Use the glossary below to look up useful marketing terms. This glossary includes definitions from the book as well as other useful terms.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W
Accessibility – e-marketing The ability to obtain information available on the Internet
Accessibility – physical distribution management The ability to move goods over a specific route or network
Accessory equipment Tools and equipment used in production or office activities that do not become part of the final physical product
Accumulation The development of a bank of homogeneous products with similar production or demand requirements
Actual product "A composite of the features and capabilities offered in a product, quality and durability, design and product styling, packaging and brand name"
Addressability A marketer’s ability to identify customers before they make a purchase
Administered pricing A pricing method in which the seller determines the price for a product and the customer pays the specified price
Adopter categories "Five groups into which customers can be divided according to the length of time it takes them to adopt a product: innovators, early adopters, early majority, late majority and laggards"
Adoption stage "The final stage of product acceptance, when customers choose the specific product when they need a product of that type"
Advertising "A paid-for form of non-personal communication that is transmitted through mass media such as television, radio, newspapers, magazines, direct mail, public transport vehicles, outdoor displays and the Internet"
Advertising budget The total amount of money that a marketer allocates for advertising over a period of time
Advertising campaign An attempt to reach a particular target market by designing a series of advertisements and placing them in various advertising media
Advertising platform The basic issues or selling points that an advertiser wishes to include in the advertising campaign
Advertising target The group of people at which advertisements are aimed
Advocacy advertising Promotes a company’s position on a public issue
Agents Middlemen who represent buyers or sellers on a permanent basis
AIDA "A persuasive sequence used in advertisements: attention, interest, desire and action"
Aided or prompted recall test "A test in which subjects are asked to identify advertisements while being shown a list of products, brands, company names or trademarks to jog their memory"
Allocation The breaking down of large homogeneous inventories into smaller lots
Allowance A concession in price to achieve a desired goal
Ansoff matrix "Ansoff’s product–market matrix for determining competitive strategies: market penetration, market development, product development or diversification"
Approach The manner in which a sales person contacts a potential customer
Arbitrary approach A budgeting technique in which a high-level executive in the business states how much can be spent on advertising over a certain time period
Area sampling A sampling method that involves selecting a probability sample of geographic areas and selecting units or individuals within the selected areas for the sample
Artwork The illustration and layout of the advertisement
Asia Pacific Economic Co-operative (APEC) "Aims to promote trade between its members: the six ASEAN members plus the United States, Australia, Canada, New Zealand, Japan, China, South Korea, Hong Kong and Taiwan"
Association of South East Asian Nations (ASEAN) "Formed in 1967 with the intention of building trade and other links among its six members: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand"
Assorting The grouping of products that buyers want to have available in one place
Assortment A combination of products put together to provide customer benefits
Atmospherics The physical elements in a store’s design that appeal to consumers’ emotions and encourage them to buy
Attitude "An individual’s enduring evaluation, feelings and behavioural tendencies towards an object or activity"
Attitude scale "A series of adjectives, phrases or sentences about an object used by a subject to indicate his or her feelings towards that object"
Augmented product "Support aspects of a product, including customer service, warranty, delivery and credit, personnel, installation and after-sales support"
Automatic vending "The use of coin- or credit card-operated self-service machines to sell small, standardised, routinely purchased products such as chewing gum, sweets, newspapers, cigarettes, soft drinks and coffee"
Average fixed cost "The fixed cost per unit produced, calculated by dividing fixed costs by the number of units produced"
Average total cost The sum of the average fixed cost and the average variable cost
Average variable cost "The variable cost per unit produced, calculated by dividing the variable costs by the number of units produced"
Awareness stage "The beginning of the product adoption process, when individuals become aware that the product exists but have little information about it"
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Bait pricing "Pricing an item in the product line low, with the intention of selling a higher-priced item in the line"
Balance of retailing power The balance of negotiating and buying power between retailers and their suppliers
Base point pricing "A geographic pricing policy that includes the price at the factory, plus freight charges from the base point nearest the buyer"
Basis for competing "A business’s combined strengths as identified in a SWOT analysis and any differential advantage, which should form the leading edge of the business’s marketing strategy"
Basis for pricing Structures the calculation of the actual price
Benchmarking "The process of comparing the quality of an organisation’s goods, services or processes with those of its best-performing competitors"
Benefit segmentation The division of a market according to the benefits consumers want from the product
Bid pricing Determination of prices through sealed or open bids submitted by the seller to the buyer
Bonded storage warehouse "A warehousing arrangement by which imported or taxable products are not released until the owners of the products have paid customs duties, taxes or other fees"
Brand "A name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers"
Brand attitude "A consumer’s particular impression of a brand, formed by emotions and logic or cognitive beliefs"
Brand attributes The bullet-point specific benefits to the consumer from purchasing or using the brand
Brand awareness A qualitative measure of marketing performance that determines whether a company’s brands capture the attention of their target markets
Brand building Developing a brand’s image and standing with a view to creating long-term benefits for brand awareness and brand value
Brand equity The marketing and financial value associated with a brand’s strength in a market
Brand extension branding "A company’s use of one of its existing brand names as part of an improved or new product, usually in the same product category as the existing brand"
Brand insistence The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute
Brand loyalty A strongly motivated and long-standing decision to purchase a particular product or service
Brand manager The person responsible for a single brand
Brand mark The element of a brand that cannot be spoken – often a symbol or design
Brand name "That part of a brand that can be spoken, including letters, words and numbers"
Brand personality The psychological cues and less tangible desirable facets of a well-presented brand
Brand positioning "The creation of a desirable, distinctive and plausible image for a brand in the minds of targeted customers "
Brand preference The degree of brand loyalty in which a customer prefers one brand over competitive offerings
Brand purchase intention The consumer’s decision and efforts to purchase the particular product
Brand recognition A customer’s awareness that a brand exists and is an alternative to purchase
Brand strength "A function of the product’s attributes and functionality, its differentiation, plus any demonstrable added value to the purchaser or user"
Brand values "The emotional benefits and less tangible identifiers attached to the brand, providing reassurance and credibility for targeted consumers, supplementing the specific brand attributes in making the brand attractive "
Break-down approach An approach that derives a company’s sales potential from the general economic forecast and the estimate of market potential
Break-even point The point at which the costs of producing a product equal the revenue made from selling the product
Brokers Middlemen employed temporarily by either buyers or sellers
Build-up approach An approach that measures the sales potential for a product by first calculating its market potential and then estimating what proportion of that potential the company can expect to obtain
Bundle pricing Pricing together two or more complementary products and selling them for a single price
Business analysis "A company’s evaluation of a product idea to determine its potential contribution to the company’s sales, costs and profits"
Business cycle "Fluctuations in the economy that follow the general pattern of prosperity, recession, depression and recovery"
Business distributor An independent business that takes title to products and carries inventories
Business market "Individuals or groups that purchase a specific kind of product to resell, use directly in producing other products or use in general daily operations"
Business marketing Activities directed towards facilitating and expediting exchanges between business markets and business producers
Business (or business-to-business) buying behaviour "The purchase behaviour of producers, resellers, the public sector, government units and institutions"
Business services "Services such as repairs and maintenance, consulting and professional advice, installation, equipment leasing, marketing research, advertising, temporary office personnel and caretaking services"
Buy-back allowance A certain sum of money given to a purchaser for each unit bought after an initial deal is over
Buying allowance A temporary price reduction given to resellers who purchase specified quantities of a product
Buying behaviour The decision processes and actions of people involved in buying and using products
Buying centre The group of people within an organisation who are involved in making business-to-business purchase decisions
Buying power "Resources such as goods, services and financial holdings that can be traded in an exchange situation"
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Capabilities A company’s distinctive competencies to do something well and efficiently
Capability The ability of a transport mode to provide the appropriate equipment and conditions for moving specific kinds of goods
Captioned photograph A photograph with a brief description explaining its content
Captive pricing Pricing the basic product in a product line low while pricing related items at a higher level
Cash and carry warehouses "Outlets that retail extensive ranges of groceries, tobacco, alcohol, beverages and confectionery to newsagents, small supermarkets and convenience stores, and the catering trade"
Cash and carry wholesalers Middlemen whose customers will pay cash and provide transport
Cash cows Products with a dominant share of the market but low prospects for growth
Cash discount A simple price reduction given to a buyer for prompt payment or payment in cash
Catalogue retailing "A type of mail-order retailing in which customers receive their catalogues by mail, or pick them up if the catalogue retailer has stores"
Catalogue showroom Outlets in which one item of each product class is on display and the remaining inventory is stored out of the buyers’ reach
Category-consistent packaging The packaging of a product according to the packaging practices associated with a particular product category
Category killers "Large stores, tending to be superstore sized, which specialise in a narrow line of merchandise"
Category management "A variation of organising by product, whereby marketers are responsible for categories of product lines or categories of distributors"
Category need The consumer’s perception of his or her need for a product in a certain category
Causal research Data collection that assumes that a particular variable X causes a variable Y
Cause-related marketing The practice of linking products to a particular social cause on an ongoing or short-term basis
Central and Eastern Europe (CEE) "Encompasses the Commonwealth of Independent States (formerly the Soviet Union), the Czech and Slovak Republics, Hungary, Poland, Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro, Bulgaria, FYR Macedonia and Albania"
