GLOSSARY

A B C D E F G H I J L M N O P Q R S T U V W Z

accelerator principle
The disproportionate impact that changes in consumer demand have on business market demand.

accessory equipment
Second-level capital items that are used in the production of products and services but are usually less expensive and shorter-lived than installations.

adoption process
A series of stages consumers go through, from learning of a new product to trying it and deciding to purchase it regularly or to reject it.

advertising
Paid nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified with the advertising message and who hope to inform or persuade members of a particular audience.

advertising agency
A marketing specialist firm that assists the advertiser in planning and preparing its advertisements.

affective component
One’s feelings or emotional reactions.

agent
A wholesaling intermediary that differs from the typical wholesaler in that the agent does not take title to the goods.

AIO statements
Statements about activities, interests, and opinions that are used in developing psychographic profiles.

approach
The initial contact between the salesperson and the prospective customer.

Asch phenomenon
The impact that groups and group norms can exhibit on individual behaviour.

aspirational group
A type of reference group with which individuals wish to associate.

attitudes
A person’s enduring favourable or unfavourable evaluations of some object or idea.

auction house
An agent wholesaling intermediary that brings buyers and sellers together in one location and allows potential buyers to inspect the merchandise before purchasing through a public bidding process.

average cost
Obtained by dividing total cost by the quantity associated with this cost.

average variable cost
The total variable cost divided by the related quantity.

balance of payments
The flow of money into or out of a country.

balance of trade
The relationship between a country’s exports and its imports.

B2B e-commerce
Doing business online through Internet-enabled marketplaces.

BCG growth-share matrix
Plots market share relative to the market share of the largest competitor, against market growth rate.

benchmarking
The comparison of performance with industry best practices.

benefit segmentation
Depends on advanced marketing research techniques that focus on benefits the consumer expects to derive from a product.

bids
Price quotations from potential suppliers.

bottom line
The overall-profitability measure of performance.

brand
A name, term, sign, symbol, or design (or some combination of these) used to identify the products of one firm and to differentiate them from competitive offerings.

brand architecture
The relationship between a company’s products, brands, and sub-brands.

brand equity
Represents the value customers (and the stock markets) place on the sum of the history the customer has had with a brand.

brand extension
The decision to use a popular brand name for a new product entry in an unrelated product category.

brand familiarity
The first stage of brand loyalty, when a firm has developed enough publicity for a brand that its name is familiar to consumers.

brand insistence
The ultimate stage of brand loyalty, when consumers will accept no alternatives and will search extensively for the product.

brand name
Words, letters, or symbols that make up a name used to identify and distinguish the firm’s offerings from those of its competitors.

brand preference
The second stage of brand loyalty, when, based on previous experience, consumers will choose a product rather than one of its competitors—if it is available.

break-bulk warehouse
Receives consolidated shipments from a central distribution centre, and then distributes them in smaller shipments to individual customers in more limited areas.

break-even analysis
A means of determining the number of goods or services that must be sold at a given price in order to generate sufficient revenue to cover total costs.

broker
An agent wholesaling intermediary that brings buyers and sellers together; operates in industries with a large number of small suppliers and purchasers.

business-to-business market
Firms that produce or acquire goods and services to be used, directly or indirectly, in the production of other goods and services or to be resold.

buying centre
The key individuals who participate in a buying decision.

buzz marketing
Giving a significant person in a social system a product to use in the hope that others will see and want to buy the product.

cannibalizing
Situation involving one product taking sales from another offering in a product line.

capital items
Long-lived business assets that must be depreciated over time.

cartel
The monopolistic organization of a group of firms.

cash-and-carry wholesaler
Limited-function merchant wholesaler that performs most wholesaling functions except financing and delivery.

cash discount
Reduction in price that is given for prompt payment of a bill.

catalogue retailer
Retailer that mails catalogues to its customers and operates from a showroom displaying samples of its products.

celebrity marketing
Having celebrities lend their name and influence to the promotion of a product.

census
A collection of marketing data from all possible sources.

chain store
Group of retail stores that are centrally owned and managed and that handle the same lines of products.

channel captain
The most dominant member of the distribution channel.

channel conflict
Rivalry and conflict between channel members because of sometimes different objectives and needs.

closing
The act of asking the prospect for an order.

cluster sample
A probability sample that is generated by randomly choosing one or more areas or population clusters and then surveying all members in the chosen cluster(s).

cognitive component
The knowledge and beliefs one has about an object or concept.

cognitive dissonance
The postpurchase anxiety that occurs when there is a discrepancy between a person’s knowledge and beliefs (cognitions).

commission merchant
An agent wholesaling intermediary that takes possession when the producer ships goods to a central market for sale.

common carrier
Transportation carrier that provides service to the general public, and is subject to regulatory authority including fee setting.

common market
A customs union that also allows factors of production such as labour, capital, and technology to flow freely among members.

