A

Atihy-based
true costing accounting procedures that can brand character a brand symbolwith
profitability of different activities by identifying theirquantify enhances brand likability and relatability.human characteristics that
Costs. actual brand dilution the
ainistered vertical marketing systemn weakening of the power of a brand.
bieh one of amarketing brand equity the
the members COordinates successive structure mium placed on a monetary value of a brand that reflects the pre
production and distribution. stages of of the brand. company's valuation because of its ownership
advertising the presentation and
promotion of ideas, goods. brand extension company's use of an existing brand
a
services, and brands using paid media.
offering in a different product category or price tier. for an
agents the brokers,
manufacturers' representatives, brand hierarchy a reflection of the
onents that search tor
Customers and may negotiate onand
ducer's behalf but do not
sales
the pro brands are related to its products and way in which a company's
buy or resell the goods. another. services, as well as to one
aloha testing the evaluation of a brand mantra a succinct
company.
product or service within the articulation of the essence of the brand.
brand personality the human traits
anticipatory pricing the attributed to a particular brand.
increase. in anticipation ofraising
further
of prices by more than the cost
inflation or government price
brand personification a means to
determine consumers' brand
controls. associations by asking them to equate the brand to a person,
animal, or object.
areas of dominant influence the
which the communication budget is geographic
focused.
or market areas on brand portfolio the set of all brands
owned by a company.
attitudes a person's enduring brand power the ancillary value that the
brand contributes to a
and behavioral tendencies towardevaluations, emotional feelings,
an object or idea.
product or service.

brand tracking the use of quantitative data to

auction pricing the setting of prices through competitive tent information about how brands and marketingprovide consis
bidding. programs
are
performing.
average cost the cost per unit at a specific level of brand value chain an assessment of the way
production. marketing activities
create brand value.

branded variants specific brand lines supplied to specific retail

B ers or distribution channels.
behavioral research a means of obtaining data to gain a better
understanding of customers' purchasing, consumption, and branding the process of endowing products and services with
the power of a brand.
decision-making processes.
business markets all the organizations that acquire goods and
behavioral segmentation the division of target customers into services used in the production of other products or services that
groups based on their actions. are sold, rented, or supplied to others.
belief a conviction that something is true or real, regardless of business-model design the process of determining the ways in
whether it is or is not. which a product or service will create market value.
beta testing the evaluation of a product or service by customers.
bottom of the pyramid (BOP) a socioeconomic concept that C
refers to the poorest group of the world's population. cause marketing the linking of a firm's contributions to a desig
nated cause with its customers' revenue-producing transactions.
bottom-up idea generation aprocess that starts with an inven
tion and then seeks to identify an unmet market need. channel captain an entity responsible for managing the partner
ships within a distribution channel.
brand a name and/or design element intended to identify the
goods or services of a company and differentiate them from com channel conflict actions by one channel member that prevent
petitive offerings. another channel member from achieving its goal.
brand activism acompany's stance on a controversial social, channel power the ability to alter channel members' behavior so
economic, environmental, or political issue. they take actions they would not have taken otherwise.
brand associations all thoughts, feelings, perceptions, images, cobranding two or more brands marketed together.
experiences,beliefs. and attitudes that are attributed to the brand.
commercialization the process of informing target customers
brand audit an assessment of the health of the brand and its about the company's offering and makingthe offering available
position in the market. to them.

