Above Competition Pricing
A competitive pricing method in which initial price is set
at levels intended to be above competitors’ prices.
Account Management
A sub-category of the order getter sales classification in
which salespeople are responsible for all aspects of building customer relationships
from initial sale through to follow-up account servicing.
Actual Product
A component of the Total Product offered by the marketer,
this represents part of the product that is used (i.e., product features) as
well as other elements that are included such as branding, packaging and
labeling.
Administrative Channel Arrangement
A type of dependent channel arrangement where a single
channel member, such as a leading brand manufacturer or large retailer, has
achieved a significant power position and dominates the decisions that occur
within the channel.
Advertising
A non-personal form of promotion delivered through media
outlets that generally require the marketer pay for message placement.
Advertising Clutter (also Promotional Clutter)
A concept in advertising (and promotion in general) that
suggests that the existence of a large number of advertising messages within
media outlets (e.g., television, newspaper, radio, etc.) makes it difficult for
viewers to recognize and remember specific messages (e.g., ad for specific
brand).
Advocacy Advertising
A type of advertising intended to influence a target
audience on some matter, such as political or social issue, that also impacts
the marketing organization.
Agents (also Brokers)
A specialty service firm found within a marketer’s channel
of distribution that, for a fee, works to bring the marketer together with
buyers.
Assisted Marketing Systems
A direct distribution system where the marketer relies on
others (e.g., agents and brokers) to communicate the marketer’s products but
the marketer handles distribution directly to the customer.
Attitude
A component of the internal influences on consumer buying
behavior that represents what a person feels or believes and which may be
reflected in how a person acts (e.g., what they buy).
Audience Tracking
Media market research technique to monitor and learn how
customers access and use media (e.g., television viewing, website activity).
Augmented Product
A component of the Total Product offered by the marketer,
this represents goods and services that surround the Actual Product in order to
provide additional value to the customer’s purchase and include guarantees,
warranties and training services.
Automated Warehouse
A type of warehouse that functions with advanced computer
and robotics technology to automate storage activity.
Backward Pricing
A concept in advertising (and promotion in general) that
suggests that the existence of a large number of advertising messages within
media outlets (e.g., television, newspaper, radio, etc.) makes it difficult for
viewers to recognize and remember specific messages (e.g., ad for specific
brand).
Below Competition Pricing
A competitive pricing method in which initial price is set
at levels intended to be below competitors’ prices.
Bid Pricing
A process for setting the initial price for a product,
mainly found in government and business markets where multiple sellers compete
for a large purchase, that requires the marketer to set price without direct
knowledge of competitors’ pricing since, in most situations, prices are not
made known until a purchase is awarded.
Boutique
Retail format represented by a small service-oriented outlet
carrying very specialized and often high-end, high priced merchandise.
Brainstorming
A group discussion market research technique that encourages
creative thinking and group interaction to help stimulate idea generation.
Brand Licensing
Contractual arrangement whereby a marketer owning a brand
name negotiates (for fee or percent of sales) with other companies to allow
these companies to produce and supply products carrying the marketer's brand
name.
Brand Loyal (also Brand Loyalty)
Description given to customers who frequently and
enthusiastically purchase a particular brand and are less likely to be enticed
to switch to other brands compared to non-loyal customers.
Brand Mark
Represents a branding decision in which a design element,
such as a symbol, logo, character or sound, is used to provide visual or
auditory recognition for a product.
Brand Name
Represents a branding decision in which an individual
product is named or a name is applied to a group or family of products.
Branding
Involves marketing decisions that have the objective of
establishing an identity for a product using brand names, symbols and other
distinctive measures with the goal of distinguishing the product from those
offered by competitors.
Breakeven Analysis
A forecasting tool used by marketers that considers product
price, fixed cost and variable costs in order to determine the minimum sales
volume required before a company realizes a profit.
Breakeven Pricing
A cost pricing method used to set a product’s initial price
that is used in association with Breakeven Analysis and the determination of
minimum sales levels needed at different pricing points in order for a company
to cover fixed costs.
Bundle Pricing
A form of promotional price adjustment that offers
discounted pricing when customers purchase several products at the same time.
Business Equipment Sales
A type of new business development primarily found in industries
where profits come from the sale of supplies and services that support a main
product (e.g., business equipment) and where salespeople focus on getting
buyers to purchase the main product.
Business-to-Business Selling
A type of account management selling where salespeople sell
products to be used by a business and do so with the intention of being
involved in additional transactions as the relationship between the buyer and
seller grows.
Buying Center
Consists of those within an organization that impact
purchase decisions and includes those serving in the roles of buyer, decider,
influencer, user, initiator and gatekeeper.
Cash-and-Carry
Wholesale format represented by distributors that require
buyers visit the wholesaler’s facility, physically select their order, pay in
cash (i.e., credit purchases not permitted), and then handle their own delivery
(i.e., carry).
Catalog Retailers
Retail format represented by retailers that provide product
information to customers within a mailed catalog or website, and allow
customers to place orders via phone, through regular mail or online, and then
deliver orders via a third-party shipper.
Category Killers
Retail format represented by retail chains that have taken
what were previously small, narrowly focused specialty stores and expanded
these to create large specialty stores.
Causal Research
A method of research that is often highly structured and
controlled in which one variable, called the independent variable, is
manipulated to see how it may affect another variable, called the dependent
variable.
Channel Conflict
Refers to disagreements that arise within a channel when a
channel member’s decisions affect (often negatively) the business operations of
other members.
Channel of Distribution
The activities and organizations that assist a marketer in
moving products (goods or services) from the hands of the marketing company to
the hands of the final customer.
Channel Power
Refers to the influence one party within a channel of
distribution has over other channel members which may allow those with power to
make demands of others.
Climate-Controlled Warehouse
A type of warehouse that handles storage of products
requiring special handling conditions such as refrigeration for perishable
products and humidity-controlled environments for delicate products such as
flowers.
Co-Branding
A branding strategy where a marketer with its own brand
seeks to partner with an established brand owned by another organization in
hopes the synergy of the two brands is even more powerful than a single brand
alone.