Central business district (CBD) "The traditional hub of most cities and towns; the focus for shopping, banking and commerce, and hence the busiest part of the whole area"
Centralised organisation A company in which top-level managers delegate very little authority to the lower levels of the organisation
Channel capacity The limit on the volume of information that a particular communication channel can handle effectively
Channel of distribution (or marketing channel) A group of individuals and organisations that direct the flow of products from producers to customers
Channel power The ability to influence another channel member’s goal achievement
Client-based relationships Interactions that result in satisfied customers who use a service repeatedly over time
Client publics "In non-profit organisations, direct consumers of a product"
Clippings service A service that counts the frequency of mentions of a specific brand or company in selected media
Closing The step in the selling process in which the sales person asks the prospect to buy the product or products
Codes of conduct Formalised rules and standards that describe what the company expects of its employees
Coding process The process of converting meaning into a series of signs that represent ideas or concepts; also called encoding
Cognitive dissonance Doubts that occur as the buyer questions whether he or she made the right decision in purchasing the product
Combination compensation/ remuneration plan A plan according to which sales people are paid a fixed salary plus a commission based on sales volume
Commercialisation The process of refining and settling plans for full-scale manufacturing and marketing
Commission merchants Agents who receive goods on consignment from local sellers and negotiate sales in large central markets
Commonwealth of Independent States (CIS) "The CIS unites Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan in a trading bloc"
Communication A sharing of meaning through the transmission of information
Community A sense of group membership or feeling of belonging
Comparative advertising The type of advertising that compares two or more brands on the basis of one or more product attributes
Comparison discounting Setting a price at a specific level and comparing it with a higher price
Competition "Those companies marketing products that are similar to, or can be substituted for, a given business’s products in the same geographic area"
Competition-based pricing A pricing approach whereby a business considers costs and revenue to be secondary to competitors’ prices
Competition Commission An independent body in the UK that investigates monopolies to determine whether they operate against the public interest
Competition matching approach A budgeting technique in which marketers either match their major competitors’ budgets or allocate the same percentage of sales for advertising as their competitors
Competitive advantage "The achievement of superior performance vis-à-vis rivals, through differentiation to create distinctive product appeal or brand identity; through providing customer value and achieving the lowest delivered cost; or by focusing on narrowly scoped product categories or market niches so as to be viewed as a leading specialist"
Competitive advertising "The type of advertising that points out a brand’s uses, features and advantages, which may not be available in competing brands"
Competitive set "All competing organisations and brands, irrespective of size and history, including substitutable solutions to customers’ needs, as defined by the target market customers"
Competitive positions "Competitors’ roles in the marketplace, which influence their marketing strategies and programmes"
Competitive positions proforma "A tool for scoping the competitive set, helping a company to understand the competitive positions in its target markets and diagnosing the effectiveness of a marketing strategy"
Competitor monitoring "The process by which a company studies the actions of its major competitors in order to determine what specific strategies they are following and how those strategies affect its own; also used by marketers as they try to develop competitive advantages, adjust current marketing strategies and plan new ones"
Competitor scanning The monitoring of competitive positions and competitors’ strategies
Competitors "Organisations viewed as marketing products similar to, or substitutable for, a company’s products, when targeted at the same customers"
Complexity "In services marketing, the number of steps required to perform a service"
Component parts Parts that become a part of the physical product and are either finished items ready for assembly or products that need little processing before assembly
Comprehensive spending patterns The percentages of family income allotted to annual expenditures for general classes of goods and services
Computer-assisted telephone interviewing "A survey method that integrates questionnaire, data collection and tabulations, and provides data to aid decision-makers in the shortest time possible"
Concentration strategy A process by which a business directs its marketing effort towards a single market segment through one marketing mix
Concentric diversification A process that occurs when new products related to current products are introduced into new markets
Concept testing Seeking potential buyers’ responses to a product idea
Conglomerate diversification "A process that occurs when new products unrelated to current technology, products or markets are introduced into new markets"
Consumable supplies Supplies that facilitate production and operations but do not become part of the finished product
Consumer buying behaviour The buying behaviour of ultimate consumers – those who purchase products for personal or household use
Consumer buying decision process "A five-stage process that includes problem recognition, information search, evaluation of alternatives, purchase and post-purchase evaluation"
Consumer contests Contests designed to generate traffic at the retail level in which consumers compete for prizes based on their analytical or creative skill
Consumer focus group "A semi-structured discussion, led by a moderator, involving actual or potential buyers of advertised products who are asked to judge one or several dimensions of the advertisements"
Consumer market Purchasers or individuals in their households who personally consume or benefit from the purchased products and do not buy products primarily to make a profit
Consumer movement "A diverse collection of independent individuals, groups and organisations seeking to protect the rights of consumers"
Consumer products Items purchased to satisfy personal or family needs
Consumer purchase diaries A marketing research tool in which consumers record their purchases
Consumer sales promotion techniques Techniques that encourage or stimulate consumers to patronise a specific retail store or to try a particular product
Consumer services "Services such as education, healthcare, leisure, catering, tourism, financial, entertainment, home maintenance and other services to help consumers"
Consumer spending patterns Information indicating the relative proportions of annual family expenditures or the actual amount of money spent on certain kinds of goods and services
Consumer sweepstakes A method of stimulating sales in which consumers submit their names for inclusion in a draw for prizes
Consumers’ Association "A private organisation, funded by members’ subscriptions, that works to further consumer interests"
Containerisation "The practice of consolidating many items into a single large container that is sealed at its point of origin and opened at its destination, greatly increasing efficiency and security in shipping"
Contract manufacturing The practice of hiring a foreign company to produce a designated volume of product to a set specification
Control "Customers’ ability to regulate the information they view, and the rate and sequence of their exposure to that information"
Convenience products "Inexpensive, frequently purchased and rapidly consumed items that demand only minimal purchasing effort"
Convenience stores "Shops that sell essential groceries, alcoholic drinks, drugs and newspapers outside the traditional shopping hours"
Cookie An identifying string of text stored on a website visitor’s computer
Cooperative advertising An arrangement whereby a manufacturer agrees to pay a certain amount of a retailer’s or dealer’s media costs for advertising the manufacturer’s products
Copy The verbal portion of an advertisement
Copy writing The creation and wording of the promotional message
Core product The level of a product that provides the perceived or real core benefit or service
Corporate branding "The application of product branding at the corporate level, reflected visibly through the company name, logo and visual presentation, and in the business’s underlying values"
Corporate identity Overlapping with the corporate branding concept: branding at the corporate level
Corporate image Reflects the perceptions that external audiences hold about an organisation
Corporate strategy "A strategy that determines how resources are to be used to meet the organisation’s goals in the areas of production, logistics, finance, research and development, human resources, IT and marketing"
Correlation methods "Attempts to find a relationship between past sales and one or more variables such as population, per capita income or gross national product"
Cost-based pricing A pricing approach whereby a monetary amount or percentage is added to the cost of a product
Cost comparison indicator A measure that allows an advertiser to compare the costs of several vehicles within a specific medium in relation to the number of people reached by each vehicle
Cost plus pricing A pricing approach based on adding a specified amount or percentage to the seller’s cost after that cost is determined
Cost trade-offs "The off-setting of higher costs in one area of the distribution system by lower costs in another area, to keep the total system cost-effective"
Costs "One consideration that helps determine transportation mode, involving comparison of alternative modes to determine whether the benefits of a more expensive mode are worth the higher costs"
Count and re-count A promotion method based on the payment of a specific amount of money for each product unit moved from a reseller’s warehouse in a given time period
Coupons "A promotion method that reduces the purchase price of an item in order to stimulate consumers to try a new or established product, to increase sales volume quickly, to attract repeat purchasers or to introduce new package sizes or features"
Credence qualities Attributes that cannot be assessed even after purchase and consumption
Crisis management "A process in which a company responds to negative events by identifying key targets (publics) for which to provide publicity, developing a well-rehearsed contingency plan, reporting facts quickly and providing access for journalists"
Culture "All the things around us that are made by human beings: tangible items, such as food, furniture, buildings, clothing and tools; and intangible concepts, such as education, the legal system, healthcare and religion; plus values and behaviours"
Cumulative discounts Quantity discounts aggregated over a stated period of time
Customary pricing A pricing method whereby goods are priced primarily on the basis of tradition
Customer contact The level of interaction between the provider and customer needed to deliver the service
Customer forecasting survey A method of asking customers what types and quantities of products they intend to buy during a specific period of time
Customer relationship management (CRM) Uses technology-enhanced customer interaction to shape appropriate marketing offers designed to nurture ongoing relationships with individual customers within an organisation’s target markets
Customer satisfaction A qualitative measure of marketing performance that involves surveying customers over time
Customer service "Customer satisfaction in terms of physical distribution, availability, promptness and quality"
Customer threshold The number of customers required to make a profit
Customer’s zone of tolerance The difference between the customer’s desired level of expectations and the customer’s acceptable level of expectations
Cycle analysis "A forecasting technique that analyses a company’s sales figures over a period of three to five years to ascertain whether sales fluctuate in a consistent, periodic manner"
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Database A collection of information arranged for easy access and retrieval
Dealer listing An advertisement that promotes a product and identifies the names of participating retailers or dealers who sell it
Dealer loader A gift to a retailer or dealer who purchases a specified quantity of merchandise
