{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MarketingGlossary - Glossary above at or below-market...

Info icon This preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Glossary above-, at-, or below-market pricing Pricing based on what the market price is. account management policies Policies that specify whom salespeople should contact, what kinds of selling and cus- tomer service activities should be engaged in, and how these activities should be carried out. adaptive selling A need—satisfaction sales presentation in- volving adjusting the presentation to fit the selling situation. advertising Any paid form of nonpersonal communication about an organization, good, service, or idea by an iden— tified sponsor. advocacy advertisements Institutional advertisements that state the position of a company or an issue. allowances and discounts A type of trade sales promotion technique used to encourage increased purchases by in— termediaries. all you can afford budgeting Allocating funds to market— ing communications only after all other budget items are covered. anchor stores Well-known national or regional stores that are located in regional shopping centres. approach stage In the personal selling process, the initial meeting between the salesperson and the prospect. where the objectives are to gain the prospect's atten- tion. stimulate interest, and build the foundation for the sales presentation. attitudes Learned predispositions to respond to an object or a class of objects in a consistent manner. average revenue The average amount of money received for selling one unit of a product. baby boomers The generation of Canadians born between I946 and 1964. back translation The practice of retranslating a word or phrase into the original language by a different interpreter to catch errors. 514 barriers to entry Business practices or conditions that make it difficult for a new firm to enter the market. behavioural segmentation A way of segmenting markets based on consumers’ behaviour with or toward a product. beliefs A consumer’s subjective perception of how well a product or brand performs on different attributes; these are based on personal experience, advertising, and dis- cussions with other people. bidders list A list of firms believed to be qualified to supply a given itern. blended family Two families from prior marriages merged into a single household as spouses remarry. brand equity The added value a given brand name provides a product beyond the product‘s functional benefits. brand extension The practice of using a current brand name to enter a completely different product class. brand loyalty A favourable attitude toward and consistent purchase of a single brand over time. brand name Any word or device (design, shape. sound, or colour) that is used to distinguish one organization’s products from a competitor’s. branding Activity in which an organization uses a name. phrase, design, or symbol. or a combination of these. to identify its products and distinguish them from those of a competitor. breadth of product line The variety of different items a store or wholesaler carries. break-even analysis An analysis of the relationship be- tween total revenue and total cost to determine profitabil- ity at various levels of output. break-even point (BEP) Output quantity at which total rev— enue and total cost are equal and beyond which profit occurs. bribery The practice of giving or promising something of value in return for a corrupt act. buildup forecast Summing the sales forecasts of each of the components to arrive at a total forecast. GLOSSARY business analysis Stage of the new product process in which the features of the product are specified together with the marketing strategy needed to commercialize it and the necessary financial projections are made. business firms Privately owned organizations that serve customers in order to earn a profit. buy classes Groups of three specific buying situations orga- nizations face; new buy, straight rebuy, and modified re- buy. buying centre The group of persons within an organization who participate in the buying process and share common objectives, risks. and knowledge important to that process. buying objectives Goals set by the participants in the buy- ing process to help them achieve their organization’s ob- jectives; for a business firm, usually to increase profits through reducing costs or increasing revenues. capacity management Managing the demand for a service so that it is available to consumers. category killers Specialty discount outlets that focus on one product category such as electronics or business supplies at very competitive prices. cause-related marketing Tying the charitable contribu— tions of a firm directly to the customer revenues produced through the marketing of one of its products. census metropolitan areas Geographic areas with a labour market of 100,000 or more people. central business district The oldest retail setting; the com- munity’s downtown area. channel The means by which a message is conveyed (e.g., media). channel captain A marketing channel member that coordi- nates. directs, and supports other channel members; may be a manufacturer, wholesaler, or retailer. code of ethics An organization’s formal statement of its eth— ical principles and rules of conduct. cognitive dissonance The feeling of postpurchase psycho- logical tension or anxiety about the purchase decision. cognitive moral development People progress through three distinct phases of moral development: preconven— tional, conventional, and postconventional. commercialization The final phase of the new product process. in which the product is positioned and launched into full-scale production and sales. communication The process of establishing shared mean- ing; six elements—source, message, channel. receiver, and the processes of encoding and decoding—are re- quired for communication to occur. community shopping centre A retail location that typically has one primary store (usually a department store branch) and 20 to 40 smaller outlets, and serves a population base of about [00,000. company forecast (see sales forecast) 515 comparative advertisements Advertisements that show one brand’s strengths relative to those of its competitors. competition The set of alternative organizations that could provide a product to satisfy a specific market’s needs. Competition Act Federal legislation designed to protect competition and consumers in Canada. competitive advertisements Advertisements that demon— strate a specific brand’s features and benefits. competitive institutional advertisements Institutional ad— vertisements that promote the