communication
Personal selling, advertising, sales promotion, and publicity.

company elasticity
Refers to the sensitivity to changes in price that a particular company or brand faces.

comparative advantage
A nation has a comparative advantage if it can produce a given product more efficiently per unit of output than it can produce other products.

comparative advertising
Advertising that makes direct promotional comparisons with competitive brands.

competitive bidding
A process by which buyers request potential suppliers to make price quotations on a proposed purchase or contract.

competitive environment
The interactive process that occurs in the marketplace in which different organizations seek to satisfy similar markets.

component parts and materials
Finished business-to-business goods that actually become part of the final product.

conative component
The way one tends to act or behave.

concept testing
A marketing research project that attempts to measure consumer attitudes and perceptions relevant to a new-product idea.

consumer behaviour
The activities of individuals in obtaining, using, and disposing of goods and services, including the decision processes that precede and follow these actions.

consumer goods
Those products and services purchased by the ultimate consumer for personal use.

consumer innovators
The first purchasers—those who buy a product at the beginning of its life cycle.

containerization
Combining several unitized loads.

contract carrier
Transportation carrier that serves only customers it has contracts with. Contracts include rates to be charged.

convenience products
Products that are lowest in terms of both effort and risk.

convenience sample
A nonprobability sample based on the selection of readily available respondents.

cooperative advertising
The sharing of advertising costs between the retailer and the manufacturer.

corporate strategy
The overall purpose and direction of the organization that is established in the light of the challenges and opportunities found in the environment, as well as available organizational resources.

cost-plus pricing
Pricing technique using base cost figure per unit to which is added a markup to cover unassigned costs and to provide a profit.

cost tradeoffs
Approach that assumes that some functional areas of the firm will experience cost increases while others will have cost decreases.

creative selling
Selling that involves making the buyer see the worth of the item.

credence qualities
Qualities for which, even after purchasing, the buyer must simply trust that the supplier has performed the correct service.

CRM software
Software designed to analyze a customer database and determine customer needs and characteristics.

cue
Any object existing in the environment that determines the nature of the response to a drive.

culture
An integrated system of learned behaviour patterns that are distinguishing characteristics of the members of any given society.

customer relationship marketing (CRM)
Identifying and establishing, maintaining and enhancing, and, when necessary, also terminating relationships with customers and other stakeholders so that the objectives of all parties involved are met, through a mutual exchange and fulfillment of promises.

customer satisfaction management (CSM)
A program that focuses on identifying key performance areas to meet or exceed the average customer’s expectations.

customs union
Agreement among two or more nations that establishes a free trade area, plus a uniform tariff for trade with nonmember nations.

database marketing
Creation of a marketing plan based on the use of database technology to define the characteristics and needs of customers.

demand variability
In the business market, the impact of derived demand on the demand for interrelated products used in producing consumer goods.

demarketing
The process of cutting consumer demand for a product, because the demand exceeds the level that can reasonably be supplied by the firm or because doing so will create a more favourable corporate image.

demographic segmentation
Dividing an overall market on the basis of characteristics such as age, gender, and income level.

demonstration
Actions that supplement, support, and reinforce what the salesperson has already told the prospect.

department store
Large retailer that handles a variety of merchandise.

depreciation
The accounting concept of charging a portion of the cost of a capital item as a deduction against the company’s annual revenue for purposes of determining its net income.

derived demand
Demand for a product used by business derived from (or linked to) demand for a consumer good.

devaluation
Situation in which a nation reduces the value of its currency in relation to gold or some other currency.

differentiation triangle
Differentiation of a retail store from competitors in the same strategic group through price, location, and store atmosphere and service.

diffusion process
The filtering and acceptance of new products and services by the members of a community or social system.

direct international trade
Exporting directly to markets and/or importing directly from suppliers in other countries.

direct investment
The ownership and management of production and/or marketing facilities in a foreign country.

direct response marketing
An interactive system of marketing that uses one or more advertising media to effect a measurable response directly to the advertiser.

direct-response wholesaler
Limited-function merchant wholesaler that relies on catalogues rather than on a sales force to contact retail, industrial, and institutional customers.

direct-sales results test
A test that attempts to ascertain for each dollar of promotional outlay the corresponding increase in revenue.

disassociative group
A type of reference group with which an individual does not want to be identified.

discount house
Retailer that, in exchange for reduced prices, does not offer such traditional retail services as credit, sales assistance by clerks, and delivery.

distribution
The selection and management of marketing channels and the physical distribution of goods.

distribution channels
The paths that goods—and title to these goods—follow from producer to consumer.

distribution warehouse
Designed to assemble and then redistribute products.

drive
Any strong stimulus that impels action.

drop shipper
Limited-function merchant wholesaler that takes orders from customers and places them with producers, which then ship directly to the customers.

