Glossary

Actiessiibilily The degree to which a permanent basis, performs only a few Behavioural segmentuition Dividing n
market segment can be reached and functions, and does nol take tide to goods. market into groups based on consumer
.served. Allowance (1) Reduction in priee on knowledge, attitude, use or response to a
Actionability The decree to which damaged goods. (2) Promotional money producl.
effective programmes can lie designed for paid by Manufacturers ro retailers in Belief A descriptive thought lhai a
attracting ami serving a given market return for an agreement to feature the person holds about something
r-egmerit. manufacturer's produet in some way. lie nth marking The process of
Actual product A product's parts, Alternative evaluation The stage of the com paring the company's products and
quality level, features, design, brand buyer decision process in which the processes to those of competitors or
name, packaging :lnd other attributes that consumer uses information lo evaluate leading firms in other industries to find
combine to deliver core product benefits. alternative brands in the choice set. . ways to improve quality and performance.
Adapted marketing mis An Annual plan A short-term plan that Benefit segmentation Dividing the
international marketing strategy for describes the company's current market into groups according to the
adjusting the marketing-mix elements to situation, its objectives, the strategy, different benefit.* that consumers sock
eaeh international target market, hearing action programme and budgets for the from the product
more casts but hoping for a larger market year ahead and controls.
liratid A name, term, sign, symbol or
share and ret urn. Approach The step in the selling design, or a combination of these,
Administered VMS A vertical marketing process in which the salesperson meets intended lo identify the goods or services
system that co-ordinates successive stages and greets the buyer to get the of one seller or group of sellers and to
of production and distribution, nol relationship off to a good start. differentiate them from those of
tlivoiigh common ownership or At.niratif.tnal group A group to which an competitors.
contractual lies, but through the size and individual wishes to belong. Brand eijLiity The value of a brand,
power of one of the parties.
Atmospheres Designed environments based on the extent to which ii has high
Adoption The decision by an individual that create or reinforce thy buyer's brand loyalty, name awareness, perceived
to become a regular user of the product leanings towards eonsumpnon of a produet. ; quality, strong brand associations, and
Adoption process Tile mental process Attitude A person's consistently other assets such as patents, trademarks
1 and channel relationships.
through which an Individual passes from favourable or unfavourable evaluations,
first hearing about an innovation to final feelings and tendencies towards an object Brand extension L'sing a successful
adoption. or idea. brand name to launch a new or modified
Advertising Any paid form of non- Augmented product Additional product in :l new category.
personal pres en cation and promotion of consumer services and benefits built Brand imnge The sel of beliefs that
ideas, goods or services by an identified around [he core and actual products consumers hold about a particular brand.
sponsor.
Available market The sel of consumers Break-even pricing (target profit
Advertising objective A specific who have interesl, income and access to a pricing) yetting price to break even on
communication tusk to be accomplished particular product or service. the costs of making a'id marketing a
with a specific target audience during a
specific period of time. Balance sheet A financial statement that ' product' or setting price to make a target
shows assets, liabilities and uel worth of a profit.
Advertising specialities Useful articles company at a jjiven time. Broker A wholesaler who does not take
imprinted with an advertiser's name, i tide to goods and whose function is to
given as gifts to consumers. liarter transaction A marketing
transaction in which goods or services are bring buyers and sellers together and
Affordable method Set ring the traded for other goods or services. assist in negotiation.
promotion budget at the level management Business analysis A review of the sales,
thinks the company can afford. Basing-point pricing A geographic
pricing strategy in which the seller costs and profit projections for a new
Age and life-cycle designates some city as a basing point and product to find out whether these factors
segmentation Dividing a market into charges all customers the freight cost satisfy (he company's objectives.
different age and life-cycle groups from that city to the customer location, Business buying process The decision-
Agent A wholesaler who represents regardless of the city from which the making process 1'V which business buyers
buyers or sellers on a relatively goods are actually shipped. establish the need for purchased products
 Glossary • 999

