Vocabulary Flashcards
1
Q
accessory equipment
A
Capital goods used in the production process (e.g., assembly line equipment, drill presses, lathes).
2
Q
accumulation
A
The process of assembling and pooling relatively small individual shipments so that they can be transported more economically.
3
Q
administered
A
Arrangements that coordinate channel operations through a dominant channel member.
4
Q
advertising budget
A
The determination of a specific dollar allocation; reflects the costs associated with alternative media and production costs.
5
Q
advertising effectiveness
A
Assessed by both direct (sales, store traffic, coupon redemption rates) and indirect (consumers ’ recall of ads) measures.
6
Q
agents
A
Independent wholesalers that do not take title of the products that they handle.
7
Q
all available funds
A
Technique that allocates remaining resources to promotional activities.
8
Q
allowances
A
Price reductions that are intended to achieve specific goals.
9
Q
alternative pricing objectives
A
A firm’s pricing strategy may reflect short-term goals other than profit maximization.
10
Q
approach
A
Seller first meets the prospective buyer; goal at this stage is to gain the interest and attention of the buyer.
11
Q
assorting
A
The process of acquiring a wide variety of merchandise to meet the diverse preferences of consumers.
12
Q
atmosphere
A
Those characteristics that contribute to consumers’ general impression of the store— its image.
13
Q
behavioral dimensions
A
Include purchase occasion, user status, user rate, and brand loyalty as well as customer attitudes toward products and product benefits. Boston Consulting Group matrix: Framework that classifies each product or product line within a firm’s “product portfolio.”
14
Q
break-even analysis
A
Allows managers to estimate the impact of alternative price levels on profits.
15
Q
brokers
A
Temporary wholesalers.
16
Q
business analysis
A
Detailed evaluation of a concept’s commercial feasibility.
17
Q
buyers
A
Individuals who identify suppliers, arrange terms of sale, and carry out purchasing procedures.
18
Q
buying center
A
Entity comprised of all the people who participate in or influence the decision-making process.
19
Q
buying situation
A
Can be characterized as one of three types—new-task buying, straight rebuy, or modified rebuy.
20
Q
buying-related behaviors
A
Seeking out product information or shopping to compare alternative brands, stores, and prices.
21
Q
cash cows
A
Generate large profits and require relatively little investment to maintain their market share in slow-growth industries.
22
Q
cash discounts
A
Given to encourage buyers to provide payment promptly.
23
Q
channel conflict
A
When disagreements arise between members over channel practices and policies.
24
Q
channel control
A
The ability to influence the actions of other channel members.
25
channel length
The number of levels used to create a distribution channel.
26
channel width
The number of independent members at one level of the distribution channel (e.g., producer, wholesaler, retailer, final consumer).
27
closing the sale
Stage at which the seller tries to gain a purchase commitment from the prospect.
28
codes of conduct
Intended to eliminate opportunities for unethical behavior that will reflect badly on an organization.
29
cognitive dissonance
State of mental anxiety that can be caused by a consumer’s uncertainty about a purchase.
30
commercialization
Marks the start of full-scale production and the implementation of the complete marketing plan.
31
communication channels
Medium through which promotional messages are sent and delivered.
32
compensatory
Ethical models where the moral right or wrong of an action is determined by the consequences the action produces.
33
competition-based pricing
Prices set according to those charged by a firm’s closest competitors.
34
competitive parity
Approach establishes a budget based on the actions of a firm’s closest competitors.
35
component materials
Used in the production of finished goods.
36
concept testing
Subjects new ideas to consumer scrutiny
37
consumer goods
Classified as one of three product types—convenience, shopping, and specialty.
38
consumer products
Products targeted toward individuals and households for final consumption.
39
consumer-directed
Promotional tools that include coupons, contests, sweepstakes, rebates, premiums, refunds, etc.
40
containerization
The process of consolidating many items into one container.
41
contractual
Arrangements that specify performance terms for each independent channel member.
