question

Adapted global marketing

answer

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.

question

Administered VMS

answer

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.

question

Adoption process

answer

The mental process through which an individual passes from first hearing about an innovation to final adoption.

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Advertising

answer

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

question

Advertising agency

answer

A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs.

question

Advertising budget

answer

The dollars and other resources allocated to a product or company advertising program.

question

Advertising media

answer

The vehicles through which advertising messages are delivered to their intended audiences.

question

Advertising objective

answer

A specific communication task to be accomplished with a specific target audience during a specific period of time.

question

Advertising strategy

answer

The strategy by which company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.

question

Affordable method

answer

Setting the promotion budget at the level management thinks the company can afford.

question

Age and life-cycle segmentation

answer

Dividing a market into different age and life-cycle groups.

question

Agent

answer

A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.

question

Allowance

answer

Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

question

Approach

answer

The step in the selling process in which the salesperson meets the customer for the first time.

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Attitude

answer

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

question

Baby boomers

answer

The 78 million people born during the baby boom following World War II and lasting until 1964.

question

Behavioral segmentation

answer

Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.

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Belief

answer

A descriptive thought that a person holds about something.

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Benefit segmentation

answer

Dividing the market into groups according to the different benefits that consumers seek from the product.

question

Brand

answer

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.

question

Brand equity

answer

The positive differential effect that knowing the brand name has on customer response to the product or service.

question

Brand extension

answer

Extending an existing brand name to new product categories.

question

Break-even pricing (target profit pricing)

answer

Setting price to break even on the costs of marketing and marketing product; or setting price to make a target profit.

question

Broker

answer

A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.

question

Business analysis

answer

A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.

question

Business buyer behavior

answer

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.

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Business portfolio

answer

The collection of businesses and products that make up the company.

question

Business promotions

answer

Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

question

Business-to-business (B2B) online marketing

answer

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.

question

Business-to-consumer (B2C) online marketing

answer

Selling goods and services online to final consumers.

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Buying center

answer

All the individuals and units that participate in the business buying-decision process.

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By-product pricing

answer

Setting a price for by-products in order to make the main product's price more competitive.

question

Captive-product pricing

answer

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.

question

Catalog marketing

answer

Direct marketing through print, video, or electronic catalogs that are miled to a select customers, made available in stores, or presented online.

question

Catalog killer

answer

Giant specialty store that carries a very deep assortment of a particular line and is ataffed by knowledgeable employees.

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Causal research

answer

Marketing research to test hypotheses about cause-and-effect relationships.

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Chain stores

answer

Two or more outlets that are commonly owned and controlled.

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Channel conflict

answer

Disagreement among marketing channel members on goals and roles-who should do what and for what rewards.

question

Channel level

answer

A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

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Click-and-mortar companies

answer

Traditional brick-and-mortar companies that have added online marketing to their operations.

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Click-only companies

answer

The so-called dot-coms, which operate only online without any brick-and-mortar market presence.

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Closing

answer

The step in the selling process in which the salesperson asks the customer for an order.

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Co-branding

answer

The practice of using the established brand names of two different companies on the same product.

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Cognitive dissonance

answer

Buyer discomfort caused by post-purchase conflict.

question

Commercialization

answer

Introducing a new product into the market.

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Commercial online databases

answer

Computerized collections of information available from online commercial sources or via the Internet.

question

Communication adaptation

answer

A global communication strategy of fully adapting advertising messages to local markets.

question

Competitive advantage

answer

An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.

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Competitive-parity method

answer

Setting the promotion budget to match competitors' outlays.

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Concentrated (niche) marketing

answer

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

question

Concept testing

answer

Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.

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Consumer buyer behavior

answer

The buying behavior of final consumers-individuals and households who buy goods and services for personal consumption.

question

Consumer market

answer

All the individuals and households who buy or acquire goods and services for personal consumption.

question

Consumer product

answer

Product bought by final consumer for personal consumption.

question

Consumer-generated marketing

answer

Marketing messages, ads, and other brand exchanges created by consumers themselves-both invited and uninvited.