dumping
Practice of selling products at significantly lower prices in a foreign market than in a nation’s own domestic market.

dynamic break-even analysis
Combines the traditional break-even analysis model with an evaluation of consumer demand.

e-commerce
Commerce conducted via the Internet.

economic environment
The factors in a region or country that affect the production, distribution, and consumption of its wealth. Key elements are monetary resources, inflation, employment, and productive capacity.

economic order quantity (EOQ)
A model that emphasizes a cost tradeoff between inventory holding costs and order costs.

economic union
A common market that also requires members to harmonize monetary policies, taxation, and government spending. In addition, a common currency is used by members.

elasticity
A measure of the responsiveness of purchasers and suppliers to changes in price.

electronic exchange
An organized group of buyers and sellers from a specific industry linked together electronically.

electronic exchange network
A single point of access to suppliers and customers through the Internet.

embargo
A complete ban on importing a particular product.

Engel’s Laws
As family income increases, (1) a smaller percentage goes for food, (2) the percentage spent on housing and household operations and clothing will remain constant, and (3) the percentage spent on other items will increase.

environmental scanning
The process by which the marketing manager gathers and sorts information about the marketing environment.

escalator clause
Allows the seller to adjust the final price based on changes in the costs of the product’s ingredients between the placement of the order and the completion of construction or delivery of the product.

e-tailing
Retailing via the Internet.

ethnocentric company
Firm that assumes that its way of doing business in its home market is the proper way to operate, and tries to replicate this in foreign markets.

evaluative criteria
Features the consumer considers in making a choice among alternatives.

evoked set
The number of brands that a consumer actually considers in making a purchase decision.

exchange control
Requirement that firms gaining foreign exchange by exporting must sell their foreign exchange to the central bank or agency, and importers must buy foreign exchange from the same organization.

exchange process
The means by which two or more parties give something of value to one another to satisfy felt needs.

exchange rate
The rate at which a nation’s currency can be exchanged for other currencies or gold.

exchange risk
The risk of negotiating a price in another nation’s currency and finding upon delivery of the product that the currency’s value has dropped in relation to your country’s currency.

exclusive dealing
An arrangement whereby a supplier prohibits a marketing intermediary (either a wholesaler or, more typically, a retailer) from handling competing products.

exclusive distribution
The granting of exclusive rights by manufacturers to a wholesaler or retailer to sell in a geographic region.

expense items
Products and services that are used within a short period of time.

experience qualities
Characteristics of products that can be assessed mainly through using them.

exploratory research
Learning about the problem area and beginning to focus on specific areas of study by discussing the problem with informed sources within the firm (a process often called situation analysis) and with knowledgeable others outside the firm (the informal investigation).

facilitating agency
An agency that provides specialized assistance for regular channel members (such as producers, wholesalers, and retailers) in moving products from producer to consumer.

fads
Fashions with abbreviated life cycles.

family brand
Brand name used for several related products.

family life cycle
The process of family formation, development, and dissolution.

fashions
Currently popular products that tend to follow recurring life cycles.

fiscal policy
The receipts and expenditures of government.

flexible pricing
A variable price policy.

FOB plant
The buyer must pay all the freight charges.

follow-up
The post-sales activities that often determine whether a person will become a repeat customer.

franchise
An agreement whereby one firm (franchisee) agrees to meet the operating requirements of a successful business (franchisor) in return for the right to carry the name and products of the franchisor.

Free Trade Agreement (FTA)
The agreement establishing a free trade area between Canada and the United States that preceded NAFTA.

free trade area
Area established by agreement among two or more nations within which participants agree to free trade of goods and services among themselves.

freight absorption
The seller permits the buyer to subtract transportation expenses from the bill.

freight forwarder
Wholesaling intermediary that specializes in international logistics.

friendship, commerce, and navigation (FCN) treaties
Treaties that address many aspects of commercial relations with other countries; such treaties constitute international law.

GE business screen
A process using a 3 x 3 matrix that considers business strengths and industry attractiveness.

generic name
A brand name over which the original owner has lost exclusive claim because all offerings in the associated class of products have become generally known by the brand name (usually that of first or leading brand in that product class).

generic products
Food and household staples characterized by plain labels, little or no advertising, and no brand names.

geocentric company
Firm that develops a marketing mix that meets the needs of target consumers in all markets.

geographic segmentation
Dividing an overall market into homogeneous groups based on population location.