42
convenience goods
Goods purchased frequently and with a minimum of shopping effort (low-involvement decision-making).
43
corporate
Channel of distribution where one firm owns either all channel members or firms at the next level in the channel.
44
corporate chains
Several (usually 10 or more) stores that are owned and managed by the same firm.
45
cost-based pricing
Establishes product prices as a function of product costs.
46
cost-per-thousand
Advertising costs evaluated according to the cost of reaching a thousand prospects through a given vehicle.
47
creative platform
Provides the overall concept and theme for an advertising campaign.
48
customary prices
Attempt to combat rising costs by reducing the size of each package or changing the ingredients used in production.
49
customer service
Different customers requiring different levels of service.
50
customer size
Based on the purchasing power of buyers rather than the number of buyers.
51
customer type
Includes manufacturers, wholesalers, retailers, government agencies, and nonprofit institutions standard.
52
databases
Contain information about prior purchase behavior, demographics, psychographics, and geographic data.
53
dealer brands
Brands created by intermediaries (e.g., retailers); also known as private brands.
54
deciders
The individual( s) who makes the final purchase decision.
55
deep product mixes.
Focuses a firm’s resources on a smaller number of product lines which, in turn, allows the development of several products within each line
56
demand-based pricing
Sets prices based on consumer responses to product prices.
57
derived demand
Organizational buyers derive their demand for materials from the anticipated demand by consumers for finished goods.
58
differential advantage
The unique qualities of a product that encourage customer purchase and loyalty.
59
diffusion process
The typical rate of adoption exhibited by consumers in response to new products; there are five categories of adopters— innovators, early adopters, early majority, late majority, and laggards.
60
direct channels
: Channel systems that move goods from the producer to the final consumer without using independent intermediaries or “middlemen.”
61
direct marketing
: One-on-one communications with targeted customers; aimed primarily at obtaining an immediate response.
62
discounts
Reductions from list prices that are given by sellers to buyers.
63
distribution centers
Type of warehouse planned in relation to specific markets.
64
distribution-center concept
The most effective strategy may be a compromise between two extremes.
65
diversification strategy
: Aims new products at new markets.
66
dogs
: Characterized by low profitability and little opportunity for sales growth.
67
drawing account method
: Sales commissions are credited to each individual’s drawing account.
68
drop shippers
: Limited-service merchant wholesalers that buy products from manufacturers and arrange for the delivery to retailers.
69
economic order quantity (EOQ)
): The order size that minimizes the total cost of ordering and carrying inventory.
70
elastic demand
: Increase in price will produce a decrease in demand and a decrease in total revenue; conversely, price decreases will increase demand and increase total revenue.
71
electronic commerce
: All forms of buying and selling that are supported by electronic means.
72
electronic data interchange (EDI)
: Allows a company to integrate order processing, production, inventory planning, and transportation into a single system.
73
evaluation process
: Comparisons such as sales/ sales potential and sales expense/ sales that are made to the same salesperson’s performance in previous periods or to the performance standards established by others.
74
exclusive distribution
: Strategy that limits the number of outlets employed to one or two intermediaries within each market.
75
experimental research
: Compares the impact of marketing variables on individuals’ responses in a controlled setting.
76
extended product
: Includes both the tangible and intangible elements (such as brand image and accompanying service features) of a product; also known as augmented product.
77
fabricated parts
Used in the production of finished goods.
78
family brand
: Type of strategy in which the same brand is applied to several products.
79
focus group
: In-person data collection procedure in which the interviewer meets with five to ten persons at the same time.
80
follow-up
: Represents the salesperson’s efforts to assure customer satisfaction after the sale.
81
forecasting
: A highly specialized function of marketing information systems that estimates the demand for a brand or product category.
82
franchise systems
: Specific type of vertical marketing system in which the parent company (franchisor) provides franchisees with the legal right to use company trademarks.
83
freight forwarders
: Specialized agencies that provide alternate forms of transportation coordination.
84
frequency
: Refers to the average number of times that members of the target audience are exposed to an ad through a given vehicle.