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Consumer promotions

answer

Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships.

question

Consumerism

answer

An organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers.

question

Consumer-oriented marketing

answer

The philosophy of enlightened marketing that holds that the company should view and organize its marketing activities from the consumer's point of view.

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Consumer-to-business (C2B) online marketing

answer

Online exchanges in which consumers search out sellers, learn about their offers, and initiate purchases, sometimes even driving transaction terms.

question

Consumer-to-consumer (C2C) online marketing

answer

Online exchanges of goods and information between final consumers.

question

Contract manufacturing

answer

A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.

question

Contractual VMS

answer

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.

question

Convenience product

answer

Consumer product that customers usually buy frequently, immediately, and with a minimum of comparison and buying effort.

question

Convenience store

answer

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.

question

Conventional distribution channel

answer

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.

question

Corporate VMS

answer

A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership.

question

Corporate (or brand) Web site

answer

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.

question

Cost-based pricing

answer

Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk.

question

Cost-plus pricing

answer

Adding a standard markup to the cost of the product.

question

Countertrade

answer

International trade involving the the direct or indirect exchange of goods for other goods instead of cash.

question

Creative concept

answer

The compelling "big idea" that will bring the advertising message strategy to life in a distinctive and memorable way.

question

Cultural environment

answer

Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors.

question

Culture

answer

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

question

Customer database

answer

An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

question

Customer equity

answer

The total combined customer lifetime values of all of the company's customers.

question

Customer insights

answer

Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.

question

Customer lifetime value

answer

The value of the entire stream of purchases that the customer would make over a lifetime of patronage.

question

Customer relationship management (CRM)

answer

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.

question

Customer sales force structure

answer

A sales force organization under which salespeople specialize in selling only to certain customers or industries.

question

Customer satisfaction

answer

The extent to which a product's perceived performance matches a buyer's expectations.

question

Customer-centered new-product development

answer

New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

question

Customer-perceived value

answer

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.

question

Customer-value marketing

answer

A principle of enlightened marketing that holds that a company should put most of its resources into customer value-building marketing investments.

question

Decline stage

answer

The product life-cycle stage in which a product's sales decline.

question

Deficient products

answer

Products that have neither immediate appeal nor long-run benefits.

question

Demand curve

answer

A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.

question

Demands

answer

Human wants that are backed by buying power.

question

Demographic segmentation

answer

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.

question

Demography

answer

The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics.

question

Department store

answer

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.

question

Derived demand

answer

Business demand that ultimately comes from (derives from) the demand for consumer goods.

question

Descriptive research

answer

Marketing research to better describe marketing

question

Desirable products

answer

Products that give both high immediate satisfaction and high long-run benefits.

question

Differentiated (segmented) marketing

answer

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

question

Differentiation

answer

Actually differentiating the market offering to create superior customer value.

question

Direct investment

answer

Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

question

Direct-mail marketing

answer

Direct marketing by sending an offer, announcement, reminder, or other item to a person at a particular address.

question

Direct marketing

answer

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

question

Direct marketing channel

answer

A marketing channel that has no intermediary levels.

question

Direct-response television marketing

answer

Direct marketing via television, including direct-response television advertising (or infomercials) and home shopping channels.

question

Discount

answer

A straight reduction in price on purchases under stated conditions or during a stated period of time.

question

Discount store

answer

A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume.

question

Disintermediation

answer

The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries.

question

Distribution center

answer

A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders,

question

Diversification

answer

A strategy for company growth through starting up or acquiring business outside the company's current products and markets.

question

Downsizing

answer

Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.

question

Dynamic pricing

answer

Adjusting prices continually to meet the characteristics and needs of individual customers and situations.

question

Economic community

answer

A group of nations organized to work toward common goals in the regulation of international trade.

question

Economic environment

answer

Factors that affect consumer buying power and spending patterns.

question

Engel's laws

answer

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.

question

Enlightened marketing

answer

A marketing philosophy holding that a company's marketing should support the best long-run performance of the marketing system.

