Glossary
A B C D E F G H I J L M N O P Q R S T U V W Z
A
Actual product
A product's parts, quality level, features, design, brand name, packaging, and other attributes that combine to deliver core product benefits.
Adapted marketing mix
An international marketing strategy for adjusting the marketing mix elements to each international target market, bearing more costs but hoping for a larger market share and return. (622)
Adoption process
The mental process through which an individual passes from first hearing about an innovation to final adoption. (231)
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Age and life-cycle segmentation
Offering different products to or using different marketing approaches for different age and life-cycle groups. (266)
Agent
A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.
Augmented product
Additional consumer services and benefits built around the core and actual products. (306)
Advertising agency
A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs. (530)
Affordable method
Setting the promotion budget at the level management thinks the company can afford. (519)
Allowance
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. (405)
Approach
The step in the selling process in which the salesperson meets the customer for the first time. (572)
Attitude
A person's consistently favourable or unfavourable evaluations, feelings, and tendencies toward an object or idea. (224)
B
B2B (business-to-business) e-commerce
Using B2B trading networks, auction sites, spot exchanges, online product catalogues, barter sites, and other online resources to reach new customers, serve current customers more effectively, and obtain buying efficiencies and better prices. (92)
B2C (business to consumer) e-commerce
The online selling of goods and services to final consumers. (90)
Baby boom
The major increase in the annual birth rate following World War II and lasting until the early 1960s. The “baby boomers,” now moving into middle age, are a prime target for marketers. (133)
Behavioural segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product.
Belief
A descriptive thought that a person holds about something. (223)
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product. (270)
Brand equity
The value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations, and other assets such as patents, trademarks, and channel relationships. (315)
Brand extension
Using a successful brand name to launch a new or modified product in a new category. (320)
Brand
A name, term, sign, symbol, design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (314)
Break-even pricing (target profit pricing)
Setting price to break even on the costs of making and marketing a product, or setting price to make a target profit. (396)
Broker
A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
Business analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives. (356)
Business buyer behaviour
The buying behaviour of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. (235)
Business portfolio
The collection of businesses and products that comprise the company. (53)
Business product
A product bought by individuals and organizations for further processing or for use in conducting a business. (309)
Buying centre
All the individuals and units that participate in the business buying-decision process. (238)
By-product pricing
Setting a price for by-products to make the main product's price more competitive. (404)
C
C2B (consumer-to-business) e-commerce
Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms. (95)
C2C (consumer-to-consumer) e-commerce
Online exchanges of goods and information between final consumers. (94)
Captive-product pricing
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera. (403)
Catalogue marketing
Direct marketing through print, video, or electronic catalogues that are mailed to a select customers, made available in stores, or presented online. (582)
Category killer
Giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees. (475)
Chain stores
Two or more outlets that are owned and controlled in common, have central buying and merchandising, and sell similar lines of merchandise. (477)
Channel conflict
Disagreement among marketing channel members on goals and roles–who should do what and for what rewards (435)
Channel level
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
Click-and-mortar companies
Traditional brick-and-mortar companies that have added e-marketing to their operations. (98)
Click-only companies
The so-called dot-coms, which operate only online, without any brick-and-mortar market presence. (96)
Closing
The step in the selling process in which the salesperson asks the customer for an order. (573)
Co-branding
The practice of using the established brand names of two different companies on the same product. (319)
Cognitive dissonance
Buyer discomfort caused by postpurchase conflict. (228)
Commercialization
Introducing a new product into the market. (358)
Communication adaptation
A global communication strategy of fully adapting advertising messages to local markets. (627)
Competition-based pricing
Setting prices based on the prices that competitors charge for similar products. (400)
Competitive-parity method
Setting the promotion budget to match competitors' outlays. (520)
Competitive advantage
An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices. (283)
Concentrated marketing
A market-coverage strategy in which a firm goes after a large share of one or a few submarkets (278)
Concept development
Expanding the new product idea into various alternative forms. (353)
Concept testing
Testing new product concepts with a group of target consumers to find out whether the concepts have strong consumer appeal (354)
Consumer buyer behaviour
The buying behaviour of final consumers–individuals and households who buy goods and services for personal consumption.
Consumer market
All the individuals and households who buy or acquire goods and services for personal consumption. (207)
Consumer-oriented marketing
A principle of enlightened marketing that holds that a company should view and organize its marketing activities from the consumer's point of view. (662)
Consumer product
Product bought by final consumer for personal consumption.
