imports exceeds the value of exports

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Income distribution

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way in which income and wealth are divided among the members of an economy

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Subsistence economies

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generally represented by agrarian societies where enough is grown, hunted, and crafted to provide the essential needs of the people and any surplus is bartered for basic goods and services

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Raw materials exporting economies

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countries that are plentiful in a particular raw material, yet deficient in other resources, and rely on the export of that raw material for the majority of revenue

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Industrializing economies

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countries where the manufacturing sector accounts for a small but growing share of the total economy and an increasing number of imported raw materials are required to support manufacturing

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Industrial economics

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consist of countries with robust manufacturing, service, and financial sectors that are actively engaged in international trade

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Post-industrial economies

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countries where the manufacturing sector diminishes while service and information sectors become the primary sources of economic growth

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Risk

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potential for loss of investment

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Instability

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the condition of being erratic or unpredictable

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Privatization

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the transfer of government functions to the private sector that creates new business opportunities

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Nationalization

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the transfer of control or ownership of private property to government

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Democracy

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form of government in which the supreme power is retained by the people, but which is usually exercised indirectly through a system of representation and delegated authority periodically renewed

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Monarchy

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form of government in which the supreme power is held by a monarch who reigns over a state or territory, usually for life and by hereditary right; the monarch may be either a sole absolute ruler or a sovereign - such as king, queen, or prince- with constitutionally limited authority

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Parliamentary democracy

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political system in which the legislature (parliament) selects the government - a prime minister - according to party strength as expressed in elections; by this system, the government acquires a dual responsibility: to the people as well as to the parliament

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Totalitarianism

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form of government that seeks to subordinate the individual to the state by controlling not only all political and economic matter, but also the attitudes, values, and beliefs of its population

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Jurisdiction

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power or right or a legal or political entity to exercise its authority over a specific geographic area

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International law

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body of rules and customs by which countries are guided in their relations with other countries and recognized international organizations

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Extraterritoriality

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holds certain individuals such as diplomats accountable to the laws of their home country while exempting them from the jurisdiction of a foreign country in which they may be operating

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Bribery

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practice of offering something of financial value to someone in a position of authority to alter behavior and gain an illicit advantage

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Foreign Corrupt Practices Act

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passed in 1977, makes it “unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.”

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Counterfeiting

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unauthorized copying of products, packaging, or other intellectual property of a registered brand

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Countertrade

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legal agreement where goods are paid for in a form other than cash

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Cultural values

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power distance, uncertainty avoidance, individualism vs collectivism, masculinity vs feminity, long-term vs short-term orientation

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Zero-sum game

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one or more parties benefit to the same degree as one of more other parties lose

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Global marketing process

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a series of strategic marketing decisions deciding to go global, determining which markets to enter, deciding how to enter the markets, and selecting the global marketing program

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Market

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place, either physical or virtual, where buyers and sellers come together to exchange good and services

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Exporting

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when a company produces in its home market and then transports its products to other nations for sale

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Indirect

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when a firm sells through intermediaries

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Direct

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when a firm establishes its own overseas sales branches

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Joint venture

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entry strategy in which a company teams with a host company in the particular market they are entering

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Licensing

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practice of a company receiving fees or royalties from partner firms for the right to use a brand, manufacturing process, or patent

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Contract manufacturer

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an entry strategy in which a company directly hires a company in the host nation to manufacture products on its behalf

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Joint ownership

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entry strategy in which a company joins with a foreign invertor to build its own local business

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Direct investment

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entry strategy in which a company establishes foreign-based manufacturing facilities

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Franchising

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entry strategy in which a local company purchases the right to use the process and brand of another company

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Born global

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business that, from its inception, intends to derive significant competitive advantage from the application of resources and commercial transactions in multiple countries

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Customer Value

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the difference between the benefits a customer expects to receive from a product and the total cost incurred from acquiring, using, and disposing of the product

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Value Map

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a graphical representation of the ration between customers’ perceived benefits and the perceived total cost of a product

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Fair Value Zone

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the area on a value map where the customers’ perceived benefits equal the customers’ perceived cost

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Customer Satisfaction

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the degree to which a product meets or exceeds customer expectations

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Customer Loyalty

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the degree to which a customer will select a particular brand when a purchase from that product category is being considered

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Consumer Lifetime Value (CLV)

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The present value of all profits expected to be earned from a customer over the lifetime of his or her relationship with a company

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Relationship Marketing

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the organizational commitment to developing and enhancing long-term, mutually beneficial relationships with profitable or potentially profitable customers

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Consumer Relationship Management (CRM)

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the activities that are used to establish, develop, and maintain customer sales.

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Data mining

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The statistical analysis of large databases seeking to discover hidden pieces of information. This technique can be used with both primary and secondary data

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Consumer Behavior

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The dynamic interaction of affect and cognition, behavior, and the environment in which human beings conduct the exchange of their lives

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Psychology

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the study of the mind

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Social Psychology

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the process to understand social phenomena and their influence on social behavior

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Consumer decision-making process

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the steps that consumers take to identify and evaluate choice options

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Self-identity

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an individual’s understanding that he or she is unique

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Personality

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a “sense of consistency, internal causality, and personal distinctiveness”

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Lifestyle

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a way of life that individuals express by choosing how to spend their time and personal resources

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Cognitive age

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also referred to as subjective age, is the age that a person feels

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Life stage

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similar life events experienced by groups of individuals of varying chronological and cognitive ages

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Perception

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cognitive impression of incoming stimuli that influences the individual’s actions and behavior

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Subliminal perception

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the processing of stimuli by a recipient who is not aware of the stimuli being received

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Motivation

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the set of conditions that creates a drive toward a particular action to fulfill a need or want

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Attitude

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a state of readiness, based on experience that influences a response to something

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Belief

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a sense of truth about something

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Learning

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knowledge that is acquired through experiences

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Drive

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internal stimulus that encourages action

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Cue

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an environmental stimulus that influences a particular action

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Response

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a consumer’s reaction to drive and cues

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Reinforcement

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a reduction in drive resulting from a positive-response experience

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Culture

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the shared values, beliefs, and preferences of a particular society

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Subculture

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groups of people within a broader society who share similar behaviors and values

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Norms

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standards of behaviors imparted to members of a particular group that define membership

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Roles

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specific actions expected from someone in a group as a member of from a particular position held

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Status

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the relative position of one individual relative to others

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Reference group

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people who directly or indirectly influence how an individual feels about a particular topic

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Opinion leaders

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individuals who have the greatest influence on the attitudes and behaviors of a particular group

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Social classes

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characteristics that distinguish certain members of society from others, based on a variety of factors, including wealth, vocation, education, power, place of residence, and ancestry

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Consumer problem solving

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how someone comes to a conclusion about a situation. This is determined by what kind of decision a consumer is facing

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Limited problem solving

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when a consumer is prepared to exert a certain amount of effort to make a purchase decision

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Significant problem solving

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when a consumer is prepared to commit considerable effort to make a purchase decision