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Environmental sustainability

answer

A management approach that involves developing strategies that both sustain the environment and produce profits for the company.

question

Environmentalism

answer

An organized movement of concerned citizens and government agencies to protect and improve people's living environment.

question

Ethnographic research

answer

A form of observational research that involves sending trained observers to watch and interact with consumers in their "natural habitat."

question

Event marketing

answer

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others.

question

Exchange

answer

The act of obtaining a desired object from someone by offering something in return.

question

Exclusive distribution

answer

Giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

question

Execution style

answer

The approach, style, tone, words, and format used for executing an advertising message.

question

Experimental research

answer

Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.

question

Exploratory research

answer

Marketing research to gather preliminary information that will help define problems and suggest hypotheses.

question

Exporting

answer

Entering a foreign market by selling goods produced in the company's home country, often with little modification.

question

Factory outlet

answer

Off-price retailing operation that is owned and operated by a manufacturer and that normally carries the manufacturer's surplus, discontinued, or irregular goods.

question

Fad

answer

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.

question

Fashion

answer

A currently accepted or popular style in a given field.

question

Fixed costs

answer

Costs that do not vary with production or sales level.

question

Focus group interviewing

answer

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.

question

Follow-up

answer

The last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business.

question

Franchise

answer

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.

question

Franchise organization

answer

A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process.

question

Gender segmentation

answer

Dividing a market into different groups based on gender.

question

Generation X

answer

The 45 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.

question

Geographic segmentation

answer

Dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods.

question

Geographical pricing

answer

Setting price based on the buyer's geographic location.

question

Global firm

answer

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.

question

Good-value pricing

answer

Offering just the right combination of quality and good service at a fair price.

question

Group

answer

Two or more people who interact to accomplish individual or mutual goals.

question

Growth-share matrix

answer

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.

question

Growth stage

answer

The product life-cycle stage in which a product's sales start climbing quickly.

question

Handling objections

answer

The step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying.

question

Horizontal marketing system

answer

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

question

Idea generation

answer

The systematic search for new-product ideas.

question

Idea screening

answer

Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.

question

Income segmentation

answer

Dividing a market into different income groups.

question

Independent off-price retailer

answer

Off-price retailer that is either independently owned and run or is a division of a larger retail corporation.

question

Indirect marketing channel

answer

Channel aontaining one or more intermediary levels.

question

Individual marketing

answer

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."

question

Industrial product

answer

Product bought by individuals and organizations for further processing or for use in conducting a business.

question

Innovative marketing

answer

A principle of enlightened marketing that requires that a company seek real product and marketing improvements.

question

Inside sales force

answer

Inside salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers.

question

Integrated logistics management

answer

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.

question

Integrated marketing communications (IMC)

answer

Carefully integrating and coordinating the company's many communications channels to deliver a clear, soncistent, and compelling message about the organization and its products.

question

Intensive distribution

answer

Stocking the product in as many outlets as possible.

question

Interactive marketing

answer

Training service employees in the fine art of interacting with customers to satisfy their needs.

question

Intermarket segmentation

answer

Forming segments of consumers who have similar needs and buying behavior even though ghey are located in different countries.

question

Intermodal transportation

answer

Combining two or more modes of transportation.

question

Internal databases

answer

Electronics of consumer and market information obtained from data sources within the company network.

question

Internal marketing

answer

Orienting and motivating customer-contact employees and the supporting service people to work as a team to provide customer satisfaction.

question

Internet

answer

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."

question

Introduction stage

answer

The product life-cycle stage in which the new product is first distributed and made available for purchase.

question

Joint ownership

answer

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.

question

Joint venturing

answer

Entering foreign markets by joining with foreign companies to produce or market a product or service.

question

Learning

answer

Changes in an individual's behavior arising from experience.

