FBLA MARKETING TERMS

Adapted global marketing
An international marketing strategy for adjusting the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
Administered VMS
A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties.
Adoption process
The mental process through which an individual passes from first hearing about an innovation to final adoption.
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising agency
A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.
Advertising budget
The dollars and other resources allocated to a product or company advertising program.
Advertising media
The vehicles through which advertising messages are delivered to their intended audiences.
Advertising objective
A specific communication task to be accomplished with a specific target audience during a specific period of time.
Advertising strategy
The strategy by which company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.
Affordable method
Setting the promotion budget at the level management thinks the company can afford.
Age and life-cycle segmentation
Dividing a market into different age and life-cycle groups.
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.
Allowance
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way.
Approach
The step in the selling process in which the salesperson meets the customer for the first time.
Attitude
A person’s consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.
Baby boomers
The 78 million people born during the baby boom following World War II and lasting until 1964.
Behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.
Belief
A descriptive thought that a person holds about something.
Benefit segmentation
Dividing the market into groups according to the different benefits that consumers seek from the product.
Brand
A name, term, sign, symbol, or design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
Brand equity
The positive differential effect that knowing the brand name has on customer response to the product or service.
Brand extension
Extending an existing brand name to new product categories.
Break-even pricing (target profit pricing)
Setting price to break even on the costs of marketing and marketing product; or setting price to make a target profit.
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.
Business buyer behavior
The buying behavior of the organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
Business portfolio
The collection of businesses and products that make up the company.
Business promotions
Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.
Business-to-business (B2B) online marketing
Using B2B Web sites, e-mail, online product catalogs, online trading networks, and other online resources to reach new business customers, serve current customers more effectively, and obtain buying efficiencies and better prices.
Business-to-consumer (B2C) online marketing
Selling goods and services online to final consumers.
Buying center
All the individuals and units that participate in the business buying-decision process.
By-product pricing
Setting a price for by-products in order to make the main product’s price more competitive.
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.
Catalog marketing
Direct marketing through print, video, or electronic catalogs that are miled to a select customers, made available in stores, or presented online.
Catalog killer
Giant specialty store that carries a very deep assortment of a particular line and is ataffed by knowledgeable employees.
Causal research
Marketing research to test hypotheses about cause-and-effect relationships.
Chain stores
Two or more outlets that are commonly owned and controlled.
Channel conflict
Disagreement among marketing channel members on goals and roles-who should do what and for what rewards.
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 online marketing to their operations.
Click-only companies
The so-called dot-coms, which operate only online without any brick-and-mortar market presence.
Closing
The step in the selling process in which the salesperson asks the customer for an order.
Co-branding
The practice of using the established brand names of two different companies on the same product.
Cognitive dissonance
Buyer discomfort caused by post-purchase conflict.
Commercialization
Introducing a new product into the market.
Commercial online databases
Computerized collections of information available from online commercial sources or via the Internet.
Communication adaptation
A global communication strategy of fully adapting advertising messages to local markets.
Competitive advantage
An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.
Competitive-parity method
Setting the promotion budget to match competitors’ outlays.
Concentrated (niche) marketing
A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Concept testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Consumer buyer behavior
The buying behavior 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.
Consumer product
Product bought by final consumer for personal consumption.
Consumer-generated marketing
Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited.
Consumer promotions
Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships.
Consumerism
An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.
Consumer-oriented marketing
The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer’s point of view.
Consumer-to-business (C2B) online marketing
Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms.
Consumer-to-consumer (C2C) online marketing
Online exchanges of goods and information between final consumers.
Contract manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.
Contractual VMS
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone.
Convenience product
Consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort.
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.
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.
Corporate VMS
A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership.
Corporate (or brand) Web site
A Web site designed to build customer goodwill, collect customer feedback, and supplement other sales channels, rather than to sell the company’s products directly.
Cost-based pricing
Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk.
Cost-plus pricing
Adding a standard markup to the cost of the product.
Countertrade
International trade involving the the direct or indirect exchange of goods for other goods instead of cash.
Creative concept
The compelling “big idea” that will bring the advertising message strategy to life in a distinctive and memorable way.
Cultural environment
Institutions and other forces that affect society’s basic values, perceptions, preferences, and behaviors.
Culture
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
Customer database
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
Customer equity
The total combined customer lifetime values of all of the company’s customers.
Customer insights
Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.
Customer lifetime value
The value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Customer relationship management (CRM)
Managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty; The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Customer sales force structure
A sales force organization under which salespeople specialize in selling only to certain customers or industries.
Customer satisfaction
The extent to which a product’s perceived performance matches a buyer’s expectations.
Customer-centered new-product development
New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
Customer-perceived value
The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
Customer-value marketing
A principle of enlightened marketing that holds that a company should put most of its resources into customer value-building marketing investments.