Hazardous Products Act
A major piece of legislation that consolidated previous legislation and set significant new standards for product safety; defines a hazardous product as any product that is included in a list (called a schedule) compiled by Consumer and Corporate Affairs Canada or Health and Welfare Canada.

high-involvement products
Products for which the purchaser is highly involved in making the purchase decision.

house-to-house retailer
Retailer that sells products by direct contact between the retailer–seller and the customer at the home of the customer.

hypermarket
Mass merchandiser that operates on a low-price, self-service basis and carries lines of soft goods, hard goods, and groceries.

hypothesis
A tentative explanation about the relationship between variables as a starting point for further testing.

implementation and control
Consist of putting the marketing plan into action as well as doing ongoing monitoring and gathering feedback on how well the plan is accomplishing the stated marketing
objectives.

import quota
A limit set on the amount of products that may be imported in a certain category.

indirect international trade
Exporting and/or importing only through other domestic companies that trade internationally.

individual brand
Brand that is known by its own brand name rather than by the name of the company producing it or an umbrella name covering similar items.

individual offering
Single product within a product line.

industrial distributor
A wholesaler that operates in the business goods market and typically handles small accessory equipment and operating supplies.

industrial goods
Those products purchased to be used, either directly or indirectly, in the production of other goods or for resale.

industry or market elasticity
Refers to changes in total demand resulting from general changes in price across the industry.

inflation
A rising price level that results in reduced purchasing power for the consumer.

informative product advertising
Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service.

inseparability
A characteristic of services in which the product is produced and consumed simultaneously.

installations
Major capital assets that are used to produce products and services.

institutional advertising
Promoting a concept, idea, or philosophy, or the goodwill of an industry, company, or organization.

intangible attributes
Those attributes that cannot be experienced by the physical senses.

integrated marketing communications (IMC)
A comprehensive marketing communications plan that takes into consideration all the communication disciplines being used and combines them to provide clarity, consistency, and maximum communications impact.

intensive distribution
A form of distribution that attempts to provide saturation coverage of the potential market.

interactive marketing
Term used to describe the interrelationship between the employee and the customer.

internal marketing
A marketing effort aimed at those who provide the service so that they will feel better about their task and therefore produce a better product.

international pricing
Setting prices to be charged to buyers in other countries taking into consideration exchange risk, price escalation through multiplication of channels, and transportation.

inventory adjustments
Changes in the amounts of materials a manufacturer keeps on hand.

joint demand
Demand for an industrial product that is related to the demand for other industrial goods.

joint venture
A partnership of firms from different countries, often to set up a local business in a country that is foreign to one of the partners.

judgement sample
A nonprobability sample of people with a specific attribute.

just in time (JIT)
An approach to minimizing inventory costs through identifying minimal inventory levels and arranging with suppliers to replenish stocks just in time to be used in production.

label
The part of a package that contains (1) the brand name or symbol, (2) the name and address of the manufacturer or distributor, (3) information about product composition and size, and (4) information about recommended uses of the product.

large-format specialty store
Large, warehouse-type retail store that specializes in selling a great variety of one category of merchandise at very low prices.

law of retail gravitation
Principle that delineates the retail trade area of a potential site on the basis of distance between alternative locations and relative populations.

learning
Changes in knowledge, attitudes, and behaviour, as a result of experience.

licensing
Granting authority to produce and sell a product developed in one country in another.

lifestyle
The mode of living.

lifetime-customer value (LCV)
The sum of all future-customer revenue streams minus product and servicing costs, acquisition costs, and remarketing costs.

limited-line store
Retailer that offers a large assortment of a single line of products or a few related lines of products.

line extension
The development of individual offerings that appeal to different market segments but are closely related to the existing product line.

liquidator
Specialty retailer that either comes into a bankrupt store and handles the closeout, or buys the entire lot and sells it in its own stores.

list price
The rate normally quoted to potential buyers.

local content laws
Laws specifying the portion of a product that must come from domestic sources.

logistics
That part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

logistics concept
The integration of the total-cost approach, the avoidance of suboptimization, and the use of cast trade-offs.

loss leader
Goods priced below cost to attract customers.

low-involvement products
Products with little significance, either materially or emotionally, that a consumer may purchase first and evaluate later (while using them).

loyalty program
A program that gives rewards, such as points or free air miles, with each purchase in order to stimulate repeat business.

mail-order merchandiser
Retailer that offers its customers the option of placing merchandise orders by mail, by telephone, or by visiting the mail-order desk of a retail store.

manufacturers’ agent
An independent salesperson who works for a number of manufacturers of related but noncompeting products.

marginal cost
The change in total cost that results from producing an additional unit of output.

markdown
A reduction in the price of an item.

market
People with the willingness, purchasing power, and authority to buy.

market development strategy
Finding new markets for existing products.

market orientation
A focus on understanding customer needs and objectives, then making the business serve the interests of the customer rather than trying to make the customer buy what the business wants to produce.

market price
The amount that a consumer pays.

market restriction
An arrangement whereby suppliers restrict the geographic territories for each of their distributors.

market segmentation
Grouping people according to their similarity in one or more dimensions related to a particular product category.

market share objective
To control a specific portion of the market for the firm’s product.

marketing
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

marketing audit
A comprehensive appraisal of the organization’s marketing activities. It involves a systematic assessment of marketing plans, objectives, strategies, programs, activities, organizational structure, and personnel.

marketing channels
The steps or handling organizations that a good or service goes through from producer to final consumer.

marketing communications
All activities and messages that inform, persuade, and influence the consumer in making a purchase decision.

marketing communications mix
The blend of personal selling and nonpersonal communication (including advertising, sales promotion, public relations, sponsorship marketing, and point-of-purchase communications) by marketers in an attempt to accomplish information and persuasion objectives.

marketing concept
An organization-wide philosophy that holds that the best route to organizational success is to find an unserved or underserved need in society and meet that need better than anyone else, while still meeting long-term organizational objectives.

marketing functions
Buying, selling, transporting, storing, grading, financing, risk taking, and information collecting and disseminating.

marketing information system
A set of routine procedures to continuously collect, monitor, and present internal and external information on company performance and opportunities in the marketplace.

marketing intermediary
A business firm operating between the producer and the consumer or business purchaser.

marketing mix
The blending of the four elements of marketing to satisfy chosen consumer segments.

marketing objectives and strategy
Flow from the situation analysis. They are a statement of what the organization intends to accomplish with its marketing program and the general strategic approach it will take.

marketing plan
A specific detailed statement of how the marketing mix will be used to realize the marketing strategy.

marketing research
The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.

marketing strategy
A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm’s potential for gaining competitive advantage.

markup
The amount a producer or channel member adds to cost in order to determine the selling price.

mass customization
Organizing to make production of products more flexible to meet specifically stated customer requirements.

mass merchandiser
Retailer that concentrates on high turnover of items, emphasizes lower prices than department stores, and offers reduced services.

membership and warehouse club
Very large, warehouse-type retail store that offers low prices because of its no-frill format and paid membership requirement.

membership group
A type of reference group to which individuals actually belong.

merchandise mart
Permanent exhibition at which manufacturers rent showcases for their product offerings.

merchant wholesaler
A wholesaler who takes title to the products carried.

microculture
A subgroup with its own distinguishing modes of behaviour.

missionary selling
Selling that emphasizes selling the firm’s goodwill and providing customers with technical or operational assistance.

modified rebuy
A situation in which purchasers are willing to reevaluate their available options.

monetary policy
The manipulation of the money supply and market rates of interest.

monopolistic competition
A market structure with a large number of buyers and sellers where heterogeneity in good and/or service and usually geographical differentiation allow the marketer some control over price.

monopoly
A market structure with only one seller of a product with no close substitutes.

motive
An inner state that directs us toward the goal of satisfying a felt need.

MRO items
Business-to-business supplies, so called because they can be categorized as maintenance items, repair items, and operating supplies.

multilevel marketing
The development of a network among consumers to sell and deliver from one level of consumers to another using social obligation, personal influence, and motivational techniques.

multinational corporation (MNC)
A corporation that produces and markets goods and services in several countries.

multi-offer strategy
The attempt to satisfy several segments of the market very well with specialized products and unique marketing programs aimed at each segment.

national brand (manufacturer’s brand)
A brand promoted and distributed by a manufacturer.

need
The perceived difference between the current state and a desired state.

negotiated contract
The terms of the contract are set through talks between the buyer and the seller.

new task buying
First-time or unique purchase situations that require considerable effort on the part of the decision makers.

nonprobability sample
A sample chosen in an arbitrary fashion so that each member of the population does not have a representative chance of being selected.

nonprofit organization (NPO)
Organization whose primary objective is something other than returning a profit to its owners.

North American Free Trade Agreement (NAFTA)
The agreement establishing a free trade area among Canada, the United States, and Mexico that followed the FTA.

North American Industrial Classification System (NAICS)
A coding system used to categorize different types of businesses and products (formerly the Standard Industrial Classification, or SIC).

objection
Reveals a customer’s interest in a product and can be used as a cue to provide additional information.

odd pricing
Prices are set ending in some amount just below the next rounded number.

off-price retailer
Retailer that specializes in selling manufacturers’ excess stocks of brand-name merchandise at a discount.

oligopoly
A market structure in which there are relatively few sellers.

oligopsony
A market in which there are only a few buyers.

opinion leaders
Trendsetters—individuals who are more likely to purchase new products early and to serve as information sources for others in a given group.

order processing
Selling at the wholesale and retail levels; involves identifying customer needs, pointing out these needs to the customer, and completing the order.

organization marketing
Attempts to influence others to accept the goals of, receive the services of, or contribute in some way to an organization.

penetration pricing
An entry price for a product that is lower than what is estimated to be the long-term price.

perception
The meaning that each person attributes to incoming stimuli received through the five senses.

perceptual screen
The filter through which messages must pass.

performance gap
The difference between the company’s performance and that of the best of the best.

person marketing
Efforts designed to cultivate the attention, interest, and preference of a target market toward a person.

personal selling
A seller’s promotional presentation conducted on a person-to-person basis with the buyer.

persuasive product advertising
Advertising that emphasizes using words or images to try to create an image for a product and to influence attitudes about it.

planned shopping centre
Group of retail stores planned, coordinated, and marketed as a unit to shoppers in a particular geographic trade area.

point-of-purchase advertising
Displays and demonstrations that seek to promote the product at a time and place closely associated with the actual decision to buy.

point-of-purchase communications
Materials designed to influence buying decisions at the point of purchase.

political–legal environment
The laws and interpretation of laws that require firms to operate under competitive conditions and to protect consumer rights.

polycentric company
Firm that assumes that every country is different and that a specific marketing approach should be developed for each separate country.

population or universe
The total group that the researcher wants to study.

positioning
Shaping the product and developing a marketing program in such a way that the product is perceived to be (and actually is) different from competitors’ products.

positioning analysis
Identifying brands in each segment and how they differ from each other.

post-testing
The assessment of advertising copy after it has been used.

power node
Groupings of two or more large-format retailers that result in large customer drawing power.

preference products
Products that are slightly higher on the effort dimension and much higher on risk than convenience products.

presentation
The act of giving the sales message to a prospective customer.

prestige objectives
Establishing relatively high prices in order to develop and maintain an image of quality and exclusiveness.

pretesting
The assessment of an advertisement’s effectiveness before it is actually used.

price
The value that a buyer exchanges for a good or service.

price escalation
The increase in final price in a foreign market over a domestic price because of having to pay for the services of additional channel members to get the product to that market.

price limits
Limits within which product quality perception varies directly with price.

price lining
The practice of marketing merchandise at a limited number of prices.

price structure
An outline of the selling price and the various discounts offered to intermediaries.

pricing
The methods of setting competitive, profitable, and justified prices.

pricing policy
A general guideline based on pricing objectives that is intended for use in specific pricing decisions.

primary data
Data being collected for the first time.

private brand
A brand promoted and distributed by a wholesaler or retailer.

private carrier
Transportation carrier that provides transportation services for a particular firm and may not solicit other transportation business.

probability sample
A sample in which every member of the population has a known chance of being selected.

producers
Those who transform goods and services through production into other goods and services.

product advertising
Nonpersonal selling of a particular good or service.

product development strategy
Introducing new products into identifiable or established markets.

product diversification strategy
The development of new products for new markets.

product improvement strategy
A modification in existing products.

product life cycle
A product’s progress through introduction, growth, maturity, and decline stages.

product line
A series of related products.

product management
Decisions about what kind of product is needed, its uses, package design, branding, trademarks, warranties, guarantees, product life cycles, and new product development.

product managers (brand managers)
Individuals assigned one product or product line and given responsibility for determining its objectives and marketing strategies.

product mix
The assortment of product lines and individual offerings available from a company.

product orientation
A focus on the product itself rather than on the consumer’s needs.

product portfolio
The complete collection of products or services that a company produces.

profit centre
Any part of the organization to which revenue and controllable costs can be assigned, such as a department.

profit maximization
The point where the addition to total revenue is just balanced by an increase in total cost.

promotional allowance
Extra discount offered to retailers so that they will advertise the manufacturer along with the retailer.

promotional price
A lower-than-normal price used as an ingredient in a firm’s selling strategy.

prospecting
Identifying potential customers.

psychographic segmentation
Uses behavioural profiles developed from analyses of the activities, opinions, interests, and lifestyles of consumers in identifying market segments.

psychographics
The use of psychological attributes, lifestyles, attitudes, and demographics in determining the behavioural profiles of different consumers.

psychological pricing
The use of prices to suggest values of a product or attributes of a product/price offering.

PSYTE
A geodemographic classification system that identifies lifestyle cluster profiles across Canada.

public relations
A component of marketing communications that focuses on creating favourable attention and word of mouth among various publics.

public warehouse
Independently owned storage facility.

publicity
Normally unpaid communication that disseminates positive information about company activities and products.

pulling strategy
A promotional effort by the seller to stimulate final-user demand, which then exerts pressure on the distribution channel.

pure competition
A market structure in which there is such a large number of buyers and sellers that no one of them has a significant influence on price.

pushing strategy
The promotion of the product first to the members of the marketing channel, who then participate in its promotion to the final user.

qualifying
Determining that the prospect is really a potential customer.

quantity discount
Price reduction granted for large purchases.

quota sample
A nonprobability sample that is divided so that different segments or groups are represented in the total sample.

rack jobber
Wholesaler that provides the racks, stocks the merchandise, prices the goods, and makes regular visits to refill the shelves.

raw materials
Farm products (such as cattle, wool, eggs, milk, pigs, and canola) and natural products (such as coal, copper, iron ore, and lumber).

rebate
Refund by the seller of a portion of the purchase price.