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Routine response problem solving

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when a consumer has a well-developed process associated with fulfilling a need or want

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Consumer insight

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perceived meanings of data collected from a study of consumer behavior

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Insight

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the act or result of apprehending the inner nature of things, or seeing intuitively

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Consumer market insight

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an in-depth understanding of customer behavior that is more qualitative than quantitative

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Research

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the studious inquiry or examination; especially: investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws

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Applied research

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attempts to answer questions related to practical problems

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Pure research

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attempts to expand understanding of the unknown

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Research question

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the question the research is designed to answer

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Primary data

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information that is collected to address a current research question

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Secondary data

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information that has been previously collected for another purpose

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Data mining

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the statistical analysis of large databases seeking to discover hidden pieces of information. This technique can be used with both primary and secondary data

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Syndicated research

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information collected on a regular basis using standardized procedures and sold to multiple customers from a related industry

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Research design

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a framework or plan for a study that guides the collection and analysis of the data

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Exploratory research

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marketing research design used to generate ideas in a new area of inquiry

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Descriptive research

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a marketing research design that is used to describe marketing variables by answering who, what, when, where, and how questions

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Explanatory research

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a marketing research design used to understand the relationship between independent and dependent variables

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Qualitative research

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a collection of techniques designed to identify and interpret information obtained through the observation of people

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Quantitative research

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a process to collect a large number of responses using a standardized questionnaire where the results can be summarized into numbers for statistical analysis

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Focus groups

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collections of a small number of individuals recruited by specific criteria with the purpose to discuss predetermined topics with qualified moderators

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Structured interviews

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a series of discussions held between a trained interviewer and individuals, on a one-on-one basis

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Ethnographic research

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type of observational research where trained researchers immerse themselves in a specific consumer environment

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Internet research panel

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collection of individuals who agree, for some predetermined incentive, to participate in questionnaires on a variety of topics as determined by the owner and manager of the panel

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Measurement

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the process of quantifying how much of a variable’s set of features or characteristic are possessed in another variable

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Nominal scale

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measurement in which numbers are assigned to characteristics of objects or groups of objects solely for identifying the objects

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Ordinal scale

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measurement in which numbers are assigned to characteristics of objects or groups of objects to reflect the order of the objects

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Interval scale

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measurement in which the numbers assigned to the characteristics of the objects or groups of objects legitimately allow a comparison of the size of the differences among and between objects

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Ratio scale

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a measurement in which the numbers assigned to the characteristics of the objects have an identifiable absolute zero

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Questionnaire

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an organized set of questions that a researcher desires respondents to answer

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Close-ended question

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a question that has a specific survey answer choices available to respondents

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Coding

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the numbering of the answer choices for each survey question

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Open-ended question

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allows for unrestricted survey responses

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Sample

Back 228

specific part of the population that is selected to represent the population

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Population

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total group of individuals who meet the criteria being studied

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Census

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survey that collects responses for each member of the population

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Sample plan

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identifies who will be sampled, how many people will be sampled, and the procedure that will be used for sampling

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Sample error

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any differences between the sample results and the actual results that would emerge from a census of the population

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Sampling procedure

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selecting either a probability sample or a nonprobability sample as part of your sample plan

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Probability sample

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procedure where each member of a population has a known and nonzero chance of possibly being selected to a sample

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Nonprobability sample

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procedure where each member of a population does not have an equal chance, or, in some cases, any chance, of being selected to a sample

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Nonsampling error

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any bias that emerges in the study for any reason other than sampling error

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Validity

Back 237

the strength of a conclusion

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Reliability

Back 238

the level of consistency of the measurement

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Marketing Information system (MIS)

Back 239

a series of steps that include collection, analysis, and presentation of information for use in making marketing decisions

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Marketing intelligence system

Back 240

system that gathers, processes, assesses, and makes available marketing information in a format that allows the marketing activity to function more effectively

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Competitive intelligence

Back 241

systematic tracking of competitive actions and plans and is a significant activity within a business

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Marketing decision support system (MDSS)

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software and associated infrastructure that connect the marketing activity to company databases

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Marketing research system

Back 243

a collection of the results or marketing research studies conducted by a company

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Cookies

Back 244

small files containing certain personal information that are sent from Web servers to a customer’s computer to be accessed the next time a consumer visits a particular Web site

Front 245

Brand

Back 245

a promise to deliver specific benefits associated with products or services to consumers

Front 246

Digital Brand strategy

Back 246

set of marketing activities that uses digital mediums to connect consumers to brands

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Brand equity

Back 247

the power of a brand, through creation of a distinct image, to influence customer behavior

Front 248

Brand knowledge

Back 248

the set of associations that consumers hold in memory regarding the brand’s features, benefits, users, perceived quality, and overall attitude as a result of prior brand marketing activities

Front 249

Price war

Back 249

occurs when businesses cut prices to take sales from competitors

Front 250

Channel switching

Back 250

creating new product distribution or moving the distribution flow of products from one distribution channel to another

Front 251

Channel

Back 251

system with few or many steps in which products flow from businesses to consumers while payments flow from consumers to businesses

Front 252

Brand stretching

Back 252

extending a brand to new products, services, or markets

Front 253

Outsourcing

Back 253

procuring certain services from third-party suppliers to decrease labor costs, access human capital not readily available within the business, or implement specific strategies

Front 254

Brand valuation

Back 254

the process of quantifying the financial benefit that results from owning a brand

Front 255

Brand loyalty

Back 255

the extent to which a consumer repeatedly purchases a given brand

Front 256

Consumer-based brand equity

Back 256

the differential effect that brand knowledge has on the consumer response to marketing efforts

Front 257

Strong brand

Back 257

occupies a distinct position in consumers’ minds based on relevant benefits and creates an emotional connection between businesses and consumers

Front 258

Brand positioning

Back 258

the location that a brand occupies in the marketplace relative to competitors

Front 259

Brand personality

Back 259

consists of characteristics that make a brand unique, much like human personality

Front 260

Brand architecture

Back 260

the naming and organizing of brands within a broader portfolio

Front 261

Manufacturer brand

Back 261

a brand owned by a manufacturer

Front 262

Private label brands

Back 262

a brand owned by a reseller or retailer

Front 263

Licensing

Back 263

the practice of a company receiving fees or royalties from partner firms for the right to use a brand, manufacturing process, or patent

Front 264

Co-branding

Back 264

the collaboration of multiple brands in the marketing of one specific product

Front 265

Brand alliance

Back 265

a relationship, short of a merger, that is formed by two or more businesses to create market opportunities that would not have existed without the alliance

Front 266

Brand strategy

Back 266

the process where the offer is positioned in the consumer’s mind to produce a perception of advantage

Front 267

Line extension

Back 267

an addition to an existing product line that retains the currently utilized brand name

Front 268

Bundling

Back 268

refers to the practice of marketing two or more products and/or services in a single package