85
full-service merchant wholesalers
: Perform the complete range of wholesaling functions.
86
gatekeepers
: People within an organization who control the flow of relevant purchase-related information.
87
geographic demographics
: Identifiable characteristics of towns, cities, states, regions, and countries; include county size, city or SMSA (Standard Metropolitan Statistical Area) size, population density, and climate.
88
geographic pricing
: Policy that reflects different levels of transportation and other costs related to the physical distance between buyers and sellers.
89
green marketing
: Design, development, and marketing of products that do not harm the environment.
90
gross rating points (GRPs)
Calculated by multiplying reach times frequency.
91
guaranteed draw
Salesperson is not obligated to pay back the difference when the draw exceeds commissions earned over a specified period.
92
homogeneous
: Potential buyers within each segment who are more similar to each other on key dimensions than to buyers assigned to other segments.
93
horizontal integration
: The process of acquiring firms that operate at the same channel level.
94
idea generation
: The process of searching for new product opportunities.
95
ideal points
: Identify consumers’ perception of the perfect bundle or combination of attributes.
96
independent stores
: Single retail units that are not affiliated with a corporate chain or cooperative.
97
indirect channels
: Channels that move goods with the cooperation and assistance of independent intermediaries.
98
individual brands
: Brands assigned to each product when there exists significant variation in product type and quality.
99
industrial products
: Products typically purchased for resale, operational needs, or use in further production; sometimes called business products.
100
inelastic demand
: Increase in price will produce a decrease in demand and an increase in total revenue while price decreases will increase demand and decrease total revenue.
101
influencers
: Individuals who establish product requirements and specifications based on their technical expertise or authority within an organization.
102
information
: Function of packaging that permits consumers to critically evaluate products and compare brands.
103
inseparability
: A service cannot be separated from the person providing it.
104
installations
: Capital goods used in the production process (e.g., assembly line equipment, drill presses, lathes).
105
intangible
: The fact that something is not actually experienced by buyers until the service is performed.
106
integrated marketing communications (ICM)
: Planning a comprehensive program that coordinates all promotional activities. intensive distribution: Strategy in which a firm sells through every potential outlet that will reach its target market.
107
interactive
: Presentations that rely heavily on learning more about each prospect’s needs and preferences through direct interaction.
108
intermediary-directed
: Promotional activities ranging from push money, trade allowances, and quantity discounts to sales contests, trade shows, point-of-purchase display materials, and trade rebates.
109
intermodal transportation
: Two or more transportation modes used in combination. involvement: The importance that consumers attach to the purchase of a particular product.
110
just-in-time (JIT)
: Making products and materials available just as needed for production or resale.
111
leader pricing
: Occurs when a firm sells select products below their usual price as a means of gaining attention or building store traffic.
112
licensed brand
: A well-established brand name that other sellers pay to use.
113
limited-service merchant wholesalers
: May not provide merchandising or market research assistance.
114
long-term forecasts
: Typically done for a five-year period and play a significant role in strategic planning.
115
macroenvironmental factors
: External forces that impact all firms within an industry; includes demographics or demography , economic conditions , competition , social and cultural factors, political and legal factors (government), and technological factors. manufacturer brands: Brands created by product manufacturers; sometimes called national brands.
116
manufacturer wholesaling
When the product’s producer performs the wholesaling functions.
117
market segmentation
The process of dividing the total market into distinct sub-markets or groups based on similarities in their wants, needs, behaviors, or other characteristics.
118
markdowns
Retail price reductions.
119
market
People or organizations that want or need a product and have the willingness and ability to buy.
120
market development strategy
Attempts to increase sales by introducing existing products to new markets.
121
market penetration strategy
Attempts to increase sales of a firm’s existing products to its current markets.
122
market segments
Groups of customers who are similar to each other in a meaningful way and who will respond to a firm’s marketing mix similarly.
