Marketing Management Vocabulary

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Market segmentation that is done by a marketing manager before any research has been done.

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a priori segmentation

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A new design, idea, or product that is not what was originally intended from certain research.

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accidental discovery

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A psychographic market segment of consumers who have high income, are work-oriented and politically conservative; they favor established products but like to show off their success.

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achievers

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A psychographic market segment of consumers who have high income and high self-esteem, and who are concerned with image, independence, and character, and who enjoy fine products.

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actualizers

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A product classification that includes goods grown or extracted from the earth, including minerals, grains, and gravel.

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agricultural products and raw materials

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A preliminary, in-house testing of a product to discover obvious flaws.

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alpha test

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A measure of the level at which customers are aware of a product or brand.

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awareness

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A type of vertical marketing in which a wholesaler or retailer purchases companies before them in the channel of distribution, such as manufacturers.

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backward integration

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A psychographic market segment of consumers who have modest incomes, favor American products and established brands, and whose lives are centered on family, church, and community.

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believers

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A form of market segmentation based on the benefits people are seeking from a product.

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benefit segmentation

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Consumers' total assessment of a product, the company, and other variables that either adds to or subtracts from a brand's value.

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brand equity

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A product management system in which one person is responsible for all marketing functions for a single product or a few related products, but not an entire product line.

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brand manager system

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A business strategy in which a company expends resources in order to build market share for a business unit in a growing market.

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build share

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A method for classifying a business unit's potential based on the business's market position and strengths relative to the competition.

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business strength

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An employee in a business who is responsible for making actual purchases, including selecting products and suppliers.

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buyer

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A colloquial term for a company's cash-generating business units, usually because they have a high market share of a business that is not growing and therefore not attracting competition.

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cash cows

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The percentage of total national category sales in a geographic area divided by the percentage of U.S. households living in that area.

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Category Development Index (CDI)

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The strategy of locating all personnel for a project in one physical area, which encourages communication.

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co-location

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A distribution function that involves bringing goods from different locations together in one place.

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concentration

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A clearly written depiction of a new product, including its features and customer benefits.

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concept

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A product classification that includes all products made or processed for sale to consumers.

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consumer goods

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A business strategy in which a company tries to provide a product at a lower cost than any of its competitors.

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cost leadership strategy

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A team in a business that incorporates several different departments and functions.

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cross-functional team

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A business strategy that focuses on the needs and wants of a specific type of customer, and in which the business tries to establish relationships with specific customers.

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customer intimacy

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The tendency of customers to buy a different product based on changes, introductions, or deletions of products.

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customer migration patterns

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An employee in a business who has formal power to approve suppliers.

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decider

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The process through which the audience perceives the message of an advertisement, hopefully the message the company intended.

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decode

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A business's efforts to discourage customer demand.

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demarketing

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A business strategy in which a company tries to gain a competitive advantage by providing a unique product or service, or providing a unique brand of customer service.

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differentiation strategy

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diversification

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The process of creating new products in order to serve customers that a company is not currently serving.

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divest

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A business strategy in which a company sells off a business unit in order to focus resources on a more profitable or promising market.

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dogs

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A colloquial term for a company's business units that are not sources of cash, usually because they have a small market share of a business that is not growing. If they have loyal customers, they may be profitable.

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dual branding

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The same as cobranding; a branding strategy that integrates two or more branded products, especially two complementary products, even from different companies.

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encirclement strategy

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A business strategy in which a company takes a proactive stance and challenges the market leader on several fronts at the same time.

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encoding

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The process of translating a product idea into an effective advertisement.

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environmental scanning

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The practice of monitoring a business's internal and external environment for changes that pose threats or opportunities for the business.

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A business's culture and code of values that guide the company and its employees.

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ethical environment

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A representation of the relationship between volume and product cost, meaning that as a company increases the volume of production (and market share), the corresponding per-unit costs should decrease.

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experience curve

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A psychographic market segment of consumers who have high income and high energy, are young, and spend their money on fast food, clothing, music, and lots of new products.

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experiencers

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The stages of family life common in the United States, including singlehood, marriage, married with children, senior couples, and single survivors.

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family life cycle

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A business strategy in which a company takes a proactive stance and challenges the market leader in an area not currently contested.

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flanking strategy

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A business strategy in which a company copies moves made by the market leader.

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follow-the-leader strategy

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A type of vertical marketing in which a manufacturer purchases wholesalers or retailers that handle its products.

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forward integration

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A psychographic market segment of consumers who have high incomes, are mature and well-educated, but are practical consumers who might be open to new products.

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fulfilleds

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A relationship that can develop between a buyer and salesperson who work together to solve problems.

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functional relationship

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The employee in a business who controls the information in a company's buying center or purchasing department.

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gatekeeper

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A multinational corporation that operates as though the entire world were a single market, with close integration between various foreign subsidiaries.

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global company

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A popular pricing strategy that involves pricing a product at the same rate as the rest of the competition.