and services, and identify, evaluate and product to consumers who send a 'proof consumers the chance to win something -
choose among alternative brands and of purchase" to the manufacturer. . such as cash, trips or goods - by luck or
suppliers. Catalogue marketing Direct marketing through extra effort.
Husiness market All the organizations through catalogues that are mailed to a Competitive advantage. An advantage
that buy goods and services to n.se in the select list of customers or made available . over competitors gained by offering
production of other products and services, in stores. . consumers greater value, either through
or for the purpose of reselling or renting Catalogue showroom A retail operation lower prices or by providing more benefits
them to others at a profit. that sells a wide selection of high mark- that justify higher prices.
[iu.siness portfolio The collection of up, fast-moving, brand-name goods at Competitive-parity method Selling the
businesses and products that make up che discount prices. promotion budget to match competitors'
company. Category killers A modern "breed' of on days.
Buyer The person who makes an actual exceptionally aggressive 'off-price' Competitive strategies iStrategies that
purchase. retailers that offer branded merchandise • strongly position the company against
Buyer-readiness stages The stages that in clearly defined proiluet categories at . competitors and that give the company
consumers normally pass through on heavily discounted prices. the strongest possible strategic advantage.
their way to purchase, including Causal research Marketing research to Competitor analysis The process of
awareness, knowledge, liking, preference, test hypotheses about cause-and-effeet identifying key competitors; assessing
conviction and purchase. relationships. their objectives, strategies, strengths and
Huyers People in an organization's buying Channel conflict Disagreement among weaknesses, and reaction patterns; and
centre with formal authority to select the marketing channel members on goals and selecting which competitors to attack or
supplier and arrange terms of purchase. roles - who should do what and for what avoid.
Buying centre Mi the individuals and rewards. Competitor-centred company A
Channel level A layer of intermediaries company whose moves are mainly based
units that participate in the business
that performs some work in bringing the on competitors' actions and reactions; it
huying-decision process.
product and its ownership closer to the spends most of its time tracking
By-pro ducts Items produced as a result competitors' moves arid market shares
of the main factory process, such as waste final buyer.
and trying to find strategies to counter
and reject items. Closed-end questions Questions that them.
By-product pricing Setting a price for include all the possible answers and allow
subjects lo make choices among them. Complex buying behaviour Consumer
by-products in order to make the main buying behaviour in situations
product's price more competitive. Closing The step in the selling process characterized by high consumer
in which the salesperson asks the involvement in a purchase and significant
Capital items Industrial goods lliilt
partly enter the finished product, customer for an order. perceived differences among brands.
including installations and accessory Co-branding The practice of using the Concentrated marketing A market-
equipment. established brand names of two different coverage strategy in which a Urffl goes
companies on the same product. after a large share of one or a few
Captive-product pricing Setting a price
for products (hat rnusl be used along with Cognitive dissonance Buyer discomfort . submarkets.
a main product, sue!) as blades for a razor caused by postpurchase conflict. Concept testing Testing new product
and film for a camera. Commercial online services concepts with a group of target consumers
Cash-and-carry retailers Large, 'no- Companies that offer online information, to find out if the concepts have strong
frills' stores that sell an extensive entertainment, shopping and other consumer appeal.
assortment of goods, and arc noted marketing services to subscribers who pay Confused positioning A positioning
particularly for tiieir bulk discounts. the company a monthly fee. They make error that leaves consumers with a
use of their own dedicated networks and confused image of the company, its
Cash -an d-earry whole sal e rs
operate their own computers which are product or a brand.
Wholesalers that stock a limited line of
connected to the Internet, thus offering
fast-moving goods - such as groceries, Consumer buying behaviour The
somewhat better security than the
toys, household goods, clothes, electrical buying behaviour of final consumers -
Internet,
supplies and building materials - and that individuals and households who buy
sell to small retailers and industrial firms Commercialization Introducing a new goods and sen1 ices for personal
tor cash and normally do not provide a product into the market. consumption.
delivery service Communication adaptation I to come] Consumer market All the individuals
Cash cows Low-growth, high-share Company and individual bra rid and households who buy or acquire goods
businesses or products; established and strategy A branding approach that and services for personal consumption.
successful units that generate cash that focuses on the company name and C<msinner-oriented marketing A
the company uses to pay its bills and individual brand name. principle of enlightened marketing which
support other business unit* that need Comparison advertising (knocking holds that a company should view and
investment, copy) Advertising that compares one organize its marketing activities from the
Cash discount A price reduction to brand directly or indirectly to one or consumers' point of view.
buyers who pay their bills promptly. more other brands. Consumer product A product bought by
Cash refund, offers (rebates) Offers to Competitions, s«eepst;ikes, lotteries, final consumers for personal
refund part of the purchase price of a games Promotional events that give consumption.
Consumer promotion Sales promotion typically a grocery store, a convenience the target market and the company's
designed to stimulate consumer store or a confeetioner-tobaceonist- posiiion in it.
purchasing, including samples, coupons, nertsagent (CTN). It serves the immediate Customer-centred company A company
rebates, priees-off, premiums, patronage neighbourhood I hat focuses on customer developments in
rewards, displays, and contests and Corporate brand strategy A brain! designing its marketing strategies and on
sweepstakes. : strategy whereby the firm makes its delivering .superior value (o its target
Consumer relationship-building company name the dominant brand customers.
promotions Sales promotions that identity across all of its products. Customer datiiba.se An organized
promote the product's positioning arid Corporate licensing A form of licensing collection of comprehensive data about
include a selling message along \vith the whereby a firm rents a corporate Individual customers or prospects,
deal. trademark or logo made famous in one including geographic, demographic,
Consumerism An organized movement product or service category and uses it in psychographic and buying behaviour data.
of citizens find government agencies to a related category.
Customer delivered value The
improve the rights and power of buyers in Corporate VMS A vertical marketing difference between total customer value
relation to sellers, system that combines successive stages of and total customer- cost of a marketing
Continuity Scheduling ads evenly production and distribution under single offer - 'profit' to the customer.
vi ithin a given period. ownership - channel leadership is
established through common ownership. Customer lifetime value The amount by
Contract manufacturing A joint venture which revenues from a given customer
in which a company contracts with Corporate Web site A site set up by a over time will exceed the company's costs
manufacturers in a foreign market to company on the Web, which carries of attracting, selling and servicing that
produce the product. information and other features designed customer
to answer customer questions, build
Contractual VMS A vertical marketing Customer sales force structure A sales
customer relationships and generate
system in which independent firms at force organization under which
excitement about (he company, rather
different levels of production and salespeople specialize in selling only to
than to sell the company's products or
distribution join together through certain customers or industries.
services directly. The site handles
conlraets to obtain more economies or
interactive communication initiated by Customer satisfaction The extent lo
sales impact than they eould achieve
alone. the consumer which a product's perceived performance
Cost of goods sold The direcl costs matches a buyer's expectations. If the
Convenience product A consumer - allocated to goods sold. These include product's performance falls short of
product that the customer usually buys variable cost items such as raw materials expectations, the buyer is dissatisfied. If
frequently, immediately, and with a performance matches or exceeds
and labour used in making a producl.
minimum of comparison and buying expectations, the buyer is satisfied or
effort. Cost-plus pricing Adding a standard
mark-up to the cost of the product. delighted.
Convenience store A small store located Customer value The consumer's
near a residential area that is open long Countertrade International trade
- involving the direct or Indirect exchange assessment of the product's overall
hours seven days a week and carries a capacity to satisfy his or her needs.
limited l i n e ol high-turnover convenience i of goods for other goods instead of cash.
1 Forms include barter compensation
goods, Customer value analyses Analysis
. (btJybaok) and counlerpurchasc. conducted to determine what benefits
Conventional distribution channel A target, customers \ alue and how they rate
channel consisting ol" one or more Coupons Certificates [hat give buyers a
saving when they purchase a product. the relative value of various competitors'
independent producers, wholesalers and
Critical success factors The strengths offers.
retailers, each a separate business seeking
lo maximize its own profits even at the and weaknesses that most critically affect Customer value delivery system The
expense of profits for the system as a - an Organization's success. These are system made up of the value chains of the
whole. measured relative to competition. company and its suppliers, distributors
Cultural empathy An understanding of and ultimately customers, who work
Copy testing Measuring the
and true feeling for a culture. together to deliver value to customers.
communication effect of an advertisement
before or after it is printed or broadcast. Cultural environment Institutions and Cycle The medium-term wavclike
Core product The problem-solving other forces that affect society's basic movement of sales resulting from changes
services or eore benefits ihat consumers values, perceptions, preferences and in general economic and eompetith i;
behaviours. activity.
are really buying when tlity obtain a
product. Cultural univcrsals Cultural Decider The person who ultimately
Core strategy The 'hub' of markeMng characteristics and attributes that arc makes a buying decision or any part of it
strategy II has two parts; the found in a wide range of cultures: that is. - whether to buy, what to buy, how to
identification of a group ol customers for features that transcend national cultures. buy, or where to buy.
whom the firm has a differential Culture The set of basic values, Deciders People in the organization's
advantage; and then positioning itself in perceptions, wants and behaviours buying centre who have formal or
that market. learned by a member of society from informal powers to select or approve the
Comer simp A small store, usually family and other important institutions. final suppliers.
owned and managed by a person who Current marketing situation The Decision-and-re ward system Formal
lives in the local neighbourhood. It is section of a marketing plan that describes and informal operating procedures that.
 Glossary 1001

guide planning, targeting, compensation 'salespeople on wings' sent to prospects Embargo A ban on the import of a
and other activities. on mailing lists. certain product.
Decision-making unit (l)Ml') All the Direct marketing Marketing through Emotional appeals Message appeals that
individuals who participate in, and influence, various advertising media that interact attempt to stir up negative or positive
the consumer buy ing-dec is ion process. directly with consumers, generally calling emotions that will motivate purchase;
Decline stage The product life-cycle far the consumer to make a direct examples are fear, guilt, shame, love,
stage al which a product's sales decline. response. • humour, pride and joy appeals.
Deficient products Products that have Direct-marketing channel A marketing Emotional selling proposition (ESP) A
neither immediate appeal nor long-term channel that has no intermediary levels. non-functional attribute that has unique
benefits. Direct-response television marketing associations for consumers.
Demand curve A curve that shows the (DRTV) The marketing of products or Engel's laws Differences noted over a
number of units the market will buy in a services via television commercials and : century ago by Ernsl Engel in how people
given time period, at different prices that programmes which involve a responsive shift their spending across food, housing,
might he charged. element, typically the use of a freephone transportation, health care, and other
number that allows consumers to phone goods and services categories as family
Demands Human wants that are hacked for more information or to place an order income rises.
by buying power. for the goods advertised. Enlightened marketing A marketing
Demarketing Marketing to reduce Discount A straight reduction in price on philosophy holding that a company's
demand temporarily or permanently - the purchases during a stated period of time. marketing should support the best long-
aim is not to destroy demand, but only to run performance of the marketing system;
Discount store A retail institution that
reduce or shift it. its five principles are consumer-oriented
sells standard merchandise at lower prices
Demographic segmentation Dividing by accepting lower margins and selling at marketing, innovative marketing, value
the market into groups based on higher volume. ; marketing, sense-of-mission marketing

demographic variables such as age. sex, ; and societal marketing.