123
market targeting
Once the segmentation process is complete, each resulting segment is evaluated in terms of its attractiveness for a firm, and a firm’s target market( s) is chosen based on this evaluation.
124
marketing
The process of planning and executing the development, pricing, promotion, and distribution of goods and services to achieve organizational goals.
125
marketing concept
Customer-oriented business philosophy that stresses customer satisfaction as the key to achieving organizational goals.
126
marketing environment
Composed of two types of factors—those that an organization can control and those that it cannot control.
127
marketing ethics
Moral principles that define right and wrong behavior in marketing practice.
128
marketing functions
Consist of environmental analysis, consumer analysis , product planning, price planning, promotion planning, and physical distribution (place) planning.
129
marketing information system (MIS)
The people, equipment , and procedures used to gather, sort, analyze, evaluate, and distribute accurate information to marketing decision makers.
130
marketing mix
Combination of four variables (product, price, promotion, and physical distribution) that comprise an organization’s marketing program.
131
marketing myopia
Term used to characterize short-sighted marketing strategy.
132
marketing objectives
The goals of a firm in both quantitative (e.g., sales, profit, market share) and qualitative (e.g., market leadership, corporate image) terms.
133
marketing plan
An organization’s statement of marketing strategy and the specification of the activities required to carry out the strategy.
134
marketing plan development
Focuses on how the elements of the marketing mix can be most effectively used.
135
marketing research
The systematic process of planning, collecting, analyzing, and communicating information that is relevant to making better marketing decisions.
136
marketing research process
Designed to yield reliable and objective answers to specific marketing questions; can be described in six distinct steps.
137
marketing strategy
Defines the way in which the marketing mix is used to satisfy the needs of the target market and to achieve organizational goals.
138
markups:
Percentages or dollar amounts added to the cost of sales to arrive at the product’s selling price.
139
materials handling
The physical handling of goods in both warehouse and transportation functions.
140
media planning
The choice of media-type and the selection of specific vehicles within each medium.
141
medium-term forecasts
Typically done annually and provide input to annual marketing plan review and revision.
142
meeting objections
May represent a request for clarification or additional information.
143
megacarriers
Freight transport companies that provide several shipment modes.
144
merchant wholesalers
Independent firms that take title and possession of the products they sell; sometimes referred to as distributors or jobbers.
145
microenvironmental factors
External forces that impact each specific company uniquely, such as suppliers, marketing intermediaries, and the target market.
146
mix expansion
Provides a firm with new opportunities for growth.
147
modified rebuy
Process used when the purchase situation is less complex than new-task buying and more involved than a straight rebuy; some information is required to reach decisions and a limited number of alternatives may be evaluated.
148
monitoring the performance
Requires the collection of either qualitative or quantitative information.
149
multiple channels
When a firm develops two or more separate and distinct distribution channels; also called dual distribution.
150
multiple segmentation strategy
The choice to pursue more than one target market with corresponding marketing mixes for each; also known as differentiated marketing.
151
multi-variable segmentation
Recognizes the importance of interrelationships between factors in defining market segments , such as age, income, and education.
152
new product opportunities
Can stem from the modification of existing products or the development of wholly new product innovations. .
153
observation
An unobtrusive data collection procedure in which subjects’ behaviors are observed without their knowledge.
154
objectives
Determined by the marketing strategy for the product or firm.
155
objective and task
Procedure relies on the matching of promotional objectives to the funding required to achieve specific, objective-related tasks.
156
non-store retailing
Retail transactions that occur outside of traditional store settings; two-way interaction between a marketer and individual consumers to both obtain an immediate response and cultivate lasting customer relationships; also known as direct marketing.
157
new-task buying
The most complex of the three buy classes; requires greater effort in gathering information and evaluating alternatives; frequently employed in the purchase of high-cost products.
158
non-probability samples
Nonrandom samples
159
noncompensatory
Ethical models that maintain a universally true moral principle with no exceptions.
160
odd-even pricing
Sets prices just below even dollar values (e.g., $ 99.99 or $ 99 v. $ 100).