569
 570 GLOSSARY

and opinions from the pub

communication objective the specific task to be accomplished Crowdsourcing the gathering of data
with a specific audience within a specific period of time. process.
licto enrich the marketing
depiction of the phases of the
company demand the company's estimated share of market Customer acquisition funnel a
demand in a given time period. process of attractina new customers.
loyal to the company and
company sales forecast the expected level of company sales Customer base customers who are
for a given time period based on market trends and company mar its offerings.
keting efforts. that underlies all
Customer-centricity a focus on the customer
company sales potential the upper limit of sales that a company company offerings and activities.
can achieve in a specific market in a given time period. customers to choOse how
Customer empowerment the ability of
they want to engage with the company.
competitive advantage a company's ability to create market
values of all com
value in a way that competitors are unable to match. Customer equity the total sum of the lifetime
competitive-parity budgeting an approach to communication pany customers.
customer is
budgeting based on what the competition is spending. Customer lifetime value the total amount a
expected to spend during his or her tenure with the company.
competitive pricing the setting of prices based on competitors'
prices. customer profile the observable demographic, geographic,
behavioral, and psychographic customer descriptors.
concept validation an assessment of the feasibility and attrac
tiveness of the core concept underlying the proposed offering. Customer profitability analysis ameans of assessing and rank
ing customer profitability.
conformance quality the degree to which allproduced units are
identical and meet promisèd specifications. customer relationship management the process of managing
detailed information about individual customers and all customer
conjoint analysis measurement of the value that consumers touch points to maximize loyalty.
place on specific attributes of an offering.
Customer touch points the occasions on which a customer
consumer incentives the rewards offered to customers to encounters the brand, product, or service.
encourage purchase.
customer value analysis assessment of how consumers
containerization the placement of goods in containers for easy View the company's strengths and weaknesses relative to the
transfer between transportation modes. competition.
contextual placement the purchase of ads on sites related to customer value management analysis of customer perceptions
the product being advertised. of an offering's value to develop marketing strategies to acquire
and retain customers and drive purchase behavior.
contract manufacturing the use of local manufacturers to pro
duce the company's product in a specific market. customer value proposition the value the company aims to
create for its target customers.
contractual vertical marketing system a group of indepen
dent firms at different levels of production and distribution that
contractually integrate their programs to obtain greater economies D
or sales impact. demand forecast an estimation of the size of the potential market
conventional marketing channels systems of independent for the company's offering.
producers, wholesalers, and retailers. design the totality of features that affect the way a product looks,
conversion rate the percerntage of customers who move to the feels, and functions.
next stage of the customer acquisition process. design thinking a process of developing design concepts.
core competency expertise in an area that gives a company a direct exporting the sale of a company's offering in other coun
competitive advantage. tries by the company itself.
corporate culture the shared experiences, stories, beliefs, and direct investment the process by which a foreign company can
norms that characterize an organization. buy a partial or full interest in a local company or build its own
manufacturing or service facilities.
corporate vertical marketing system a strategy that combines
successive stages of production and distribution under a single direct marketing channel a manufacturer selling directly to the
entity. final customer.
cost inflation a circumstance in which rising costs unmatched distribution channel a set of interdependent organizations par
by productivity gains squeeze profit margins and lead companies ticipating in the process of making a product or service available
to regular rounds of price increases. to the target market.
creative brief a succinct document that outlines the specific diversification strategy a move to enter a new market with an
communication approach to be used in a creative assignment. offering that is new to the company.
 diversified portfolio a fairly broad
uct lines. GLOSSARY
assortment of multiple prod 571