Decentralised organisation A company in which decision-making authority is delegated as far down the chain of command as possible
Decline stage "The last stage of a product’s life cycle, during which sales fall rapidly"
Decoding process The process in which signs are converted into concepts and ideas
Defensive advertising The type of advertising that aims to off-set or lessen the effects of a competitor’s promotional programme
Defensive warfare A policy of striking a balance between waiting for market developments or competitor activity and proactively parrying competitors’ actions
Delphi method "A centralised forecasting method that takes into account the views of managers, sales personnel and individual participants; aggregates them; and modifies them"
Demand-based pricing "A pricing approach based on the level of demand for a product, resulting in a high price when demand is strong and a low price when demand is weak"
Demand curve "A graph of the quantity of products expected to be sold at various prices, if other factors remain constant"
Demographic factors "Individual characteristics such as age, sex, race, ethnic origin, income, family life cycle and occupation"
Demonstrations Occasions at which manufacturers show how a product actually works in order to encourage trial use and purchase of the product
Department stores "Physically large stores that occupy prominent positions in the traditional heart of the town or city, or as anchor stores in out-of-town malls"
Dependent variable "A variable that is contingent on, or restricted to, one value or a set of values assumed by the independent variable"
Depression "A period during which unemployment is extremely high, wages are very low, total disposable income is at a minimum and consumers lack confidence in the economy"
Depth (of product mix) The number of different products offered in each product line
Depth interview "A lengthy, one-to-one structured interview, examining in detail a consumer’s views about a product"
Derived demand Demand for business products that arises from the demand for consumer products
Descriptive research Data collection that focuses on providing an accurate description of the variables in a situation
Descriptors Variables used to profile or build a fuller picture of target segments
Diary tests Experiments in which households log their weekly purchases and consumption patterns
Differential advantage Something desired by the customer that only one company – not its rivals – can offer
Differential pricing A pricing strategy involving charging different prices to different buyers for the same quality and quantity of product
Differentiated strategy A strategy by which a business directs its marketing efforts towards two or more market segments by developing a marketing mix for each
Digitalisation "The ability to represent a product, or at least some of its benefits, as digital bits of information"
Direct cost approach An approach that includes only direct costs and traceable common costs
Direct costs Costs directly attributable to the performance of marketing functions
Direct distribution channels Distribution channels in which products are sold directly from producers to users
Direct mail Printed advertising material delivered to a prospective customer’s or donor’s home or work address
Direct mail package "A mix of mailing envelope, covering or explanatory letter, circular, response device and return device"
Direct marketing A decision by a company’s marketers to select a marketing channel which avoids dependence on marketing channel intermediaries and to focus marketing communications activity on promotional mix ingredients which deal directly with targeted customers
Directional policy matrix (DPM) A more commonly used name for the market attractiveness – business position model
Discount sheds "Cheaply constructed, one-storey retail stores with no window displays and few add-on amenities; oriented towards car-borne shoppers"
Discretionary income "Disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter"
Disposable income "After-tax income, which is used for spending or saving"
Distribution centre "A large, centralised warehouse that receives goods from factories and suppliers, regroups them into orders and ships them quickly to customers"
Distributors Companies that buy and sell on their own account but tend to deal in the goods of only certain specified manufacturers
Diversified growth Growth that occurs when new products are developed to be sold in new markets
Dogs Products that have a subordinate share of the market and low prospects for growth
Domestic marketing Marketing activities directed exclusively in a business’s home market
Drop shippers Intermediaries who take title to goods and negotiate sales but never actually take possession of products
Dual distribution A channel practice whereby a producer distributes the same products through two or more different channels
Dumping "The sale of products in non-domestic markets at lower prices than those charged in domestic markets, when all costs are not allocated or when surplus products are sold"
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Early adopters People who choose new products carefully and are often consulted by people from the remaining adopter categories
Early majority People who adopt products just prior to the average person
E-commerce The use of the Internet for commercial transactions
Economic and competitive forces "Factors in the marketing environment—such as the effects of general economic conditions; buying power; willingness to spend; spending patterns; types of competitive structure, competitive tools and competitive behaviour—that influence both marketers’ and consumers’ decisions and activities"
Economic order quantity (EOQ) The order size that minimises the total cost of ordering and carrying inventory
Economic value to the customer (EVC) The underlying principle that a premium price can be charged while still offering the customer better value than the competition
Edge-of-town sites "Retail locations on undeveloped land, providing purpose-built stores, parking facilities and amenities for their customers on the edge of a built-up area"
EDLP Everyday low pricing; budget savings passed on by the manufacturer to the consumer through reduced prices
Electronic commerce (e-commerce) "Sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks"
Electronic data interchange (EDI) "The use of IT to integrate order processing with production, inventory, accounting and transportation"
Electronic marketing (e-marketing) "The strategic process of creating, distributing, promoting and pricing products for targeted customers in the virtual environment of the Internet"
Empowerment Giving front-line employees the authority and responsibility to make marketing decisions without seeking the approval of their supervisors
Environmental analysis The process of assessing and interpreting the information gathered through environmental scanning
Environmental factors "Uncontrollable forces such as politics, competitive and economic factors, legal and regulatory issues, technological changes and socio-cultural issues"
Environmental scanning The process of collecting information about the forces in the marketing environment
EPoS Electronic point-of-sale scanning of barcodes for inventory management
Ethical issue "An identifiable problem, situation or opportunity requiring a choice between several actions that must be evaluated as right or wrong, ethical or unethical"
European Union (EU) "The major grouping in western Europe, the EU has 25 members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom have been joined by the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia and Slovakia"
Evaluation stage The stage of the product adoption process when customers decide whether the product will satisfy certain criteria that are crucial for meeting their specific needs
Everyday low prices (EDLP) The reduction of retail prices of leading brands for a prolonged period
Evoked set The group of products that a buyer views as possible alternatives after conducting an information search
Exchange "The provision or transfer of goods, services and ideas in return for something of value"
Exclusive dealing System by which a manufacturer forbids an intermediary to carry the products of competing manufacturers
Exclusive distribution The use of only one outlet in a relatively large geographic area to distribute a product
Executive judgement A way of forecasting sales based on the intuition of one or more executives
Experience qualities "Attributes that can be assessed only after purchase and consumption, including satisfaction and courtesy"
Experimentation Data collection that involves maintaining certain variables as constant so that the effects of the experimental variables can be measured
Expert forecasting survey "A survey prepared by outside experts such as economists, management consultants, advertising executives or academics"
Exploratory research Deliberately flexible data gathering used to discover the general nature of a problem and the factors that relate to it
Export marketing Marketing activities through which a business takes advantage of opportunities outside its home market but continues production in the home country
Exporting "Use of an intermediary that performs most marketing functions associated with selling to other countries; entails the minimum effort, cost and risk involved in international marketing"
Extended marketing mix for services "Besides the traditional ‘4Ps’ of product, promotion, price and place/distribution, the additional ‘3Ps’ of people, physical evidence and process"
Extensive decision-making "Behaviour that occurs when a purchase involves unfamiliar, expensive, high-risk or infrequently bought products for which the buyer spends much time seeking information and comparing brands before deciding on the purchase"
External reference price A comparison price provided by others
External search One that focuses on information not available from the consumer’s memory
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Facilitating agencies "Organisations such as transport companies, insurance companies, advertising agencies, marketing research agencies and financial institutions that perform activities that enhance channel functions"
Factory outlet villages "Converted rural buildings or purpose-built out-of-town retail parks for manufacturers’ outlets retailing branded seconds, excess stocks and last season’s lines, or trialling new lines"
Family packaging An approach in which all of a company’s packages are similar or include one major element of the design
Fast movers "Smaller rival companies not yet destined to be major challengers, but growing rapidly on a smaller scale"
Feature article A manuscript longer than a press release (up to 3000 words) that is usually prepared for a specific publication
Feedback The receiver’s response to a message
Field public warehouse A warehouse established by a public warehouse at the owner’s inventory location
Field settings ‘Real world’ environments in which experiments take place
Financial price The basis of market exchanges; the quantified value of what is exchanged
Five-category classification "A method of analysing services according to five criteria: type of market, degree of labour intensiveness, degree of customer contact, skill of the service provider and goal of the service provider"
Five communication effects "Communication aims that include category need, brand awareness, brand attitude, brand purchase intention and purchase facilitation"
Five competitive forces Together these determine competition in an industry or market: rivalry amongst existing like-for-like players; the threat of new entrants; the threat of substitute solutions; the bargaining power of buyers; and the bargaining power of suppliers
Five markets model of relationship marketing "In addition to customer markets, the core audiences of influencers, referrals, employee recruitment, suppliers and internal markets"
Fixed costs Those costs that do not vary with changes in the number of units produced or sold
Flashes Headers printed on a direct mail package to gain the recipient’s attention
FOB destination price A price quotation indicating that the producer absorbs the costs of shipping the merchandise
FOB factory price "The price of the merchandise at the factory before it is loaded on to the carrier vehicle, which must be paid by the buyer"
Focus group "A semi-structured discussion involving six to twelve people, led by a moderator"
Focus group interview A survey method that aims to observe group interaction when members are exposed to an idea or concept
Food brokers "Intermediaries who sell food and general merchandise items to retailer-owned and merchant wholesalers, grocery chains, industrial buyers and food processors."