161
opportunities
Favorable environmental conditions that could bring a firm rewards if exploited.
162
operating supplies
Low-cost items that aid in the production process (e.g., lubricating oils, pencils, janitorial supplies).
163
online marketing
All marketing activities conducted through interactive online computer networks or systems that link buyers and sellers.
164
one-price
Policy that offers the same price to all buyers for purchases of essentially the same quantities in comparable situations.
165
order getters
Responsible for securing new business for a firm.
166
partnership selling
Formal arrangements between buyers and sellers that create unique, customized products and services for the buyer.
167
ownership
Classification method for retailers.
168
order takers
Service customer accounts that have already been established.
169
order processing
The receipt and transmission of sales order information.
170
order leadtime
The average length of time between the customer placing an order and receiving it.
171
penetration pricing
Alternative pricing strategy for new product introductions that uses low introductory prices to gain a large share of the market more quickly than price skimming would allow.
172
presentation
Message is intended to persuade buyers to purchase based on the attributes and benefits of the seller’s product.
173
percent-of-sales
Allocates a fixed percentage of the previous year’s sales for promotional programs.
174
personal demographics
Identifiable characteristics of individuals and groups of people; variables include age, sex, family size, income, occupation, and education
175
pre-approach
Salesperson must decide how to best initiate a face-to-face meeting.
176
perishable
Notion that services cannot be inventoried, returned, or resold.
177
prestige pricing
Establishes retail prices that are high, relative to competing brands; intended to suggest higher product quality.
178
price elasticity of demand coefficient (E d)
Equal to the absolute value or nonnegative value of the price elasticity of demand formula.
179
price lining
Simplifies consumers’ evaluation of alternative products by establishing a limited number of price points for groups or lines of products.
180
price skimming:
Strategy that introduces new products at relatively high prices.
181
primary data
Information collected specifically for the current research study.
182
problem child
Does not provide great profits but still requires high levels of investment to maintain or increase market share.
183
probability samples
persons selected at random from the designated population.
184
product
Good, service, idea, place, or person.
185
product adoption
When the buyer decides to continue using a product regularly.
186
product adoption process
The stages that consumers go through in learning about new products.
187
product/ market opportunity matrix
Specifies four fundamental alternative marketing strategies available to a firm—market penetration, market development, product development , and diversification.
188
product screening
Potential products sorted relative to their strengths and weaknesses.
189
product positioning
The process of developing a product or brand image in the consumer’s mind.
190
product mix
Comprised of all the product lines that a firm offers.
191
product development
Stage in which viable ideas are first produced in tangible form and the initial marketing strategy is created.
192
product development strategy
Entails offering new products to a firm’s current markets.
193
product differentiation
When a product or brand is perceived as different from its competitors on any tangible or intangible characteristic.
194
product line
Consists of a group or set of closely related items that usually share some common attributes.
195
promotion
Function of packaging that represents the last opportunity to influence decision making.
196
promotion objectives:
Address three goals (inform, persuade, remind) within the marketing mix.
197
prospecting
The process of seeking and identifying prospective buyers or “leads.”
198
protection
Function of packaging that can prevent product damage and spoilage
199
psychographics
Factors that influence consumers’ patterns of living or lifestyle, such as activities, interests, opinions (AIOs) as well as social class, personality, and values.
200
promotion mix
Elements that contribute to a firm’s overall communications program; includes advertising, personal selling, publicity, public relations, and sales promotions.
201
seasonal discounts
Used to encourage buyers to make their purchases off-season.
202
selling process:
Sequence of stages that are essential to effective personal selling.
203
Sherman Act
Prevents businesses from restraining trade and interstate commerce.
204
shopping goods
Goods for which consumers typically make price-quality comparisons at several stores before buying (high-involvement decision-making).
205
short-term forecasts
Typically predict sales for the next month or quarter and are used for production scheduling and evaluating the impact of short-term promotions.
206
simulation
Technique that utilizes computer-based programs to assess the impact of alternative marketing strategies.