Front 269

Brand extension

Back 269

takes an existing brand into a new category

Front 270

Cannibalization

Back 270

the loss of sales of an existing product within a portfolio to a new product in the same portfolio

Front 271

Flanker brand

Back 271

created to expand an organization’s portfolio into a new segment of an existing market category while retaining relevance with current customers

Front 272

Brand management

Back 272

the overall coordination of a brand’s equities to create long-term brand growth through overseeing marketing mix strategies

Front 273

Category management

Back 273

involves the management of multiple brands in a product line

Front 274

Category manager

Back 274

the person responsible for managing a product lien that may contain one or more brands

Front 275

Brad manager

Back 275

the person responsible for managing the marketing activities associated with a brand

Front 276

Brand protection

Back 276

involves securing the brand’s inherent value, including its intellectual property

Front 277

Intellectual property

Back 277

a collection of non-physical assets owned by an individual or company that are the result of innovation and are legally protected from being copied or used by unauthorized parties

Front 278

United States Patent and Trademark Office (USPTO)

Back 278

federal agency responsible for assigning rights for limited times to individuals or companies to use innovations

Front 279

Counterfeiting

Back 279

unauthorized copying of products, packaging, or other intellectual property of a registered brand

Front 280

Segmentation (market segmentation)

Back 280

division of consumer markets into meaningful and distinct customer groups

Front 281

Mass marketing

Back 281

communicating a product or service message to as broad a group of people as possible with the purpose of positively influencing sales

Front 282

Segmentation base

Back 282

a group of characteristics that is used to assign segment members

Front 283

Demographic segmentation

Back 283

divides the market into groups, based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, ethnicity, generation, nationality, and sexual orientation

Front 284

Psychographic segmentation

Back 284

assigns buyers into different groups, based on lifestyle, class, or personality characteristics

Front 285

Values segmentation

Back 285

considers what customers prefer and what motivates customer response to marketing activities

Front 286

Behavioral segmentation

Back 286

allocates consumers into groups based on their uses or responses to a product or service

Front 287

Needs segmentation

Back 287

allocates consumers into groups, based on their product or service needs

Front 288

Targeting (market targeting)

Back 288

the process of evaluating and selecting the most viable market segment to enter

Front 289

Behavioral targeting

Back 289

optimizes the online advertising potential for brands

Front 290

Undifferentiated marketing

Back 290

when a company treats the market as a whole, focusing on what is common to the needs of customers rather than on what is different

Front 291

Differentiated marketing

Back 291

separates and targets several different market segments with a different product or service geared to each segment

Front 292

Niche marketing

Back 292

serving a small but well-defined consumer segment

Front 293

Positioning

Back 293

placement of a product or service offering in the minds of consumer targets

Front 294

Unique selling proposition (USP)

Back 294

An expression of the uniqueness of a brand

Front 295

Functional positioning

Back 295

based on the attributes of products or services and their corresponding benefits and is intended to communicate how customers can solve problems or fulfill needs

Front 296

Symbolic positioning

Back 296

based on characteristics of the brand that enhance the self-esteem of customers

Front 297

Experiential positioning

Back 297

based on characteristic of the brands that stimulate sensory or emotional connections with customers

Front 298

Search engine optimization

Back 298

the process of enhancing web site traffic through either organic of compensated means

Front 299

Perceptual map

Back 299

defines the market, based on consumer perceptions of attributes of competing products

Front 300

Brand positioning statement

Back 300

summary of what a brand offers to the market

Front 301

Business plan

Back 301

a written document that defines he operational and financial objectives of a business over a particular time, and how the business plans to accomplish those objectives

Front 302

Marketing plan

Back 302

a document that includes an assessment of the marketing situation, marketing objectives, marketing strategy, and marketing initatives

Front 303

Products

Back 303

items used or consumed for personal or business use

Front 304

Services

Back 304

activities that deliver benefits to consumers or businesses

Front 305

Attributes

Back 305

the unique characteristics of each product, including product features and options, product design, brand name, quality, logos, identifiers, packaging, and warranty

Front 306

Benefits

Back 306

realized through product attributes, define the utility (usefulness) of a product for the customer

Front 307

Intangibility

Back 307

recognizes that a service cannot be perceived by the five senses (sight, hearing, tough, smell, or taste) before it is produced and consumed

Front 308

Inseparability

Back 308

recognizes that a service cannot be separated from its means or manner of production

Front 309

Variability

Back 309

recognizes that service quality may vary from experience to experience

Front 310

Perishability

Back 310

recognizes that a service cannot be stored for later use and must be consumed upon delivery

Front 311

Levels of a product

Back 311

consists of three classifications: core benefits, actual product, and augmented product—and each additional level has the potential to add greater value for the consumer

Front 312

Core benefits

Back 312

fundamental product benefits the customer receives from a product

Front 313

Actual product

Back 313

the combination of tangible and intangible attributes that delivers the core benefits of the product

Front 314

Augmented product

Back 314

the additional services or benefits that enhance the ownership of the actual product

Front 315

Consumer products

Back 315

products that directly fulfill the desires of consumers and are not intended to assist in the manufacture of other products

Front 316

Convenience products

Back 316

products that are purchased frequently with little or no shopping effort, for example, grocery staples, paper products, and candy

Front 317

Shipping products

Back 317

products that are purchased with a moderate amount of shopping effort, for example, clothing, linens, housewares

Front 318

Specialty products

Back 318

products with unique characteristics that are purchased with a high degree of shopping effort, for example, luxury items, vacations, and homes

Front 319

Unsought products

Back 319

products that consumers do not usually search for without an immediate problem or prompting, for example, life insurance, funerals, or legal services

Front 320

Industrial products

Back 320

products sold to business customers for their direct use or as inputs to the manufacture of other products. Classifications of industrial products include equipment, MRO products, raw materials, processed materials and services, and components

Front 321

Equipment

Back 321

group of products used in the everyday operation of a business, for example, factories and copy machines

Front 322

MRO products

Back 322

products used in the maintenance, repair, and operation of a business, for example, nails, oil, or paint

Front 323

Raw materials

Back 323

unfinished products that are processed for use in the manufacture of a finished product, for example, wood, wheat, or iron ore

Front 324

Processed materials and services

Back 324

products or services used in the production of finished products or services, for example, lumber, steel, or market research

Front 325

Components

Back 325

finished products companies employ to manufacture in their own products, for example, microchips or engines

Front 326

New product development

Back 326

process of creating, planning, testing, and commercializing products

Front 327

Idea generation

Back 327

the process of formulating an idea for a new product or service

Front 328

Idea screening

Back 328

the process of reviewing a product idea to ensure that it meets customer wants and company goals

Front 329

Concept development

Back 329

the process of concretely defining the features and benefits of the new product

Front 330

Marketing strategy

Back 330

a statement of how a business intends to achieve its marketing objectives

Front 331

Business analysis

Back 331

the process of validating that the new product will meet all sales and profit objectives