divesting the procesS of selling an

companyy itself.
Trontal attack amove to matcha
and tactics.
asset of a competitor's marketing strategy
dual-level channel a distribution company or the
mediaries, typically a wholesaler andchannel
a
that contains two
inter
retailer. G
geofencing a
when they are mobile promotion strategy that targets
E or in a store.
within a defined customers
geographic space, typically near
economi
a
consumerc-valwilling
uct's value.
ue-to-customerbasedpricing perception
is tO pay the setting of the price
on the of the prod
geographic
graphic segmentation the division of the market
units such as nations, states, into geo
neighborhoods. regions, counties, cities, or
elaboration likelihood model adescription of the
which goodwill an accounting term that includes brand
consumers make
ment circumstances. evaluations in both low- and process by fies the monetary value of all intangible assets of aequity and signi
high-involve gray market the diversion of company.
ethnographic
approach research a particular observational
that uses
distribution channels. branded products from authorized
other social science concepts and tools from research
arnthropology and greenwashing providing misleading information or giving the
standingof hoW peopledisciplines to provide deep cultural under impression that products or
live and work. friendly than they really are. practices are more environmentally
everyday low
little or no pricepricing (EDLP) a consistently low retail price with guarantee the assurance that if a product fails to
promotion or special sales. promised or as customers expect, the company will function as
exclusive distribution the use of a highly type of compensation to the provide some
limited number of purchaser.
intermediaries. guerrilla attack a series of small, intermittent attacks on
competition. the
expectancy-value model the process by which people evaluate
products and services by combining
to the weighted their assessments according
importance of those assessments.
H
experience-curve pricing
the
the setting ofa lower price based on harvesting the reduction of investment in an offering to reap the
future ability to lower production costs through
experience. greatest possible profit.
external marketing the process of designing, communicating, heuristics rules of thumb that facilitate the decision
process.
and delivering a product or service to customers.
high-low pricing higher retailer prices on an everyday basis, with
frequent promotions featuring prices temporarily lower than EDLP
level prices.
facilitators the transportation companies, independent ware horizontal channel conflict a dispute between channel mem
bers at the same level of the distribution network.
houses, banks, and advertising agencies that assist in the distri
bution process but do not take title to goods or negotiate sales. horizontal marketing systems two or more unrelated compa
fad a short-lived mode of behavior that has no social, economic, nies pooling resources or programs to exploit an emerging market
ing opportunity.
or political significance.
fixed costs costs that do not vary with changes in production levl.
flagship product an offering that best represents or embodies
the brand. image pricing the act of setting prices higher to make an offering
more desirable in the eyes of consumers.
flanking an attack on acompetitor's weak spot to steal market share.
incentives the typically short-term sales promotion tools
selected based on
focus group a smallgroup of people who are and
designed to stimulate the purchase of a product or service.
considerations
Certain demographic, psychographic, or other incremental innovation a minor improvement of an existing
brought together to discuss various topics of interest.
offering or process.
quantity of favorably
forward buying the purchase of agreater sell. indirect exporting the use of independent intermediaries to sell
immediately
priced goods than aretailer can acompany's offering in other countries.
can
benchmark against which customers
frame of reference a influencer marketing the use of a popular figure to promote a
evaluate the benefits of a company's offering. product, service, or brand within his or her social media sphere.
use a company's know-how,
Tranchising granting permission to informational appeal an elaboration of product or service attri
business model, and brand to sell butes or benefits to influence the consumer purchasing decision.
procedures,intellectual property,
its branded products and service.
 572 GLOSSARY

that would be
of a product
institutional market schools, hospitals, nursing homes, prisons, demand the total volume geographic area
and other entities that provide goods and services to people in
market
defined in a defined
customer groupmarketing environment under
DOught by a
period in adefined
In a defined time
their care.
a defined marketing program.
sales of a
integrated marketing the coordination of all marketing activities focus on expanding
and programs aimed at designing, communicating, and delivering market-development strategy a
target markets.
consistent value to consumers. product or service to new
offering available to
expansion a move that makes an
integrated marketing communication an approach to manag market
ing a communication campaign through the coordinated use of the entire target market.
time
different communication tools. demand projected for a future
market forecast the market
intensive distribution the placement of goods or services in as perlod.
market
many outlets as possible. with the largest share of the
market leader the company
interactive marketing the company's encouragement of, and in which it competes.
of
response to, consumer perspectives and behaviors regarding an design and control of the flow
offering or brand. market logistics infrastructure to customer.
manufacturer
materials and goods from
internal marketing the hiring, training, and motivating of employ the company deploys in
market offering the actual good that
ees to serve customers in a way that reflects the company's goals.
order to fulfill a particular customer need.
intrapreneur a company employee whose duties are focused increasing sales of the
market-penetration strategy a focus on
on fostering product, service, and process innovation within the customers.
company's current offerings to its existing
company.
of the market in which it
market position acompany's share
competes.
J can be achieved in a
market potential the maximum sales that
joint venture a business enterprise engaged in by two or more specific market in a given time period.
otherwise separate entities. into sub
market segmentation the division of a consumer group
profile characteristics.
just-in-time inventory management the ordering of produc sets that share a similar set of needs and/or
tion components as needed, to save on warehousing costs and
improve cash flow. market skimming the setting of a relatively high price to make
willing
the offering affordable only to customers with the greatest
ness to pay.
market test a means of validating the offering in a portion of the
market or in the entire market.
laddering a series of increasingly specific questions that can
reveal consumers' motivations and deeper goals. marketing the identification and meeting of individual and social
needs in a way that harmonizes with the goals of the organization.
licensing granting permission to manufacture and sell a com
pany's offering in a specific market. marketing communication the means by which firms inform,
persuade, and remind consumers about the products and brands
line extension the addition of new products to a company's cur they sell.
rent product line.
marketing dashboards a structured way to disseminate the
line filling a lengthening of a company's product line by adding insights gleaned from marketing metrics and marketing-mix
more items to the existing range. modeling.
line stretching an expansion of the product line beyond its cur marketing management the art and science of choosing target
rent range. markets and getting, retaining, and growing customers by deliver
localized marketing program an approach that tailors its mar ing superior value.
keting activities to individual target markets. marketing mix the attributes (product, service, brand, price,
long-term memory the capacity to remember and store informa incentives, communication, and distribution) that define the com
tion indefinitely, or even permanently. pany's offering.