Convenience product
A consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.
Consumerism
An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers. (653)
Contract manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce the product.
Convenience store
A small store located near a residential area that is open long hours, seven days a week and carries a limited line of high-turnover convenience goods. (475)
Conventional distribution channel
A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole.
Core product
The problem-solving services or core benefits that consumers are really buying when they purchase a product. (303)
Corporate Web site
A Web site designed to build customer goodwill and to supplement other sales channels, rather than to sell the company's products directly. (101)
Cost-plus pricing
Adding a standard markup to the cost of the product. (395)
Cultural environment
Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviours. (151)
Culture
The set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions. (208)
Customer database
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioural data. (576)
Customer relationship management (CRM)
Sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and use the results to build stronger customer relationships. (188)
Customer sales force structure
A sales force organization under which salespeople specialize in selling only to certain customers or industries. (557)
Customer satisfaction
The extent to which a product's perceived performance in delivering value matches a buyer's expectations. (11)
Customer value
The difference between the values the customer gains from owning and using a product and the costs of obtaining the product. (10)
D
Decline stage
The product life-cycle stage in which a product's sales decline. (369)
Deficient products
Products that have neither immediate appeal nor long-run benefits.
Desirable products
Products that give both high immediate satisfaction and high long-run benefits. (666)
Demand curve
A curve that shows the number of units the market will buy in a given period at different prices that might be charged. (392)
Demands
Human wants that are backed by buying power. (6)
Demarketing
Marketing to reduce demand temporarily or permanently–the aim is not to destroy demand, but to reduce or shift it. (16)
Demographic segmentation
Dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race, and nationality.
Demography
The study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics. (131)
Department store
A retail organization that carries a wide variety of product lines–typically clothing, home furnishings, and household goods; each line is operated as a separate department managed by specialist buyers or merchandisers. (474)
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods. (235)
Descriptive research
Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Causal research: Marketing research to test hypotheses about cause-and-effect relationships. (172)
Differentiated marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each (278)
Direct-mail marketing
Direct marketing through single mailings that include letters, ads, samples, foldouts, and other “salespeople with wings” sent to prospects on mailing lists. (580)
Direct marketing channel
A marketing channel that has no intermediary levels.
Direct-response television marketing
Television spots that persuasively describe a product and give customers a toll-free number for ordering. (583)
Direct investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities. (622)
Direct marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. (574)
Direct marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response. (508)
Discount store
A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. (476)
Discount
A straight reduction in price on purchases during a stated period. (405)
Disintermediation
The displacement of traditional resellers from a marketing channel by radical new types of intermediaries or by product and service producers going directly to final buyers. (439)
Distribution centre
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible (454)
Distribution channel
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. (431)
Diversification
A strategy for company growth by starting up or acquiring businesses outside the company's current products and markets. (59)
Dynamic pricing
The practice of charging different prices depending on individual customers and situations. (383)
E
E-business
The use of electronic platforms–intranets, extranets, and the Internet–to conduct a company's business. (86)
E-commerce
Buying and selling processes supported by electronic means, primarily the Internet. (86)
E-marketing
The “e-selling” side of e-commerce, including company efforts to communicate about, promote, and sell products and services over the Internet. (86)
Economic community
A group of nations organized to work toward common goals in the regulation of international trade. (607)
Economic environment
Factors that affect consumer buying power and spending patterns. (143)
Embargo
A ban on the import of a certain product.
Engel's laws
Differences noted more than a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises. (145)
Enlightened marketing
A marketing philosophy holding that a company's marketing should support the best long-run performance of the marketing system; its five principles are consumer-oriented marketing, innovative marketing, value marketing, sense-of-mission marketing, and societal marketing.
Environmental management perspective
A management perspective in which the firm takes aggressive action to affect the publics and forces in its marketing environment rather than simply watching and reacting to them. (154)
Environmental sustainability
A management approach that involves developing strategies that both sustain the environment and produce profits for the company. (656)
Environmentalism
An organized movement of concerned citizens and government agencies to protect and improve people's living environment. (655)
Exchange
The act of obtaining a desired object from someone by offering something in return. (12)
Exchange controls
Government limits on the amount of its foreign exchange with other countries and on its exchange rate against other currencies.