question

Licensing

answer

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.

question

Lifestyle

answer

A person's pattern of living as expressed in his or her activities, interests, and opinions.

question

Line extension

answer

Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.

question

Local marketing

answer

Tailoring brands and promotions to the needs and wants of local customer groups-cities, neighborhoods, and even specific stores.

question

Macroenvironment

answer

The larger societal forces that affect the microenvironment-demographic, economic, natural, technological, political, and cultural forces.

question

Madison & Vine

answer

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.

question

Mnagement contracting

answer

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.

question

Manufacturers' sales branches and offices

answer

Wholesaling by sellers or buyers themselves rather than through independent wholesalers.

question

Market

answer

The set of all actual and potential buyers of a product or service.

question

Market development

answer

A strategy for company growth by identifying and developing new market segments for current company products.

question

Market offering

answer

Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

question

Market penetration

answer

A strategy for company growth by increasing sales of current products to current market segments without changing the product.

question

Market segment

answer

A group of consumers who respond in a similar way to a given set of marketing efforts.

question

Market segmentation

answer

Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing programs.

question

Market targeting

answer

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

question

Marketing

answer

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.

question

Marketing audit

answer

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.

question

Marketing channel (distribution channel)

answer

A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

question

Marketing channel design

answer

Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them.

question

Marketing channel management

answer

Selecting, managing, and motivating individual channel members and evaluating their performance over time.

question

Marketing concept

answer

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.

question

Marketing control

answer

The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are archieved.

question

Marketing environment

answer

The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers.

question

Marketing implementation

answer

The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.

question

Marketing information system (MIS)

answer

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.

question

Marketing intelligence

answer

The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

question

Marketing intermediaries

answer

Firms that help the company to promote, sell, and distribute its goods to final buyers.

question

Marketing logistics (physical distribution)

answer

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.

question

Marketing management

answer

The art and science of choosing target markets and building profitable relationships with them.

question

Marketing mix

answer

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.

question

Marketing myopia

answer

The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.

question

Marketing research

answer

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

question

Marketing strategy

answer

The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships.

question

Marketing strategy development

answer

Designing an initial marketing strategy for a new product based on the product concept.

question

Marketing Web site

answer

A Web site that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome.

question

Market-penetration pricing

answer

Setting a low price for a new product in order to attract a large number of buyers and a large market share.

question

Market-skimming pricing (price skimming)

answer

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.

question

Maturity stage

answer

The product life-cycle stage in which sales growth slows or levels off.

question

Merchant wholesaler

answer

Independently owned business that takes title to the merchandise it handles.

question

Microenvironment

answer

The actors close to the company that affect its ability to serve its customers-the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

question

Micromarketing

answer

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.

question

Millennials (or Generation Y)

answer

The 83 million children of the baby boomers, born between 1977 and 2000.

question

Mission statement

answer

A statement of the organization's purpose-what it wants to accomplish in the larger environment.

question

Modified rebuy

answer

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.

question

Motive (drive)

answer

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

question

Multichannel distribution system

answer

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.

question

Natural environment

answer

Natural resorces that are needed as inputs by marketers or that are affected by marketing activities.

question

Needs

answer

States of felt deprivation.

question

New product

answer

A good, service, or idea that is perceived by some potential customers as new.

question

New-product development

answer

The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts.

question

New task

answer

A business buying situation in which the buyer purchases a product or service for the first time.

question

Objective-and-task method

answer

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.

question

Observational research

answer

Gathering primary data by observing relevant people, actions, and situations.

question

Occasion segmentation

answer

Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

question

Off-price retailer

answer

Retailer that buys at less-than-regular wholesale prices and sells at less than retail. Examples are factory outlets, independents, and warehouse clubs.

question

Online advertising

answer

Advertising that appears while consumers are surfing the Web, including display ads, search-related ads, online classifieds, and other forms.

question

Online focus groups

answer

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.