Front 332

Concept testing

Back 332

the developing prototypes of the product for product testing

Front 333

Commercialization

Back 333

the process of launching a new product in the marketplace

Front 334

Discontinuous innovations

Back 334

new product ideas that change our everyday lives in dramatic ways

Front 335

Cosmetic change

Back 335

an evolutionary change to an existing product or service

Front 336

Context change

Back 336

when an existing product or service is taken into a new context or market

Front 337

Concept change

Back 337

an advanced, breakthrough innovation that changes everything

Front 338

Product style

Back 338

the visual and aesthetic appearance of a product

Front 339

Product design

Back 339

a product’s style, tactile appeal, and usability

Front 340

Product portfolio

Back 340

(also called a product mix) is the collection of all products and services offered by a company

Front 341

Portfolio management

Back 341

comprises all of the decisions a company makes regarding its portfolio of current and future products. It involves deciding which products to add, keep, and remove from the overall product portfolio

Front 342

Product line

Back 342

a group of closely related products

Front 343

Full-line product strategy

Back 343

offering a wide range of product lines within a product portfolio

Front 344

Product mix width

Back 344

number of product lines a company offers

Front 345

Product mix length

Back 345

the total number of products a company offers

Front 346

Product mix depth

Back 346

number of versions of products within a product line

Front 347

Line extension

Back 347

an addition to an existing product line that retains the currently utilized brand name

Front 348

Line expansions

Back 348

the addition of entirely new product lines to a product mix

Front 349

Product life cycle (PLC)

Back 349

the model that describes the evolution of a product’s sales and profits throughout its lifetime. The stages of the product life cycle are as follows: introduction, Growth, Maturity, and Decline

Front 350

Introduction stage

Back 350

the stage at which a new product is introduced to the marketplace. Sales begin to build, but profits remain low (or even negative)

Front 351

Growth stage

Back 351

the stage at which a product is rapidly adopted in the marketplace. Sales grow rapidly and profits peak

Front 352

Maturity stage

Back 352

stage at which the product has been purchased by most potential buyers and future sales are largely replacement purchases. Sales plateau and profits begin to fall

Front 353

Decline stage

Back 353

stage at which the demand for a product falls due to changes in customer preferences. Sales and profits eventually fall to zero

Front 354

Penetration strategy

Back 354

process of offering a product at a low price to maximize sales volume and market share

Front 355

Skimming strategy

Back 355

process of offering a product at a high price to maximize return

Front 356

Divesting

Back 356

process of discounting the production and sale of a product

Front 357

Harvesting

Back 357

process of continuing to sell a product in spire of declining sales

Front 358

Diffusion of innovations

Back 358

theory concerning how populations adopt innovations over time

Front 359

Innovators

Back 359

consumers who are the most willing to adopt innovations. They tend to be younger, better educated, and more financially secure

Front 360

Early adopters

Back 360

consumers who are more socially aware than innovators and consider the prestige or social implications of being seen using a new product

Front 361

Early majority

Back 361

middle-class consumers who do not want to be the first, or the last, to try a new product. They look to the early adopters for direction about product innovations

Front 362

Late majority

Back 362

older and conservative consumers who avoid products they consider to be too risky. They will purchase something only if they consider it to be a necessity or when they are under some form of social pressure

Front 363

Laggards

Back 363

consumers who are heavily bound by tradition and are the last to adopt an innovation

Front 364

Price

Back 364

exchange value of a product or service in the marketplace

Front 365

Value

Back 365

= benefits/price

Front 366

Fair prices

Back 366

those consumers perceive as offering good value and meeting personal and social norms

Front 367

Price-quality ratio

Back 367

ratio between the price of a product and its perceived quality

Front 368

Market structure

Back 368

the type of marketplace situation the company faces: monopoly, oligopoly, monopolistic competition, or pure competition

Front 369

Monopoly

Back 369

market composed of a single firm with pricing power sufficient to set the marketplace price for all products or services

Front 370

Pricing power

Back 370

ability of a firm to establish a higher price than its competitors without losing significant market share

Front 371

Oligopoly

Back 371

refers to a market composed of a small group of firms that share pricing power sufficient to set the marketplace price for their products or services

Front 372

Monopolistic competition

Back 372

refers to a market composed of firms with somewhat differentiated products and limited pricing power sufficient to influence the price of their own products to a degree

Front 373

Pure competition

Back 373

refers to a market composed of a large number of firms that together lack sufficient pricing power to influence the market price for their products

Front 374

Fixed costs (overhead)

Back 374

costs that are incurred regardless of any production or sales

Front 375

Variable costs

Back 375

costs directly attributable to the production of a product or the delivery of a service

Front 376

Total cost

Back 376

sum of fixed and variable costs

Front 377

Profit margin

Back 377

difference between the price of a product and its total cost per unit

Front 378

Cost-based pricing

Back 378

establishes a price based on the cost to manufacture a product or deliver a service

Front 379

Cost-plus pricing

Back 379

adds a fixed amount to the cost of each product or service sufficient to earn a desired profit

Front 380

Markup

Back 380

percentage or fixed amount added to the cost of a product or service

Front 381

Break-even point

Back 381

volume or price at which a company’s revenue for a product exactly equals its fixed cost

Front 382

Contribution margin

Back 382

difference between a product’s price and its variable cost

Front 383

Demand curve (demand schedule)

Back 383

charts the projected sales for a product or service for any price customers are willing to pay

Front 384

Price elasticity

Back 384

measure of a percentage change in quantity demanded for a product, relative to a percentage change in its price

Front 385

Elastic

Back 385

refers to the situation in which price elasticity is greater than one or when demand is highly responsive to a change in price

Front 386

Inelastic

Back 386

refers to the situation in which price elasticity is less than one or when demand is relatively nonresponsive to a change in price

Front 387

Pricing practices

Back 387

considerations (such as legal requirements or bidding practices) that must be taken into account when establishing a price for a product or service

Front 388

Odd-even pricing

Back 388

practice that sets prices at fractional numbers, instead of whole ones

Front 389

Price bundling

Back 389

occurs when two or more items are priced at a single, combined price instead of individually

Front 390

Antitrust law

Back 390

catchall phrase for federal legislation meant to prohibit anticompetitive actions on the part of manufacturers, wholesalers, or resellers

Front 391

Price fixing

Back 391

occurs when two or more companies discuss prices in an effort to raise the market price for their products

Front 392

Price discrimination

Back 392

occurs when a firm injures competition by charging different prices to different members of its distribution channel

Front 393

Predatory pricing

Back 393

occurs when a firm sells its products at a low price to drive competitors out of the market

Front 394

Deceptive pricing

Back 394

occurs when a price is meant to intentionally mislead or deceive customers

Front 395

Bait-and-switch pricing

Back 395

occurs when a firm advertises a low price on a desirable product but, in attempt to trade customers up to more expensive items, it does not make a good faith effort to carry sufficient quantities of that product

Front 396

Loss-leader pricing

Back 396

involves the sale of items below cost to drive floor traffic

Front 397

Promotional pricing

Back 397

strategy of using price as a promotional tool to drive customer awareness and sales

Front 398

Sticker price (MSRP)

Back 398

quoted or official price for a product

Front 399

Request for quote (RFQ)

Back 399

document a buyer sends to a potential supplier that outlines the criteria for the goods or services to be purchased

Front 400

Quotation

Back 400

a supplier’s response to an RFQ from a potential customer

Front 401

Competitive bidding

Back 401

involves suppliers in a bid process that receive identical RFQs and then return quotes in secret to the buyer

Front 402

Negotiated price

Back 402

the result of a back-and-forth discussion between a buyer and seller regarding the final price of a product or service

Front 403

Quotas

Back 403

limits on the amount of product that can be imported into a country

Front 404

Tariff

Back 404

a schedule of duties (or fees) applied to goods and services from foreign countries

Front 405

Antidumping laws

Back 405

laws designed to prevent predatory pricing

Front 406

Currency exchange rates

Back 406

variable rates that specify the price of one currency in terms of the price of another

Front 407

Pricing strategy

Back 407

identifies what a business will charge for its products or services

Front 408

Pricing objectives

Back 408

goals that keep marketing actions in alignment with overall business objectives

Front 409

Skimming price

Back 409

price that is set high in order to maximize revenue and profit

Front 410

Penetration price

Back 410

price that is set low to maximize volume and market share

Front 411

Experience curve

Back 411

economic model that presumes costs will decline as production volume increases

Front 412

Storefront pricing (offline pricing)

Back 412

prices established for products or services sold through traditional sales channels like grocery stores, mass merchandisers, or other “brick and mortar” businesses

Front 413

Online pricing

Back 413

process of setting prices for products or services sold over the Internet or through an electronic medium

Front 414

Cost transparency

Back 414

ability of consumers to understand a product’s actual cost

Front 415

Price lining (tiered pricing, versioning)

Back 415

a strategy used to create different prices for different, but related, products or services

Front 416

Dynamic pricing (smart pricing)

Back 416

practice of varying prices based on marketplace conditions

Front 417

Auctions

Back 417

markets in which buyers and sellers engage in a process of offer and counteroffer until a price acceptable to both parties is reached

Front 418

Forward auction

Back 418

market in which a buyer states what he or she is seeking to purchase and sellers respond in kind with bids (or prices)

Front 419

Reverse auction

Back 419

market in which a buyer states what he or she is seeking to purchase, as well as the price he or she is willing to pay

Front 420

Incremental cost

Back 420

additional cost to produce or sell one more product or service

Front 421

Clickthrough fees

Back 421

the amount of online entity charges another online entity for passing along a Web user who clicks an ad or link

Front 422

Price ceiling

Back 422

price all products in a product line must be priced below

Front 423

Price floor

Back 423

price above which all products in a product line must be priced

Front 424

Cash discount

Back 424

percentage or fixed amount off the quoted price of an item, and is given when a customer pays in cash

Front 425

Quantity discount

Back 425

a discount per item purchased that is given to customers buying a larger quantity of a product

Front 426

Trade-in

Back 426

cash value given to a customer when he or she offers his or her own product in trade toward a new purchase

Front 427

Rebate

Back 427

a cash payment made back to a customer who has purchased his or her products at full price

Front 428

Price war

Back 428

occurs when businesses cut prices to take sales from competitors

Front 429

Marketing channel

Back 429

the network of parties involved in moving products from the producer to consumers or business customers

Front 430

Distribution

Back 430

process of delivering products and services to customers

Front 431

Exchange function

Back 431

Negotiate price; make sales; place orders; develop communications

Front 432

Physical function

Back 432

transport and store products; break bulk; create assortments

Front 433

Facilitating function

Back 433

gather information; provide credit and other purchase options

Front 434

Contact efficiency

Back 434

efficiency gained in terms of a reduction in the number of contacts required through the use of channel intermediaries

Front 435

Channel strategy

Back 435

describes the levels, organization, and distribution intensity of a marketing channel

Front 436

Direct marketing channel

Back 436

a single channel member that produces and distributes a product or service

Front 437

Indirect marketing channel

Back 437

a channel involving one or more intermediaries between producer and customer

Front 438

Distribution intensity

Back 438

determines the number of outlets or locations where a product will be sold

Front 439

Intensive distribution

Back 439

refers to the distribution of products in a relatively large number of locations

Front 440

Selective distribution

Back 440

refers to the distribution of products in relatively few locations

Front 441

Exclusive distribution

Back 441

refers to the distribution of products in only a few locations

Front 442

Vertical Marketing Systems (VMS)

Back 442

a channel that is vertically integrated based on acquisition or formal agreement, or by a firm developing its own distribution capabilities

Front 443

Horizontal

Back 443

two or more channel members at the same level form an alliance.

Front 444

Channel conflict

Back 444

occurs when two or more channel members disagree

Front 445

Vertical conflict

Back 445

refers to conflict between channel members at different levels in a channel (e.g. a wholesaler and a retailer)

Front 446

Horizontal conflict

Back 446

occurs between channel members at the same level in a channel (e.g. two retailers)

Front 447

Multichannel conflict

Back 447

refers to conflict between different types of channels

Front 448

Channel leader

Back 448

a firm with sufficient power over other channel members to take a leadership role in the channel

Front 449

Logistics

Back 449

the coordination of all activities related to the transportation or delivery of products and services that occur within the boundaries of a single business or organization

Front 450

Supply chain management

Back 450

the management of all firms or organizations, both inside and outside a company, that impact the distribution process

Front 451

Outbound logistics

Back 451

controls the movement of products from points of production (factories or service delivery points) to consumers

Front 452

Inbound logistics

Back 452

controls the flow of products or services from suppliers to manufacturers or service providers

Front 453

Reverse logistics

Back 453

addresses the methods consumers use to send products backward through a channel for a return or repair

Front 454

Logistics manager

Back 454

a person responsible for coordinating the activities of all members of a company’s distribution channel

Front 455

Third-party logistics company (3PL)

Back 455

manages all or part of another company’s supply chain logistics

Front 456

Just-in-time (JIT)

Back 456

an inventory management technique in which goods are delivered within a predefined time “window” that corresponds to exactly when the goods are needed

Front 457

Physical distribution

Back 457

the process of moving finished goods to customers through various transportation modes

Front 458

Inventory

Back 458

a store of goods awaiting transport or shipping

Front 459

Shipper

Back 459

the owner of goods being distributed

Front 460

Consignee

Back 460

the receiver of goods being distributed

Front 461

Carrier

Back 461

the entity that physically transports goods from shipper to consignee

Front 462

Pipeline

Back 462

transportation mode used for liquids such as oil or natural gas

Front 463

Intermodal distribution systems

Back 463

distribution strategy that uses more than one kind of transportation mode

Front 464

Transportation management systems (TMS)

Back 464

software programs used to automate the shipping process

Front 465

Warehouse

Back 465

physical facility used primarily for the storage of goods held in anticipation of sale or transfer within the marketing channel