advantages of one product class over another and are used in markets where differ- ent product classes compete for the same buyer. competitive parity budgeting Matching the competitors’ absolute level of communications spending or the pro- portion per point of market share. concentrated marketing A market segmentation strategy where a marketer decides to seek a large share of just one segment of the total market, tailoring the elements of the marketing mix specifically to attract that seg— ment. conference selling A form of team selling in which a sales— person and other company resource people meet with buyers to discuss problems and opportunities. consultative selling A need-satisfaction sales presentation in which the salesperson focuses on problem definition and serves as an expert on problem recognition and reso- lution. consumer behaviour Actions of a person to purchase and use products, including the mental and social processes that precede and follow these actions. consumer ethnocentrism The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products. consumer goods Products purchased by the ultimate con- sumer. consumer purchase decision process The stages a buyer passes through in making choices about which products to buy. consumer sales promotions Sales promotions offered to ultimate consumers (e.g., coupons). consumer socialization The process by which people ac- quire the skills, knowledge, and attitudes necessary to function as consumers. consumerism A movement to increase the influence, power, and rights of consumers in dealing with institutions. contests A sales promotion technique where consumers ap— ply their analytical or creative thinking to try to win a prize. continuity programs Sales promotions used to encourage and reward repeat purchases by acknowledging each pur- chase made by a consumer and offering a premium as purchases accumulate. continuous innovation Introduction of new products that require no new learning to use. 516 contracting A strategy used during the decline stage of the product life cycle in which a company contracts the man- ufacturing or marketing of a product to another firm. convenience goods Items that the consumer purchases fre— quently and with a minimum of shopping effort. cooperative advertising Advertising programs in which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. corporate chain A type of retail ownership in which a sin- gle firm owns multiple outlets. cost of goods sold Total cost of the products sold during a specified time period. cost per thousand (CPM) The cost of reaching 1,000 indi- viduals or households with an advertising message in a given medium. (M is the Roman numeral for 1,000). cost-plus pricing A method of pricing that merely adds an amount—a markup—to all costs. countertrade Using barter rather than money in making global or international marketing. coupons Typically, printed certificates giving the bearer a saving or a stated price reduction when they purchase a specific product. cross-cultural analysis The study of similarities and dif— ferences between consumers in two or more nations or societies. cue A stimulus or symbol perceived by the consumer. cultural ethnocentricity The belief that aspects of one’s culture are superior to another’s. cultural symbols Things that represent ideas and concepts to a society or nationality. culture The set of values, ideas, and attitudes of a homoge— neous group of people that are transmitted from one gen- eration to the next. customary pricing A method of pricing based on a prod- uct’s tradition, standardized channel of distribution, or other competitive factors. customer service The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience. customer value The combination of benefits received by customers that includes quality, price, convenience, on- time delivery, and both before—sale and after-sale service. customized marketing mix The use of a different mar- keting mix by an organization when entering foreign markets. customs Norms and expectations about the way people do things in a specific country. data The facts and figures pertinent to a problem, composed of primary and secondary data. database marketing An organization‘s effort to collect de— mographic, media, and consumption profiles of cus— tomers in order to target them more effectively. “I GLOSSARY deal A sales promotion that offers a short-term price re- duction. ., deceptive pricing A practice by which prices are artificially inflated and then marked down under the guise of a sale; illegal under the Competition Act. decline stage The fourth and last stage of the product life cycle, when sales and profitability decline. decoding The process by which the receiver deciphers or interprets the message sent by the source or message sender. delayed-response advertising Advertising intended to in- fluence the consumer in the near future, rather than right away, in making purchases or taking other actions. deletion A strategy of dropping a product from the product line, usually in the decline stage of the product life cycle. delivered pricing The practice of refusing a customer de— livery of an article on the same trade terms as other cus- tomers in the same location. demand curve The summation of points representing the maximum quantity of a product consumers will buy at different price levels. demographics The study of the characteristics of a human population including size of population, growth rate, ge- ographical distribution, age, gender, marital status, edu- cation, ethnicity, income, and so forth. demographic segmentation A way to segment consumer markets based on population characteristics such as age, gender, income, and so forth. depth interviews Detailed individual interviews with peo- ple relative to a research project. depth of product line The assortment of each item a store or wholesaler carries. derived demand Sales of a product (typically industrial) that result from the sales of another item (often con— sumer). desk jobber (see drop shipper). development Phase of the new product process in which the idea on paper is turned into a prototype; includes manu- facturing and laboratory and consumer tests. differentiated marketing A market segmentation strategy whereby a marketer will target more than one segment and design separate marketing mixes for each. differentiation positioning Positioning that avoids direct competition by stressing unique aspects of the product. diffusion of innovation The process by which people re— ceive new information and accept new ideas and products. direct channel A marketing channel in which a producer and an ultimate consumer interact directly with each