reciprocity
Extending purchasing preference to suppliers who are also customers.

recycled merchandise retailer
Retailer that sells castoff clothes, furniture, and other products.

reference group
A group whose value structures and standards influence a person’s behaviour.

regiocentric company
Firm that recognizes that countries with similar cultures and economic conditions can be served with a similar marketing mix.

reinforcement
The reduction in drive that results from a proper response.

relationship marketing
Identifying and establishing, maintaining and enhancing, and, when necessary, also terminating relationships with customers and other stakeholders, at a profit, so that the objectives of all parties involved are met, through a mutual exchange and fulfillment of promises.

reminder-oriented product advertising
Advertising whose goal is to reinforce previous promotional activity by keeping the product or service name in front of the public.

research design
A series of advance decisions that, taken together, make up a master plan or model for conducting the investigation.

response
The individual’s reaction to the cues and drives.

retail image
The consumer’s perception of a store and of the shopping experience it provides.

retail trade area analysis
Studies that assess the relative drawing power of alternative retail locations.

retailer
A store that sells products purchased by individuals for their own use and not for resale.

retailing
All the activities involved in selling goods and services to the ultimate consumer.

revaluation
Situation in which a country adjusts the value of its currency upward.

reverse channels
The paths goods follow from consumer to manufacturer or to marketing intermediaries.

RFP (request for proposal) or RFQ (request for quotation)
Common procedures used by firms to get information on alternatives or prices.

role
The rights and duties expected of an individual in a group by other members of the group.

role model marketing
Marketing technique that associates a product with the positive perception of a type of individual or a role.

sales branch
Manufacturer-owned facility that carries inventory and processes orders to customers from available stock.

sales management
Securing, maintaining, motivating, supervising, evaluating, and controlling the field sales force.

sales maximization
The pricing philosophy analyzed by economist William J. Baumol. Baumol believes that many firms attempt to maximize sales within a profit constraint.

sales orientation
A focus on developing a strong sales force to convince consumers to buy whatever the firm produces.

sales promotion
Those marketing activities, other than personal selling, mass media advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness.

scrambled merchandising
The retail practice of carrying dissimilar lines to generate added sales volume.

search qualities
Physical qualities that enable products to be examined and compared. This eases the task of choosing among them.

secondary data
Previously published matter.

segment elasticity
Refers to the sensitivity to changes in price that a particular market segment exhibits.

selective distribution
The selection of a small number of retailers to handle the firm’s product line.

selling agent
An agent wholesaling intermediary that is responsible for the total marketing program for a firm’s product line.

service
A product without physical characteristics—a bundle of performance and symbolic attributes designed to produce consumer want satisfaction.

shaping
The process of applying a series of rewards and reinforcement so that more complex behaviour can evolve over time.

shopping products
Products that are usually purchased only after the consumer has compared competing products.

simple random sample
A probability sample in which every item in the relevant universe has an equal opportunity of being selected.

single-offer strategy
The attempt to satisfy a large or a small market with one product and a single marketing program.

situation analysis
Considers the internal circumstances of the organization or product, the external environment, competitive activity, and characteristics of the customer that may be relevant to the marketing plan.

skimming pricing
Choosing a high entry price; to sell first to consumers who are willing to pay the highest price, and then reduce the price.

social class
The relatively permanent divisions in a society into which individuals or families are categorized based on prestige and community status.

social marketing
The analysis, planning, execution, and evaluation of programs designed to influence the voluntary behaviour of target audiences in order to improve their personal welfare and that of society.

societal marketing concept
An organization-wide philosophy that holds that the best route to organizational success is to find an unserved or underserved need in society and meet that need better than anyone else, while still meeting long-term organizational objectives and also considering the long-term impact on society.

sociocultural environment
The mosaic of societal and cultural components that are relevant to the organization’s business decisions.

sorting
The process that alleviates discrepancies in assortment by reallocating the outputs of various producers into assortments desired by individual purchasers.

specialty advertising
Sales promotion medium that uses useful articles to carry the advertiser’s name, address, and advertising message.

specialty products
Products that are highest in both effort and risk, due to some unique characteristics that cause the buyer to prize that particular brand.

specialty store
Retailer that handles only part of a single line of products.

specifications
A specific description of a needed item or job that the buyer wishes to acquire.

sponsorship marketing
The practice of promoting the interests of a company by associating the company or a brand with a specific event.