Front 466

Breaking bulk

Back 466

the process of reducing large product shipments into smaller ones that are more suitable for individual retailers or companies

Front 467

Stock-keeping unit (SKU)

Back 467

unique identification number used to track and organize products

Front 468

Distribution center

Back 468

a large warehouse used to store a company’s products

Front 469

RFID (radio frequency identification)

Back 469

electronic chip and an antenna that can identify the precise physical location of a product

Front 470

Bar code

Back 470

unique product identification codes used to monitor inventory

Front 471

Universal Product Code (UPC)

Back 471

standard format for retail bar codes

Front 472

Cross-docking

Back 472

warehousing technique that minimizes holding costs by unloading products at a warehouse or distribution center and then reloading them almost immediately for transport

Front 473

Retailing

Back 473

the activities involved in the sale of products to consumers for their personal, nonbusiness use

Front 474

Retailers

Back 474

businesses whose primary source of revenue is generated through retailing

Front 475

Durable goods

Back 475

products that are expected to last for three or more years

Front 476

Specialty stores

Back 476

concentrate on satisfying the specific needs of a select group of customers

Front 477

Category killers

Back 477

retailers that offer a wide selection of merchandise in a narrow product category

Front 478

Department stores

Back 478

carry a wide selection of products organized by departments, such as housewares, men’s and women’s apparel, appliances, and luggage

Front 479

Discount stores

Back 479

type of department store focused on turning over products more quickly than traditional department stores by offering lower prices

Front 480

Off-price retailers

Back 480

sell name-brand products at prices 20 to 50% less than specialty or department stores by acquiring closeout merchandise, production overruns, or factory seconds

Front 481

Warehouse clubs

Back 481

carry a limited selection of merchandise in large quantities that deliver higher value for customers and greater unit volume for manufactures

Front 482

Grocery stores/supermarkets

Back 482

self-service retailers that carry food and nonfood items

Front 483

Superstores

Back 483

the combination of a discount store and a grocery store

Front 484

Convenience stores

Back 484

small, self-service retailers that offer few product choices outside their primary offerings of beer, soft drinks, and snacks

Front 485

Nonstore retailing

Back 485

involves the sale of products through the use of vending machines, self-serve kiosks, the Internet, and smart phone applications

Front 486

Vending machines

Back 486

sell a wide range of products including soft drinks, snacks, hot and cold meals, gumballs, and toys

Front 487

Internet retailers

Back 487

offer a wide range of products that are sold online

Front 488

M-commerce

Back 488

a form of nonstore retailing conducted through the use of mobile devices such as smart phones

Front 489

Retail strategies

Back 489

decisions to be made regarding the establishment and ongoing operations of a retailer

Front 490

Retail margin

Back 490

the difference between a product’s retail selling price and its wholesale cost

Front 491

Retail marketing mix

Back 491

consists of the product, price, place, and promotion of merchandise by a retailer

Front 492

Merchandise assortment

Back 492

the breadth and depth of product lines a store carries, as well as the amount of each product the store stocks

Front 493

Level of service

Back 493

the service offered to customers on the continuum between full- and self-service

Front 494

Private label products

Back 494

store brand items that offer higher profit margins for retailers than name brand products

Front 495

Full-service retailers

Back 495

typically high-end specialty or department stores where sales personnel provide assistance to customers during and after their visit to the store

Front 496

Self-service retailers

Back 496

provide a minimal level of service and contact between customers and employees

Front 497

Limited-service retailers

Back 497

provide assistance to customers upon request

Front 498

Atmospherics

Back 498

the layout, furnishings, color scheme, and music that establish the image customers have of a retailer

Front 499

Wholesaling

Back 499

the sorting, storing, and reselling of products to retailers or businesses

Front 500

Wholesalers

Back 500

firms that purchase products from manufacturers and resell them to retailers and industry buyers

Front 501

Merchant wholesalers

Back 501

broad group of wholesalers that take title to the products that are purchased from manufacturers

Front 502

Full-service wholesalers

Back 502

typically assume supply chain responsibilities that would otherwise be performed by manufacturers

Front 503

General merchandise wholesalers

Back 503

carry a wide assortment of merchandise in a broad product category, such as pharmaceuticals or groceries

Front 504

Specialty line wholesalers

Back 504

focus on a single product line, such as health food, and may cover a wide geographic area

Front 505

Limited service wholesalers

Back 505

perform fewer services for manufacturers but may be the best or only way to reach the markets they serve

Front 506

Cash-and-carry wholesalers

Back 506

provide few services but offer low prices on the limited number of goods they carry

Front 507

Mail order wholesalers

Back 507

employ catalogs or the Internet as their sales force

Front 508

Drop shippers

Back 508

wholesalers who take title to products but never take possession of them

Front 509

Jobbers

Back 509

wholesalers that operate on a relatively small scale and sell and provide services primarily to retailers

Front 510

Agents and brokers

Back 510

independent businesses that may take possession of products but never take title

Front 511

Manufacturers’ agents

Back 511

independent agents used in place of a manufacturer’s sales team

Front 512

Selling agents

Back 512

independent agents who take responsibility for a wide range of marketing activities in addition to sales functions

Front 513

Commission merchants

Back 513

brokers who take physical possession of products but do not take title and subtract an agreed-upon commission from the buyer’s payment to the seller

Front 514

Merchandise brokers

Back 514

brokers that specialize in linking buyers and sellers together and are generally well known in their area of specialization

Front 515

Manufacturer-owned intermediaries

Back 515

wholesaling or similar entities owned by the manufacturer as a way of controlling the inventory and sale processes and increasing profit margins

Front 516

Sales branches

Back 516

maintain inventory for companies in different geographic areas

Front 517

Sales offices

Back 517

carry no inventory but provide selling services for specific geographic areas

Front 518

Manufacturer’s showroom

Back 518

a facility where a firm’s products are permanently on display for customers to view

Front 519

Marketing communications

Back 519

the messages sent from organizations to members of a target market in order to influence how they think, feel, and act toward a brand or market offering

Front 520

Noise

Back 520

anything that might distort, block, or otherwise prevent the message from being properly encoded, send, decoded, received, and/or comprehended

Front 521

Word of mouth

Back 521

communication between consumers about a brand, marketing offer, or marketing message

Front 522

Viral marketing

Back 522

activities that encourage consumers to share a company’s marketing message with friends

Front 523

Advertising

Back 523

the paid, nonpersonal communication of a marketing message by an identified sponsor through mass media

Front 524

Informative advertising

Back 524

provides consumers with information on the product or service

Front 525

Persuasive advertising

Back 525

entices consumers to increase brand preference by communicating unique product or service benefits

Front 526

Reminder advertising

Back 526

keeps a known product or service in the mind of consumers

Front 527

Percentage of sales method

Back 527

method of setting the advertising budget where the size of the budget is based on a percentage of sales