Co-op Advertising (also Advertising Support Program)
A form of trade sales promotion where a marketer offers
channel members some level of financial support for including the marketer’s
products in channel member’s advertising.
Code of Ethics
Organizational document that includes guidelines for how
business is conducted by members of the organization.
Cold Call
A method for contacting sales prospects where a salesperson
makes an unannounced first contact with the prospect with the intention of
either scheduling a future appointment or giving a sales presentation during
this first contact period.
Competitive Pricing
A process for setting the initial price for a product that
bases price largely competitor pricing and includes such methods as Below
Competition Pricing, Above Competition Pricing and Parity Pricing.
Complementary Products
Products viewed as add-ons to a main product which are
designed to enhance the main product by making it easier to use, improving
overall styling or extend functionality.
Connected Stakeholders
Represent groups that are part of a marketing organization’s
external forces and who regularly interact with the marketing organization such
as supply and distribution partners, industry standards groups and support
companies (e.g., advertising agencies).
Consumable Product
The main good, service or idea the customer is buying when a
purchase is made (e.g., the paste within a toothpaste product).
Consumer Purchase Decisions
General term referring to types of decisions facing
consumers when they make purchases which include: Minor New Purchases, Minor
Re-Purchases, Major New Purchases and Major Re-Purchase.
Consumer Sales Promotions
Sales promotions that are primarily directed at the final
consumer normally in the form of an incentive to make a purchase or undertake
some other activity.
Contests
A form of sales promotion, mainly used in the consumer
market, that awards something of value to winners based on skills they
demonstrate compared to other consumers.
Contractual Channel Arrangement
A type of dependent channel arrangement where a legal
document obligates members to agree on how distribution occurs including
identifying which activities each channel member is permitted to perform or not
perform.
Contractual Wholesaler
Wholesale format represented by a distributor that brings
together and manages many independent retailers within a contractual
arrangement.
Convenience Products
A category of consumer products with characteristics that
include: appeals to large market segment, purchase is frequent; pricing is
relatively low; and product is widely distributed.
Convenience Store
Retail format represented by general merchandise retailers
that offer very limited product selection and relatively high prices but offer
easy purchase experience through accessible store locations, small store size
for quick shopping and fast checkout.
Core Benefits
A component of the Total Product offered by the marketer,
these represent the key benefits offered by a product itself or through other
aspects of using the product.
Corporate Channel Arrangement
A type of dependent channel arrangement where a product
provider operates its own distribution system in a manner that produces an
integrated channel such as a supplier operating its own chain of retail stores.
Cost Pricing
A process for setting the initial price for a product that
primarily looks at production costs as the key factor for setting price and
includes such methods as Markup Pricing, Cost-Plus Pricing and Breakeven
Pricing.
Cost-Per-Action (CPA)
Metric for assessing advertising expenditure determined by
dividing the total cost for a certain advertisement by how many people actually
responded (e.g., purchase activity, phone inquiries, website traffic, etc.)
within a specified time after the promotion was delivered.
Cost-Per-Impression (CPI)
Metric for assessing advertising expenditure determined by
dividing the total cost for a certain advertisement by how many times an
advertisement is experienced (e.g., seen, heard).
Cost-Per-Targeted-Impression (CPTI)
Metric for assessing advertising expenditure determined by
dividing the total cost for a certain advertisement by the percentage of an
audience who experience the advertisement (e.g., seen, heard) are actually
within the marketer’s target market.
Cost-Plus Pricing
A cost pricing method used to set a product’s initial price
by applying a fixed monetary amount to the cost of the product.
Coupons
A form of sales promotion, mainly used in the consumer
market and primarily offered in either in print or electronic form that
provides price savings or other incentives when presented at the time of
purchase.
CRM - Customer Relationship Management
A strategic approach whose goal is to get everyone in an
organization, not just the marketer, to recognize the importance of customers.
CRM Technology
Computer and information systems that allow nearly anyone in
an organization that comes into contact with a customer (e.g., sales force,
service force, customer service representatives) to have timely access to
necessary customer information.
Culture
A component of the external influences on consumer buying
behavior that represents the behavior, beliefs and way people act learned
through interaction and observation of other members of society.
Customer
A person or organization that a marketer believes will
benefit from the products offered by the marketer’s organization and includes
Existing Customers, Former Customers and Potential Customers.
Customer Contact Points
The different methods a customer uses to communicate with a
company such as in-person, by telephone, over the Internet, etc.
Customer Service
Activities used by the marketer to support the purchaser’s
experience with a product such as training, repair and complaint resolution.
Decline Stage of PLC
Stage within the Product Life Cycle which occurs when the
market is no longer able to sustain sales levels for a product as sales are
decreasing at increasing rates compared to previous periods.
Demographics
Concerns statistics that describe a population such as age,
education level, income, etc., and in marketing is used as a market
segmentation variable.
Department Stores
Retail format represented by general merchandisers offering
mid-to-high quality products and a strong level of service.
Dependent Channel Arrangement (also Vertical Marketing
System)
A binding arrangement between channel members, either
legally or in some other manner, to engage in a specific and often strictly
outlined business relationship whose types include Corporate, Contractual and
Administrative.
Descriptive Data Analysis
Refers to techniques for analyzing research data in which
results are presented, often using charts or tables, as a summary of what has
been gathered without making a statement of whether the results hold up to
statistical evaluation.
Descriptive Market Research
Generally considered the most popular form of market
research, this research method has the objective of providing an accurate
description for something that is occurring (e.g., monthly sales volume,
customer preference).
Development Stage of PLC
Stage within the Product Life Cycle which occurs before a
product is introduced to the market and is principally a time for honing the
product offering and preparing the market for the product.
Diffusion of Innovation
A concept that explains how information and acceptance of
new products spread through a market.
Digital Convergence
A growing trend for using computer technology to deliver
media programming and information, thus allowing media from one type of outlet
(e.g., newspaper) to take advantage of features and benefits offered through
other media outlets (e.g., Internet).
Direct Distribution System
A distribution design where a marketer reaches the intended
final customer by distributing the product directly to the customer and
includes Direct Marketing Systems, Direct Retail Systems, Personal Selling
Systems and Assisted Marketing Systems.