question

Online marketing

answer

Company efforts to market products and services and build customer relationships over the Internet.

question

Online marketing research

answer

Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers online behavior.

question

Online social networks

answer

Online social communities-blogs, social networking Web sites, or even virtual worlds-where people socialize or exchange information and opinions.

question

Opinion leader

answer

Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts influence on others.

question

Optional-product pricing

answer

The pricing of optional or accessory products along with a main product.

question

Outside sales force (or field sales force)

answer

Outside salespeople who travel to call on customers in the field.

question

Packaging

answer

The activities of designing and producing the container or wrapper for a product.

question

Partner relationship management

answer

Working closely with partners in other company to jointly bring greater value to customers.

question

Percentage-of-sales method

answer

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

question

Perception

answer

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

question

Personal selling

answer

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

question

Personality

answer

The unique psychological characteristics that lead to relatively consistent and lasting responses to one's environment.

question

Pleasing products

answer

Products that give high immediate satisfaction but may hurt consumers in the long run.

question

Political environment

answer

Laws, government agencies, and pressure groups that indluence and limit various organizations and individuals in a given society.

question

Portfolio analysis

answer

The process by which management evaluates the products and businesses making up the company.

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Positioning

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Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

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Positioning statement

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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).

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Preapproach

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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.

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Price

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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.

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Price elasticity

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A measure of the sensitivity of demand to changes in price.

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Primary data

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Information collected for the specific purpose at hand.

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Product

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Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

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Product adaptation

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Adapting a product to meet local conditions or wants in foreign markets.

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Product bundle pricing

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Combining several products and offering the bundle at a reduced price.

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Product concept

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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.

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Product development

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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.

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Product invention

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Creating new products or services for foreign markets.

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Product life cycle

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The course of a product's sales and profits over its lifetime.

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Product line

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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.

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Product line pricing

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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.

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Product/market expansion grid

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A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

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Product mix (or product portfolio)

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The set of all product lines and items that a particular seller offers for sale.

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Product position

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The way the product is defined by consumers on important attributes-the place the product occupies in consumers' minds relative to competing products.

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Product quality

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The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

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Product sales force structure

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A sales force organization under which salespeople specialize in selling only a portion of the company's products or lines.

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Production concept

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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.

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Promotion mix (marketing communications mix)

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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.

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Promotinal pricing

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Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.

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Prospecting

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The step in the selling process in which the salesperson or company identifies qualified potential customers.

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Psychographic segmentation

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Dividing a market into different groups based on social class, lifestyle, or personality characteristics.

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Psychological pricing

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A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.

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Public

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Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

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Public relations

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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.

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Pull strategy

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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.

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Push strategy

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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.

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Reference prices

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Prices that buyers carry in their minds and refer to when they look at a given product.

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Retailer

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A business whose sales come primarily from retailing.

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Retailing

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All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

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Return on advertising investment

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The net return on advertising investment divided by the costs of the advertising investment.

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Return on marketing investment (or marketing ROI)

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The net return from a marketing investment divided by the costs of the marketing investment.

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Sales promotion

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Short-term incentives to encourage the purchase or sale of a product or service.

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Sales quota

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A standard that states the amount a salesperson should sell and how sales should be divided among the company's products.

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Sales-force management

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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.

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Salesperson

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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.

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Salutary products

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Products that have low appeal but may benefit consumers in the long run.

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Sample

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A segment of the population selected for marketing research to represent the population as a whole.

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Secondary data

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Information that already exists somewhere, having been collected for another purpose.

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Segmented pricing

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Selling a produt or service at two or more prices, where the difference in prices is not based on differences in costs.

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Selective distribution

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The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products.

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Selling concept

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The idea that concumers will not buy enough of the firm's products unless it undertakes a large-scale selling and promotion effort.

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Selling process

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The steps that the salesperson follows when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.

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Sense-of-mission marketing

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A principle of enlightened marketing that holds that a company should define its mission in broad social terms rather than narrow product terms.