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the company's products in their territories. (445)
Experimental research
The gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling unrelated factors, and checking for differences in group responses. (180)
Exploratory research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses. (171)
Exporting
Entering a foreign market by sending products and selling them through international marketing intermediaries (indirect exporting) or through the company's own department, branch, or sales representatives or agents (direct exporting). (619)
Extranet
A network that connects a company with its suppliers and distributors.
F
Factory outlet
Off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer's surplus, discontinued, or irregular goods. (476)
Fads
Fashions that enter quickly, are adopted with great zeal, peak early, and decline very quickly. (363)
Fashion
A currently accepted or popular style in a given field. (363)
f.o.b origin pricing
A geographic pricing strategy in which goods are placed free on board a carrier and the customer pays the freight from the originating point to the required destination.
Focus group interviewing
Personal interviewing of a small group of people invited to gather for a few hours with a trained interviewer to discuss a product, service, or organization. The interviewer focuses the group discussion on important issues. (181)
Follow-up
The last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business. (573)
Functional strategy
Strategy that deals with questions of how the function can best support the business unit strategy. (48)
G
Gender segmentation
Dividing a market into different groups based on sex. (267)
Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighbourhoods. (266)
Global industry
An industry in which the strategic positions of competitors in given geographic or national markets are affected by their overall global positions.
Global firm
A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages that are not available to purely domestic competitors. (603)
Group
Two or more people who interact to accomplish individual or mutual goals. (215)
Growth-share matrix
A portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs. (55)
Growth stage
The product life-cycle stage in which a product's sales start climbing quickly. (364)
H
Handling objections
The step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying.
Horizontal marketing system
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity (437)
Hybrid marketing channel
Multichannel distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments (438)
I
Idea generation
The systematic search for new product ideas. (350)
Idea screening
Screening new product ideas to spot good ideas and drop poor ones as soon as possible. (353)
Income segmentation
Dividing a market into different income groups. (268)
Independent off-price retailer
Off-price retailer that is either owned and run by entrepreneurs or is division of larger retail corporation. (476)
Indirect marketing channel
Channel containing one or more intermediary levels. (433)
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers. (261)
Innovative marketing
A principle of enlightened marketing that requires that a company seek real product and marketing improvements. (662)
Inside sales force
Inside salespeople who conduct business from their offices via telephone or visits from prospective buyers. (558)
Integrated direct marketing
Direct-marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. (585)
Integrated marketing communications (IMC)
The concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products or services. (510)
Integrated supply chain management
The logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system. (457)
Intensive distribution
Stocking the product in as many outlets as possible. (445)
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries (274)
Intermodal transportation
Combining two or more modes of transportation (456)
Internal databases
Electronic collections of information obtained from data sources within the company. (168)
Intranet
A network that connects people within a company to each other and to the company network.
Internet
A vast public web of computer networks that connects users of all types all around the world to each other and to a large information repository. The Internet is an information highway that can dispatch bits at incredible speeds from one location to another. (83)
Introduction stage
The product life-cycle stage in which the new product is first distributed and made available for purchase. (364)
J
Joint ownership
A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control. (621)
Joint venturing
Entering foreign markets by joining with foreign companies to produce or market a product or service.
L
Licensing
A method of entering a foreign market in which the company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty. (620)
Learning
Changes in an individual's behaviour arising from experience. (223)
Lifestyle
A person's pattern of living as expressed in his or her activities, interests, and opinions. (218)
Line extension
Using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavours, forms, colours, added ingredients, or package sizes. (320)
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups–cities, neighbourhoods, and even specific stores. (261)
M
Management contracting
A joint venture in which the domestic firm supplies the management expertise to a foreign company that supplies the capital; the domestic firm exports management services rather than products. (621)
Market-penetration pricing
Setting a low price for a new product to attract a large number of buyers and a large market share. (401)
Market-skimming pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. (401)
Market penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product. (58)
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. (64)
Market segmentation
Dividing a market into distinct groups with distinct needs, characteristics, or behaviour that might need separate products or marketing mixes. Market segment: A group of consumers who respond in a similar way to a given set of marketing efforts. (63)
Market segmentation
Dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviours who might require separate products or marketing mixes.
Market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
Market positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers, formulating competitive positioning for a product, and creating a detailed marketing mix. (258)
Market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter. (63)
Market
The set of all actual and potential buyers of a product or service. (14)
Marketing audit
A comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company's marketing performance. (71)
Marketing communications mix (promotion mix)
The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.