Direct Marketing Systems
A direct distribution system where customers place orders
either through information gained from non-personal contact with the marketer
(e.g., marketer’s website or print catalog) or through personal communication
with a company representative who is not a salesperson (e.g., placing order by
telephone).
Direct Retail Systems
A direct distribution system where a product marketer also
operates their own retail outlets.
Disintermediation
A distribution channel concept which suggests that the
growth of the Internet as a communication and distribution channel will lead to
a flattening of the layers of distribution resulting in fewer resellers (e.g.,
wholesalers) as manufacturers and final buyers learn to transact directly.
Distribution
Key component of the marketer’s toolkit that represents
decisions on the activities and strategies needed for the exchange and movement
of products (goods or services) between the marketing company and the final
customer.
Distribution Center
A type of warehouse where product storage is a temporary
activity with products being received from many suppliers and then quickly
shipped to many customers.
Distribution Packaging
Packaging generally offering a higher level of damage
protection than the final customer package and used to transport the final
customer package through the supply chain often within a multiple unit
container.
Drop Shipper
Wholesale format represented by distributors that never take
physical possession of products but instead act as shipping coordinators who
receive product orders and arrange to have products shipped directly to their
customers from product suppliers.
Dynamic Pricing
A form of promotional price adjustment where adjustments
take place at the point-of-sale (i.e., at the time and place of purchase) for
customers meeting certain criteria established by the seller (e.g., first time
visitor to website).
e-tailers (also Electronic Retailers)
Retail format represented by retailers that confine most of
their selling through Internet websites thus providing customers with the
convenience of anytime shopping.
Early Adopters
The second category within the Diffusion of Innovation
consisting of a sizeable though not large percentage of a market who are
primarily characterized as being enthusiastic but practical about new products
and often communicate their experiences with the next category (i.e., Early
Majority) and in this way serve as Opinion Leaders.
Early Majority
The third category within the Diffusion of Innovation
consisting of up to one-third of the overall market who represent the beginning
of the mass market and who are primarily characterized as liking new products
but prefer to wait until they have received positive opinions for other (e.g.,
Early Adopters) before purchasing.
Elastic Demand
Refers to market conditions where a certain percentage
change (positive or negative) in the price of a product results in a larger and
opposite percentage change in demand (i.e., purchases) for the product.
Elasticity of Demand
Refers to conditions that describe the effect a change in a
product’s price may have on the target market’s demand for a product and
includes conditions that are elastic, inelastic or unitary.
Emergency Products
A category of consumer products which customer purchase due
to sudden events and which often involve little pre-purchase planning.
Ethics
From a business decision-making perspective this relates to
what is right and what is wrong though the line between what is considered
ethical and unethical is difficult to distinguish since it depends on such
factors as nationality, culture, and industry norms.
Ethnographic Research
A form of Observational Research where researchers follow
customers at work, home and when shopping in order to see how they make
decisions, use products and learn other information.
Exclusive Coverage Distribution
Distribution strategy that attempts to have products made
available to a very select or exclusive group of outlets either because these
are high-end products targeted to a relatively small number of customers or
because the marketer limits supply to their own outlets.
Existing Customer
Those who have purchased or otherwise used an organization’s
goods or services, typically within a designated period of time.
Experiments
Method of data collection that falls within the category of
Causal Research in which one variable, called the independent variable, is
manipulated to see how it may affect another variable, called the dependent
variable.
Exploratory Market Research
Marketing research method that uses a less structured and
often less scientific approach to discover general information about a topic
that is not well understood by the marketer.
External Forces
Factors considered outside the control of marketers but that
potentially influence marketing decision-making and include demographics,
economic conditions, governmental environment, influential stakeholders,
cultural and social change, innovation and competitors.
Family Branding
A branding strategy in which products are given brand names
that are closely connected or share the same overall name as an existing brand.
Features
Characteristics of a product that offer functional and/or
psychological benefits to a customer.
Final Customer Packaging
The package containing the purchased product the final
customer receives in exchange for payment.
Fixed Costs
An important component in determining the cost of a product,
these represent costs the marketing organization incurs for a product
regardless of level of production or sales.
Focus Groups
Method of data collection often associated with Qualitative
Research, in which a group of respondents (generally numbering 8-12) are guided
through discussion by a moderator in the hope that group interaction will
stimulate comments that may not otherwise be elicited.
Former Customers
Consists of those who have formerly had relations with the
marketing organization, typically through a previous purchase, but have not
purchased from the marketer within a certain timeframe.
Franchise
Retail format represented by a contractual arrangement in
which franchisees (i.e., retail store operator) agree to pay for the right to
use a franchisor’s (i.e., retail business owner) business methods and other
business aspects such as the franchise name.
Franchised Channel Arrangement
A form of contractual dependent channel arrangement where a
central organization (franchisor) controls nearly all activities of other
members (franchisee).
Full-Service Market Research Firm
Research companies that develop and carryout all aspects of
a market research plan for their clients.
Functional Benefits
Benefits customers receive that are directly associated with
the materials, design and production decisions of the consumable product such
as ease-of-use, increased speed and cost savings.
General Merchandise Wholesaler
Wholesale format represented by distributors that carry
broad but shallow product lines and who mostly offer their services to smaller
general merchandise retailers such as convenience stores.
General Merchandisers
A category within the products carried classification of
retailers that includes retailers who carry a wide range of product lines
though the number of different items within a particular product line is
generally limited.
Generic Branding (also No-Name Branding)
A branding strategy, common to commodity products, that
essentially creates a brandless product offering basic product features and low
price.
Geographic Pricing
A form of standard price adjustment that, in general,
increases the initial price to customers within certain geographic areas to
cover increase costs to the marketer such as transportation costs, taxes and
tariffs.
Good Customers
Those who hold the potential to undertake activities
offering long-term value to an organization that not only includes purchasing
products but also providing additional support for the marketer (e.g., offer
feedback, act as word-of-mouth advertisers)
Goods
In marketing this represents a type of product that consists
of tangible items (i.e., can be felt, tasted, heard, smelled or seen) that
marketers offer to satisfy the needs of their customers.
Group Membership
A component of the external influences on consumer buying
behavior that represents people and organizations with which a person shares
certain characteristics and which may influence a person’s purchase decisions.