Front 528

Competitive budget method

Back 528

method of setting the advertising budget where the budget is set to match, dollar for dollar, that of an important competitor

Front 529

Message execution

Back 529

how the message is delivered

Front 530

Advertising appeal

Back 530

the reason to purchase a product or service

Front 531

Reach

Back 531

measure of the number of people who could potentially receive an ad through a particular media vehicle

Front 532

Frequency

Back 532

number of times an individual is exposed to an advertising message by a media vehicle

Front 533

Sales promotion

Back 533

marketer-controlled communication to stimulate immediate audience response by enhancing the value of an offering for a limited time

Front 534

Consumer promotions

Back 534

designed to motivate consumers to try a product or buy it again by offering an economic incentive such as coupons

Front 535

Trade promotions

Back 535

incentives offered to retailers and wholesalers that take the form of discounts or allowances

Front 536

Public relations

Back 536

two-way communication to improve mutual understanding and positively influence relationships between the marketer and its internal and external publics

Front 537

Publics

Back 537

target audiences of public relations; the people inside or outside the company who have a “stake” in what it does

Front 538

Corporate public relations

Back 538

how management evaluates and shapes or reshapes long-term public opinion of the company

Front 539

Marketing public relations

Back 539

how marketers seek to achieve specific marketing objectives by targeting consumers with product-focused messages

Front 540

Product placement

Back 540

arrangement in which the company has its brand or product appear in a movie or other entertainment vehicle

Front 541

Publicity

Back 541

generating unpaid, positive media coverage about a company or its products

Front 542

Sponsorship

Back 542

way of publicly-assorting a brand with an event or activity that the company supports financially

Front 543

Brand activation

Back 543

the process of bringing a brand to life by creating an experience that reflects the value of a brand

Front 544

Personal selling

Back 544

when a representative of a company interacts directly with a customer to inform and persuade him or her to make a purchase decision about a product or service

Front 545

Turnover rate

Back 545

percentage of the sales force that leaves a company per year

Front 546

Personal selling process

Back 546

set of activities that salespeople follow in acquiring new customers

Front 547

Prospecting

Back 547

the process of researching multiple sources to find potential customers or prospects

Front 548

Sales presentation

Back 548

formal meeting between a salesperson and a sales prospect

Front 549

Consultative selling

Back 549

when the salesperson is focused more on solving the problems of the prospect rather than trying to sell a product

Front 550

Close the sale

Back 550

the part of the selling process in which the salesperson asks for an order

Front 551

Trial close

Back 551

sales closing technique to gauge a prospect’s interest in buying

Front 552

Alternative close

Back 552

sales closing technique that seeks to have the prospect make a choice between product features or options

Front 553

Assumptive close

Back 553

sales closing technique that involves direct and specific questions

Front 554

Sales management

Back 554

process of planning, implementing, and controlling the personal selling function

Front 555

Inside sales

Back 555

members of the sales team who reside inside the office or company location and rarely, if ever, have face-to-face contact with customers or prospects

Front 556

Outside sales

Back 556

salespeople who meet face-to-face with customers and prospects

Front 557

Sales management process

Back 557

comprehensive approach used by sales managers to determine how the sales force is organized and managed and how they will hire, recruit, manage, motivate, and evaluate the performance of the individual salespeople

Front 558

Pay-for-performance compensation strategy

Back 558

compensation system in which salespeople are paid based on the amount of sales or profits they deliver to the company

Front 559

Commission

Back 559

part or all of a salesperson’s income that is based on the amount of sales or profit delivered in a given time frame

Front 560

Direct marketing

Back 560

any communication addressed to a consumer that is designed to generate a response

Front 561

House file

Back 561

proprietary database of customer information collected from transactions, inquiries, or surveys from the company

Front 562

Outside lists

Back 562

consists of consumer information compiled by an outside company and rented to a marketer

Front 563

Mail order

Back 563

describes the business of selling merchandise through the mail

Front 564

Catalog

Back 564

printed direct-mail piece that showcases an assortment of products or services offered by a company

Front 565

Direct mail

Back 565

printed advertisement in the form of a postcard, letter, brochure, or product samples that is sent to consumers who are on a targeted mailing list

Front 566

Call to action

Back 566

response that a marketer wants a consumer to take as a result of receiving a direct-mail communication

Front 567

Telemarketing

Back 567

phone call placed to a specific consumer to offer products or services for sale

Front 568

Do not call registry

Back 568

list of consumers who do not want to receive phone calls from telemarketers. Consumers can contact the Federal Trade Commission to be added to the Do Not Call Registry

Front 569

DRTV (direct-response TV)

Back 569

any kind of television commercial or home shopping television show that advertises a product or service and allows the viewer to purchase it directly

Front 570

Infomercial

Back 570

television show that is a combination of an information session and a commercial

Front 571

Life cycle marketing

Back 571

series of targeted messages to customers and prospects based on their experience during a sequence of events that takes place during a specific stage in life

Front 572

Dynamic imaging

Back 572

the process of systematically populating individual e-mails with products targeted specifically to each consumer, based on behavior patterns and inventory

Front 573

Do Not Mail List

Back 573

the list of consumers who do not want to receive direct mail. Consumers can contact the Direct Marketing Association to be added to the Do Not Mail List

Front 574

Privacy policy

Back 574

a company’s practice as it relates to renting customer information to other companies

Front 575

CAN-SPAM Act of 2003

Back 575

(Controlling the Assault of Non-Solicited Pornography and Marketing Act) is the law that requires e-mail marketers to abide by certain requirements when e-mailing customers

Front 576

Integrated marketing communications

Back 576

the coordination of advertising, sales promotion, public relations, and personal selling to ensure that all marketing communications are consistent and relevant to the target market

Front 577

Communications mix

Back 577

the various elements companies can use to communicate with the target market, including advertising, public relations, sales promotion, and personal selling

Front 578

Pull strategy

Back 578

promotes products directly to consumers, who then request the product from retailers. Retailers in turn request the product from the wholesaler, who orders it from the manufacturer

Front 579

Push strategy

Back 579

targets wholesalers and retailers and encourages them to order the product, thus pushing it through the channel to consumers

Front 580

Media type (or media vehicle)

Back 580

refers to a form of media used for marketing communications, including types such as broadcast, print, digital, branded entertainment, and social networks

Front 581

Broadcast

Back 581

media include network television, cable television, and radio

Front 582

Print

Back 582

media include newspapers, magazines, and direct mail

Front 583

Out-of-home (OOH)

Back 583

or display, advertising includes media types that are encouraged outside the home, such as billboards, signs, and posters

Front 584

Digital media

Back 584

includes electronic media such as email, web advertising, and web sites

Front 585

Brand entertainment

Back 585

the integration of brands or brand messages into entertainment media, for example, films, television, novels, and songs

Front 586

Media efficiency

Back 586

measures how inexpensively a media vehicle is able to communicate with a particular customer segment

Front 587

Media impact

Back 587

a qualitative assessment as to the value of a message exposed in a particular medium