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Service

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Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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Service inseparability

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A major characteristic of services-they are produced and consumed at the same time and cannot be separated from their providers.

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Service intangibility

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A major characteristic of services-they cannnot be seen, tasted, felt, heard, or smelled before they are bought.

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Service perishability

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A major characteristic of service-they cannot be stored for later sale or use.

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Service-profit chain

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The chain that links service firm profits with employee and customer satisfaction.

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Service retailer

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A retailer whose product line is actually a service, including hotels, airlines, banks, colleges, and many others.

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Service variability

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A major characteristic of services-their quality may vary greatly, depending on who provides them and when, where, and how.

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Share of customer

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The portion of the customer's purchasing that a company gets in its product categoris.

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Shopping center

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A group of retail businesses planned, developed, owned, and managed as a unit.

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Shopping product

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Consumer good that the customers, in the process of selection and purchase, characteristically compare on such bases as suitability, quality, price, and style.

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Social class

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Relatively permanet and ordered divisions in a society whose members share similar values, interests, and behaviors.

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Social marketing

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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.

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Societal marketing concept

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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.

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Spam

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Unsolicited, unwanted commercial e-mail messages.

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Specialty product

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Consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

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Specialty store

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A retail store that cariies a narrow product line with a deep assortment within that line.

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Standardized global marketing

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An international marketing strategy for using basically the same marketing strategy and mix in all the company's international markets.

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Store brand (or private brand)

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A brand created and owned by a reseller of a product or service.

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Straight product extension

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Marketing a product in a foreign market without any change.

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Straight rebuy

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A business buying situation in which the buyer routinely reorders something without any modifications.

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Straight planning

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The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

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Style

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A basic and distinctive mode of expression.

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Subculture

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A group of people with shared value systems based one common life experiences and situations.

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Supermarket

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A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products.

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Superstore

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A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services.

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Supply chain management

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Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

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Survey research

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Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

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SWOT analysis

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An overall evaluation of the company's strengths (S), weakness (W), opportunities (O), and threats (T).

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System selling (or solutions selling)

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Selling a complete solution to a problem, helping buyers to avoid all the separete decisions involved in a complex buying situation.

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Target costing

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Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

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Target market

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A set of buyers sharing common needs or characteristics that company decides to serve.

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Team-based new-product development

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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.

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Team selling

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Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

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Technological environment

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Forces that create new technologies, creatig new product and market oppourtunities.

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Telephone marketing

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Using the telephone to sell directly to customers.

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Territorial sales force structure

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A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line.

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Test marketing

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The stage of new-product development in which the product and marketing program are tested in realistic market settings.

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Third-party logistics (3PL) provider

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An independent logistics provider that performs any or all of the functions required to get their client's product to market.

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Total costs

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The sum of the fixed and variable costs for any given level of production.

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Trade promotions

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Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers.

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Undifferentiated (mass) marketing

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A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

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Unsought product

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Consumer product that the consumer either does not know about or know about but does not normally think of buying.

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Value analysis

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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.

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Value chain

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The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.

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Value delivery network

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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.

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Value-added pricing

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Attaching value-added features and service to differentiate a market offering and support higher prices, rather than cutting prices to match competitors.

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Value-based pricing

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Setting price based on buyer's perceptions of value rather than on the seller's cost.

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Value proposition

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The full positioning of a brand-the full mix of benefits upon which it is positioned.

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Variable costs

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Costs that vary directly with the level of production.

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Vertical marketing system (VMS)

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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.

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Viral marketing

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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.

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Wants

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The form human needs take as shaped by culture and individual personality.

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Warehouse club

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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.

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Wheel-of-retailing concept

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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.

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Whole-channel view

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Designing international channels that take into account the entire global supply chain and marketing channel, forging and effective global value delivery network.

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Wholesaler

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A firm engaged primarily in wholesaling activities.

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Wholesaling

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All acctivities involved in selling goods and services to those buying for resale or business use.

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