loss-leader pricing the setting of a low price for a product to marketing network the company and its supporting stake
attract greater consumer traffic. holders., with whom it has built mutually profitable business
relationships.
marketing-mix models a way to analyze data from multiple
M sources to understand the effects of specific marketing activities.
macromodel of marketing communication description of the markup pricing a pricing method that adds a standard markup
interaction between the sender (company) and the recipient (con to the product's cost.
Sumer) of the conmmunication message.
mass customization the use of mass production techniques to
macroscheduling decision the allocation of communication produce offerings that can be customized to meet the needs of
expenditures related to seasons and the business cycle. individual customers.
 GLOSSARY 573

marketing to consumers
mass marketing addressing the entire market with a sinale permission marketing the practice of
offering. only after gaining their expressed permission.
psychological traits that
merchant wholesalers the intermediaries that buy directly personality a set of distinguishing human environmental stimuli,
responses to
from the manufacturer, store the product, and then sell it to the lead to relatively consistent
Customer. including buying behavior.
interaction between the sales
merchants the wholesalers and retailers that buy and resell the personal selling the face-to-face
offering to consumers. person and the buyer.
target consumers
micromodelof marketingcommunication description of con personas the detailed profiles of one or more
market.
Sumers' specific responses to communications. that depict the typical consumer in the target
benefits that differenti
microscheduling decision the allocation of communication points of difference (PODs) attributes or
expenditures within ashort time period to obtain maximum impact. ate the company's offering from the competition.
are not unique
mission aclear, Concise, and enduringstatement of the reasons points of parity (POPs) attributes or benefits that
for an organization's existence. and are shared with other brands.

Moore's model an adaptation of the Rogers' model for technol positioning statement a summary of a product or brand's strat
ogy products. egy that aims to guide the company's actions.