Growth Stage of PLC
Stage within the Product Life Cycle which occurs when a
product is widely accepted and often reaches rapid growth characterized by a
large percentage sales increase over previous periods.
Guarantee
Assurance offered by a marketer that the product will perform
up to expectations or the marketer will support the customer’s decision to
replace, have the product repaired or accept a return for a refund.
Hypothesis Testing
A key concept in scientific research, including marketing
research, that is designed to test theory or “gut feelings” about some issues
usually with the use of statistical analysis.
Ideas
In marketing this represents a type of product that consists
of the marketer attempting to convince customers to alter their existing
behavior or perception on some issue.
Image Advertising
A type of advertising that focuses on enhancing the
perceived image of the organization rather than promoting specific products.
Impulse Purchasing
Represents customer purchase decisions that result in a
customer making unplanned purchases often due to marketer’s promotions (e.g.,
coupons, in-store demonstrations) or product placement strategies (e.g.,
product located at checkout lane).
Independent Channel Arrangement (also Conventional
Distribution)
A non-binding arrangement between channel members to engage
in a business relationship that allows channel members to move away from the
relationship if they feel it is not in their best interest.
Indirect Distribution System
A distribution design where a marketer reaches the intended
final customer by distributing a product indirectly through resellers who
generally take ownership of the product and in doing so the resellers assume
many responsibilities to help sell the product.
Individual Product Branding
A branding strategy in which products are given brand names
that are newly created and generally not connected to names of existing brands
offered by the company.
Industrial Distributor
Wholesale format represented by distributors, carrying
either broad or narrow product lines, that primarily distribute to business
customers (i.e., businesses use the product) rather than selling to other
resellers (i.e., those would resell what is purchased).
Inelastic Demand
Refers to market conditions where a certain percentage
change (positive or negative) in the price of a product results in a smaller
and opposite percentage change in demand (i.e., purchases) of the product.
Inferential Data Analysis
Refers to techniques for analyzing research data where
advanced statistical techniques are used to make judgments (i.e., inferences)
such as comparing one customer group to another group, that are statistically
supported.
Initial Price (also List Price or Published Price)
The first step in the price setting process that produces a
starting point from which further price changes may be made before the customer
pays the final price and at the retail level may also serve as the manufacturers
suggest retail price (MSRP).
Innovation
Anything new that offers solutions to needs by providing a
significant advantage (e.g., more features, ease of use) over existing
products, services or methods.
Innovators
The first category within the Diffusion of Innovation
concept that consists of a small percentage of a market who are primarily
characterized as being at the forefront of adopting new products and eager to
try new things, often without regard to price.
Intelligent Call Routing
Telephone technology that identifies and filters incoming
customer calls and then direct calls to selected company personnel.
Introduction Stage of PLC
Stage within the Product Life Cycle which occurs when a
product is released to the market and sales begin though often sales start out
slow as the market becomes aware of the product.
Involvement
A concept in consumer buying behavior which relates to how
much effort a consumer is willing to exert in making a buying decision.
Kiosk
A customer contact point consisting of standalone,
interactive computers offering customers the ability to handle their own
service options including gaining product information, making purchases, and
reviewing customer account details.
Knowledge
A component of the internal influences on consumer buying
behavior that represents the sum of all information known by a person.
Knowledge Base
A repository of answers to commonly asked questions, product
instructions or other information that customers may access online or over the
phone.
Label
Information imprinted on Final Customer Packaging and
Distribution Packaging that serves many functions such as promotion, offering
product details and product purchase information (e.g., contains Universal
Product Code).
Laggards
The fifth category within the Diffusion of Innovation
consisting of a sizeable though not large percentage of a market who are
primarily characterized as being reluctant to accept new products and may only
do so if they have no other choice.
Late Majority
The fourth category within the Diffusion of Innovation
consisting of up to one-third of the overall market who are primarily
characterized as preferring to take a wait-and-see approach before trying
something new.
Lifestyle
A component of the internal influences on consumer buying
behavior that represents what a person values out of life by the activities
they engage in and the interests they express.
Loss Leaders
A form of promotional price adjustment, primarily used by
retailers to increase customer traffic, that intentionally prices select
products at or below the cost the retailer pays to purchase the product from
suppliers.
Loyalty Programs
A form of sales promotion, used in both consumer and
business markets, that offers customers rewards, such as price discounts and
free products, based on purchase frequency or other activity.
Major New Purchase Decision
Type of consumer purchase decision considered to be the most
difficult since these are important to the consumer but the consumer has little
or no previous experience making these decisions.
Major Re-Purchase Decision
Type of consumer purchase decision that is important to the
consumer but the consumer feels confident making these decisions since they
have previous experience purchasing the product.
Markdowns
A form of promotional price adjustment that offers a product
at a price considered being lower than the normal selling priced such as
temporary sale pricing and lower pricing intended to remove extra inventory.
Market
From a marketers perspective, consists of all people and/or
organizations possessing the necessary qualification for making a purchase or
otherwise developing a relationship with the marketer.
Market Pricing
A process for setting the initial price for a product that
relies on analysis of market research to determine what customers perceive as
an acceptable price and includes such methods as Backward Pricing,
Psychological Pricing and Price Lining.
Market Research Distributors
Companies that function as intermediaries in the research
market by acquiring access to information, such as research reports, from
producers of the research (e.g., market research companies) and then selling
this information to those seeking research (e.g., marketer developing a new
product).
Market Segment
A smaller part of a larger market consisting of customers
grouped (i.e., segmented) by characteristic shared by others in their group.
Market Segmentation
A key element of a target marketing strategy in which large
markets, where customers possess different characteristics, is divided into
smaller market segments in which customers are grouped by characteristic shared
by others in the segment.
Market Segmentation Variables
Represent characteristics of a market that allow marketers
to create customer grouping (i.e., market segments) and range from broad
characteristics, such as demographics, to individually specific
characteristics, such as personal product usage.
Marketing
Consists of the strategies and tactics used to identify,
create and maintain satisfying relationships with customers that result in
value for both the customer and the marketer.