Decline stage
The product life-cycle stage in which a product’s sales decline.
Deficient products
Products that have neither immediate appeal nor long-run benefits.
Demand curve
A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
Demands
Human wants that are backed by buying power.
Demographic segmentation
Dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Demography
The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.
Department store
A retail organization that carries a wide variety of product lines-each line is operated as a separate department managed by specialist buyers or merchandisers.
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Descriptive research
Marketing research to better describe marketing
Desirable products
Products that give both high immediate satisfaction and high long-run benefits.
Differentiated (segmented) marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
Differentiation
Actually differentiating the market offering to create superior customer value.
Direct investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Direct-mail marketing
Direct marketing by sending an offer, announcement, reminder, or other item to a person at a particular address.
Direct marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Direct marketing channel
A marketing channel that has no intermediary levels.
Direct-response television marketing
Direct marketing via television, including direct-response television advertising (or infomercials) and home shopping channels.
Discount
A straight reduction in price on purchases under stated conditions or during a stated period of time.
Discount store
A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.
Disintermediation
The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries.
Distribution center
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders,
Diversification
A strategy for company growth through starting up or acquiring business outside the company’s current products and markets.
Downsizing
Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.
Dynamic pricing
Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
Economic community
A group of nations organized to work toward common goals in the regulation of international trade.
Economic environment
Factors that affect consumer buying power and spending patterns.
Engel’s laws
Differences noted over 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.
Enlightened marketing
A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system.
Environmental sustainability
A management approach that involves developing strategies that both sustain the environment and produce profits for the company.
Environmentalism
An organized movement of concerned citizens and government agencies to protect and improve people’s living environment.
Ethnographic research
A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural habitat.”
Event marketing
Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others.
Exchange
The act of obtaining a desired object from someone by offering something in return.
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
Execution style
The approach, style, tone, words, and format used for executing an advertising message.
Experimental research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Exploratory research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses.
Exporting
Entering a foreign market by selling goods produced in the company’s home country, often with little modification.
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.
Fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Fashion
A currently accepted or popular style in a given field.
Fixed costs
Costs that do not vary with production or sales level.
Focus group interviewing
Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.
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.
Franchise
A contractual association between a manufacturer, wholesaler, or service organization (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the production-distribution process.
Franchise organization
A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process.
Gender segmentation
Dividing a market into different groups based on gender.
Generation X
The 45 million people born between 1965 and 1976 in the “birth dearth” following the baby boom.
Geographic segmentation
Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.
Geographical pricing
Setting price based on the buyer’s geographic location.
Global firm
A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Good-value pricing
Offering just the right combination of quality and good service at a fair price.
Group
Two or more people who interact to accomplish individual or mutual goals.
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.
Growth stage
The product life-cycle stage in which a product’s sales start climbing quickly.
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.
Idea generation
The systematic search for new-product ideas.
Idea screening
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
Income segmentation
Dividing a market into different income groups.
Independent off-price retailer
Off-price retailer that is either independently owned and run or is a division of a larger retail corporation.
Indirect marketing channel
Channel aontaining one or more intermediary levels.
Individual marketing
Tailoring products and marketing programs to the needs and preferences of individual customers-also labeled “markets-of-one marketing,” “customized marketing,” and “one-to-one marketing.”
Industrial product
Product bought by individuals and organizations for further processing or for use in conducting a business.
Innovative marketing
A principle of enlightened marketing that requires that a company seek real product and marketing improvements.
Inside sales force
Inside salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers.
Integrated logistics 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.
Integrated marketing communications (IMC)
Carefully integrating and coordinating the company’s many communications channels to deliver a clear, soncistent, and compelling message about the organization and its products.
Intensive distribution
Stocking the product in as many outlets as possible.
Interactive marketing
Training service employees in the fine art of interacting with customers to satisfy their needs.
Intermarket segmentation
Forming segments of consumers who have similar needs and buying behavior even though ghey are located in different countries.
Intermodal transportation
Combining two or more modes of transportation.
Internal databases
Electronics of consumer and market information obtained from data sources within the company network.
Internal marketing
Orienting and motivating customer-contact employees and the supporting service people to work as a team to provide customer satisfaction.
Internet
A vast public web of computer networks that connects users of all types all around the world to each other and to an amazingly large “information repository.”
Introduction stage
The product life-cycle stage in which the new product is first distributed and made available for purchase.
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.
Joint venturing
Entering foreign markets by joining with foreign companies to produce or market a product or service.
Learning
Changes in an individual’s behavior arising from experience.
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.
Lifestyle
A person’s pattern of living as expressed in his or her activities, interests, and opinions.
Line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Local marketing
Tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.
Macroenvironment
The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces.
Madison & Vine
A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages.
Mnagement contracting
A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Manufacturers’ sales branches and offices
Wholesaling by sellers or buyers themselves rather than through independent wholesalers.