multichannelconflict a dispute between two or more channels positioning designing a company's offering and image to occupy
that sell to the same market. adistinctive place in the minds of the target market.
price discrimination sale of the same offering at different prices
to different customers.
N
native advertising a form of advertising that resembles the medi price elasticity of demand the degree to which a change in
price leads to achange in quantity sold.
um's editorial content but is intended to promote the advertiser's
product. price image the general perception that consumers have about
the level of prices at a given retailer.
net price analysis the "real price" of the offering after discounts
and advertising and promotion costs are deducted. price indifference band a range within which changes in price
have little or no effect on consumer purchases.
niche mnarketer a company that caters to a subset of customers
with an offering exclusively tailored to their needs. pricing cues a means of prompting customers to rely on price to
infer the value of a product.
primary data information gathered for a specific purpose or
project.
objective-and-task budgeting an approach for determining the
communication budget based on the specific task to be achieved. primary target the subset of target customers for which an offer
ing will initially be made available.
observational research a means of obtainingdata by unobtru
sive observation of customers' shopping or consumption habits. principle of congruity psychological mechanism by which con
sumers like to view seemingly related objects as being as similar
opinion leader a person who offers informal advice or informa as possible in favorability.
tion on how best a specific product or product category can be private label a proprietary brand developed and sold by retailers
used; also known as an influencer.
and wholesalers.
optimal value proposition the value an offering creates for cus
tomers, collaborators, and the company. product-development strategy the creation of new products or
modifications to existing products in the target market.
order-to-payment cycle the time between an order's receipt,
delivery of the product or service, and payment. product life cycle the length of time between the introduction of
an offering in the market and its removal from the market.
organic growth an increase in the company's revenues, profits,
product line a group of related products sold by the same
and/or market position through the use of its own resources.
company.

product-market growth framework a grid that outlines the dif

P ferent growth strategies; also known as the Ansoff matrix.
market
penetration pricing the setting of a low price to maximize product-mix pricing the setting of prices in a manner that maxi
share. mizes profits on the total mix of company offerings.
interpreting
perception the process of selecting, organizing,and product portfolio the total number of products offered by a com
information to create a meaningful picture of the world. pany, including various product categories and product lines.
perceptions
perceptual map a visual representation of consumer product-value analysis the assessment of a product's
and preferences. value by examining ways components or processes can be
nonfinancial returns modified to reduce costs without adversely affecting product
performance marketing the financial and
and programs. performance.
to business and societyfrom marketing activities
574 GLOSSARY

surveyed to
projective technique a process of presenting people who should be
an incomplete or ambiguous stimulus, such as consumers with Sample size the number of extrapolated to the entire target
be
or choice ordering, in order to get a better
word association provide credible results that can
understanding of their population.
thought processes. respondents
of choosing survey
Sampling procedure a meansrepresentative
prototype a model of an offering that aims to weed out potential of the total target
problems before the actual offering is created. that makes the sample more
population.
psychographic segmentation the division of target customers should be surveyed to glean
sampling unit the respondents who or behavior.
into groups based on psychological traits, lifestyles, or values. information about a specific market, product,
psychological resistance a reluctance to change established practice of paying search
Search engine marketing (SEM) the brand, or organiza
preferences or opinions that are barriers to purchase. for one's product, service,
engine companies particular keyword searches.
tion to be featured in the results of
public relations a variety of programs designed to promote a
company's image among the relevant stakeholders. the activities designed to
Search engine optimization (SEO)company or brand ranks as
publicity the securing of editorial content to promote an offering, increase the likelihood that a link for a
appear during
idea, organization, or image. high as possible in the order of all nonpaid links that
online searches.
pull strategy the use of advertising, promotion, and commu collected for another
nication to persuade consumers to demand the product from Secondary data existing information
intermediaries. purpose.

push strategy the selling of a product to end users through selective attention the process of focusing on specific environ
collaborators. mentalstimuli while ignoring others.
selective distortion the tendency to interpret information to fit
Our preconceptions.
selective distribution the use ofa number of carefully selected
quality the degree to which a product or service fulfills customer intermediaries wiling to carry a particular product.
expectations of value. selective market deployment an approach that deploys the
Company's offering only to specific areas of the target market to
questionnaire a set of questions presented to respondents to
collect primary data. test market reaction.
service an intangible act that one entity performs for another that
does not result in a change in ownership.
R service blueprint amapping of the service provided by the com
reference groups allgroups that have a direct or indirect effect pany from the customer's point of view.
on an individual's beliefs,decisions, and behavior.
short-term memory the capacity to keep alimited amount of
reference prices pricing information a consumer retains in information in mind for a short time.
memory that is used to interpret and evaluate a new price.
showrooming examination of a product in a store before pur
relationship marketing the development of mutually satistying chasing it from a different retailer, typicaly tosecure a lower price.
long-term relationships with key constituents to earn and retain single-level channel a distribution channel that contains one
their business.
selling intermediary, such as a retailer.
retailing the activities involved in selling goods or services directly social marketing marketing done by a nonprofit or government
to final consumers for nonbusiness use.
organization to further a cause, such as "say no to drugs."
retention rate the number of customers that continue to do busi specialized portfolio a fairly narrow assortment of one or a few
ness with a company over a defined period of time. product lines.
revenue leaders the group of customers that represent the stage-gate framework a multiphase model for managing the
highest customer lifetime value to the company.
process of developing new offerings.
reverse-flow channel a distribution channel in which goods flow
backward from the user to the producer, typically for recycling, standardized marketing program astrategy that uses the
same strategic and tactical approach across different markets and
resale, or disposal. Countries.
reverse innovation the use of a successful product as a base for
strategic brand management the design and implementation of
creating an inexpensive alternative for developing markets. marketing activities and programs to build, manage, and measure
Rogers' model a classification of consumers according to the brands.
speed with which they adopt new offerings. strategic business unit (SBU) asingle business or collection
of related businesses that can be planned separately from the
rest
of the company, with its OWn set of competitors and a manager
S who is responsible for strategic planning and profit performance.
sales force incentives the means used to motivate the sales strategic targeting a focus on customers whose needs the com
force, such as bonuses and trips. pany can fulfill better than the competition,
 strategy a company's game plan for GLOSSARY 575

subliminal perception
achieving its goals.
messages
sciously aware ot but that affect that
consumers are not con-
their behavior.
total customer cost the
perceived functional, psychological, and
monetary costs that customers incur to evaluate, obtain, use, and
esunnlv chain dispose of an offering.
conversion intomanagement the procurement of inputs and
finished products that are their trade incentives the rewards offered to
destinations.
dispatched to the final tion channel. members of the distribu
eustainability
reducing the avoidance the depletion of natural
of trend a change in behavior or
sequence of events that has
impact of human activity on the resources by momentum and durability.
Systems buying the purchase of a total environment. triple bottom Iine the concept that a
problem or need from one company. solution to a business bility to stakeholders, which include company has a responsi
Society as a whole. employees, customers, and
Svstems selling a marketing approach to
fer to buy entire systems
from one company.
attract buyers that pre
value proposition the type of value that the
create for target customers. company plans to
T
tactical targeting variable costs costs that vary directly with the level of
viable customers to identifying the means to reach production.
offering. communicate and deliver the strategically
company's
vertical channel conflict a dispute between members at differ
ent levels of the distribution
network.
tactics the marketing mix that makes the vertical marketing system a marketingsystem in which produc
come alive and defines the key aspects of thecompany's strategy ers, wholesalers, and retailers work together as a unit.
to create value in a given market. offering developed
visualization a way for marketers to gain insight into people's
target attractiveness the ability of a market segment to create perceptions by asking them to create a collage or drawing.
value for the company.
target compatibility a reflection of the company's ability to fulfill W
the needs of target customers. warranties formal statements of expected product performance
by the manufacturer.
target market the market in which a company aims to create
and capture value. wholesaling all activities involved in selling goods or services to
those who buy for resale or make large purchases for business use.
target-rate-of-return pricing the setting of a price that will yield
the desired rate of return. word association a research method that involves asking
respondents what words come to mind when they hear the brand
targeting the process of identifying those customers for whom name.

the company willoptimize its offering.

time-and-duty analysis an hour-by-hour breakdown of activi Y
ties to help employees understand how they might increase their yield pricing a pricing strategy based on anticipating and influ
productivity. encing customers' behavior.
top-down idea generation a product-development process that
begins with identifying a market opportunity.
a given zero-level channel adistribution channel that involves a manu
total costs the sum of the fixed and variable costs for facturer selling directly to the final customer; also called a direct
level of production. marketing channel.
psychologi
total customer benefit the perceived functional, market zone of tolerance the range in which customers will deem com
customers derive from a
cal, and monetary value that pany service satisfactory.
offering.