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going-rate pricing

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A colloquial term for a business strategy in which a company focuses on short-term profits without regard for a product's long-term success.

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harvest

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A business strategy in which a company protects its market share in a market that may not be growing quickly.

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hold share

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A market in which the products are used by a wide variety of businesses and in which price, quality, and reliability are very important.

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horizontal market

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A method for classifying a business unit's potential based on the market's size, growth rate, profitability, cyclical nature, and related measures.

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industry attractiveness

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A person in a business who has an effect on buying decisions and helps the purchasing manager decide which products to buy.

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influencer

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The inability of an innovator to maintain its initial competitive advantage.

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innovator syndrome

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A strategy in which a company coordinates advertising, sales promotion, personal selling, and publicity in order to present a single consistent image for the product and the company.

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integrated marketing communications

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A strategy of treating a company's employees as customers, and providing for their wants and needs.

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internal marketing

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A psychographic market segment of consumers who have low income but value self-sufficiency and are focused on the family and work; they are practical consumers.

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makers

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The process of finding new markets for products a company is already making.

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market development

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A business strategy in which a company that is already the market leader tries to expand existing services into new markets.

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market expansion strategy

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A product management system in which one person is responsible for overseeing all the areas of marketing for a single product line.

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marketing manager system

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A form of research in which statistics, such as those from cash register scanners, are processed through equations that show the relationship between different variables.

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mathematical modeling research

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The process of directing marketing efforts toward individual customers.

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micromarketing

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A salesperson who is totally focused on convincing businesses to carry a company's new or established products, but is not involved in a long-term sales relationship.

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missionary salesperson

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A multinational corporation that uses a different strategy in each of its autonomous overseas subsidiaries.

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multidomestic corporation

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A product that moves a company into a new product category.

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new category entry

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A type of product that is totally new, such as the first automobile.

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new-to-the-world

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A business strategy in which a company provides products that are neither the best nor the worst on the market, but with the best price and the most convenience for customers.

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operational excellence

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A product classification that includes all products a business buys in order to produce other goods or run the business, including raw materials, equipment, parts, and supplies.

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organizational goods

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The long-term goals and mission of an organization or company.

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organizational objectives

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The things related to place that affect a customer's buying practices, including distribution and the choice of which stores will carry a product.

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place influences

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A company's strategy for allocating resources between various business units.

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portfolio model

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A graphic depiction of consumers' perceptions of several competing products or services, presented on a two-dimensional graph.

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positioning map

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Market segmentation that is done by a marketing manager based on research findings.

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post hoc segmentation

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The influence that price may have on customer behavior.

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price influences

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A business strategy in which a company tries to anticipate changes in a market and the competition, and make the first move.

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proactive strategy

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The process of creating new products to serve the needs and wants of customers who are already buying a company's products.

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product development

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The attributes of a product that influence customer behavior, including quality, complexity, age, and brand.

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product influences

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A business strategy in which companies try to consistently offer the best products to customers, with price and service being secondary considerations to product quality.

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product leadership

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A measure of the profit a certain product brings to a company.

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profit contribution

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The things related to product promotion that affect a customer's buying practices, including advertising, sales promotions, salespeople, and publicity.

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promotion influences

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A measurement of the excellence of a business's products or services.

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quality

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A colloquial term for a company's business units that have a small market share in a growing market. The company will have to expend great resources to make the business unit successful.

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question marks

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A business strategy that primarily changes in reaction to changes by a competitor.

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reactive strategy

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Any efforts by a company to win back a customer after a service failure.

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recovery

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A trend in purchasing in which all of a particular type of product are purchased from a single supplier.

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sole sourcing

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A colloquial term for business units that use a lot of cash to fight off competition because they are in high growth or have a high market share.

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stars

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A division or product line of a business that has its own distinct mission, competitors, and operates somewhat independently from the rest of the company.

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strategic business unit (SBU)

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A relationship between two or more organizations that involves building mutual long-term goals and commitments.

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strategic partnership

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A psychographic market segment of consumers who have few economic, social, and psychological resources, but to whom style is important.

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strivers

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A psychographic market segment of consumers who are the poorest consumers with few resources; they tend to be elderly and loyal to brands with which they are already comfortable.

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strugglers

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An employee who supports the sales staff by training customers in the use of a company's products.

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technical sales specialist

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The time it takes from the time a product is envisioned or defined until it is on store shelves.

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time to market

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A form of business organization that puts a company's frontline personnel at the top of the business structure, the management in the middle, and the CEO or president at the bottom.

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upside down organization

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A person in a business who actually uses the items that a purchasing manager buys.

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user

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The measure of the amount of quality a customer receives compared with price.

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value

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A cross-functional business team responsible for developing (but probably not managing) a new product.

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venture team

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A market that is narrow and deep, that is, it is limited to customers in a few industries and many producers in the industry use the product.

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vertical market