Dissonance-reducing buying
family size, family life cycle, income, Environmental management
behaviour Consumer buying behaviour
occupation, education, religion, race and perspective A management perspective
in situations characterized by high
nationality. in which the firm takes aggressive actions
involvement but few perceived differences
Demography The study of human among brands. to affect the publics and forces in its
populations in terms of size, density, marketing environment rather than
Distribution centre A large, highly
location, age, sex, race, occupation and simply watching it and reacting to it.
automated warehouse designed to receive
other statistics, Environmcntalism An organized
goods from various plants and suppliers,
Department store A retail organization take orders, fill them efficiently, and movement of concerned citizens and
that carries a wide variety of product lines deliver goods to customers as quickly as government agencies to protect and
- typically clothing, home furnishings and possible. improve people's living environment.
household goods; each line is operated as Events Occurrences stiiged to
Distribution channel (marketing
a separate department managed by communicate messages to target
channel) A set of interdependent
specialist buyers or merchandisers. audiences; examples are news
organizations involved in the process of
Derived demand Business demand that making a product or service available lor conferences and grand openings.
ultimately comes from (derives from) the use or consumption by the consumer or Exchange The act of obtaining a desired
demand for consumer goods. industrial user. object from someone by offering
Descriptive research Marketing Diversification A strategy for company something in return,
research to better describe marketing growth by starting up or acquiring Exchange controls Government limits
problems, situations or markets, such as businesses outside the company's current on the amount of its country's foreign
the market potential for a product or the products and markets. exchange with other countries and on its
demographies and attitudes of consumers. Dogs Low-growth, low-share businesses exchange rate against other currencies.
Desirable products Products that give and products that may generate enough Exclusive distribution Giving a limited
both high immediate satisfaction anil high cash to maintain themselves, but do not number of dealers the exclusive right to
long-run benefits. promise to be large sources of cash. distribute the company's products in their
Differential advantage A sustainable Door-to-door retailing Helling door to territories.
internal or external strength I hat an door, office to office, or at home-sales Experience curve (learning curve) The
organization has over its competitors. parties. drop in the average per-unit production
Differentiated marketing A market- Durable product A consumer product cost that comes with accumulated
coverage strategy in which a firm decides that is usually used over an extended production experience.
to target several market segments and period of time and that normally survives Experimental research The gathering of
designs separate offers for each. many uses. primary data by selecting matched groups
Direel investment Entering a foreign Economic environment Factors that '. of subjects, giving them different
market by developing foreign-based affect consunier buying power and treatments, controlling related factors and
assembly or manufacturing facilities. spending patterns. . cheeking for differences in group
Direct-mail marketing Direct marketing Electronic commerce A general term responses.
through single mailings that include for a buying and selling process that is Exploratory research Marketing
letters, ads, samples, fold-outs and other supported by electronic means. research to gather preliminary
1002 • Glossary

information that will help betier to define Franchise organination A contractual corporate management and staff plan
problems ami suggest hypotheses. vortical marketing system in which a worldwide numafaeturing or operational
Export department A form of channel member, called a franchiser, links facilities, marketing policies, financial
internafjoflal marketing organization that several stages in the production- Hows and logistical systems. The global
comprises a sales manager and a few distribution process. operating unit reports directly to the chief
assistants whose job is to organize the Freight-absorption pricing A executive, not to an international
shipping out of ihe company's goods to geographic pricing strategy in which the divisional head.
foreign markets. company absorbs all or part of the actual Going-rate pricing Setting price based
Exporting Entering a foreign market by freight charges in order to get the largely on following competitors' prices
sending products and selling (hem business. rather than on company costs or demand
through international market ing Frequency The number of time;, the Government market Governmental
intermediaries (indirect exporting) or average person in the target market is units - national and local - that purchase
through the company's own department, exposed to an advertising message during or rent goods and serviees for carrying out
branch, or sales representatives or agents a given period. the main functions of government.
(direct exporting). Full-service retailers Retailers that
Gross margin The difference between
External audit A detailed examination provide a till! range of services to shoppers.
the direct cost of products and what they
of the markets, cornpetiiioti, business and FuD-servioe wholesalers Wholesalers are sold for.
economic environment in which lie that provide a full set of services such as
organ iz a I ion operates. carrying stock, using a sales force, offering Gross sales The tola] amount charged
Fads Fashions that enler quickly, art credit, making deliveries and providing to customers over a period,
adopted with great zeaJ, peak early and management assistance. Growth-share matrix A portfolio-
decline very fast. Functional discount (trade discount) A planning method that evaluates a
Family lift; cycle The stages through price reduction offered by the seller to company's strategic business units (SHUsi
which families might pass as they mature trade channel members that perform in terms of their market growth rate anil
over time. curtain functions, such as selling, storing relative market share. SET.is are classified as
and record keeping. stars, cash cows, question marks or dogs.
Fashion A currently accepted or
popular style in a given field. Gatekeepers People in the Growth stage The product life-cycle
Financial Intermediaries Hanks, credit organization's buying centre who control stage at which a product's sales start
companies, insurance companies and the flow of information ty otters. climbing quickly.
other businesses that help finance Gender segmentation Dividing A market Habitual buying behaviour Consumer
transactions or insure against the risks into different groups based on sex. buying behaviour in situations
associated with the buying and selling of General need description The stage in characterized by low consumer
goods. the business buying process in which the involvement and few significant perceived
Fixed costs Costs that do not vary with company describes the general brand differences.
production or sales level. characteristics and quantity of a needed Handling objections The step in the
item. Selling process in which the salesperson
FOB-origm pricing A geographic pi-icing
strategy in which goods are placed free on Gtjodemographios The study of the seeks out, clarifies and overcomes
board a carrier; the customer pays thy relationship between geographical customer objections to buying.
freight from the factory to the destination. location and demographics.
Horizontal marketing systems A
Focus group A small sample of typical Geographic Segmentation Dividing a channel arrangement in which two or
consumers under the direction of a group market into different geographical units more companies at one level join togef her
leader who elicits their reaciion to a such as nations, states, regions, counties, to follow a new marketing opporumiiy,
stimulus such as an ad or product concept. cities or neighbourhoods.
Human need A state of felt deprivation.
Follow-up The last step in the selling Geographical pricing Pricing based on
process, in which the salesperson follows where customers are located. Human want The form that a human
need takes as shaped by culture and
up after the sale to ensure customer Global firm A firm that, by operating in
individual personality.
satisfaction and repeat business. more than one country, gains R & D,
Foreeastim* The an of estimating future production, marketing and financial Hybrid marketing
demand by anticipating what buyers are advantages in its costs and reputation that channels Multichannel distribution, as
liliely to do under a given set of are not available to purely domestic when a single firms sets up two or more
conditions. competitors marketing channels to reach one or more
Global industry An industry in which customer segments. A variety of direct
Fragmented industry An industry
the strategic positions of competitors in and indirect approaches are used to
characterized by many opportunities to
given geographic or national markets are deliver the firm's goods to its customers.
create competitive advantages, hut each
advantage is small. affected by their overall global positions. Hypermarkets Huge stores that
Global marketing Marketing that is combine supermarket, discount and
Franchise A contractual association
between a manufacturer, wholesaler or concerned with integrating or warehouse retailing; in addition to food,
service organization (a franchiser) and Standardizing marketing actions across they carry furniture, appliances, clothing
independent businesspeople (franchisees) different geographic markets. and man)' other products.
who buy the right to own and operate one Global organization A form of Idea generation The systematic search
or rnore units in the franchise system. international organization whereby top for new-product ideas.
 Glossary • 1003