Market
The set of all actual and potential buyers of a product or service.
Market development
A strategy for company growth by identifying and developing new market segments for current company products.
Market offering
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Market penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product.
Market segment
A group of consumers who respond in a similar way to a given set of marketing efforts.
Market segmentation
Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs.
Market targeting
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at-large.
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.
Marketing channel (distribution channel)
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
Marketing channel design
Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them.
Marketing channel management
Selecting, managing, and motivating individual channel members and evaluating their performance over time.
Marketing concept
The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
Marketing control
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are archieved.
Marketing environment
The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers.
Marketing implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
Marketing information system (MIS)
People and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
Marketing intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
Marketing intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers.
Marketing logistics (physical distribution)
Planning, implementing, and controlling the phycial flow of materials, final goods, and related information from pints of origin to points of consumption to meet customer requirements at a profit.
Marketing management
The art and science of choosing target markets and building profitable relationships with them.
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.
Marketing myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Marketing strategy
The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.
Marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept.
Marketing Web site
A Web site that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome.
Market-penetration pricing
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Market-skimming pricing (price skimming)
Setting a high price for a new product to skim maximum revenues layer by labyer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Maturity stage
The product life-cycle stage in which sales growth slows or levels off.
Merchant wholesaler
Independently owned business that takes title to the merchandise it handles.
Microenvironment
The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
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.
Millennials (or Generation Y)
The 83 million children of the baby boomers, born between 1977 and 2000.
Mission statement
A statement of the organization’s purpose-what it wants to accomplish in the larger environment.
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.
Multichannel distribution system
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
Natural environment
Natural resorces that are needed as inputs by marketers or that are affected by marketing activities.
Needs
States of felt deprivation.
New product
A good, service, or idea that is perceived by some potential customers as new.
New-product development
The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts.
New task
A business buying situation in which the buyer purchases a product or service for the first time.
Objective-and-task method
Developing the promotio 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.
Observational research
Gathering primary data by observing relevant people, actions, and situations.
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.
Off-price retailer
Retailer that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.
Online advertising
Advertising that appears while consumers are surfing the Web, including display ads, search-related ads, online classifieds, and other forms.
Online focus groups
Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior.
Online marketing
Company efforts to market products and services and build customer relationships over the Internet.
Online marketing research
Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers online behavior.
Online social networks
Online social communities-blogs, social networking Web sites, or even virtual worlds-where people socialize or exchange information and opinions.
Opinion leader
Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.
Optional-product pricing
The pricing of optional or accessory products along with a main product.
Outside sales force (or field sales force)
Outside salespeople who travel to call on customers in the field.
Packaging
The activities of designing and producing the container or wrapper for a product.
Partner relationship management
Working closely with partners in other company to jointly bring greater value to customers.
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.
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world.
Personal selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Personality
The unique psychological characteristics that lead to relatively consistent and lasting responses to one’s environment.
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 indluence and limit various organizations and individuals in a given society.
Portfolio analysis
The process by which management evaluates the products and businesses making up the company.
Positioning
Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Positioning statement
A statement that summarizes company or brand positioning-it takes this form: To (target segment and need) our (brand) is (concept) that (point-of-difference).
Preapproach
The step in the selling process in which the sales person tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems.
Price
The amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product or service.
Price elasticity
A measure of the sensitivity of demand to changes in price.
Primary data
Information collected for the specific purpose at hand.
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Product adaptation
Adapting a product to meet local conditions or wants in foreign markets.
Product bundle pricing
Combining several products and offering the bundle at a reduced price.
Product concept
A detailed version of the new-product idea stated in meaningful consumer terms; The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therfore devote its energy to making continuous product improvements.
Product development
A strategy for company growth by offering modified or new products to current market segments; Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.
Product invention
Creating new products or services for foreign markets.
Product life cycle
The course of a product’s sales and profits over its lifetime.
Product line
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marked through the same types of outlets, or fall within given price ranges.
Product line pricing
Setting the price steps between various products in a product line based on cost differences between the products and customer perceptions of the value of different features.
Product/market expansion grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Product mix (or product portfolio)
The set of all product lines and items that a particular seller offers for sale.
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.
Product quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
Product sales force structure
A sales force organization under which salespeople specialize in selling only a portion of the company’s products or lines.
Production concept
The idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.
Promotion mix (marketing communications mix)
The specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.
Promotinal pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
Prospecting
The step in the selling process in which the salesperson or company identifies qualified potential customers.
Psychographic segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
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.
Public relations
Building good relations with the company’s various public by obtaining favorable publicity, building up a good “corporate image,” and handling or heading off unfavorable rumors, stories, and events.
Pull strategy
A promotion strategy that calls for spending a lot on advertising and consumer promotion to induce fainal consumers to buy the product. If the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers.