Marketing Concept
Suggests marketing decisions should flow from first making
efforts to know what customers want and only after this should an organization
initiate the process of developing and marketing products and services.
Marketing Mix
Describes the decisions made by marketers to appeal to their
target markets and includes product, distribution, promotion, pricing and
services.
Marketing Research
A critical component needed to make good marketing decisions
by presenting a picture of what is occurring (or likely to occur) in a market
and then offering alternative courses of action that may be followed by the
marketer in order to reach their objectives.
Marketing Research Plan
A formal plan presented by researchers to clients that
offers critical information outlining how research objectives and how research
will be conducted.
Markup Pricing
A cost pricing method used to set a product’s initial price
by applying a certain percentage to the cost of the product either through a
Markup-on-Cost method or a Markup-on-Selling Price method.
Markup-on-Cost
A markup pricing method in which markup is viewed as a
percentage by which initial price is set above product cost and is determined
by multiplying the cost of each item by a predetermined percentage then adding
the result to the product’s cost.
Markup-on-Selling-Price
A markup pricing method in which markup is viewed as a
percentage of the product’s selling price and is determined by dividing the
cost of each item by one minus a predetermined percentage.
Mass Coverage Distribution (also Intensive Distribution)
Distribution strategy that attempts to have products made
available in nearly all locations in which that type of product is sold though
this strategy is generally only feasible for low priced products that appeal to
very large target markets (e.g., consumer convenience products).
Mass Discounters
Retail format represented by general or specialty
merchandisers whose main strategy is to offer discount pricing and whose
outlets offer few services and generally lower quality product than is
available at higher-end retailers.
Mass Marketing (also Undifferentiated Marketing)
A target marketing strategy that assumes all customers in a
large market seek the same benefits and, consequently, a marketer appeals to
this market with a single marketing strategy including a single product.
Matte Release
A media relations tools used as part of public relations
involving the submission of articles to media, such as newspapers and websites,
as filler material when publications lacks sufficient content or as original
content for publishers whose business model involves mostly third-party
submissions.
Maturity Stage of PLC
Stage within the Product Life Cycle which occurs when
product growth slows with total sales increasing but at decreasing rates
compared to previous periods.
Media Planner
Marketing service that aids clients in assessing different
media options and providing other promotional assistance.
Media Tour
A public relations tool where a company spokesperson travels
to key cities to discuss new products through bookings on TV and radio shows
and conducting interviews with print and Internet reporters or influencers
(e.g., bloggers).
Micro-Marketing (also Customized Marketing)
A target marketing strategy that attempts to appeal to
specific targeted customers with individualized marketing programs.
Minor New Purchase Decision
Type of consumer purchase decision that involves the
purchase of something new to a consumer but in the customer’s mind is not a
very important purchase in terms of need, money or other reason.
Minor Re-Purchase Decision
Type of consumer purchase decision in which purchases are
routine and often the consumer purchases the same product without consideration
for other product or brand options.
Missionary Selling (also Product Detailing)
A sub-category of the order influencer sales classification
in which salespeople make sales calls to those who influence others, through
advice or requirements, to make purchases the most common of which are found in
the pharmaceutical and higher education textbook industries.
Modified Re-Purchase
A type of business purchase decision in which a buyer, who
previously gave little consideration for alternatives when purchasing a certain
type of product, has now decided to consider other options thus increasing the
chances of purchasing from a new supplier.
Mom-and-Pop Retailer
Retail format represented by a small, individually or family
owned and operated outlet that generally services a local community often with
a high level of service but relatively small product selection.
Motivation
A component of the internal influences on consumer buying
behavior that represents the strength of a person’s desire to achieve a certain
outcome.
MSRP - Manufacturer’s Suggested Retail Price
The price set by a consumer products manufacturer suggesting
a price level for a product at the retail level, though depending on the demand
for the product such pricing may be adjusted (mostly lower) by the marketer and
others in the channel of distributions.
Multi-Channel System (also Hybrid System)
A distribution design where a marketer uses a combination of
direct and indirect distribution systems.
Multiple Lines Specialty Merchandisers
A category within the products carried classification of
retailers that includes retailers that carry a limited number of product lines
but within these product lines they offer an extensive selection.
Multiple-Party Selling System
An indirect distribution system where the marketer involves
two or more resellers who aid in selling and distributing to the final
customer.
New Business Development
A sub-category of the order getter sales classification in
which salespeople locate and sell to new customers then once a sale is made
pass these customers on to others in their organization who handle account
maintenance.
New Task Purchase
A type of business purchase decision faced by buyers
considering an important purchase but one the buyer has never or rarely made
before and, consequently, will devote considerable time evaluating
alternatives.
Niche marketing (also Concentrated Marketing)
A target marketing strategy that uses a single marketing
strategy to appeal to one or more small sub-segments within a larger market
segment.
Non-Store Retailers
Retailers selling to customers through means other than a
physical outlet including online, direct marketing and vending.
Observational Research
Method of data collection, often associated with Qualitative
Research, that watches customers as they perform activities either in a
laboratory or in a natural setting (e.g., shopping in a retail store, using
products at home).
Odd-Even Pricing
A type of psychological pricing where price is set based on
customers’ perception of a significant difference in cost between products
priced at a whole number value and products priced slightly below this whole
number.
Online Chat
In marketing this is web-based technology that allows
real-time communication between customers and company personnel through the
exchange of text messaging within a web browser.
Opinion Leaders
A concept in consumer buying behavior which relates to
people or organizations within a group who a consumer looks to for advice or
direction and, consequently, may hold influence on what a consumer purchases.
Order Getter
A category within personal selling that includes salespeople
who actively engage in obtaining orders from customers and includes
sub-categories of New Business Development and Account Management.
Order Influencer
A category within personal selling that includes salespeople
who primarily concentrate on selling activities targeted to those who influence
others to purchase the product of which is the Missionary Selling is most
predominant example.
Order Taker
# A category within personal selling that includes
salespeople who primarily assist customers with a purchase in ways that are
much less assertive than salespeople who serve as Order Getters and includes
sub-categories Clerks (retail and industrial) and Customer Service Personnel.
Organizational Stakeholders
Groups outside an organization that provide services support
or, in other ways, impact the company.