Foreign direct investment (FDI) A long-term commitment to marketing in a foreign nation through direct ownership of a foreign subsidiary or division
Franchising An arrangement whereby a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration
Free merchandise Give-aways sometimes offered to resellers who purchase a stated quantity of the same or different products
Free samples "Give-aways used to stimulate trial of a product, to increase sales volume in the early stages of a product’s life cycle or to obtain desirable distribution"
Freight absorption pricing A pricing policy in which the seller absorbs all or part of the actual freight costs
Freight forwarders Specialised agencies that coordinate and combine shipments from several businesses into efficient lot sizes
Frequency The number of times targeted consumers are exposed to a particular advertisement
Frequent user incentives Incentive programmes that reward customers who engage in repeat purchases
Full cost approach "An approach in which cost analysis includes direct costs, traceable common costs and non-traceable common costs"
Full service wholesalers Middlemen who offer the widest possible range of wholesaling functions
Functional middlemen Intermediaries who perform a limited number of marketing activities in exchange for commission
Functional modifications "Changes that affect a product’s versatility, effectiveness, convenience or safety"
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General Agreement on Tariffs and Trade (GATT) An agreement between countries to reduce worldwide tariffs and increase international trade
General merchandise wholesalers Middlemen who carry a wide product mix but offer limited depth within the product lines
General publics "In non-profit organisations, indirect consumers of a product"
Generic brand A brand that indicates only the product category and does not include the company name or other identifying terms
Generic routes to competitive advantage "Cost leadership, differentiation and focus; not mutually exclusive"
Geodemographic segmentation Clustering people according to postcode areas and census data
Geographic pricing Pricing that involves reductions for transport costs or other costs associated with the physical distance between the buyer and the seller
Global marketing "A total commitment to international marketing, in which a company applies its assets, experience and products to develop and maintain marketing strategies on a global scale"
Globalisation "The development of marketing strategies that treat the entire world, or its major regions, as a single entity"
Globalised marketing Marketing strategies are developed for major regions or the entire world to enable organisations to compete globally
Good A tangible physical entity
Government markets "Departments that buy goods and services to support their internal operations, and to provide the public with education, water, energy, national defence, road systems and healthcare"
Green marketing "The specific development, pricing, promotion and distribution of products that do not harm the natural environment"
Green movement "The trend arising from society’s concern about pollution, waste disposal, manufacturing processes and the greenhouse effect"
Gross domestic product (GDP) The total value of all goods and services produced by a country in one year
Growth stage "The stage at which a product’s sales rise rapidly and profits reach a peak, before levelling off into maturity"
Guarantee An agreement specifying what the producer or supplier will do if the product malfunctions
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Heterogeneity "Variability in the quality of service because services are provided by people, and people perform inconsistently"
Heterogeneous markets Markets in which all customers have different requirements
Home placements Experiments in which a product is used in a home setting
Horizontal channel integration The combination of institutions at the same level of channel operation under one management
Horizontal diversification A process that occurs when new products not technologically related to current products are introduced into current markets
Hypermarkets "Stores that take the benefits of the superstore even further, using their greater size to give the customer a wider range and depth of products"
Hypothesis An informed guess or assumption about a certain problem or set of circumstances
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Idea "A concept, philosophy, image or issue"
Idea generation The process by which businesses and other organisations seek product ideas that will help them achieve their objectives
Ideas "Concepts, philosophies, images or issues that provide the psychological stimulus to solve problems or adjust to the environment"
Illustrations "Photographs, drawings, graphs, charts or tables used in advertisement artwork"
Image A functional and psychological picture in the consumer’s mind
Immediate drop An option that drops an unprofitable product immediately
Impulse buying "Behaviour that involves no conscious planning but results from a powerful, persistent urge to buy something immediately"
Income "The amount of money received through wages, rents, investments, pensions and subsidy payments for a given period"
Independent variable A variable not influenced by or dependent on other variables in experiments
In-depth interview The collection of data from an individual by interview
Individual branding A policy of naming each product differently
Individual factors "The personal characteristics of individuals in the buying centre, such as age, education, personality, position in the organisation and income level"
Industrial/business services "The intangible products that many businesses use in their operations, including financial, legal, marketing research, computer programming and operation, caretaking and printing services"
Industrial distributor An independent business that takes title to industrial products and carries inventories
Industrial or business products Items bought for use in a company’s operations or to make other products
Inelastic demand Demand that is not significantly affected by a price increase or decrease
Information inputs "The sensations received through sight, taste, hearing, smell and touch"
In-home interview 45- to 90-minute interview in which the researcher visits the respondent in his or her home
In-home retailing Selling via personal contacts with consumers in their own homes
Innovators The first people to adopt a new product
Input–output data Information on what types of industries purchase the products of a particular industry
Inseparability "In relation to production and consumption, a characteristic of services that means they are produced at the same time as they are consumed"
Institutional advertising "The type of advertising that promotes organisational images, ideas or political issues"
Institutional markets "Organisations with charitable, educational, community or other non-business goals"
Intangibility "A characteristic of services, which lack physical attributes and cannot be perceived by the senses"
Integrated growth "Growth that occurs in three possible directions: forwards, backwards or horizontally"
Integrated marketing communications (IMC) "The coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless programme that maximises the impact on consumers and other end users, at minimal cost"
Intended strategy The strategy on which the company decides during the planning phase
Intense growth Growth that occurs when current products and current markets have the potential for increasing sales
Intensive distribution The use of all available outlets for distributing a product
Interactivity The ability to allow customers to express their needs and wants directly to the business in response to the company’s marketing communications
Interest stage "The stage of the product adoption process when customers are motivated to obtain information about the product’s features, uses, advantages, disadvantages, price or location"
Inter-modal transport The combination and coordination of two or more modes of transport
Internal marketing "The application of marketing internally within the company, with programmes of communication and guidance targeted at internal audiences to develop responsiveness and a unified sense of purpose among employees"
Internal reference price A price developed in the buyer’s mind through experience with the product
Internal search One in which the buyer searches his or her memory for information about products
International marketing Marketing activities in which a business reduces reliance on intermediaries and establishes direct involvement in the countries in which trade takes place
Internet "A network of computer networks stretching across the world, linking computers of different types"
Interpersonal factors The relationships among the people in the buying centre
Intranet "Internal, in-company Internet networks for routine communications, fostering group communications, providing uniform computer applications, distributing the latest software, or informing colleagues of marketing developments and new product launches"
Introduction stage "A product’s first appearance in the marketplace, before any sales or profits have been made"
Intuition The personal knowledge and past experience on which marketing managers may base decisions
Inventory management The development and maintenance of adequate assortments of products to meet customers’ needs
Involvement "The level of interest, emotion and activity the consumer is prepared to expend on a particular purchase"
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Joint demand Demand that occurs when two or more products are used in combination to produce another product
Joint venture A partnership between a domestic company and a foreign company or government
Junk mail Unwanted mail often binned unread by uninterested recipients
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Kinesic communication "Body language, including winking, head nodding, hand gestures and arm movements"
Knowledge Familiarity with the product and expertise – the ability to apply the product
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Labelling "Packaging information that can be used for a variety of promotional, informational and legal purposes"
Laboratory settings Central locations at which participants or respondents are invited to react or respond to experimental stimuli
Laggards "The last people to adopt a new product, suspicious of new products and oriented towards the past"
Late majority People who are quite sceptical about new products but eventually adopt them because of economic necessity or social pressure
Layout "The physical arrangement of the illustration, headline, sub-headline, body copy and signature of an advertisement"
Learning Changes in a person’s behaviour caused by information and experience
Level of involvement "The level of interest, emotional commitment and time spent searching for a product in a particular situation"
Levels of brands "The tangible product, the ‘basic’ brand, the ‘augmented’ brand and the ‘potential’ of the brand"
Licensing System in which a licensee pays commissions or royalties on sales or supplies used in manufacturing
Limited decision-making "Behaviour that occurs when buying products purchased only occasionally, for which a moderate amount of information gathering and deliberation is needed"
Limited line wholesalers Wholesalers that carry only a few product lines but offer an extensive assortment of products within those lines
Limited service wholesalers Middlemen who provide only some marketing services and specialise in a few functions
Line extension "A product that is closely related to existing products in the line, but meets different customer needs"
Line family branding A policy of using family branding only for products within a single line
Location The strategic retailing issue that dictates the limited geographic trading area from which a store must draw its customers
Long-range plans Plans that extend beyond five years
Loyalty card A mechanism whereby regular customers who remain loyal to a particular company are rewarded with discounts or free merchandise
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Maastricht Treaty "The treaty, signed in 1992, that established the European Union"
Macro marketing environment "The broader forces affecting all organisations in a market: political, legal, regulatory, societal/Green, technological and economic/competitive"
Mail-order retailing Selling by description because buyers usually do not see the actual product until it arrives in the mail
Mail-order wholesalers "Wholesalers that use catalogues instead of salesforces to sell products to retail, industrial and institutional buyers"
Mail panels "Groups of consumers selected to represent a market or market segment, who agree to be interviewed regularly by mail"
Mail surveys "Questionnaires sent by mail to respondents, who are encouraged to complete and return them"
Mailing lists "Directories of suitable, relevant recipients or targets"
Major equipment Large tools and machines used for production purposes
Mall discounters "Operations that take short-term leases in un-let units in malls, selling such items as stationery, toys, confectionery and gifts at deeply discounted prices"
Manufacturer brands Brands initiated by producers to ensure that they are identified with their products at the point of purchase
Manufacturers’ agents "Independent middlemen or distributors who represent two or more sellers, and usually offer customers complete product lines"
Marginal cost (MC) The extra cost a company incurs when it produces one more unit of a product
Marginal revenue (MR) The change in total revenue that occurs when a company sells an additional unit of a product
