Marketing Terminologies:

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.