Marketing concept
The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. (21)
Marketing control
The process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved. (71)
Marketing environment
The factors and forces outside marketing's direct control that affect marketing management's ability to develop and maintain successful transactions with target customers. (126)
Marketing implementation
The process that turns marketing strategies and plans into marketing actions to accomplish strategic marketing objectives. (69)
Marketing information system (MIS)
The people, equipment, and procedures needed to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. (166)
Marketing intelligence
A systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. (169)
Marketing intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers; they include resellers, physical distribution firms, marketing services agencies, and financial intermediaries. (128)
Marketing logistics (physical distribution)
The tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit. (452)
Marketing management
The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers so as to achieve organizational objectives. (15)
Marketing mix
The set of controllable tactical marketing tools–product, price, place, and promotion–that the firm blends to produce the response it wants in the target market. (64)
Marketing process
The process of (1) analyzing marketing opportunities, (2) selecting target markets, (3) developing the marketing mix, and (4) managing the marketing effort. (61)
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. (171)
Marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept. (355)
Marketing strategy
The marketing logic by which the business unit hopes to achieve its marketing objectives. (68)
Marketing Web site
A Web site that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome. (101)
Marketing
A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. (5)
Maturity stage
The stage in the product life cycle in which sales growth slows or levels off (365)
Merchant wholesaler
Independently owned business that takes title to the merchandise it handles.
Manufacturers' sales branches and offices
Wholesaling by sellers or buyers themselves rather than through independent wholesalers. (493)
Microenvironment
The forces close to the company that affect its ability to serve its customers–the company, suppliers, marketing channel firms, customer markets, competitors, and publics.
Macroenvironment
The larger societal forces that affect the microenvironment–demographic, economic, natural, technological, political, and cultural forces. (127)
Micromarketing
The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups–includes local marketing and individual marketing.
Mission statement
A statement of the organization's purpose–what it wants to accomplish in the larger environment. (51)
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
Motive (drive)
A need that is sufficiently pressing to direct the person to seek satisfaction of the need. (221)
N
Natural environment
The natural resources needed as inputs by marketers or affected by marketing activities. (145)
Need
A state of felt deprivation. (5)
Needs analysis
The process of determining a buyer's or prospect's needs before presenting or demonstrating a product or service. (572)
New product development
The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts. (349)
New product
A good, service, or idea that is perceived by some potential customers as new.
New task
A business buying situation in which the buyer purchases a product or service for the first time. (238)
Niche marketing
Focusing on subsegments or niches with distinctive traits that may seek a special combination of benefits. (260)
Nontariff trade barriers
Nonmonetary barriers to foreign products, such as biases against a foreign company's bids or product standards that go against a foreign company's product features. (606)
O
Objective-and-task method
Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. (520)
Observational research
The gathering of primary data by observing relevant people, actions, and situations. (176)
Occasion segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. (269)
Off-price retailer
Retailer that buys at below wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
Online (Internet) marketing research
Collecting primary data through Internet surveys and online focus groups. (182)
Online advertising
Advertising that appears while consumers are surfing the Web, including banner and ticker ads, interstitials, skyscrapers, and other forms. (105)
Online databases
Computerized collections of information available from online commercial sources or via the Internet. (176)
Open trading networks
Huge e-marketspaces in which B2B buyers and sellers find each other online, share information, and complete transactions efficiently. (93)
Opinion leader
A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others. (215)
Optional-product pricing
The pricing of optional or accessory products along with a main product. (402)
Outside sales force (or field sales force)
Outside salespeople who travel to call on customers.
P
Packaging
The activities of designing and producing the container or wrapper for a product. (322)
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. (520)
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world. (222)
Personal selling
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.
Pleasing products
Products that give high immediate satisfaction but may hurt consumers in the long run.