Idea screening Screening new-product . Integrated logistics management A 1 distributed and made available for
ideas in order to spot good ideas and drop " physical distribution concept lhat purchase.
poor ones as soon as possible, . recognizes the need for a firm to integrate Invention A new technology or product
Implausible positioning Making claims . its logistics system with those of its that may or may not deliver benefits to
that stretch the perception of the buyers suppliers and customers. The aim is to customers.
loo far to be believed. maximize the performance of the entire
distribution system. Joint ownership A joint venture in
Income segmentation Dividing a market 1 which a company joins investors in a
into different income groups. Integrated marketing communications • foreign market to create a local business
The concept under which a company in which the company shares joint
Individual marketing Tailoring 1 carefully integrates and co-ordinates its
products and marketing programmes to ownership and control.
the needs and preferences of individual many communications channels to
customers. deliver a clear, consistent, and compelling : Joint venturing Entering foreign
: message about the organization arid its markets by joining with foreign
Industrial product A product bought by products. companies to produce or market a
individuals and organizations for further product or service.
processing or for use in conducting a . Intensive distribution Stocking the
. product in as many outlets as possible. Key account managers Managers whose
business. primary responsibility is to orchestrate
Industry A group of firms which offer a Interactive marketing Marketing by a 1 the company's relationship with a major

product or class of products that are ciose . service firm that recognizes that customer or prospective customer in
substitutes for each other. The set of all perceived service quality depends heavily . order to achieve lasting and mutually
sellers of a product or service. ! on the quality of buyer-seller interaction. beneficial exchange between the two
Inelastic demand Total demand for a : Intermediaries Distribution channe! : parties.

product that is not much affected by price firms that help the company find Leading indicators Time scries that
changes, especially in the short run. customers or make sales to them, change in the same direction but in
Influencer A person whose views or including wholesalers and retailers that advance of company sales.
advice carries some weight in making a buy and resell goods.
Learning Changes in an individual's
final buying decision; they often help Internal audit An evaluation of the behaviour arising from experience.
define specifications and also provide firm's entire value chain.
information for evaluating alternatives. 1 Internal marketing Marketing by a
Licensed brand A product or service
using a brand name offered by the brand
Influencers (to come] - service firm to train and effectively owner to the licensee for an agreed fee or
Information search The stage of the motivate its customer-con tact employees 1 royalty.
: and all the supporting service people to
buyer decision process in which the : Licensing A method of entering a
consumer is aroused to search for more work as a team to provide customer
satisfaction. foreign market in which the company
information; the consumer may simply 1 enters into an agreement with a licensee
have heightened attention or may go into Internal records ; in the foreign market, offering the right to
active in formation search. information Information gathered from use a manufacturing process, trademark,
: sources within the company to evaluate
Informative advertising Advertising patent, trade secret or other item of value
used to inform consumers about a new marketing performances and to detect : for a fee or royalty
1 marketing problems and opportunities.
product or feature and to build primary
. Life-cycle segmentation Offering
demand. International division A form of products or marketing approaches that
Initiator The person who first suggests international marketing organization in recognize the consumer's changing needs
or thinks of the idea of buying a particular - which the division handles all of the firm's at different stages of their life.
product or service. international activities. Marketing,
. manufacturing, research, planning and Lifestyle A person's pattern of living as
Innovation An idea, product or expressed in his or hur activities, interests
technology that has been developed and i specialist staff are organized into operating
units according to geography or product and opinions.
marketed to customers who perceive it as
novel or new. It is a process of identifying, groups, Or as an international subsidiary Limited-service retailers Retailers that
creating and delivering new-product - responsible for its own sales and provide only a limited number of services
service values that did not exist before in profitability. : to shoppers.
the marketplace. International market Buyers in other Limited-service wholesalers Those who
Innovative marketing A principle of countries, including consumers, offer only limited services to their
1 producers, resellers and governments. suppliers and customers.
enlightened marketing which requires
that a company seek real product and : Internet (the Net) A vast global Line extension Using a successful brand
marketing improvements. computer network that enables name lo introduce additional items in a
Institutional market Schools, hospitals, computers, with the right software anil a given product category under the same
1 modem (a tele communications device brand name, such as new flavours, forms,
nursing homes, prisons and other
institutions that provide goods and that sends data across telephone lines), to 1 colours, added ingredients or package
services to people in their uare. . be linked together so that their users can : sizes.
: obtain or share information and interact
integrated direct marketing Direct Long-range plan A plan that describes
marketing campaigns that use multiple with other users. the principal factors and forces affecting
vehicles and multiple stages to improve i Introduction stage The product life- the organization during the next several
response rates and profits. cycle stage when the new product is first years, including long-term objectives, the
chief marketing strategies used to attain Market positioning Arranging for a : develop and maintain successful
them and the resources required. product to occupy a clear, distinctive and . transactions with its target customers.
Macroenviromncut Tlie 1 firmer societal desirable place relative to competing Marketing implementation The process
forces that affect the whole products in the minds of target that turns marketing strategies and plans
micro environment - demographic, consumers. Formulating competitive into marketing actions in order to
economic, natural, technological, political positioning for a product and a detailed accomplish strategic marketing
and cultural forces. marketing mix. objectives.
Management contracting A joint Market segment A group of consumers Marketing information system
venture in which the domestic firm who respond in a similar way to a given (MIS) People, equipment and
supplies the management know-how to a set of marketing .stimuli. procedures to gather, sort, analyze,
foreign company that supplies the capital; Market segmentation Dividing $ market evaluate and distribute needed, timely
the domestic firm exports management into distinct groups of buyers with 1 and accurate information to marketing
services rather than products. different needs, characteristics or decision makers.
Manufacturer's brand (national behaviour, who might require separate Marketing intelligence Everyday
brand) A brand created and owned by products or marketing raises. information about developments in the
the producer of a product or service. Markct'Skimming pricing Setting a high marketing environment that helps
Market The set of all actual and price for a new product to skim maximum managers prepare and adjust marketing
potential buyers of a product or service. revenues layer by layer from the segments plans.
willing to p;iy the high price; the company Marketing intermediaries Kirms that
Market-build-up method A method makes fewer but more profitable sales.
used mainly by business products firms to help the company to promote, sell and
estimate the market potential of a city, Market targeting The process of 1 distribute its goods to final buyers; they
region or country based on determining evaluating each market segment's include physical dislribution firms,
all the potential buyers in the market and attractiveness arid selecting one or more marketing-service agencies and financial
estimating their potential purchases. segments to enter. intermediaries.
Market-centred company A company Marketing A social and managerial Marketing management The analysis,
that pays balanced attention to both process by which individuals and groups planning, implementation and control of
customers and competitors in designing obtain what they need and want through programmes designed to create, build and
its marketing strategies. creating and exchanging products and maintain beneficial exchanges with target
vdlue with others. buyers for the purpose of achieving
Market challenger A runner-up firm in organizational objectives.
an industry that is lighting hard to Marketing audil A comprehensive,
increase its market share. systematic, independent and periodic Marketing mix The set of controllable
examination of a company's environment, • tactical marketing tools - product, price,
Market development A strategy for objectives, strategies and activities to place and promotion - that (he firm
company growth by identifying and determine problem areas and blends to produce the response it wants in
developing new segments and markets for opportunities, and to recommend a plan the target market.
current company products. of action to improve the company's Marketing process The process of (1)
Market-factor index method A method marketing performance. analyzing marketing opportunities; (2)
used mainly by consumer products firms Marketing budget A section of the selecting target markets; (3) developing
to estimate the m;irkct potential for marketing plsm that shows projected the marketing mix; and (4) managing (he
consumer products. revenues, costs and profits. marketing effort,
Market follower A runner-up firm in an Marketing concept The marketing Marketing research The function that
industry that wants to hold its share management philosophy which holds that links the consumer, customer and public
without rocking the boat. achieving organizational goals depends on to the marketer through information -
Market leader The firm in an industry determining the needs and wants of target information used to identify and define
with the largest market .share; it usually markets and delivering the desired . marketing opportunities and problems; to
leads other firms in price changes, new satisfactions more effectively and generate, refine and evaluate marketing
product introductions, distribution efficiently than competitors do. actions; to monitor marketing
coverage and promotion spending, Marketing control The process of performance; and to improve
Market nieher A firm in an industry measuring and evaluating the results of understanding of the marketing process.
that serves small segments that the other marketing strategies and plans, and taking Marketing services agencies Marketing
firms overlook or ignore. corrective action to ensure that marketing research firms, advertising agencies,
Market penetration A strategy for objectives are attained. media firms, marketing consulting firms
increasing sales of current products to Marketing database An organized set of and other service providers that help a
current market segments. This is data about individual customers or company to target and promote its
achieved by winning over competitors' prospects that ean be used to generate products to the right markets.
customers, acquiring a competitor and/or and qualify customer leads, sell products Marketing strategy The marketing logic
increasing product usage rate. and services, and main tain customer by which the business unit hopes to
Market-penetration pricing Setting a relationships. achieve its marketing objectives.
low price for a new product in order to Marketing environment The actors and Marketing strategy statement A
attract large numbers of buyers and a t'orcos outside marketing that affect statement of the planned strategy for a
large market share. marketing management's ability to new product that outlines the intended
 Glossary • 1005