Mark-up pricing "A pricing approach whereby a product’s price is derived by adding a predetermined percentage of the cost, called mark-up, to the cost of the product"
Market "An aggregate of people who, as individuals or within organisations, have a need for certain products and the ability, willingness and authority to purchase such products"
Market attractiveness – business position model A two-dimensional matrix that helps determine which SBUs have an opportunity to grow and which should be divested
Market challengers Non-market leaders that aggressively try to capture market share from their rivals
Market density The number of potential customers within a unit of land area
Market development A strategy of increasing sales of current products in new markets
Market followers "Low-share competitors without the resources, market position, research and development, or the commitment to challenge for extra sales and market share"
Market leader The single player enjoying the largest individual share in the market
Market nichers Companies that specialise by focusing on only a very narrow range of products or on a select band of consumers
Market penetration A strategy of increasing sales of current products in current markets
Market potential The total amount of a product that customers will purchase within a specified period of time at a specific level of industry-wide marketing activity
Market requirements Requirements that relate to customers’ needs or desired benefits
Market segment "A group of individuals, groups or organisations sharing one or more similar characteristics that cause them to have relatively similar product needs and buying characteristics"
Market segmentation "The process of grouping customers in markets with some heterogeneity into smaller, more similar or homogeneous segments. The identification of target customer groups in which customers are aggregated into groups with similar requirements and buying characteristics"
Market share The company’s sales of a product stated as a percentage of industry sales of that product
Market test "An experiment in which a product is made available to buyers in one or more test areas, after which purchases and consumer responses to its distribution, promotion and price are measured"
Marketing "Individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas"
Marketing assets "Customer, distribution and internal capabilities that managers and the marketplace view as beneficially strong"
Marketing audit "A systematic examination of the marketing function’s objectives, strategies, programmes, organisation and performance"
Marketing citizenship "The adoption of a strategic focus for fulfilling the economic, legal, ethical and philanthropic social responsibilities expected by stakeholders"
Marketing communication "The transmission of persuasive information about a good, service or an idea, targeted at key stakeholders and consumers within the target market segment"
Marketing concept The philosophy that an organisation should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organisation to achieve its goals
Marketing control process "One that establishes performance standards, evaluates actual performance and reduces the differences between desired and actual performance"
Marketing cost analysis The breakdown and classification of costs to determine which are associated with specific marketing activities
Marketing decision support system (MDSS) Customised computer software that aids marketing managers in decision-making
Marketing environment "The external forces that directly or indirectly influence an organisation’s acquisition of inputs and generation of outputs, comprising six categories of forces: political, legal, regulatory, societal/ Green, technological, and economic/ competitive"
Marketing era "The period in which product and aggressive selling were no longer seen to suffice if customers either did not desire a product or preferred a rival brand, and in which customer needs were identified and satisfied"
Marketing ethics "Principles and standards that define acceptable marketing conduct as determined by various stakeholders, including the public, government regulators, private-interest groups, consumers, industry and the organisation itself"
Marketing function accounts A method of indicating the function performed through the expenditure of funds
Marketing implementation Processes and activities deployed to action the marketing strategy or roll out the marketing plan
Marketing information system (MIS) The framework for the day-to-day management and structuring of information gathered from sources both inside and outside an organisation
Marketing intelligence "The composite of all data and ideas available within an organisation, which assists in decision-making"
Marketing intermediary A middleman who links producers to other middlemen or to those who ultimately use the products
Marketing manager The person responsible for managing the marketing activities that serve a particular group or class of customers
Marketing management "A process of planning, organising, implementing and controlling marketing activities to facilitate and expedite exchanges effectively and efficiently"
Marketing mix "The tactical ‘toolkit’ of the marketing programme; product, place/distribution, promotion, price and people variables that an organisation can control in order to appeal to the target market and facilitate satisfying exchange"
Marketing objective A statement of what is to be accomplished through marketing activities – the results expected from marketing efforts
Marketing opportunity Circumstances and timing that allow an organisation to take action towards reaching a target market
Marketing orientation "A marketing-oriented organisation devotes resources to understanding the needs and buying behaviour of customers, competitors’ activities and strategies, and of market trends and external forces – now and as they may shape up in the future; inter-functional coordination ensures that the organisation’s activities and capabilities are aligned to this marketing intelligence"
Marketing-oriented pricing "A pricing approach whereby a company takes into account a wide range of factors including marketing strategy, competition, value to the customer, price–quality relationships, explicability, costs, product line pricing, negotiating margins, political factors and effect on distributors/retailers"
Marketing-oriented organisation A company that concentrates on discovering what buyers want and providing it in a way that lets the company achieve its objectives
Marketing performance "The assessment of the effectiveness of marketing programmes to implement recommended marketing strategies, fulfil corporate financial expectations and achieve the required levels of customer satisfaction."
Marketing plan A document or blueprint detailing requirements for a company’s marketing activity
Marketing planning "A systematic process of assessing marketing opportunities and resources, determining marketing objectives and developing a thorough plan for implementation and control"
Marketing planning cycle "A circular process that runs in two directions, with planning running one way and feedback the other"
Marketing process "Analysis of market conditions, the creation of an appropriate marketing strategy, the development of marketing programmes designed to action the agreed strategy and, finally, the implementation and control of the marketing strategy and its associated marketing programmes"
Marketing programme A marketer’s marketing mix activities and implementation processes designed to operationalise the marketing strategy
Marketing research "The process of gathering, interpreting and reporting information to help marketers solve specific marketing problems or take advantage of marketing opportunities"
Marketing shareholder value analysis (MSVA) Divides the estimation of the value to the organisation created by a marketing strategy into two components: (1) the present value of cash flows during the strategising and planning phases (2) the continuing value after implementation of the strategy
Marketing strategy "A strategy indicating the opportunities to pursue, specific target markets to address, and the types of competitive advantages that are to be developed and exploited"
Markets "Halls where fresh foods, clothing and housewares are sold, catering for budget-conscious shoppers who typically have a middle- and downmarket social profile"
Materials handling The physical handling of products
Maturity stage "The stage during which a product’s sales curve peaks and starts to decline, and profits continue to decline"
Mechanical observation devices "Cameras, recorders, counting machines and other equipment that records physiological changes in individuals"
Media plan "The process of establishing the exact media vehicles to be used for advertising, and the dates and times when the advertisements will appear"
Medium of transmission The tool used to carry the coded message from the source to the receiver or receiving audience
Medium-range plans Plans that usually cover two to five years
Megacarriers "Freight companies that provide several methods of shipment, such as rail, road and air service"
Memory "The ability to access databases or data warehouses containing individual customer profiles and past purchase histories, and to use these data in real time to customise a marketing offer"
Merchandise allowance "A manufacturer’s agreement to pay resellers certain amounts of money for providing special promotional efforts, such as advertising or displays"
Merchant wholesalers Wholesalers that take title to goods and assume the risks associated with ownership
Merchants Intermediaries who take title to products and resell them
Micro marketing environment "The more company-specific forces reflecting the nature of the business, its suppliers, marketing intermediaries, buyers, all types of competitors—direct, substitute and new entrant—and its publics"
Micro retail marketing Modification by a retail chain to vary the retail marketing mix from branch to branch
Misleading pricing Pricing policies that intentionally confuse or dupe consumers
Mission "The broad, long-term tasks that the organisation wants to accomplish"
Missionary sales people "Support sales people, usually employed by manufacturers to assist their customers’ selling efforts"
Modified rebuy purchase A new task purchase that is changed when it is reordered or when the requirements associated with a straight rebuy purchase are modified
Money refunds A specific amount of money mailed to customers who submit proof of purchase
Monopolistic competition A market structure that exists when a business with many potential competitors attempts to develop a differential marketing strategy to establish its own market share
Monopoly A market structure that exists when a company turns out a product that has no close substitutes
Motive "An internal, energy-giving force that directs a person’s activities towards satisfying a need or achieving a goal"
MRO items "Consumable supplies in the subcategories of maintenance, repair and operating (or overhaul) supplies"
Multinational companies Companies that behave in their foreign markets as if they were local companies
Multinational enterprise A company with operations or subsidiaries in many countries
Multinational marketing Adaptation of some of a company’s marketing activities to appeal to local culture and differences in taste
Multiple packaging "Packaging that includes more than one unit of a product, such as twin packs, tri-packs and six-packs"
Multiple sourcing A business’s decision to use several suppliers
Multiple-unit pricing Packaging together two or more identical products and selling them for a single price
Multivariable segmentation Segmentation using more than one characteristic to divide a total market
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Natural accounts The classification of costs based on how money was actually spent
Negotiated pricing Determination of prices through negotiations between the seller and the buyer
Negotiation Mutual discussion or communication of terms and methods in an exchange situation
New product development "The process a product goes through before introduction, involving seven phases: idea generation, screening ideas, concept testing, business analysis, product development, test marketing and commercialisation"
New task purchase An organisation’s initial purchase of an item to be used to perform a new job or to solve a new problem
Noise A condition that exists when the decoded message is different from that which was encoded
Non-cumulative discounts One-off quantity discounts
Non-price competition A policy in which a seller elects not to focus on price but to emphasise other factors instead
Non-profit marketing "Activities conducted by individuals and organisations to achieve some goal other than the ordinary business goals of profit, market share or return on investment"
Non-store retailing The selling of goods or services outside the confines of a retail facility
Non-tariff barriers "A wide range of rules, regulations and taxes that have an impact on trade"
Non-traceable common costs Costs that cannot be assigned according to any logical criteria
North American Free Trade Agreement (NAFTA) "Implemented in 1994, and designed to eliminate all tariffs on goods produced and traded between Canada, Mexico and the United States, providing for a totally free trade area by 2009"
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Objective and task approach A technique for determining an advertising budget that involves determining campaign objectives and then attempting to list the tasks required to accomplish them
Objective of physical distribution Decreasing costs while increasing customer service
Observation methods Methods by which researchers record respondents’ overt behaviour and take note of physical conditions and events
Odd/even pricing A pricing method that tries to influence buyers’ perceptions of the price or the product by ending the price with certain numbers
Offensive warfare A policy whereby challengers aggressively seek market share by identifying any weakness in the leader’s and other challengers’ marketing mixes and developing a genuine corresponding strength
Office of Fair Trading UK government office set up to oversee the trading practices of organisations and individuals in the UK
Oligopoly A market structure that exists when a few sellers control the supply of a large proportion of a product
One-to-one marketing Involves developing long-term relationships with individual customers in order to understand and satisfy their needs
On-line survey Questionnaires that are sent to an individual’s e-mail account or that are available over the Internet or via a website
On-site computer interviewing A survey method that requires respondents to complete a self-administered questionnaire displayed on a computer monitor
Opinion leader The member of a reference group who provides information about a specific sphere of interest to reference group participants seeking information
Opportunity A favourable set of conditions that limit barriers or provide rewards
Opportunity cost The value of the benefit that is given up by selecting one alternative instead of another
Order getters Employees who increase a company’s sales by selling to new customers and by increasing sales to existing customers
Order lead time The average time lapse between placing the order and receiving it
Order processing The receipt and transmission of sales order information
Order takers Employees who ensure that repeat customers have sufficient quantities of products when and where they are needed in order to maintain and perpetuate ongoing relationships
Organisational (corporate) culture "A set of values, beliefs, goals, norms and rituals that members of an organisation share"
Organisational factors "Include the buyer’s objectives, purchasing policies and resources, as well as the size and composition of its buying centre"
Organising by function "A way of structuring a marketing department in which personnel directing marketing research, product development, distribution, sales, advertising and customer relations report to the top-level marketing executive"
Organising by product A way of structuring a marketing department so that the company has the flexibility to develop special marketing mixes for different products
Organising by region "A way of structuring a marketing department, used by large national or international companies, that requires managers of marketing functions for each region to report to their regional marketing manager"
Organising by type of customer "A way of structuring a marketing department, suitable for a business that has several groups of customers with very different needs and problems"
Outsourcing "Where a third-party organisation is empowered to manage and control a particular activity, such as logistics"
Overall family branding "A policy of branding all of a company’s products with the same name, or at least part of the name"
Own-label brands Brands initiated and owned by resellers – wholesalers or retailers
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Packaging "The development of a product’s container and label, complete with graphic design"
Packaging development A mix of aesthetic considerations and structural necessities to guarantee the functionality of the design
Parallel imports Goods that are imported through ‘non-official’ channels from low-price to high-price countries
Patronage motives Those motives that influence where a person purchases products on a regular basis
Penetration pricing A pricing strategy of setting a price below the prices of competing brands in order to penetrate a market and produce a larger unit sales volume
People variable "The aspect of the marketing mix that reflects the level of customer service, advice, sales support and after-sales back-up required, involving recruitment policies, training, retention and motivation of key personnel"
Perceived value for money "The benefit consumers perceive to be inherent in a product or service, weighed against the price demanded"
Percentage of sales approach "A budgeting technique that involves multiplying a company’s past sales, plus a factor for planned sales growth or decline, by a standard percentage based on both what the business traditionally spends on advertising and what the industry averages"
Perception "The process of selecting, organising and interpreting information inputs to produce meaning"
Perceptual mapping A tool used by marketers and marketing researchers to visually depict consumer perceptions and prioritising of brands and their perceived attributes
Perfect competition "A market structure that entails a large number of sellers, not one of which could significantly influence price or supply"
Performance standard An expected level of performance against which actual performance can be compared
Periodic discounting Temporary reduction of prices on a systematic basis
Perishability A characteristic of services whereby unused capacity on one occasion cannot be stockpiled or inventoried for future occasions
Personal influencing factors Factors unique to a particular individual
Personal interview survey Face-to-face situation in which the researcher meets the consumer and questions him or her about a specific topic
Personal selling The task of informing and persuading customers to purchase through personal communication
Personality All the internal traits and behaviours that make a person unique
Persuasion The act of prevailing upon someone by argument to facilitate an exchange
PEST analysis "A popular name for an evaluation of the marketing environment, looking at political—including legal and regulatory issues—economic, social and technological developments, and assessing the implications of such issues"
Phase out An approach that lets the product decline without a change in marketing strategy
Physical distribution "A set of activities – consisting of order processing, materials handling, warehousing, inventory management and transportation – used in the movement of products from producers to consumers or end users"
Pioneer advertising "The type of advertising to create category need, that informs people about a product: what it is, what it does, how it can be used and where it can be purchased"
Place/distribution variable "The aspect of the marketing mix that deals with making products available in the quantities desired to as many customers as possible and keeping the total inventory, transport and storage costs as low as possible"
Point-of-sale (POS) materials "Enhancements designed to increase sales and introduce products, such as outside signs, window displays, counter pieces, display racks and self-service cartons"
Population "All elements, units or individuals that are of interest to researchers for a specific study"
Portal A multi-service website that serves as a gateway to other websites
Positioning The process of creating an image for a product in the minds of target customers
Positioning statement "A plausible, memorable image-enhancing written summation of a product’s or brand’s desired stature"
Post-campaign test or post-test The evaluation of advertising effectiveness after a campaign
PR campaign A period of PR activity involving several events and techniques but with definite start and end dates
PR event A public relations event concerned with a specific purpose such as an open day or VIP visit
PR programme "An ongoing, lengthy-duration, awareness-building or awareness- maintaining multi-technique PR activity"
Premium or push money Additional compensation/ remuneration provided to sales people in order to push a line of goods
Premium pricing Pricing the highest-quality or most versatile products higher than other models in the product line
Premiums Items offered free or at minimum cost as a bonus for purchasing a product
Press conference A meeting called to announce a major news event
Press (news) release "A publicity mechanism, usually consisting of a single page of typewritten copy"
Prestige pricing A pricing method whereby prices are set at an artificially high level to provide prestige or a quality image
Prestige-sensitive consumers Individuals drawn to products that signify prominence and status
Pre-tests Evaluations performed before an advertising campaign that attempt to assess the effectiveness of one or more elements of the message
Price The value placed on what is exchanged
Price competition "A policy whereby a marketer emphasises price as an issue, and matches or beats the prices of competitors"
Price-conscious consumers Those striving to pay low prices
Price discrimination A policy in which different prices are charged in order to give a particular group of buyers a competitive edge
Price elasticity of demand A measure of the sensitivity of demand to changes in price
Price leaders "Products sold below the usual mark-up, near cost or below cost"
Price lining A pricing strategy whereby a business sets a limited number of prices for selected groups or lines of merchandise
Price-off offers A method of encouraging customers to buy a product by offering a certain amount off the regular price shown on the label or package
Price skimming A pricing strategy whereby a company charges the highest possible price that buyers who most desire the product will pay
Price variable The aspect of the marketing mix that relates to activities associated with establishing pricing policies and determining product prices
Pricing objectives Overall goals that describe what a company wants to achieve through its pricing efforts
Pricing strategy An approach to influencing and determining pricing decisions
Primary data Information gathered by observing phenomena or surveying respondents
Prime pitch The area at the centre of the shopping zone with the main shops and the highest levels of pedestrian footfall
Private warehouse A warehouse operated by a company for shipping and storing its own products
Probability sampling Every element in the population has a known chance of being selected for study
Problem children "Products that have a small share of a growing market, generally requiring a large amount of cash to build share"
Problem definition The process of uncovering the nature and boundaries of a situation or question
Process materials "Materials used directly in the production of other products, but not readily identifiable"
Procompetitive legislation Laws enacted to preserve competition and to end various practices deemed unacceptable by society
Producer markets Buyers of raw materials and semi-finished and finished items used to produce other products or in their own operations
Product "A good, service or idea"
Product "Everything, both favourable and unfavourable, tangible and intangible, received in an exchange of an idea, service or good"
Product adoption process "The stages buyers go through in accepting a product: awareness, interest, evaluation, trial, and adoption"
Product adoption process "A series of five stages in the acceptance of a product: awareness, interest, evaluation, trial and adoption"
Product advertising The type of advertising that promotes goods and services
Product deletion The process of eliminating a product that no longer satisfies a sufficient number of customers
Product development – strategy A strategy of increasing sales by improving present products or developing new products for current markets
Product development – process The phase in which the organisation determines if it is technically and financially feasible to produce a new product
Product item A specific version of a product that can be designated as a distinct offering among a business’s products
Product life cycle "The four major stages through which products move: introduction, growth, maturity and decline"
Product line "A group of closely related product items that are considered a unit because of marketing, technical or end-use considerations"
Product line pricing Establishing and adjusting prices of multiple products within a product line
Product manager "The person responsible for a product, a product line or several distinct products that make up an interrelated group within a multiproduct organisation"
Product mix The composite group of products that a company makes available to customers
Product modification The alteration of one or more characteristics of a company’s product
Product portfolio analysis A strategic planning tool that takes a product’s market growth rate and its relative market share into consideration in determining a marketing strategy
Product-specific spending patterns The annual monetary amounts families spend for specific products within a general product class
Product variable The aspect of the marketing mix that deals with researching consumers’ product wants and designing a product with the desired characteristics
Production era The period of mass production following industrialisation
Professional pricing Pricing used by people who have great skill or experience in a particular field or activity
Profiling The task of building up a fuller picture of the target segments
Profit Impact on Marketing Strategy (PIMS) A research programme that compiled a databank of information on 3000 strategic business units of 200 different businesses in order to assist in analysing marketing performance and formulating marketing strategies
Projective techniques "Tests in which subjects are asked to perform specific tasks for particular reasons, while actually being evaluated for other purposes"
Promotion "Communication with individuals, groups or organisations in order to facilitate exchanges by informing and persuading audiences to accept a company’s products"
Promotion variable The aspect of the marketing mix that relates to activities used to inform one or more groups of people about an organisation and its products