Front 588

Media engagement

Back 588

evaluates how attentively audiences read, watch, or listen to a particular media vehicle

Front 589

Network television

Back 589

refers to the broadcast of programming and paid advertising through a nationwide series of affiliate TV stations

Front 590

Cable television

Back 590

television broadcasts using cables or satellite dishes

Front 591

Reach

Back 591

a measure of the number of people who could potentially receive an ad through a particular media vehicle

Front 592

Impression

Back 592

refers to the single delivery of an advertising message by a media vehicle

Front 593

Ratings

Back 593

the percentage of the total available audience watching a TV show or turned into a radio program

Front 594

CPM (cost per thousand)

Back 594

a metric that calculates the cost for any media vehicle to deliver one thousand impressions among a group of target customers

Front 595

Time-shifting

Back 595

the practice of recording a television program at one time to replay it at another

Front 596

Circulation

Back 596

the number of published and distributed copies of a magazine

Front 597

Lead time

Back 597

the amount of preparation time a media type requires before an advertisement can be run

Front 598

Outdoor boards

Back 598

large ad display panels, usually near highways or other heavily trafficked locations

Front 599

Posters

Back 599

smaller than outdoor boards and are frequently used at bus or train stops

Front 600

Transit advertising

Back 600

appears on and inside buses, in air terminals, in taxis, and wherever people are being transported from one place to another

Front 601

Frequency

Back 601

the number of times an individual is exposed to an advertising message by a media vehicle

Front 602

Banner advertising

Back 602

the placement of advertisements (called banners) onto various Web sites that link to the sponsor’s Web page

Front 603

Classified advertising

Back 603

the online version of traditional classified ads

Front 604

Search marketing

Back 604

the optimization of Web site keywords and marketing agreements with search engines to drive traffic to Web sites

Front 605

Mobile advertising

Back 605

advertisements delivered over portable communication devices

Front 606

User-generated content

Back 606

social networks, user blogs, and filesharing are sources of word-of-mouth communications and advertising

Front 607

Social networks

Back 607

such as Facebook and MySpace, connect people with common interests and those who are looking to make friends online

Front 608

Media selection

Back 608

the process of choosing which media types to use when, where, and for what duration in order to execute a media plan

Front 609

Media budgets

Back 609

specify the total amount a firm will spend on all types of advertising media

Front 610

Media objectives

Back 610

clear, unambiguous statements as to what media selection and implementation will achieve

Front 611

Task-and-objective

Back 611

an approach to media budgeting that allocates dollars sufficient to attain media objectives

Front 612

Media planning

Back 612

the creation of a media plan, which is a document that describes how an advertiser plans to spend its media budget to reach its objectives

Front 613

Media plans

Back 613

specify the types and amounts of media to be used, the timing of media, and the geographic concentration (national, regional, or local)

Front 614

Media buying

Back 614

the negotiation and purchase of media

Front 615

Placement

Back 615

the implementation of the media plan via the purchased media vehicles

Front 616

Media planners

Back 616

create media plans based on their extensive knowledge about media vehicles and expertise

Front 617

Gross Rating Points (GRPs)

Back 617

a way for planners to approximate the impact of media decisions and are the product of reach multiplied by frequency

Front 618

Media flowcharts (media footprints)

Back 618

visual representations of the media plan

Front 619

Media buyers

Back 619

negotiate and purchase media properties according to the media plan

Front 620

Upfront markets

Back 620

long-lead marketplaces where TV networks and advertisers negotiate media prices for the fourth quarter of the current year plus the first three quarters of the following year

Front 621

Scatter buys

Back 621

ads that are not purchased in advance via an upfront market, but are secured on a quarterly basis

Front 622

Rate cards

Back 622

officially published prices for different types of media

Front 623

Ad trafficking

Back 623

the procedure for delivering finished ads to the correct media firms for placement

Front 624

Media optimization

Back 624

the adjustment of media plans to maximize their performance

Front 625

Media audits

Back 625

measures how well each selected media vehicle performs in terms of its estimated audience delivery and cost

Front 626

Make-good ads

Back 626

given by media companies as replacements for any media that did not run as scheduled

Front 627

Guarantees

Back 627

promises made by media companies that estimated audience numbers will be achieved, or part of the cost of advertising will be returned to the advertiser

Front 628

Modeling

Back 628

a tool that many large advertisers use to guide their media planning and plan optimization

Front 629

Spill-in

Back 629

occurs when the ads from outside a test market “spill into” the test market area

Front 630

Spill-out

Back 630

happens whenever ads meant for a test market “spill out” and touch people in adjacent markets

Front 631

Marketing mix

Back 631

a group of marketing variables that a business controls with the intent of implementing a marketing strategy directed at a specific target market

Front 632

4 Ps

Back 632

the most common classification of a marketing mix and consist of product, price, place, and promotion

Front 633

Marketing-mix strategy

Back 633

the logic that guides the selection of a particular marketing mix to achieve marketing objectives

Front 634

7 Ps

Back 634

a classification of a marketing mix that includes product, price, place, promotion, people, physical evidence, and process

Front 635

4 Cs

Back 635

a classification of a marketing mix that includes customer value, cost, convenience, and communication

Front 636

Marketing-mix models

Back 636

evaluate the contribution that each component of a marketing program makes to changes in market performance

Front 637

Marketing-mix optimization

Back 637

involves assigning portions of the marketing budget to each marketing-mix element so as to maximize revenues or profits

Front 638

Marketing accountability

Back 638

the management of resources and processes to achieve measurable increases in both return on marketing investment and efficiency while increasing the value of the organization in compliance with all legal requirements

Front 639

Sarbanes-Oxley Act

Back 639

law passed in 2002 mandating organizational leaders from publicly traded companies take responsibility for their business practices

Front 640

Data analytics

Back 640

inference-based process to transform data into useful information

Front 641

Marketing metrics

Back 641

units of measure that allow for assessment of the effectiveness of marketing activities

Front 642

Marketing measurement

Back 642

collecting and evaluating marketing metrics to determine the effectiveness of marketing activities in fulfilling customer, organizational, and marketing objectives

Front 643

Key performance indicators (KPIs)

Back 643

measurements that assist in organization in quantifying progress towards achievement of marketing objectives

Front 644

Advertising measurement

Back 644

collecting and evaluating advertising metrics to determine the effectiveness of an advertisement or advertising campaign in fulfilling customer, organizational, and marketing objectives

Front 645

Copy testing

Back 645

a survey-based process that can assist in the measurement advertising and campaign effectiveness

Front 646

Brand health

Back 646

the collective consumer perceptions, attitudes, and expectations for a brand resulting from historical and current brand experiences

Front 647

Purchase funnel

Back 647

sequential consumer decision-making model encompassing awareness to loyalty

Front 648

Return on market investment (ROMI)

Back 648

the impact on business performance resulting from executing specific marketing activities

Front 649

Hurdle rate

Back 649

the minimum amount of financial return that an organization requires before making a financial investment