target market, the; planned product Mission statement A statement of the biases against a foreign company's bids or
position ing, and the sales, market share organization's purpose - what it wants to product standards that go against a
and profit goals for the first few years. accomplish in the wider environment foreign company's product features.
Marketing Web site A site on the Web Modified rebuy A business buying Objective-and-liisli method Developing
created by a company to interact with ; situation in which tile buyer wants 10 the promotion budget by (1) defining
consumers for die purpose of moving modify product specifications, prices, specific objectives; (2) determining the
them closer to a purchase or other • terms or suppliers. tasks thai must be performed to achieve
marketing outcome. The site is designed Monetary transaction A marketing these objectives; and (3) estimating the
to handle interactive communication transaction in which goods or services are costs of performing these tasks. The sum
initiated by the company exchanged for money. of these costs is the proposed promotion
Mark- up/mark -down The difference budget.
Monopolistic competition A market in
between selling priee and cost as a • which many buyers and sellers trade over Observational research The gathering of
percentage of selling price or cost. a range of prices rather than a single 1 primary data by observing relevant
Muss customization Preparing market priee. people, actions and situations.
individually designed products and Moral appeals Message appeals that are Occasion segmentation Dividing the
communication on a large scale. directed to the audience's sense of what is market into groups according to occasions
Miiss marketing Using almost the same right and proper. when buyers get the idea to buy, actually
product, promotion and distribution fur make their purchase, or use the
Motive (drive) A need tiiat is
all consumers. sufficiently pressing to direct the person purchased item.
Materials and parts Industrial products • to seek satisfaction of the need. . Oligopolistic competition A market in
that enter the manufacturer's product Multihrand strategy A strategy under which there are a few sellers that are
Completely; including raw materials and which a seller develops two or more - highly sensitive to each other's pricing
manufactured materials and parts. brands in the same product category. and marketing strategies
Maturity st;ige The stage in the product Online advertising Placing
Multiple niching Adopting a strategy of
life cycle where sales growth slows or having several independent offerings [hat advertisements on the Internet in special
levels off. appeal to several different subsegmcnts of sections offered by commercial online
Measiirability The degree to which the customer.
1 services, as banner ads that pop up while
size, purchasing power and profits of a . computer subscribers are surfing online
Natural environment Natural resources services or Web sites, or in Internet news
market segment can be measured.
. that are needed as inputs by marketers or . groups that have been set up for
Media Non-personal communications that are affected by marketing activities.
channels including print media . commercial purposes.
Need recognition The first stage of the Online marketing A form of direct
(newspapers, magazines, direct mail);
buyer decision process in which the marketing conducted through interactive
broadcast media (radio, television); and
display media (billboards, signs, posters). consumer recognizes a problem or need. on-tine computer services, which provide
Media impact The qualitative value of Net profit The difference between the 1 two-way systems that link consumers
.-in exposure through a given medium. income from goods sold and all expenses with sellers electronically.
incurred. Open-end questions Questions that
Media vehicles Specific media within
each genera] media type, such as specific New product A good, service or idea 1 allow respondents to answer in their own
magazines, television shows or radio that is perceived by some potential words.
programmes. customers as new. Operating control Checking on-going
Membership groups Groups that have a New-product development The performance against annual plans and
direct influence on a person's behaviour development of original products, product : taking corrective action.
and to which a person belongs. improvements, product modifications and . Operating statement (profit-and-loss
•• new brands through the firm's own R & D statement or income statement) A
Merchant wholesalers Independently efforts.
owned businesses that take title to the financial statement that shows company
merchandise they handle. . New task A business buying situation in . sales, cost of goods sold and expenses
which the buyer purchases a product or during a given period of time.
Message source The company, the service for the first time.
brand name, the salesperson of the brand, Opinion leaders People within a
or the actor in the ad who endorses the Niche marketing Adapting a company's reference group who, because of special
product. offerings to more closely match the needs skills, knowledge, personality or other
of one or more subsegments where there characteristics, exert influence on others.
Micro environment The forces close to is often little competition.
the company that affect its ability to serve Optional-product pricing The pricing of
its customers - the company, market Non-durable product A consumer optional or accessory products along with
channel firms, customer markets, product that is normally consumed in one a main product.
competitors and publics. or a few uses.
Order-routine specification The stage of
Microniiirketing A form of target Non-p ersonal commun i eati < m the business buying process in which the
marketing in which companies tailor their channels Media that carry messages buyer writes the final order with the
marketing programmes to the needs and without personal contact or feedback, chosen supplicrs(s), listing the technical
wants of narrowly defined geographic, including media, atmospheres and events. specifications, quantity needed, expected -
demographic, psyehographic or Non-tariff trade barriers Non-monetary time of delivery, return policies and
behavioural segments. barriers to foreign products, such as warranties.
1006 • Glossary