Out-Sourcing
Move by companies to locate certain business functions, such
as customer service, outside of either their home country or the country in
which their customers reside.
Package Inserts
Information included within a package that is used to
communicate with customers after they open the product package such as
instruction manuals, promotional incentives and information on other company
products.
Parity Pricing
A competitive pricing method in which initial price is set
at levels that are the same as competitors’ prices.
Partial-Service Research Firm
Research companies that offer expertise addressing a
specific part of the research plan, such as developing methods to collect data
(e.g., design surveys) locating research participants or undertaking data
analysis.
Perception
The internal processing of stimuli (e.g., advertisements)
that shapes how a person sees themselves and the world they live in.
Perceptual Filter
A component of the internal influences on consumer buying
behavior that affects, through both conscious and subconscious processes, how a
consumer perceives the world.
Peripheral Stakeholders
Represent groups, such religious organizations, community
activists, and cause supporters, that are part of a marketing organization’s
external forces but that may not routinely impact the marketer unless specific
issues arise.
Personal Interview
Method of data collection, often associated with Qualitative
Research that allows researchers to talk one-on-one with a respondent thus
providing the opportunity to dig deeper and find out additional details that
may not be available through other methods.
Personal Selling
Promotional method in which one party (e.g., salesperson)
uses personal contact to build relationships with another party (e.g., those
involved in a purchase decision) that results in both parties obtaining value.
Personal Selling Systems
A direct distribution system involving a person whose main
responsibility is to create and manage sales (e.g., salesperson) generally by
persuading the buyer to place an order.
Personality
A component of the internal influences on consumer buying
behavior that represents the perceived personal characteristics that a person
consistently exhibits, especially when that person acts in the presence of
others.
PLC - Product Life Cycle
Used as a tool for depicting the concept that products go
through several stages of “life” with each stage presenting the marketer with
different challenges that must be met with different marketing approaches.
Podcasting
Name given to a method of delivery of audio and video
programming that a user can download to a media devices, such as MP3 players or
video player, thus allowing for playback on the user’s own schedule.
POP Display (also Point-of-Purchase Display)
A form of trade sales promotion that are generally found in
retail outlets and allow products to be prominently presented thereby
increasing the probability the product will standout.
Potential Customers
Those who have yet to purchase but possess what the marketer
believes are the requirements to eventually become a customer.
Premiums
A form of sales promotion, used in both consumer and
business markets, in which free merchandise is given-away, though these
products are generally not the actual product but have some connection to the
actual product (e.g., free coffee cup imprinted with product logo).
Press Kits
A media relations tool used as part of Public Relations that
includes information such as company background, key managerial biographies and
other supporting materials intended to be useful to members of the news media.
Press Release (also News Release)
A document issued by a company and intended to gain news
media attention or to provide information to other company stakeholders (e.g.,
customers, investors).
Prestige Pricing
A type of psychological pricing where initial price is set
based on customers’ perception of a correlation between perceived price and
product quality where higher priced products are perceived has being higher
quality compared to a lower priced product.
Price Lining
A market pricing method for setting a product’s initial
price that is used when there are multiple products within a marketer’s product
line and customers’ perception of difference is affected by the separation in
prices for each item (e.g., low price, mid-price and premium price).
Pricing
Key component of the marketer’s toolkit that represents
decisions on the methods and strategies needed to determine what a customer
will give up in exchange for obtaining value from a marketer’s product.
Primary Package
The outermost container that is seen and touched by the
final customer and includes: first-level package, second-level package and
package inserts.
Primary Research
An approach to data collection where original data is
collected for the marketers own needs or for the needs of a specific client.
Private Branding (also Store Branding)
A branding strategy, often seen in the retail industry,
where stores or online sellers contract with suppliers to manufacture the retailer’s
own branded products.
Private Warehouse
A type of warehouse owned and operated by channel suppliers
or resellers and used as part of their distribution activities.
Product
Key component of the marketers’ toolkit that represents
decisions on the solutions (e.g., goods, services or ideas) and strategies
needed to satisfy the needs of a target market.
Product Placement
A form of advertising that intentionally inserts products into
entertainment programming (e.g. movies, TV programs, and video games) such as
showing product use by an actor, placing product in background or having
product name mentioned.
Product Positioning
Relates to marketing efforts that are intended to affect
customers perception of the marketers offerings (e.g., products, company image)
when compared with how customers perceive competitors offerings.
Product-Oriented Advertising
A type of advertising directed toward the promotion of a
specific product to a targeted audience.
Promotion
Key component of the marketer’s toolkit that represents
decisions on the methods (e.g., advertising, personal selling, public
relations) and strategies needed to communicate with a target market.
Promotion Mix
The general name give to the four major methods marketers
have for promoting their products that include advertising, sales promotion,
personal selling and public relations.
Promotional Pricing
A form of sales promotion and a form of special pricing
program, used in both consumer and business markets, that is designed to
increase product demand by offering a short-term price reduction (i.e., sale
price).
Promotional Pricing
Changes to a company’s initial product pricing that are
temporary, often in the form of price reductions, and primarily intended to
stimulate demand for a product and includes Markdowns, Loss Leaders, Bundle
Pricing, and Dynamic Pricing.
Psychographics
Used in marketing for market segmentation, this variable
describes and groups customers by combining psychological characteristics
(e.g., personality, attitude, and lifestyle) with demographic characteristics
(e.g., age, gender, income level).
Psychological Benefits
Benefits a customer perceives to receive (e.g., status
within a group, risk reduction) when using a product though these are often
difficult to measure and may vary by customer.
Psychological Pricing
A market pricing method that used to set a product’s initial
price by considering customers’ perceived response to a price and includes
Odd-Even Pricing and Prestige Pricing.
Public Relations (also Publicity, PR)
A method of promotion that involves the use of a variety of
communications channels and tools in an effort to cultivate favorable relations
with key publics, particularly the news media, with the objective of gaining
favorable mentions of the marketer’s company or product without direct payment
to the publisher of the information.
Public Service Advertising
A type of advertising run by not-for-profit organizations
that concern issues viewed as for the “greater good” of society and, in many
cases, delivered free-of-charge through media outlets.