other. direct mail Any form of communication addressed to cus- tomers or prospects and delivered through public or pri- vate delivery services. direct marketing communications (DMC) Communicating directly with target customers to encourage an immediate response by telephone, mail, electronic means, or personal GLOSSARY visit; methods include direct mail, direct—response advertis- ing, and telemarketing. direct ownership A domestic firm’s actually investing in and owning a foreign subsidiary or division. direct-response advertising Advertising that seeks to motivate consumers to take immediate action, such as a TV ad asking consumers to call a telephone number to place an order. direct-response print advertising A form of direct market- ing communications using newspapers and magazines de- signed to obtain direct response from readers. direct-response radio advertising A form of direct market— ing communications that allows the marketer to obtain im- mediate feedback from consumers through the use of radio. direct-response television advertising A form of direct mar— keting communications where the television advertiser seeks to motivate the customer to take immediate action (e. g., direct-response ads, infomercials, and home shop- ping channels). discontinuous innovation Introduction of new products that require totally new consumption patterns. discounts Reductions from list price that a seller gives a buyer as a reward for some buyer activity favourable to the seller. . discretionary income The money that remains after taxes and necessities have been paid for. disposable income The money a consumer has left after taxes to use for necessities such as food, shelter, and clothing. distinctive competencies An organization’s unique resources and special skills that form the basis for the organization’s sustainable competitive advantage. diversification A strategy that requires an organization to expand into new products and new markets. drive A need that moves an individual to action. dual distribution An arrangement in which a firm reaches buyers by employing two or more different types of chan- nels for the same basic product. dumping A firm’s selling a product in a foreign country be— low its domestic price. durable good An item that lasts over an extended number of uses. dynamically continuous innovation Introduction of new products that disrupt the consumer’s normal routine but do not require learning totally new behaviours. early adopters The 13.5 percent of the population who are leaders in their social setting and act as an information source on new products for other people. early majority The 34 percent of the population who are de- liberate and rely on personal sources for information on new products. economic infrastructure A country’s communication. trans- portation, financial, and distribution systems. economy The income, expenditures, and resources that affect the cost of running an organization or a household. 517 80/20 rule The principle that 80 percent of an organization’s sales are generated by 20 percent of its customers. elastic demand A situation where a percentage decrease in price produces a larger percentage increase in quantity de- manded, thereby actually increasing sales revenue. electronic data interchange (EDI) An interactive computer network that connects manufacturers with suppliers, dis- tributors, and retailers so that they can share information. encoding The process of selecting words, pictures, and other symbols in order to transmit the intended message. environmental scanning The process by which market-dri- ven organizations continually acquire information on events outside their organizations in order to identify and interpret potential trends that can impact on their business. ethics The moral principles and values that govern the actions and decisions of an individual or a group. ethical climate An aspect of organizational culture that de- scribes the decision processes used to determine whether dilemmas are ethical or unethical. euro-branding The strategy of using the same brand name for the same product across all countries in the European Community. evaluative criteria Both the objective and subjective attrib— utes of a brand important to consumers when evaluating different brands or products. evoked set The group of brands a consumer would consider acceptable out of the set of brands in the product class of which she is aware. exchange The trade of things of value between a buyer and a seller so that each is better off than before. exclusive distribution A distribution strategy whereby a pro- ducer sells its products or services in only one retail outlet in a specific geographical area. \expense-to-sales ratio A form of ratio analysis in which the specific costs or expenses for a sales representative are ex- pressed as a percentage of sales revenue. experience curve pricing A method of pricing in which price often falls following the reduction of costs associated with the firm’s experience in producing or selling a product. experiment Obtaining data by manipulating factors under tightly controlled conditions to test for cause and effect. exporting Producing goods in one country and selling them in another country. failure fee A penalty payment made to a retailer by a manu— facturer if a new product does not reach predetermined sales levels. family branding (see multiproduct branding). family life cycle The concept that each family progresses through a number of distinct phases, each of which is asso— ciated with identifiable purchasing behaviours. feedback The communication flow from receiver back to sender; indicates whether the message was decoded and understood as intended. 518 field of experience A person’s understanding and knowl— edge; to communicate effectively, a sender and a receiver must have a shared field of experience. FOB (free on board) Designation for the point on the trans- portation route at which the seller stops paying trans- portation costs. FOB origin pricing A method of pricing in which the title to goods passes to the buyer at the point of loading. focus group An informal session of 6 to 10 current or po- tential users of a product in which a discussion leader seeks their opinions on the firm’s or a competitor’s products. follow-up stage The phase of the personal selling process that entails making certain that the customer’s purchase has been properly delivered and installed and that any dif- ficulties in using the product are promptly and satisfacto- rily addressed. form of ownership Who owns a retail outlet. Alternatives are independent, Corporate chain, cooper...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern