(See related pages)
Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
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| Administered distribution system | A distribution system in which producers manage all of the marketing functions at the retail level (See page(s) 466) |
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| Advertising | Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message (See page(s) 468) |
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| Agents/brokers | Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods (See page(s) 459) |
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| Brand | A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors (See page(s) 452) |
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| Brand awareness | How quickly or easily a given brand name comes to mind when a product category is mentioned (See page(s) 453) |
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| Brand equity | The combination of factors— such as awareness, loyalty, perceived quality, images, and emotions—that people associate with a given brand name (See page(s) 452) |
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| Brand loyalty | The degree to which customers are satisfied, like the brand, and are committed to further purchase (See page(s) 452) |
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| Brand manager | A manager who has direct responsibility for one brand or one product line; called a product manager in some firms (See page(s) 453) |
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| Break-even analysis | The process used to determine profitability at various levels of sales (See page(s) 455) |
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| Bundling | Grouping two or more products together and pricing them as a unit (See page(s) 457) |
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| Channel of distribution | A whole set of marketing intermediaries, such as wholesalers and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers (See page(s) 459) |
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| Competition-based pricing | A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors’ prices (See page(s) 455) |
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| Contractual distribution system | A distribution system in which members are bound to cooperate through contractual agreements (See page(s) 466) |
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| Convenience products | Goods and services that the consumer wants to purchase frequently and with a minimum of effort (See page(s) 449) |
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| Corporate distribution system | A distribution system in which all of the organizations in the channel of distribution are owned by one firm (See page(s) 465) |
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| Direct marketing | Any activity that directly links manufacturers or intermediaries with the ultimate consumer (See page(s) 465) |
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| Direct selling | Selling to consumers in their homes or where they work (See page(s) 465) |
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| Electronic retailing | Selling goods and services to ultimate customers (e.g., you and me) over the Internet (See page(s) 464) |
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| Everyday low pricing (EDLP) | Setting prices lower than competitors and then not having any special sales (See page(s) 456) |
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| Exclusive distribution | Distribution that sends products to only one retail outlet in a given geographic area (See page(s) 463) |
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| High–low pricing strategy | Set prices that are higher than EDLP stores, but have many special sales where the prices are lower than competitors (See page(s) 457) |
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| Industrial goods | Products used in the production of other products. Sometimes called business goods or B2B goods (See page(s) 450) |
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| Integrated marketing communication (IMC) | A technique that combines all the promotional tools into one comprehensive and unified promotional strategy (See page(s) 468) |
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| Intensive distribution | Distribution that puts products into as many retail outlets as possible (See page(s) 463) |
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| Marketing intermediaries | Organizations that assist in moving goods and services from producers to industrial and consumer users (See page(s) 459) |
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| Penetration price strategy | A strategy in which the product is priced low to attract many customers and discourage competitors (See page(s) 456) |
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| Personal selling | The face-to-face presentation and promotion of goods and services (See page(s) 470) |
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| Price leadership | The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow. (See page(s) 455) |
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| Product differentiation | The creation of real or perceived product differences (See page(s) 449) |
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| Product line | A group of products that are physically similar or are intended for a similar market (See page(s) 448) |
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| Product mix | The combination of product lines offered by a manufacturer (See page(s) 448) |
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| Promotion mix | The combination of promotional tools an organization uses (See page(s) 467) |
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| Psychological pricing | Pricing goods and services at price points that make the product appear less expensive than it is (See page(s) 457) |
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| Public relations (PR) | The management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance (See page(s) 472) |
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| Publicity | Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller (See page(s) 473) |
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| Pull strategy | Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they’ll request the products from retailers (See page(s) 476) |
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| Push strategy | Promotional strategy in which the producer uses all the promotional tools to convince wholesalers and retailers to stock and sell merchandise (See page(s) 476) |
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| Retailer | An organization that sells to ultimate consumers (See page(s) 459) |
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| Sales promotion | The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities (See page(s) 474) |
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| Sampling | A promotional tool in which a company lets consumers have a small sample of a product for no charge (See page(s) 475) |
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| Selective distribution | Distribution that sends products to only a preferred group of retailers in an area (See page(s) 463) |
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| Shopping products | Goods and services that the consumer buys only after comparing value, quality, price, and style from a variety of sellers. (See page(s) 450) |
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| Skimming price strategy | A strategy in which a new product is priced high to make optimum profit while there’s little competition (See page(s) 456) |
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| Specialty products | Consumer goods and services with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them (See page(s) 450) |
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| Target costing | Designing a product so that it satisfies customers and meets the profit margins desired by the firm (See page(s) 455) |
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| Telemarketing | The sale of goods and services by telephone (See page(s) 464) |
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| Total fixed costs | All the expenses that remain the same no matter how many products are made or sold (See page(s) 455) |
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| Total product offer | Everything that consumers evaluate when deciding whether to buy something; also called a value package (See page(s) 447) |
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| Trademark | A brand that has been given exclusive legal protection for both the brand name and the pictorial design (See page(s) 452) |
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| Unsought products | Goods and services that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem (See page(s) 450) |
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| Utility | An economic term that refers to the value or want-satisfying ability that’s added to goods or services by organizations when the products are made more useful or accessible to consumers than before (See page(s) 461) |
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| Value | Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs (See page(s) 446) |
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| Variable costs | Costs that change according to the level of production (See page(s) 456) |
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| Wholesaler | A marketing intermediary that sells to other organizations (See page(s) 459) |