207
single-segment strategy
The decision to focus on one segment as a target market; also known as concentration strategy.
208
single-variable segmentation
Characterized by one segmentation variable.
209
situation analysis
Examines economic environment; technological developments; social changes, changes in buying behavior; legal and political developments; size of the existing market and the potential market; rate of market growth; buyer behavior; brand loyalty; competitive behavior, and market share trends; identifies a company\_s relative strengths and weaknesses , as well as the opportunities and threats posed by its marketing environment.
210
social responsibility
A firm\_s obligations to society that is comprised of four dimensions\_ economic, legal, ethical, and philanthropic.
211
sorting
The process of separating goods by quality, color, or size.
212
specialty goods
Goods for which buyers have strong brand loyalty; they\_ll accept no substitutes.
213
stars
Generate large profits but also consume substantial resources to finance their continued growth.
214
stockout
A shortage of product resulting from carrying too few in inventory.
215
straight rebuy
Process used to purchase inexpensive, low-risk products; in most instances, previous purchases are simply reordered to replace depleted inventory; alternative products or suppliers are not typically considered or evaluated.
216
strategy development
Questions addressed by marketing research, such as: What business should we be in? How will we compete? What are the goals for the business?
217
strengths
Competitive advantages or distinctive competencies that give a firm a superior ability to meet the needs of its target markets.
218
suboptimization
Cost-reducing actions in one distribution function that increase the overall cost of other distribution functions.
219
support salespeople
Provide assistance to both the order getters and order takers.
220
survey research
Means of systematically acquiring information from individuals by communicating directly with them.
221
sustainable competitive advantage
An enduring differential advantage held over competitors by offering buyers superior value either through lower prices or other elements of the marketing mix.
222
SWOT matrix
Tool used to assess the potential value and fit of new opportunities.
223
tangible product
Consists of those features that can be precisely specified (e.g., color, size, weight).
224
target market
A particular group of potential customers that an organization seeks to satisfy with a product.
225
test marketing
Provides a series of commercial experiments to test the acceptance of a product and the appropriateness of the proposed marketing strategy.
226
threats
Competitive conditions or other barriers that might prevent a firm from reaching its goals.
227
total-cost concept
Minimizing costs and satisfying customer demands, which can represent conflicting objectives.
228
trade discounts
Reductions from the list price given to intermediaries in exchange for the performance of specified tasks.
229
trademarks
Brand names, marks, or characters used to identify products.
230
transportation modes
The means of moving goods from one location to another; five major modes are railroads, trucks, waterways, airways, and pipelines.
231
types of warehouses
Includes private and public warehouses, distribution centers, and bonded storage.
232
undifferentiated marketing
Treating the total potential market as a whole\_ one vast target market; also known as mass marketing.
233
unit loading
The grouping of boxes on a pallet or skid.
234
unit pricing
Provides consumers with information on the price per unit on or near the product.
235
unitary elasticity
Total revenue does not change in response to price increases or decreases.
236
unsought goods
Goods for which no demand exists.
237
usage rate
The rate at which inventory is sold per time period.
238
users
People within a firm who will use the product.
239
variable
Services are not performed in the same way each and every time
240
vertical integration
The process of acquiring firms that operate at different channel levels.
241
vertical marketing systems
A collective means of enhancing the market power of individually owned retail units.
242
warehousing
The process of designing and operating facilities for both storing and moving goods.
243
weaknesses
Limitations that a company might face in the development or implementation of a specific marketing strategy.
244
wheel of retailing
Theory that new retailers enter markets as low-status, low -price competitors ; if successful, they tend to evolve into more traditional forms, adding customer -service features and raising prices to meet higher operating costs, which allows new retailers to enter the market.
245
wholesaling
All the activities related to the resale of products to organizational buyers, other wholesalers, and retailers; typically include warehousing, transporting, and financing.
246
wide product mix
A diversification strategy that offers several different product lines that enable a firm to meet several different types of customer needs.