Public Warehouse
A type of warehouse offering storage space for lease and is
often used by distribution channel members to handle short-term distribution
needs.
Purchase Situation
A component of the external influences on consumer buying
behavior that represents the circumstances, such as environment, emotional
state or time pressure, a person is experiencing when faced with a purchase
decision.
Push Money (also Sales Incentives)
A form of trade sales promotion offering incentives to a
channel member’s sales force and customer service staff to help sell more of
the marketer’s product.
Qualified Sales Lead
Sales leads that have been evaluated and are determined to meet
the requirements to be a sales prospect.
Qualitative Data Collection
Research approach, often dubbed touchy-feely research, that
requires researchers to interpret the information gathered, most often without
the benefit of statistical support.
Quantitative Data Collection
Research approach that is at the heart of scientific
research where numbers are used to measure or evaluate variables being studied
and enabling the use of statistical analysis to offer potentially more
supportable conclusions.
Quantity Discounts
A form of standard price adjustment offering buyers an
incentive of lower per-unit pricing when more products are purchased.
Rack Jobber (also Service Merchandiser)
Wholesale format represented by distributors that are
assigned and manage space (i.e., racks) within retail stores including managing
inventory, setting price and developing promotions.
Rebates
A form of sales promotion, mainly used in the consumer
market, which typically lowers a customer’s final acquisition cost for a
product purchase but generally does so by: 1) requiring customers provide
information and/or undertake activity after the purchase, and 2) only offering
the incentive after the information is received.
Reference Group
Found within the Group Membership component of the external
influences on consumer buying behavior, this concept represents people and
organizations which a person simultaneously associates or, in some cases, feels
the need to disassociate.
Research
The process of gathering information to learn about
something that is not fully known.
Research Design
A plan to collect information within a specific type of
research method.
Research Instrument
Research method used to record information gathered during a
research study that range from basic methods, such as a questionnaire that
record participant responses to research questions, to highly advanced
electronic measurement where respondents are connected to sophisticated
equipment.
Research Reliability
A concept in conducting research that is concerned with
making sure the method used to gather data leads to consistent results that
would be duplicated if others follow the same methods.
Research Validity
A concept related to carrying out research that is concerned
with whether the research is really measuring what it claims to be measuring.
Reseller Network
The collection of resellers such as retailer, wholesalers
and industrial distributors, who provide services that assist the marketer in
reaching their final customer.
Resellers (a.k.a. Intermediaries, Distributors, Dealers)
Members of a distribution channel who purchase products from
the marketing company with the intention of selling to others and includes
retailers, wholesalers and industrial distributors.
Retailer
A business classification that includes resellers who, in
general, obtain products from suppliers in order to sell to the final consumer.
Retailer-Sponsored Channel
A form of contractual dependent channel arrangement where
retailers work together to manage channel relationships.
Retailing
A distribution channel functions where organizations sell
products directly to the final consumer for their own personal use.
Roles
A component of the internal influences on consumer buying
behavior that represents the position a person feels they hold or others feel
they should hold within a particular group environment.
RSS - Really Simple Syndication
Internet technology that allows a company to send information
quickly and to a large number (i.e., subscribers) with little manual effort
compared to traditional methods.
Sales Lead
A person or organization exhibiting key characteristics that
suggest to a salesperson that further information gathering is warranted in
order to determine (i.e., qualify) whether they are a sales prospect.
Sales Promotion
Promotional methods using short-term techniques to persuade
members of a target market or distribution channel, generally through an
incentive, to respond or undertake certain activity.
Sales Prospect
Potential customers who meets the requirements of a
qualified sales lead and who a salesperson now targets for sales call.
Sales Support
A category within personal selling that includes those who
primarily assist with the selling effort such as Technical Specialist and
Office Support Personnel.
Samples (also Free Trial)
A form of sales promotion, used in both consumer and
business markets, which gives customers the opportunity to experience products,
often in small quantities or for a short duration, without purchasing the
product.
Scent Marketing
The intentional use of olfactory elements, such as an odor
or fragrance, for the purpose of enhancing customers' experience with a
product.
Second-Level Package
For some products this level of packaging surrounds the
first-level package for the purpose of added protection or to serve as the
primary package.
Secondary Research
An approach to data collection where a marketer gathers
information collected by others rather than doing their own original primary
research.
Segmentation Marketing (also Differentiated Marketing)
A target marketing strategy in which the marketer appeals to
multiple smaller market segments with a unique marketing strategy for each
market.
Selective Coverage Distribution
Distribution strategy that attempts to have products made
available in somewhat limited locations in which this type of product is sold
and not every possible location since these products generally appeal to
smaller, more focused target markets (e.g., consumer shopping products).
SEO - Search Engine Optimization
Internet marketing strategies designed to attain higher
rankings for company websites within users’ search engine queries.
Services
In marketing this represents a type of product that consists
of something of value customers obtain through the physical labor of a
marketing organization.
Shopping Products
A category of consumer products with characteristics that
include: product appeals to medium-sized target market who occasionally
purchase and will spend time locating; product is relatively expensive; and
product is selectively distributed.
Single Line Specialty Merchandisers
A category within the products carried classification of
retailers that includes retailers that offer just one product line and
sometimes only one product.
Single-Party Selling System
An indirect distribution system where the marketer engages
with a single reseller who then sells and distributes directly to the final
customer.
Social Class
Found within the Group Membership component of the external
influences on consumer buying behavior, this concept represents the social
standing one has within society based on such factors as income level,
education, and occupation.
Social Responsibility
A characteristic of an organization that shows concern for
the people and environment in which it transacts business with such concerns
being communicated and enforced within the entire organization and, in some
cases, with business partners.
Special Segment Pricing
A form of standard price adjustment offered to special
classes of customers and not to the overall target market.
Specialty Merchandise Wholesaler
Wholesale format represented by distributors that carry a
narrow but very deep product line and who mostly offers their services to
specific industries (e.g., supply only electronic products).
Specialty Products
A category of consumer products with characteristics that
include: product appeals to small target market who often know exactly the
brand they want; product is relatively very expensive; and product is
exclusively distributed.