Overpositieming A positioning error use to meet the needs of customers at a Primary demand The level of total
referring to coo narrow a picture of flic profit. demand for all brands of a given product
company, its product or a brand being Physical distribution firms Warehouse,
1 or service - for example, die total demand

communicated to target customers. transportation and other firms thai help a for motor cycles.
Packaging The activities of designing company (o stock and move goods from Private brand (middlem:ii!, distributor or
and producing the container or wrapper their points of origin to (heir destinations. store brand) A brand created and owned
for a product. Place All the company activities lhat by a reseller of a product or service.
Packaging concept What the package make the product or service available to Problem recognition The first stage of
should be or do for the product. target customers. the business buying process in which
Patronage rewards Cash or other Planned obsolescence A sirategy of someone in the eomp.-my recognises a
awards for the regular USD of a certain causing products to become obsolete problem or need that can be met by
company's products or services. before they actually need replacement. acquiring a good or a service.
Penetrated market The set of Pleasing products Products that give Product Anything lhat can be offered to
consumers who have a]ready bought ;i high immediate satisfaction, but may hurt a market for attention, acquisition, use or
particular product or service. consumers in the long run. . consumption lhat might satisfy a want or
need. It includes physical objects,
Percentage-of-sales method iSetling the Point-of-pnrchase (POP) services, persons, places, organisations
promotion budget at a certain percentage promotions Displays and and ide.fs
of current or forecast sales or ;ls a demonstrations that tiike place at the
point of purchase or sale. Product adaptation Adapting a product
percentage of the sales price.
• to meet local conditions or wants in
Perception The process by which Political environment Laws, foreign markets.
people select, organize mid interpret government agencies and pressure groups
that influence and limit various Product-bin Kile pricing Combining
informal ion to form a meaningful picture
organizations and individuals in ,<i given several products and offering the bundle
of tiic world. at a reduced price.
society.
Perceptual maps A product positioning Producl concept The idea lhat
tool that uses multidimensional scaling of Portfolio analysis A tool by which
management identifies and evaluates the consumers will favour products that offer
consumers' perceptions and preferences - the inosr quality, performance and
to portray the psychological distance various businesses that malic up the
company. features, and that ihe organization should
between products and segments, therefore devote its energy to making
Perffjnnanee review The .stage of the Postpurehii.se behaviour The stage of continuous product improvements.
business buying process in which ihe the buyer decision process in which
consumers lake further action after Product development A strategy for
buyer rate.s its satisfaction with suppliers, company growth by offering modified or
deciding whether to continue, modify or purchase based on their satisfaction or
dissatisfaction. new products to current market
drop them. segments. Developing the produel concept
Personal coiiiuiiuiicarion Potential market The set of consumers into a physical product in order to ensure
channels Channel!; through which two who profus;- some level of interest in a that the product idea can he turned into a
or more people communicate directly particular product or service. workable product.
with each other, including face to face. Preapproaeh The step in the selling Produet idea An idea tor a possible
person to audience, over the telephone, or process in which the salesperson learns as ; product that the company can see Itself
through the mail. much as possible about a prospective offering to the market
Personal influence The effect of customer before making a sales call.
Product image The way consumers
statements made by one person on Premiums Goods offered either free or perceive an actual or potential product.
another's attitude or probability of at low cost as an incentive to buy a
purchase. Producl innovation charter (PIC) A
product.
new-product strategy statement
Personal selling Oral presentation in a Presentation 'Hie step in the selling formalizing managements reasons or
conversation with one or more process in which the salesperson tells the . rationale behind the firm's search for
prospective purchasers for the purpose of product "story1 to the buyer, showing how innovation opportunities, the
making sales. the product will make or save money for . product/market and technology to focus
Personality A persons distinguish ing the buyer. upon, and the goals and objectives to be
psychological charaeterlBtios that lead to Priee The amount of money charged for achieved.
relatively consistent and lasting responses a product or service, or the sum of the Product invention Creating new
to his or her own environment. values that consumers exchange for the products or services for foreign markets.
benefits of having or using the product or
Persuasive advertising Advertising used Product life cycle (PLC) The course of
service.
to build selective demand for a brand by a product's sales and profits over its
persuading consumers that it offers the Price elasticity A measure of the lifetime, it involves five distinct stages-:
>est quality for their money. sensitivity of demand to changes in price- product development, introduction,
'fiysieal distribution (marketing Price packs Reduced prices that are growth, maturity ,-md decline
>gistfc$) The tasks involved in marked by the producer directly on the . Produet line A group of products thai
fanning, Implementing and controlling label or package. are closely related because they function
K physical flow of materials and final Primary data Information collected for in a similar manner, are sold to the same
Soods from poinls of origin to points of the specific purpose at hand customer groups, are marketed ih rough
 Glossary • 1007

the same types of outlet, or fall within sometimes even below cost, to increase monopoly or a private non-regulated
given price ranges. short-run sales. monopoly.
Product line filling Increasing the Proposal solicitation The stage of the Push strategy A promotion strategy that
product line by adding more items within business buying process in which die calls for using the sales force and trade
the present range of the line. buyer invites qualified suppliers to submit promotion to push the product through
Product line pricing Setting the price proposals. channels. The producer promotes the
steps between various products in a Prospecting The step in the selling product to wholesalers, the wholesalers
product line based on cost differences process in which the salesperson promote lo retailers, and the retailers
between the products, customer identifies qualified potential customers. promote to consumers.
evaluations of different features, and Psychographic segmentation Dividing a Qualified available market The set of
competitors' prices. market into different groups based on consumers who have interest, income,
Product line stretching Increasing the social class, lifestyle or personality access and qualifications for a particular
product line by lengthening it beyond its characteristics. product or sen1 ice.
current range. Psyehographies The technique of Qualitative research Exploratory
Product mix (pri)duct assortment) The measuring lifestyles and developing research used to uncover consumers'
set of all product lines and items that a lifestyle classifications; it involves motivations, attitudes and behaviour.
particular seller offers for sale to buyers. measuring the chief AID dimensions Focus-group interviewing, elicitation
(activities, interests, opinions). interviews and repertory grid techniques
Product position The way the product
is defined by consumers on important Psychological pricing A pricing arc typical methods used in this type of
attributes - the place the product approach that considers the psychology of research.
occupies in consumers' minds relative to prices and not simply the economics; the Quality The totality of features and
competing products. price is used to say something about the characteristics of a product or service that
product. bear on its ability to satisfy stated or
Product quality The ability of a product
to perform its functions; it includes the Public Any group that has an actual or implied needs.
product's overall durability, reliability, potential interest in or impact on an Quantitative research Research which
precision, ease of operation and repair, organization's ability to achieve its
involves data collection by mail or
and other valued attributes. objectives. personal interviews from a sufficient
Product sales force structure A sales Public relations Building good relations volume of customers to allow statistical
force organization under which with the company's various publics by analysis.
salespeople specialize in selling only a obtaining favourable publicity, building up
a good 'corporate image', and handling or Quantity discount A price reduction to
portion of the company's products or buyers who buy large volumes.
lines. heading off unfavourable rumours, stories
and events. Major PR tools include press Quantity premium A surcharge paid by
Product specification The stage of the relations, product publicity, corporate buyers who purchase high volumes of a
business buying process in which the communications, lobbying and product.
buying organization decides on and counselling.
specifies the best technical product Question marks Low-share business
characteristics for a needed item. Publicity Activities to promote a units in high-growth markets that require
company or its products by planting news a lot of cash in order TO hold their share
Product-support services Services that about it in media not paid for by the or become stars.
augment actual products. sponsor.
Quota A limit on the amount of goods
Production concept The philosophy Pull strategy A promotion strategy that that an importing country will accept in
that consumers will favour products that calls for spending a lot on advertising and certain product categories; it is designed
are available and highly affordable, and consumer promotion lo build up to conserve on foreign exchange arid to
that management should therefore focus consumer demand. If the strategy is
on improving production and distribution proteut local industry and employment.
successful, consumers will ask their
efficiency. retailers for the product, the retailers will Range branding strategy A brand
Promotion Activities that ask the wholesalers, and the wholesalers strategy whereby the firm develops
communicate the product or service and will ask the producers. separate product range names for
its merits to target customers and different families of product.
Pulsing Scheduling ads unevenly, in
persuade them to buy. bursts, over a certain time period. Rational appeals Message appeals that
Promotion mix The specific mix of Purchase decision The stage of the relate to the audience's self-interest and
advertising, personal selling, sales • buyer decision process in which the show that the product will produce the
promotion and public relations that a . consumer actually buys the product. claimed benefits; examples are appeals of
company uses to pursue its advertising product quality, economy, value or
I'ure competition A market in which performance.
and marketing objectives. many buyers and sellers trade in a
Promotional allowance A payment or uniform commodity - no single buyer or Reach The percentage of people in the
price reduction to reward dealers for seller has much effect on the going target market exposed to an ad campaign
particapting in advertising and sales- market price during a given period.
support programmes. Pure monopoly A market in which Reference groups Groups that have a
Promotional pricing Temporarily there is a single seller - it may be a direct (face-to-face) or indirect influence
pricing products below the list price, and government monopoly, a private regulated on the person's attitudes or behaviour.
Reference prieen Prices that buyers Sample A segment of the population Sens e-of-m fusion marketing A principle
carry in their minds ami refer fo when selected for marketing research to of enlightened marketing which holds that
they look at a given product. represent the population as a whole. a company should define its mission in
Relationship marketing The process of' Samples Offers (o consumers of a trial broad social terms rather than narrow
creating, maintaining and enhancing amount of a product. product terms.
strong, vahie-Jaden relationships with Scaled-bid pricing iSetting price based Sequential product development A
customers and other stakeholders. on how the firm thinks competitors will new-product development approach in
Reminder advertising Advertising used price rather than on its own costs or which one company department works
to keep co it sinners thinking about a demand - used when a company bids for individually to complete its .stage of the
product. jobs. process before passing the new product
Resellers The individuals and along to the ne.vt department and stage.
Seasonal discount A price reduction lo
organizations that buy goods and services buyers who buy merchandise or services Served! market (target market) The part
to resell a( a profit. out of season. of the qualified available market that the
Retailer co-operatives Contractual Seasonally The recurrent consistent company decides to pursue.
vertical marketing systems in which pattern of sales movements within the Service Any activity or benefit that one
retailers organize a new, jointly owned year. party van offer to another which is
business to carry on wholesaling and [Secondary data Information thai
1 essentially intangible and does not result