Promotional mix "The specific combination of ingredients an organisation uses to promote a product, traditionally including four ingredients: advertising, personal selling, publicity and public relations, and sales promotion"
Promotional pricing Pricing related to the short-term promotion of a particular product
Prospecting Developing a list of potential customers
Prosperity A period during which unemployment is low and total income is relatively high
Proxemic communication A subtle form of communication used in face-to-face interactions when either person varies the physical distance that separates the two
Psychological factors "Factors that influence consumer behaviour, including perception, motives, learning, attitudes and personality"
Psychological pricing A pricing strategy designed to encourage purchases that are based on emotional rather than rational responses
Public relations Managing and controlling the process of using publicity effectively. It is the planned and sustained effort to establish and maintain goodwill and understanding between an organisation and its target publics
Public relations A planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its target publics
Public-sector markets Government and institutional not-for-profit customers and stakeholder groups
Public warehouses "Warehouses that rent storage space and related physical distribution facilities to other companies and sometimes provide distribution services such as receiving and unloading products, inspecting, reshipping, filling orders, financing, displaying products and coordinating shipments"
Publicity "Communication in news-story form about an organisation and/or its products, which is transmitted through a mass medium at no charge"
Pull policy A promotional policy in which a business promotes directly to consumers in order to develop a strong consumer demand for its products
Purchase facilitation "Circumstances that make it possible for the consumer to purchase the product: availability, location, price and familiarity of vendor"
Push policy A promotional policy in which the producer promotes the product only to the next institution down the marketing channel
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Quali-depth interviews 25- to 30-minute intercept interviews that incorporate some of the in-depth advantages of focus group interviews with the speed and flexibility of shopping mall/pavement intercept interviews
Qualitative research "Research that deals with information too difficult or expensive to quantify, such as subjective opinions and value judgements, typically unearthed during interviews or discussion groups"
Quality The core product’s ability to achieve the basic functional requirements expected of it
Quantity discounts Reductions off the list price that reflect the economies of purchasing in large quantities
Quality modifications Changes that affect a product’s dependability and durability
Quantitative research Research aimed at producing data that can be statistically analysed and whose results can be expressed numerically
Questionnaire "Base document for research purposes, providing the questions and structure for an interview or self-completion, and providing space for respondents’ answers"
Quota sampling "A sampling method in which the final choice of respondents is left to the interviewers, who base their choices on two or three variables (such as age, sex and education)"
Quotas Physical restrictions on the amount of goods that can be imported into a particular country or region
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Rack jobbers Speciality line wholesalers that own and maintain their own display racks in supermarkets and chemists
Random discounting Temporary reduction of prices on an unsystematic basis
Random factor analysis "An attempt to attribute erratic sales variations to random, non-recurring events"
Random sampling A sampling method in which all the units in a population have an equal chance of appearing in the sample
Ratchet effect The stepped impact of using sales promotion and advertising together
Raw materials The basic materials that become part of physical products
Reach The percentage of consumers in the advertising target actually exposed to a particular advertisement in a stated time period
Realised strategy The strategy that actually takes place
Receiver "An individual, group or organisation that decodes a coded message"
Receiving audience Two or more receivers who decode a message
Recession A period during which unemployment rises and total buying power declines
Reciprocity An arrangement unique to business-to-business marketing in which two organisations agree to buy from each other
Recognition test "A test in which an actual advertisement is shown to individual respondents, who are then asked whether they recognise it"
Recovery The stage of the business cycle in which the economy moves from depression or recession to prosperity
Recruiting A process by which the sales manager develops a list of applicants for sales positions
Reference group "A group with which an individual identifies so much that he or she takes on many of the values, attitudes or behaviour of group members"
Reference pricing Pricing a product at a moderate level and positioning it next to a more expensive model or brand
Refusal to deal Situation in which suppliers will not do business with wholesalers or dealers simply because these wholesalers or dealers have resisted policies that are anti-competitive or in restraint of trade
Regional issues Versions of a magazine or newspaper that differ across geographic regions in their advertising and editorial content
Reinforcement advertising The type of advertising that tries to assure current users that they have made the right choice and tells them how to get the most satisfaction from the product
Relationship management The process of encouraging a match between the seller’s competitive advantage and the buyer’s requirements over an item’s life cycle
Relationship marketing "Places emphasis on the interaction between buyers and sellers, and is concerned with winning and keeping customers by maintaining links between marketing, quality and customer service"
Relationship marketing era "The current period, in which the focus is not only on expediting the single transaction but on developing ongoing relationships with customers"
Relationships "Regular, ongoing contacts between businesses and their customers"
Reliability The quality of producing almost identical results in successive repeated trials
Reliability – services The consistency of service provided
Reminder advertising "The type of advertising that reminds customers of the uses, characteristics and benefits of an established brand"
Reorder point The inventory level that signals the need to order more inventory
Reputable partnerships "Reputable and ethical dealings between a recognised, welcome and acceptable recipient organisation and a sponsoring organisation"
Requisites for implementation "Process, skill, leadership, empowerment, communication, timing, information, resource and participation decisions"
Research design An overall plan for obtaining the information needed to address a research problem or issue
Research objective The desired outcome from the marketing research project being undertaken
Reseller markets "Intermediaries, such as wholesalers and retailers, who buy finished goods and resell them to make a profit"
Restricted sales territories System by which a manufacturer tries to prohibit intermediaries from selling its products outside designated sales territories
Retail formats The store type and proposition
Retail parks "Groupings of free-standing superstores, forming a retail village"
Retail positioning The strategy of identifying a highly attractive market segment and serving it in a way that distinguishes the retailer from others in the minds of consumers in that segment
Retail technology "Systems that increase retailers’ efficiency and productivity, and often create a competitive edge"
Retailer A business that purchases products for the purpose of reselling them to ultimate consumers – the general public – often from a shop or store
Retailers Intermediaries that purchase products and resell them to final consumers
Retailing "All transactions in which the buyer intends to consume the product through personal, family or household use"
Role "A set of actions and activities that a person in a particular position is supposed to perform, based on the expectations of both the individual and surrounding people"
Routine response behaviour "Behaviour that occurs when buying frequently purchased, low-cost, low-risk items that need little search and decision effort"
Run out A policy that exploits any strengths left in the product
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Safety stock Inventory needed to prevent stock-outs
Sales analysis The use of sales figures to evaluate a business’s current performance
Sales branches "Manufacturer-owned middlemen selling products and providing support services to the manufacturer’s salesforce, especially in locations where large customers are concentrated and demand is high"
Sales competition "A way to motivate distributors, retailers and sales personnel by recognising and rewarding outstanding achievements"
Sales era The period from the mid-1920s to the early 1950s when competitive forces and the desire for high sales volume led a business to emphasise selling and the sales person in its business strategy
Sales forecast The amount of a product that the company actually expects to sell during a specific period of time at a specific level of marketing activity
Sales measurements "Data regarding sales transactions that are used to analyse performance, usually in terms of cash volume or market share"
Sales offices Manufacturer-owned operations that provide support services normally associated with agents
Sales per square metre A financial measure retailers might use to assess marketing performance
Sales potential The maximum percentage of market potential that an individual company can obtain for a specific product or service
Sales promotion An activity or material that acts as a direct inducement and offers added value to or incentive to buy the product
Salesforce forecasting survey A method of asking members of a company’s salesforce to estimate the anticipated sales in their territories for a specified period of time
Salience The level of importance a buyer assigns to each criterion for comparing products
Sample A limited number of units chosen to represent the characteristics of a total population
Sampling The selection of representative units from a total population
Scientific decision-making An orderly and logical approach to gathering information
Scrambled merchandising "The addition of unrelated products and product lines, particularly fast-moving items that can be sold in volume, to an existing product mix"
Screening ideas The process by which a company assesses whether product ideas match its organisational objectives and resources
Search qualities Tangible attributes of a service that can be viewed prior to purchase
Seasonal analysis "The study of daily, weekly or monthly sales figures to evaluate the degree to which seasonal factors influence the company’s sales"
Seasonal discount A price reduction given to buyers who purchase goods or services out of season
Secondary data Information compiled inside or outside the organisation for some purpose other than the current investigation
Secondary market pricing Setting one price for the primary target market and a different price for another market
Secondary use package A package that can be reused for purposes other than its initial use
Security The measure of the physical condition of goods upon delivery
Segmentation variables or bases "The dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments"
Selective distortion The changing or twisting of currently received information
Selective distribution The use of only some available outlets in an area to distribute a product
Selective exposure The selection of inputs that people expose to their awareness
Selective retention "The process of remembering information inputs that support personal feelings and beliefs, and of forgetting those that do not"
Self-concept A person’s perception of himself or herself; self-image
Selling agents Agents who market either all of a specified product line or a manufacturer’s entire output
Service "An intangible product involving a deed, a performance or an effort that cannot physically be possessed"
Service expectations "A factor used in judging service quality involving impressions from past experiences, word-of-mouth communication and the company’s advertising"
Service product quality The consumer’s perception of the quality of service he or she receives
Service provider "A person who offers a service, such as a bank clerk or hair stylist"
Service quality Customers’ perception of how well a service meets or exceeds their expectations
Service quality factors "Factors that increase the likelihood of providing high-quality service: understanding customer expectations, service quality specifications, employee performance, managing service expectations"
Shopping mall/ pavement intercept interviews Personal interviewing of a percentage of individuals who pass by certain ‘intercept’ points in a shopping centre or on a pavement
Shopping products Items chosen more carefully than convenience products; consumers will expend effort in planning and purchasing these items
Short-range plans Plans that cover a period of up to a year
Single-source data Information provided by a single marketing research company
Single variable segmentation "Segmentation achieved by using only one variable, the simplest type of segmentation to perform"
Situational factors External circumstances or conditions that exist when a consumer is making a purchase decision
Social class An open group of individuals who have similar social rank