Push strategy
A promotion strategy that calls for using sales force and trade promotion to push the product through channels. The procucer promotes the product to channel members to induce them to carry the product and to promote it to final consumers.
Reference prices
Prices that buyers carry in their minds and refer to when they look at a given product.
Retailer
A business whose sales come primarily from retailing.
Retailing
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Return on advertising investment
The net return on advertising investment divided by the costs of the advertising investment.
Return on marketing investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment.
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 salesperson should sell and how sales should be divided among the company’s products.
Sales-force management
The analysis, planning, implementation, and control of sales force activities. It includes designing sales force strategy and structure and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.
Salesperson
An individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.
Salutary products
Products that have low appeal but may benefit consumers in the long run.
Sample
A segment of the population selected for marketing research to represent the population as a whole.
Secondary data
Information that already exists somewhere, having been collected for another purpose.
Segmented pricing
Selling a produt or service at two or more prices, where the difference in prices is not based on differences in costs.
Selective distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products.
Selling concept
The idea that concumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort.
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.
Service
Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Service inseparability
A major characteristic of services-they are produced and consumed at the same time and cannot be separated from their providers.
Service intangibility
A major characteristic of services-they cannnot be seen, tasted, felt, heard, or smelled before they are bought.
Service perishability
A major characteristic of service-they cannot be stored for later sale or use.
Service-profit chain
The chain that links service firm profits with employee and customer satisfaction.
Service retailer
A retailer whose product line is actually a service, including hotels, airlines, banks, colleges, and many others.
Service variability
A major characteristic of services-their quality may vary greatly, depending on who provides them and when, where, and how.
Share of customer
The portion of the customer’s purchasing that a company gets in its product categoris.
Shopping center
A group of retail businesses planned, developed, owned, and managed as a unit.
Shopping product
Consumer good that the customers, in the process of selection and purchase, characteristically compare on such bases as suitability, quality, price, and style.
Social class
Relatively permanet and ordered divisions in a society whose members share similar values, interests, and behaviors.
Social marketing
The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society; A principle of enlightened marketing that holds that a company should make marketing decisions by considering consumer’s wants, the company’s requirements, consumers’ long-run interests.
Societal marketing concept
The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
Spam
Unsolicited, unwanted commercial e-mail messages.
Specialty product
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 cariies a narrow product line with a deep assortment within that line.
Standardized global marketing
An international marketing strategy for using basically the same marketing strategy and mix in all the company’s international markets.
Store brand (or private brand)
A brand created and owned by a reseller of a product or service.
Straight product extension
Marketing a product in a foreign market without any change.
Straight rebuy
A business buying situation in which the buyer routinely reorders something without any modifications.
Straight planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Style
A basic and distinctive mode of expression.
Subculture
A group of people with shared value systems based one common life experiences and situations.
Supermarket
A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products.
Superstore
A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services.
Supply chain management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Survey research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
SWOT analysis
An overall evaluation of the company’s strengths (S), weakness (W), opportunities (O), and threats (T).
System selling (or solutions selling)
Selling a complete solution to a problem, helping buyers to avoid all the separete decisions involved in a complex buying situation.
Target costing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Target market
A set of buyers sharing common needs or characteristics that company decides to serve.
Team-based new-product development
An approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
Team selling
Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.
Technological environment
Forces that create new technologies, creatig new product and market oppourtunities.
Telephone marketing
Using the telephone to sell directly to customers.
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.
Test marketing
The stage of new-product development in which the product and marketing program are tested in realistic market settings.
Third-party logistics (3PL) provider
An independent logistics provider that performs any or all of the functions required to get their client’s product to market.
Total costs
The sum of the fixed and variable costs for any given level of production.
Trade promotions
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.
Undifferentiated (mass) marketing
A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
Unsought product
Consumer product that the consumer either does not know about or know about but does not normally think of buying.
Value analysis
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.
Value chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Value delivery network
The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system in delivering customer value.
Value-added pricing
Attaching value-added features and service to differentiate a market offering and support higher prices, rather than cutting prices to match competitors.
Value-based pricing
Setting price based on buyer’s perceptions of value rather than on the seller’s cost.
Value proposition
The full positioning of a brand-the full mix of benefits upon which it is positioned.
Variable costs
Costs that vary directly with the level of production.
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.
Viral marketing
The Internet version of word-of-mouth marketing-Web sites, videos, e-mail messages, or other marketing events that are so infectious that customers will want to pass them along to friends.
Wants
The form human needs take as shaped by culture and individual personality.
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.
Wheel-of-retailing concept
A concept 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.
Whole-channel view
Designing international channels that take into account the entire global supply chain and marketing channel, forging and effective global value delivery network.
Wholesaler
A firm engaged primarily in wholesaling activities.
Wholesaling
All acctivities involved in selling goods and services to those buying for resale or business use.