possibly production. ; in the ownership of anything.

already exists somewhere, having been
Retailers Businesses whose sales come collected for another purpose. Service inseparability A major
primarily from retailing. characteristic of services - they are
Segment marketing Adapting a
Retailing A l l activities involved in company's offerings so they more closely produced arid consumed at the same time
selling goods or services directly to final match the needs of one or more segments. and cannot be separated from their
consumers for their personal, non- providers, whether the providers are
Segmented pricing Pricing that allows
busincss use. people or machines.
for differences in customers, products and
Re tailing accordion A phenomenon locations The differences in prices arc Service intangibility A major
describing how the width of retailers' not based on differences in cos (a. . characteristic of services - they cannot be
product assortment or operations shifts . seen, tasted, felt, heard or studied before
Selective attention The tendency of
over time: there tends to be a general- " they are bought.
people lo screen out most of the
spccific-general cycle However, it is Serviee perishatnlj ty A major
information to which they are exposed.
possible that many retailing businesses characteristic of services - they cannot be
evolve along a specific- general-specific Selective demand The demand for n
stored for later .-.ale or use.
cycle. given brand of a product or service.
Selective distortion The tendency of Service variability A major
Role The activities a person is expected
people to adapt information to personal
1 eharacterislic of services - their quality
to perform according to the people around
meanings may vary greatly, depending on who
him or her. . provides them and when, where and how,
Sales foree management The analysis, Selective distribution The use of more
than one, but less (h;m all of the Services Activities, benefits or
planning, implementation and control of
intermediaries that are willing to carry satisfactions that arc offered for sale
sales force activities. It includes setting
sales force objectives: designing sales the company's products. Shopping product A consumer product
force strategy: and recruiting, selecting. Selective retention The tendency of that the customer, in the process of
training, supervising and evaluating the people to retain only part of the selection and purchase, characteristically
firm s salespeople. information to which they are exposed : compares with others on such bases as
1 suitability, quality, price and style,
Sales foree promotion Sales promotion usually information that supports their
designed to motivate the sales foree and attitudes or beliefs, Simultaneous product development An
m.ike sales foree selling efforls more Self-ixmecpt Suit-image, or che complex • approach to developing new. products in
effective, including bonuses, contests and mental pictures that people have of whieh various company departments
sales rallies. themselves. work closely together, overlapping the
Sales promotion Short-term incentives steps in the product development process
Self-service retailers Retailers that
to encourage purchase or sales of a to save time and increase effectiveness.
provide few or no services to shoppers;
produol or service. shoppers perform (heir own loeate- Single-source data systems Electronic
Sales quotes Standards set for eont pa re -select process. monitoring systems that link consumers'
salespeople, slating the amount they Selling concept The idea thai exposure to television advertising and
should sell and how sales should lie consumers will not boy enough of the promotion (measured using television
1 metres! with what they buy in stores
divided among the company's products. organization's products unless the
Salesperson An individual acting for a organization undertakes a large-scale • (measured using s lore checkout
scanners),
company by performing one or more of selling and promotion effort.
the following activities; prospecting. .Selling process The steps that the Soda! classes Relatively permanent and
co minimi cat ing, servicing and salesperson follows when selling, which . ordered divisions in a society whose
i (formation gathering. include prospecting and qualifying, i members share similar values, interests
Salutary products Products that have preapproach, approach, presentation and and behaviours.
raw appeal bin may benefit consumers in demonstration, handling objections, Socieuil marketing A principle of
the long run. closing and follow-up. enlightened marketing which holds that a
 Glossary • 1009