Political environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society. (148)
Portfolio analysis
A tool management uses to identify and evaluate the businesses that comprise the company. (54)
Preapproach
The step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. (572)
Presentation
The step in the selling process in which the salesperson tells the “product story” to the buyer, highlighting customer benefits. (572)
Price elasticity
A measure of the sensitivity of demand to changes in price. (393)
Price
The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. (383)
Primary data
Information collected for the specific purpose at hand. Secondary data Information that already exists somewhere, having been collected for another purpose. (173)
Private brand (or store brand)
A brand created and owned by a reseller of a product or service. (317)
Private trading networks (PTNs)
B2B trading networks that link a particular seller with its own trading partners. (93)
Product adaptation
Adapting a product to meet local conditions or wants in foreign markets. (625)
Product bundle pricing
Combining several products and offering the bundle at a reduced price. (404)
Product concept
A detailed version of the new product concept stated in meaningful consumer terms. (353)
Product concept
The idea that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continual product improvements. (21)
Product development
A strategy for company growth by offering modified or new products to current market segments. Market development: A strategy for company growth by identifying and developing new market segments for current company products.
Product development
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable product. (356)
Product invention
Creating new products or services for foreign markets. (626)
Product life cycle (PLC)
The course of a product's sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity, and decline. (362)
Product line pricing
Setting the price steps among various products in a product line based on cost differences among the products, customer evaluations of different features, and competitors' prices. (402)
Product line
A group of products that are closely related because they function in a similar manner, are sold to the same consumer groups, are marketed through the same types of outlets, or fall within given price ranges. (327)
Product mix (or product assortment)
The set of all product lines and items that a particular seller offers for sale. (328)
Product position
The way the product is defined by consumers on important attributes–the place the product occupies in consumers' minds relative to competing products. (282)
Product quality
The ability of a product to perform its functions; it includes the product's overall durability, reliability, precision, ease of operation and repair, and other valued attributes. (312)
Product sales force structure
A sales force organization under which salespeople specialize in selling only a portion of the company's products or lines. (557)
Product support services
Services that augment actual products. (325)
Product—market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. (57)
Product
Anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or a need. (303)
Production concept
The idea that consumers will favour products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. (20)
Products
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. They include physical objects, services, persons, places, organizations, and ideas. (6)
Promotional pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. (409)
Prospecting
The step in the selling process in which the salesperson identifies qualified potential customers. (571)
Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics (269)
Psychological pricing
A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
Public
Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives. (130)
Public relations
Building good relations with the company's various publics by obtaining favourable publicity, building a good corporate image, and handling or heading off unfavourable rumours, stories, and events. Major PR tools include press relations, product publicity, corporate communications, lobbying, and public service.
Push strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the retailers promote to consumers.
Pull strategy
A promotion strategy that calls for spending a lot on advertising and consumer promotion to build consumer demand. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. (516)
Q
Quota
A limit on the amount of goods that an importing country will accept in certain product categories to conserve on foreign exchange and to protect local industry and employment.
R
Reference prices
Prices that buyers carry in their minds and refer to when they look at a given product. (406)
Relationship marketing
The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. (12)
Relationship marketing
The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. (574)
Retailing
All activities involved in selling goods and services directly to consumers for their personal, nonbusiness use.
Retailer
A business whose sales come primarily from retailing. (472)
S
Sales force management
The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm's salespeople. (555)
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service.
Sales quota
A standard that states the amount a sales person should sell and how sales should be divided among the company's products. (570)
Salesperson
An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing, and information gathering. (554)
Salutary products
Products that have low appeal but may benefit consumers in the long run.
Sample
A segment of the population selected to represent the population as a whole (185)
Segment marketing
Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segment (259)
Segmented pricing
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs. (406)
Selective distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products. (445)
Selling concept
The idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort. (21)
Selling process
The steps that the salesperson follows when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.
Sense-of-mission marketing
A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms. (663)
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction. (331)
Service inseparability
A major characteristic of services–they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.
Service variability
A major characteristic of services–their quality may vary greatly, depending on who provides them and when, where, and how. (330)
Service intangibility
A major characteristic of services–they cannot be seen, tasted, felt, heard, or smelled before they are bought. (330)
Service perishability
A major characteristic of services–they cannot be stored for later sale or use. (331)
Service retailers
Retailers that sell services rather than products. (476)
Service
A form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. (303)
Services
Any activities or benefits that one party can offer to another that are essentially intangible and do not result in the ownership of anything. Examples include banking, airlines, hotels, tax preparation, and home repair services. (7)
Shopping centre
A group of retail businesses planned, developed, owned, and managed as a unit. (485)
Shopping product
A consumer good that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style. (308)
Slotting fees
Payments demanded by retailers before they will accept new products and place them on shelves. (317)
Social classes
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviours. (214)
Social marketing
The design, implementation, and control of programs that seek to increase the acceptability of a social idea, cause, or practice among a target group. (311)
Societal marketing concept
The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfaction more effectively and efficiently than do competitors in a way that maintains or improves the consumer's and society's well-being. (23)
Societal marketing
A principle of enlightened marketing that holds that a company should make marketing decisions by considering consumers' and society's long-run interests. (665)
Specialty product
A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
Specialty store
A retail store that carries a narrow product line with a deep assortment within that line. (474)
Standardized marketing mix
An international marketing strategy for using basically the same product, advertising, distribution channels, and other elements of the marketing mix in all of the company's international markets.