Social factors The forces other people exert on buying behaviour
Social responsibility An organisation’s obligation to maximise its positive impact and minimise its negative impact on society
Societal/Green forces "Individuals and groups, and the issues engaging them, that pressure marketers to provide high living standards and enjoyable lifestyles through socially responsible decisions and activities"
Sole sourcing A buying process that involves the selection of only one supplier
Sorting activities Functions that let channel members divide roles and separate tasks
Sorting out "Separating products into uniform, homogeneous groups"
Source "A person, group or organisation that has an intended meaning it attempts to share with an audience"
Spam Unsolicited commercial e-mail
Special event pricing "Advertised sales or price cutting that is linked to a holiday, season or event to increase sales volume"
Speciality line wholesalers "Middlemen who carry the narrowest range of products, usually a single product line or a few items within a product line"
Speciality products Items that possess one or more unique characteristic; consumers of speciality products plan their purchases and will expend considerable effort to obtain them
Speciality shops "Stores that offer self-service but a greater level of assistance from store personnel than department stores, and carry a narrow product mix with deep product lines"
Sponsorship "The financial or material support of an event, activity, person, organisation or product by an unrelated organisation or donor"
Stakeholders "Constituents who have a ‘stake’, or claim, in some aspect of a company’s products, operations, markets, industry and outcomes"
Standard Industrial Classification (SIC) system "A system that provides information on different industries and products, and classifies economic characteristics of industrial, commercial, financial and service organisations"
Stars Products with a dominant share of the market and good prospects for growth
Statistical interpretation An analysis of data that focuses on what is typical or what deviates from the average
Stock-outs Shortages of products resulting from a lack of products carried in inventory
Storyboard A series of miniature television screens or cartoons used to show the sequence of major scenes in an advertisement
Straight commission compensation/remuneration plan A plan according to which sales people are paid solely on the basis of their sales for a given time period
Straight rebuy purchase A routine repurchase of the same products under approximately the same terms of sale
Straight salary compensation/ remuneration plan A plan according to which sales people are paid a specified amount per time period
Strategic alliances Partnerships formed to create a competitive advantage on a worldwide basis
Strategic business unit (SBU) "A division, product line or other profit centre within a parent company"
Strategic channel alliance Arrangement for distributing the products of one organisation through the marketing channels of another
Strategic market plan An outline of the methods and resources required to achieve an organisation’s goals within a specific target market
Strategic market planning A process that yields a marketing strategy that is the framework for a marketing plan
Strategic objectives "Include intense growth, diversified growth or integrated growth"
Strategic philanthropy "The synergistic use of organisational core competencies and resources to address key stakeholders’ interests, and achieve both organisational and social benefits"
Strategic window A temporary period of optimum fit between the key requirements of a market and the particular capabilities of a company competing in that market
Strategic windows Major developments or opportunities triggered by changes in the marketing environment
Stratified sampling A sampling method in which the population of interest is divided according to a common characteristic or attribute; a probability sampling is then conducted within each group
Style modifications "Changes that alter a product’s sensory appeal – taste, texture, sound, smell or visual characteristics"
Sub-cultures "Sub-divisions of culture according to geographic regions or human characteristics, such as age or ethnic background"
Suburban centres Shopping centres created at major road junctions that cater for local shopping needs
Successful brands "Brands for which a company must prioritise quality, offer superior service, get there first, differentiate brands, develop a unique positioning concept, have a strong communications programme, and be consistent and reliable"
Supermarkets and grocery superstores "Large, self-service stores that carry a complete line of food products as well as other convenience items"
Supplier analysis A formal and systematic evaluation of current and potential suppliers
Supply chain management "The orchestration of the channel of distribution from sourcing supplies, manufacture to delivery to the customer"
Support personnel Employees who facilitate the selling function but do more than solely participate in selling
Survey methods "Interviews by mail, telephone, web and personal interviews"
Surveys "A method of questioning customers, sales personnel or experts regarding their expectations about future purchases"
SWOT analysis "Analysis that determines a company’s position by examining four factors: strengths, weaknesses, opportunities and threats"
Syndicated data services Organisations that collect general information and sell it to clients
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Tactile communication "Interpersonal communication through touching, including shaking hands"
Target market A group of people for whom a company creates and maintains a marketing mix that specifically fits the needs and preferences of that group
Target market strategy The choice of for which market segment(s) an organisation decides to develop marketing programmes
Target public "A collective of individuals who have an interest in or concern about an organisation, a product or a social cause"
Target publics "An organisation’s target audiences: customers, employees, the media, shareholders, trade bodies, suppliers, government officials and society in general"
Targeting The decision about which market segment(s) a business decides to prioritise for its sales and marketing efforts
Tariffs "Taxes that affect the movement of goods across economic or political boundaries, and that can also affect imports, exports or goods in transit"
Technical sales people Employees who give technical assistance to current customers
Technology The application of knowledge and tools to solve problems and perform tasks more efficiently
Technology assessment "A procedure by which managers try to foresee the effects of new products and processes on their company’s operation, on other business organisations and on society in general"
Telemarketing "Direct selling over the telephone, relying heavily on personal selling"
Telephone surveys Surveys in which respondents’ answers to a questionnaire are recorded by interviewers on the phone
Test marketing The limited introduction of a product in geographic areas chosen to represent the intended market
Third-party endorsement A recommendation from an opinion leader or respected personality used to increase the credibility of publicity and public relations
Time series analysis A forecasting technique that uses a company’s historical sales data to discover a pattern or patterns in the company’s sales over time
Total cost The sum of average fixed costs and average variable costs multiplied by the quantity produced
Total cost analysis Weighs inventory levels against warehousing expenses; and materials handling costs against various modes of transport; and all distribution costs against customer service standards
Total quality management (TQM) Coordinated efforts directed at improving all aspects of a business – from product and service quality to customer and employee satisfaction
Traceability The relative ease with which a shipment can be located and transferred
Traceable common costs "Costs that can be allocated indirectly, using one or several criteria, to the functions they support"
Trade markets Relatively permanent facilities that businesses can rent to exhibit products year round
Trade name The full and legal name of an organisation
Trade or functional discount A reduction off the list price given by a producer to an intermediary for performing certain functions
Trade sales people "Employees who take orders as well as help trade customers promote, display and stock their products"
Trade sales promotion methods "Techniques that encourage wholesalers, retailers or dealers to carry and market a producer’s products"
Trade shows Industry exhibitions that offer both selling and non-selling benefits
Trademark Legal designation indicating that the owner has exclusive use of a brand
Trading company A company that provides a link between buyers and sellers in different countries
Trading stamps "Stamps, dispensed in proportion to the amount of a consumer’s purchase, that can be accumulated and redeemed for goods"
Transfer pricing "The price charged between profit centres – for example, between a manufacturing company and its foreign subsidiary"
Transit time The total time a carrier has possession of goods
Transport modes "Methods of moving goods; these include railways, motor vehicles, inland waterways, airways and pipelines"
Transportation The process of moving a product from where it is made to where it is purchased and used
Trend analysis "Analysis that focuses on aggregate sales data over a period of many years to determine whether annual sales are generally rising, falling or constant"
Trial stage The stage of the product adoption process when individuals use or experience the product for the first time
Truck wholesalers Limited service wholesalers that transport products direct to customers for inspection and selection
Tying contract Arrangement whereby a supplier (usually a manufacturer or franchiser) furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well
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Unaided or spontaneous recall test A test in which subjects are asked to identify advertisements that they have seen recently but are given no clues to help them remember
Undifferentiated (or total market) approach "An approach which assumes that all customers have similar needs and wants, and can be served with a single marketing mix"
Uniform geographic pricing Pricing in which the same price is charged to all customers regardless of geographic location
Uniform resource locator (URL) A website address
Unit loading "Grouping one or more boxes on a pallet or skid, permitting movement of efficient loads by mechanical means"
Universal product code (UPC) or barcode "A series of thick and thin lines that identifies the product, and provides inventory and pricing information readable by an electronic scanner"
Unsought products Items that are purchased when a sudden problem arises or when aggressive selling is used to obtain a sale that would not otherwise take place
Usage rate The rate at which a product’s inventory is used or sold during a specific time period
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Validity A condition that exists when an instrument measures what it is supposed to measure
Value analysis An evaluation of each component of a potential purchase
Value-based marketing The inclusion of the value of a marketing strategy and marketing activity in an organisation’s financial analysis of shareholder value
Value-conscious consumers Those concerned about price and quality of a product
Variability The amount of diversity allowed in each step of service provision
Variable costs Those costs that vary directly with changes in the number of units produced or sold
Variety stores "Slightly smaller and more specialised stores than department stores, offering a reduced range of merchandise"
Venture or project team "The group that creates entirely new products, perhaps aimed at new markets, and is responsible for all aspects of the products’ development"
Vertical channel integration The combination of two or more stages of the channel under one management
Vertical marketing system (VMS) "Marketing channel in which a single channel member coordinates or manages channel activities to achieve efficient, low-cost distribution aimed at satisfying target market customers"
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Warehouse clubs "Large-scale, members-only selling operations combining cash-and-carry wholesaling with discount retailing"
Warehousing The design and operation of facilities for storing and moving goods
Wealth "The accumulation of past income, natural resources and financial resources"
Website "A coherent document readable by a web browser, containing simple text or complex hypermedia presentations"
Wheel of retailing "The hypothesis that new retailers often enter the marketplace with low prices, margins and status and eventually emerge at the high end of the price/cost/services scales to compete with newer discount retailers"
Wholesaler An individual or business engaged in facilitating and expediting exchanges that are primarily wholesale transactions
Wholesalers "Intermediaries who purchase products for resale to retailers, other wholesalers and producers, governments and institutions"
Wholesaling Intermediaries’ activity in the marketing channel between producers and business customers to facilitate the exchange—buying and selling—of goods
Width (of product mix) The number of product lines a company offers
Willingness to spend "A disposition towards using buying power, influenced by the ability to buy, expected satisfaction from a product and numerous psychological and social forces"
World Trade Organization (WTO) An entity that promotes and facilitates free trade between member states
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