Sponsorships
A form of advertising where marketers pay or offer to
provide resources (e.g., free product, services) for the purpose of being seen
as a supporter of an event, program or product offering (e.g., section of a
website).
Stakeholder
A part of the marketer’s external environment that are
represented by groups who have an interest (i.e., stake) in the company and
include Connected Stakeholders and Peripheral Stakeholders.
Standard Price Adjustments
Changes to a company’s initial product pricing that are
consistently part of the marketer’s pricing program and not adjustments that
only arise as part of special promotions and include Quantity Discounts, Trade
Allowances, Geographic Pricing and Special Segment Discounts.
Store-Based Retailers (also Brick-and-Mortar Retailers)
Retailers selling to customers through physical retail
outlets.
Straight Re-Purchase
A type of business purchase decision that involves routine
order placement that often leads to buyers buying the same product and not
evaluating other product options or other brands.
Strategies
The planned direction the marketing effort takes over some
period of time that serves as a general guide to decision-making.
Sub-Culture
Found within the Culture component of the external
influences on consumer buying behavior, this concept represents smaller groups
sharing similar values such as ethnicity, geographic location, and special
interests.
Supply Chain
Consists of organizations engaged in activities, either
formally or informally, that provide the necessary links between the beginning
of product creation and the delivery of product to customers.
Survey Research
Method of data collection often associated with Quantitative
Research, which captures information through the input of responses to a
research instrument containing questions (i.e., questionnaire).
Sweepstakes
A form of sales promotion, mainly used in the consumer
market, that awards something of value to winners not based on skill but rather
based on luck and, in general, through random selection.
Tactics
Actionable steps or decisions made in order to follow the
strategies established.
Target Marketing
A strategic approach in which an organization attempts to
get the most from its resources by following a planned procedure for
identifying customers who possess the greatest potential to respond to the
marketer’s efforts and help the marketer meet objectives.
Target Markets
Key component of the marketer’s toolkit that represents decisions
on the strategies and methods needed to select customers who will be the focus of
organizations marketing efforts.
Technical Specialists
A sub-category of the sales support sales classification
that consists of those who offer expertise to assist other salespeople in the
selling process.
Total Product
Represents the sum of all tangible and intangible offerings
and benefits a customer obtains from a product and includes three key elements:
core benefits, actual product and augmented product.
Tracking Research
Method of data collection often associated with Quantitative
Research, where the behavior of customers is monitored as they engage in
regular purchase or information gathering activities in either an online or
offline setting.
Trade Allowances (also Off-Invoice Promotion)
A form of trade sales promotion offering channel partners short-term
price breaks or other guarantees (e.g., buy back unsold product) for stocking
product and, in many cases, for agreeing to promote the product such as placing
product in a specific store location (i.e., display allowance) or highlighting
the product in company-produced promotions (i.e., advertising allowance).
Trade Association
Generally membership-supported organizations whose mission
is to offer assistance (e.g., market research) and represent the interests of
those operating in a specific industry.
Trade Discounts (Allowances)
A form of standard price adjustment offered to channel partners
that, in effect, are an indirect payment for assisting with distribution
activities.
Trade Sales Promotions
Sales promotions that are primarily directed at a marketer’s
channel members with the primary intention of “pushing” a product through the
channel by encouraging resellers to purchase and possibly promote the product
to their customers.
Trade Selling
A type of account management selling, mostly found in
consumer products industries, where salespeople first get distributors, such
wholesalers and retailers, to handle their products and once this is
accomplished help distributors sell their products by offering promotional and
merchandising support.
Trade Shows
Organized industry events, primarily used in
business-to-business selling situations that bring both buyers and sellers
together in one central location.
Trade-In Promotion
A form of sales promotion, used in both consumer and business
markets that allows customers to obtain a price reduction in exchange for
something the customer possess, such as an older product that the new purchase
will replace.
Truck Wholesaler
Wholesale format represented by distributors who travel in a
well-stocked supply trucks to buyer’s locations.
Unitary Demand
Refers to market conditions where a certain percentage
change (positive or negative) in the price of a product results in an equal and
opposite percentage change in demand (i.e., purchases) of the product.
Unsought Products
A category of consumer products in which consumer purchasing
is normally unplanned but occurs as a result of marketer’s actions, such as a
salesperson’s persuasion or purchase discounts (e.g., coupon), which leads to
impulse purchasing.
Value
The perception of benefits received for what someone must
give up to obtain the benefits.
Variable Costs
An important component in determining the cost of a product,
these costs are directly associated with production and sales and, consequently,
may change as the level of production or sales changes.
Vending
Retail format represented by automated methods (i.e., via
vending machine) for allowing consumers to make purchases and quickly acquire
products.
Video News Release (also Audio News Release)
A media relations tools used as part of Public Relations in
which prerecorded video, often highlighting a company and its products, is
distributed to news media for the purpose of being included within media programming
such as within news stories.
VoIP - Voice over Internet Protocol
Advancement in telephony that allows for telephone calls
(e.g., customer service) to be delivered over the Internet at low cost and with
multiple phones sharing the same connection.
Warehouse
A product storage facility that often serves a key role in
distribution strategy by helping marketers meets market demand.
Warehouse Stores
Retail format represented by a form of mass discounter that
often provides even lower prices than traditional mass discounters usually by
requiring buyers to make purchases in large quantities and whose outlets offer
few services, limited product selection and bare bones store design.
Warranty
A offer, often associated with a purchase, in which a
marketer provides customers a level of protection, beyond a Guarantee period,
that covers repair or replacement of certain product components if found
defective within some identified time frame.
White Papers
Detailed, sometimes highly researched, documents intended to
establish credibility or offer insight into the capabilities of a company and
its products or services.
Wholesaler
A business classification that includes resellers who, in
general, engage in distribution activities that comes between a supplying party
(e.g., manufacturer) and a purchasing party (e.g., retailer) but who do not
sell to the final consumer.
Wholesaler-Sponsored Channel
A form of contractual dependent channel arrangement where a
wholesaler brings together and manages many independent retailers which may
include having the retailers sharing the same name.
Wholesaling
A distribution channel function where organizations purchase
products from supplying firms with the primary intention of redistributing,
often in smaller quantities, to other organizations such as retailers.