Straight product extension
Marketing a product in a foreign market without any change. (625)
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications. (237)
Strategic planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. Strategic business unit (SBU): An identifiable unit within a larger company with its own profit and loss responsibility; it may have one or more divisions and product lines. Corporate strategic planning: Setting the mission for a firm as a whole. Business unit strategy: Strategy that determines how the unit will compete in its given business and how it will position itself among its competitors. (47)
Style
A basic and distinctive mode of expression. (363)
Subculture
A group of people with shared value systems based on common life experiences and situations (209)
Supermarket
Large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of food, laundry, and household products. (474)
Superstore
A store much larger than a regular supermarket that carries a large assortment of routinely purchased food and nonfood items and offers services such as dry cleaning, post offices, photo finishing, check cashing, bill paying, lunch counters, car care, and pet care.
Supply chain management
Managing value-added flows of materials, final goods, and related information between suppliers, the company, resellers, and final users. (452)
Survey research
The gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behaviour. Single-source data systems Electronic monitoring systems link consumers' exposure to television advertising and promotion (using television meters) with what they buy in stores (measured using store check scanner data). (179)
Systems selling
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
T
Target costing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. (388)
Target market
A set of buyers sharing common needs or characteristics that the company decides to serve.
Undifferentiated marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. (277)
Unsought product
A consumer product that the consumer either does not know about or knows about but does not normally think of buying. (309)
Tariff
A tax levied by a government against certain imported products to either raise revenue or protect domestic firms.
Team selling
Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts. (562)
Technological environment
Forces that create new technologies, in turn creating new product and market opportunities. (147)
Telephone marketing
Using the telephone to sell directly to customers. (579)
Territorial sales force structure
A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line. (556)
Test marketing
The stage of new product development in which the product and marketing program are tested in more realistic market settings. (357)
Third-party logistics (3PL) provider
An independent logistics provider that performs any or all of the functions required to get their clients' product to market. (458)
Transaction
A trade between two parties that involves at least two things of value, agreed-on conditions, a time of agreement, and a place of agreement. (12)
U
Uniform delivered pricing
A geographic pricing strategy in which the company charges the same price plus freight to all customers, regardless of location (410)
V
Value-based pricing
Setting price based on buyers' perceptions of value rather than on the seller's cost. (397)
Value analysis
An approach to cost reduction in which components are studied carefully to determine whether they can be redesigned, standardized, or made by less costly methods of production. (243)
Value chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products. (59)
Value delivery network
The network made up of the company, suppliers, distributors, and ultimately customers who partner with one another to improve the performance of the entire system. (60)
Value marketing
A principle of enlightened marketing that holds that a company should put most of its resources into value-building marketing investments. (663)
Value proposition
The full positioning of a brand–the full mix of benefits on which it is positioned (287)
Viral marketing
The Internet version of word-of-mouth marketing–the creation of e-mail messages or other marketing events that are so infectious that customers will want to pass them along to their friends. (106)
Vertical marketing system (VMS)
A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. (436)
Voluntary chain
A wholesale-sponsored group of independent retailers that engages in group buying and common merchandising. (477)
W
Want
The form taken by a human need as shaped by culture and individual personality. (6)
Warehouse club
Off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees. (477)
Web communities
Web sites on which members can congregate online and exchange views on issues of common interest. (108)
Webcasting
The automatic downloading of customized information to recipients' computers, creating an attractive channel for delivering Internet advertising or other information. (111)
Wheel of retailing concept
A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced (486)
Whole-channel view
Designing international channels that take into account all the necessary links in distributing the seller's products to final buyers, including the seller's headquarters organization, channels between nations, and channels within nations. (629)
Z
Zone pricing
A geographic pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price: the more distant the zone, the higher the price. (411)