SSWDs
Single, separated, widowed, or divorced people.

stagflation
High unemployment and a rising price level at the same time.

status
Relative position in a group.

status quo objectives
Objectives based on maintaining stable prices.

stock turnover
The number of times the average inventory is sold annually.

storage warehouse
Stores products for moderate to long periods of time in an attempt to balance supply and demand for producers and purchasers.

straight rebuy
A recurring purchase decision involving an item that has performed satisfactorily and is therefore purchased again by a customer.

subliminal perception
A subconscious level of awareness.

suboptimization
A condition in which the manager of each logistics function attempts to minimize costs, but due to the impact of one logistics task on the others, the results are less than optimal.

supermarket
Large-scale, departmentalized retail store offering a large variety of food products such as meats, produce, dairy products, canned goods, and frozen foods in addition to various nonfood items.

supplies
Regular expense items necessary in the daily operation of a firm, but not part of its final product.

supply chain
A network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.

supply chain management (SCM)
The systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.

supply curve
The marginal cost curve above its intersection with average variable cost.

SWOT analysis
The combined summary of the internal analysis and the environmental analysis. Stands for strengths, weaknesses, opportunities, and threats.

systematic sample
A probability sample that takes every nth item on a list, after a random start.

tangible attributes
Those attributes that can be experienced by the physical senses, such as sight, touch, and smell.

target market
A market segment that a company chooses to serve.

target market decision analysis
The evaluation of potential market segments.

target return objectives
Either short-run or long-run goals, usually stated as a percentage of sales or investment.

tariff
A tax levied against products imported from abroad.

task-objective method
A sequential approach to allocating marketing communications budgets that involves two steps: (1) defining the realistic communication goals the firm wants the marketing communications mix to accomplish, and (2) determining the amount and type of marketing communications activity required to accomplish each of these objectives.

technological environment
The applications of knowledge based on scientific discoveries, inventions, and innovations.

test marketing
Selecting areas considered reasonably typical of the total market, and introducing a new product to these areas with a total marketing campaign to determine consumer response before marketing the product nationally.

third-party logistics provider
Specialist firm that performs virtually all of the logistical tasks that manufacturers or other channel members would normally perform themselves.

tied selling
An arrangement whereby a supplier forces a dealer who wishes to handle a product to also carry other products from the supplier or to refrain from using or distributing someone else’s product.

total-cost approach
Holds that all relevant factors in physically moving and storing products should be considered as a whole and not individually.

total customer satisfaction
Providing a good or service that fully and without reservation conforms to the customer’s requirements.

total product
A total bundle of physical, service, and symbolic characteristics designed to produce customer want satisfaction.

trade discount
Payment to channel members or buyers for performing some marketing function normally required of the manufacturer.

trade fairs
Periodic shows at which manufacturers in a particular industry display their wares for visiting retail and wholesale buyers.

trade industries
Organizations, such as retailers and wholesalers, that purchase for resale to others.

trade show
An organized exhibition of products based on a central theme.

trade-in
Deduction from an item’s price of an amount for the customer’s old item that is being replaced.

trademark
A brand that has been given legal protection and has been granted solely to its owner.

transfer price
The price for sending goods from one company profit centre to another.

truck wholesaler
Limited-function merchant wholesaler that markets products that require frequent replenishment.

uniform delivered price
The same price (including transportation expenses) is quoted to all buyers.

unit pricing
Stating prices in terms of some recognized unit of measurement (such as grams or litres) or a standard numerical count.

unitization
Combining as many packages as possible into one load.

Universal Product Code
A code readable by optical scanners that can print the name of the item and the price on the cash register receipt.

usage rate
Divides the market by the amount of product consumed, and/or the degree of brand loyalty.

utility
The want-satisfying power of a product or service.

value
A subjective term that is defined by the customer; part of customer expectations, which are a combination of cost, time, quantity, quality, and human factors.

value added
The increase in value of input material when transformed into semifinished or finished goods.

variety store
Retailer that offers an extensive range and assortment of low-priced merchandise.

venture-team concept
An organizational strategy for developing new products through combining the management resources of marketing, technology, capital, and management expertise in a team.

vertical marketing system
A network of channel intermediaries organized and centrally managed to produce the maximum competitive impact.

vertical Web community
A site that acts as a comprehensive source of information and dialogue for a particular vertical market.

warranty
A guarantee to the buyer that the supplier will replace a defective product (or part of a product) or refund its purchase price during a specified period of time.

Weber’s Law
The higher the initial intensity of a stimulus, the greater the amount of the change in intensity that is necessary in order for a difference to be noticed.

wheel of retailing
Hypothesized process of change in retailing, which suggests that new types of retailers gain a competitive foothold by offering lower prices through the reduction or elimination of services; but once established, they add more services and their prices gradually rise, so that they then become vulnerable to a new low-price retailer with minimum services—and the wheel turns.

wholesalers
Wholesaling intermediaries who take title to the products they handle.

wholesaling
The activities of intermediaries who sell to retailers, other wholesalers, and business users but not in significant amounts to ultimate consumers.

wholesaling intermediaries
Intermediaries who assume title, as well as agents and brokers who perform important wholesaling activities without taking title to the products.

World Trade Organization (WTO)
The international body that deals with the rules of trade between nations.

zone pricing
The market is divided into different zones and a price is established within each.