company should make marketing indices of industry attractiveness and the ; buyer reviews proposals and selects a
decisions by considering consumers' company's strength in the industry. supplier or suppliers.
wants, the company's requirements, Strategic business unit (SHU) A unit of . Suppliers Finns and individuals that
consumers' long-run interests and the company that has a separate mission provide the resources needed by thy
society's long-run interests. and objectives and that can he planned company and its competitors to produce
Societal marketing concept The idea independently from other company goods and services.
that the organization should determine businesses. An SI3U can be a company Supplies and services Industrial
die deeds, wants and interests of target division, a product line within a division, products that do not enter the finished
markets and deliver the desired or sometimes a single product or brand. product at all.
satisfactions more effectively ;md . Strategic control Cheeking whether die
efficiently ihan competitors in a way that Survey research The gathering of
company's basic strategy matches its primary data by asking people questions
maintains or improves the consumer's - opportunities and strengths.
and society's well-be ing. ; about their knowledge, attitudes,
Strategic focus A strategic planning preferences and buying behaviour.
Speciality product A consumer product : tool to help marketers identify ways of 1 SWOT analysis
with unique characteristics or brand A distillation of the
achieving sales and profit growth. Two findings of the internal and external audit
identification for which a significant routes •- productivity increases and
group of buyers is willing to make a which draws attention to the critical
volume expansion - form the basis of organizalional strengths and weaknesses
special purchase effort. ; analysis. and the opportunities and threats facing
Speciality store A retail store that 1 Strategic group A group of firms in an
the company.
carries a narrow product line with a deep industry following the same or a similar
assort men l within that line. Systems buying Buying a packaged
. strategy. solution to a problem and without all the
Specialized industry An industry \vherc Strategic pliiii A plan that describes separate decisions involved.
there are many opportunities for firms ro how a firm will adapt to take advantage of
create competitive advantages that are Target costing A technique to support
opportunities in its constantly changing pricing decision, which starts with
huge or give a high pay-off. : environment, thereby maintaining a deciding a target cost for a new product
Stalemate industry An industry that - strategic fit between the firm's goals and • and works back to designing the product.
produces eommodities and is capabilities and its changing market
characterized by a few opportunities to opportunities. Target market A set of buyers sharing
create competitive advantages, with each ; common needs or characteristics that the
LStrategic planning The process of company decides to serve.
advantage being small. developing and maintaining a strategic fit
Standardized marketing mix An between the organization's goals and Target marketing Directing a
international marketing strategy for using . capabilities and it's changing marketing company's effort towards serving one or
basically the same product, advertising, opportunities. !t relies on developing a more groups of customers sharing
distribution channels and other elements clear company mission, supporting common needs or characteristics.
of the marketing mis in all the company's : objectives, a sound business portfolio and Target profit pricing See Break-even
international markets. : co-ordinated functional strategies. pricing.
Stars High-growth, high-share Style A basic and distinctive mode of . Tariff A tax levied by a government
businesses or products that often require expression. against certain imported products. Tariffs
heavy investment to finance their rapid Subculture A group of people with are designed to raise revenue or to protect
growth. shared value systems based on common domestic firms.
Statistical demand analysis A set of life experiences and situations. Team selling Using teams of people from
statistical procedures used to discover the Substantiality The degree to which a sales, marketing, production, finance,
most important real factors affecting sales 1 market segment is sufficiently large or technical support, and even upper
and their relative influence; the most profitable. management to service large, complex
commonly analyzed factors are priecs, accounts.
income, population and promotion. Supermarkets Large, low-eost, low-
. margin, high-volume, self-service stores Teclniologitid environment Forces that
Status The general esteem given to a that carry a wide variety of food, laundry
1 create new technologies, creating new

role by society. and household products. product and market opportunities.

Straight product extension Marketing # Superstore A store almost twice the Telemarketing Using the telephone to
product in a foreign market without any size of a regular supermarket thai carries sell direcrly to consumers.
change. a large assortment of routinely purchased Television marketing Direct-response
Straight rehuy A business buying food antl non-food items and offers such television marketing (DKTV).
situation in which the buyer routinely services as dry cleaning, post offices, film Territorial sales force structure A sales
reorders something without any developing, photo finishing, cheque force organization that assigns each
modifications. cashing, petrol forecourls and self-service salesperson to an exclusive geographic
Strapline A slogan often used in - car-washing facilities. territory in which that salesperson carries
conjunction with a brand's name, Supplier search The stage of llie the company's full line.
advertising and other promotions business buying process in which the Test marketing The stage of new-
Strategic business-planning grid A buyer tries to find the best vendors. product development where the prodiict
portfolio planning method that evaluates a Supplier selection The stage of the and marketing programme are tested in
company's strategic business units using business buying process in which the more realistic market settings.
1010 • Glossary

Time-series analysis Breaking clown past Uniform delivered pricing A geographic producers, wholesalers and retailers act as
sales into its trend, cycle, season and pricing strategy in which the company a unified system. One channel member
erratic components, then recombining charges the same price plus freight to all owns the others, has contracts with them,
these components to produce a sales customers, regardless; of their location. : or has so much power that they all co-
forecast. Unique selling proposition (L'SP) The operate.
Total costs The sum of the fixed and unique product benefit that a firm Volume industry An industry
variable costs for any given level of aggressively promotes in a consistent characterized by few opportunities t()
production. manner to its target market. The benefit ' create competitive advantages, but each
Total customer cost The total of all [he usually reflects functional superiority advantage is huge and gives a high pay-off.
monetary, time, energy And psychic costs best quality, best services, lowest price, Warehouse club (wholesale elub,
associated with a marketing offer. most advanced technology. membership warehouse) Off-price
Toial customer value The total of all of Unsought product A consumer product retailer that sells a limited selection of
the product, services, personnel and that the consumer either does not know brand-name grocery items, appliances,
image values that a buyer receives from a about or knows about but does not clothing and a hodgepodge of other goods
marketing offer. normally think of buying. at deep discounts 10 members who pay
annual membership fees.
Total market demand The total volume User The person who consumes or uses '
of a produce or service that would be a product or service. Webcasting (push programming)
bought by a defined consumer group in a Process whereby the online marketer
Users Members of the organization who sends advertisements or information over
defined geographic area in a defined time will use the product or service; users often •
period in a defined marketing the Internet directly to the desktops of
initiate the buying proposal and help target customers. Companies can also
environment under a defined level and define product spec ifi cations.
mix of industry marketing effort. sign on with Web-casting service
Value analysis An approach to cost providers, which automatically download
Total quality management (TQM) reduction in which components are customized information to the personal
Programmes designed to constantly studied carefully to determine if they can computers of subscribers to their services.
improve the cjuahty of products, services, be redesigned, standardized or made by
artd marketing processes. Wheel of retailing A concept of retailing
less costly methods of production. which states that new types of retailer
Trade-in allowance A priee reduction Value-based pricing Setting price based usually begin as low-margin, low-price,
given for turning in an old item when on buyers' perceptions of product values low-status operations, but later evolve
buying a new one. rather than on cost. into higher-priced, higher-service
Tr.tde (or retailer) promotion Bales Value chain A major tool for identifying operations, eventually becoming like the
promotion designed to gain reseller ways to create more customer value. conventional retailers they replaced.
support and to improve reseller selling Wholesaler A firm engaged primarily in
efforts, including discounts, allowances, Value marketing A principle of
enlightened marketing which holds that a ; selling goods and services to those buying
free goods, co-operative advertising, push
money, and conventions and trade shows. company should put most of its resources j for resale or business use.
into value-building marketing Word-of-mouth influence Personal
Transaction A trade between two parties communication about a product between
investments.
that involves at least two things of value, target buyers and neighbours, friends,
agreed-upon conditions, a time of Value pricing Offering just the right
combination of quality an.i good service family members and associates.
agreement and a place of agreement.
at a fair price. Workload approach An approach to
Trend The long-term, underlying • setting sales force size, whereby the
pattern of sales growth or decline Variable costs Costs that vary directly
i company groups accounts into different
resulting from basic changes in with the level of production.
. size classes and then determines how
population, capital formation and Variety-seeking buying many salespeople are needed to call on
technology. behaviour Consumer buying behaviour them the desired number of times.
Two-part pricing A strategy for pricing in situations characterized by low ! World Wide Web (WWW or the Web)
services in which price is broken into a consumer involvement, but significant A part of the Internet that uses a standard
fixed fee plus a variable usage rate perceived brand differences. computer language to allow documents
l.'nderpositioning A positioning error Variety store Self-service store that 1 containing text, images, sound and video

referring to failure to position a company, specializes in a wide range of : ti> be sent across the Internet.
its product or brand. merchandise. It offers a wider range than . 'tone pricing A geographic pricing
I "n different! a ted marketing A market- specialist stores, but a narrower variety 1 strategy in whioh the company sets up

coverage strategy in which a firm decides than department stores. two or more zones. All customers within a
to ignore market segment differences and Vertical marketing .system (VMS) A zone pay die same total price; the more
go after the whole market with orte offer. distribution channel structure in which distant the zone, the higher the price.