Glossary

80/20 rule	A concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers. (See page(s) 234)



above-, at-, or below-market pricing	Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark. (See page(s) 364)



account management policies	Specifies whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. (See page(s) 538)



action item list	An aid to implementing a marketing plan, consisting of four columns: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered. (See page(s) 590)



adaptive selling	A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. (See page(s) 531)



advertising	Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor. (See page(s) 466, 490)



all-you-can-afford budgeting	Allocating funds to promotion only after all other budget items are covered. (See page(s) 477)



attitude	A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. (See page(s) 127)



average revenue (AR)	The average amount of money received for selling one unit of a product, or simply the price of that unit. (See page(s) 341)



baby boomers	The generation of children born between 1946 and 1964. (See page(s) 73)



back translation	The practice where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors. (See page(s) 180)



balance of trade	The difference between the monetary value of a nation's exports and imports. (See page(s) 167)



barriers to entry	Business practices or conditions that make it difficult for new firms to enter the market. (See page(s) 84)



barter	The practice of exchanging goods and services for other goods and services rather than for money. (See page(s) 331)



basing-point pricing	Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer. (See page(s) 373)



beliefs	A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. (See page(s) 127)



bidder's list	A list of firms believed to be qualified to supply a given item. (See page(s) 156)



blended family	A family formed by merging two previously separated units into a single household. (See page(s) 75)



blog	A web page that serves as a publicly accessible personal journal for an individual or organization. (See page(s) 562)



bots	Electronic shopping agents or robots that comb websites to compare prices and product or service features. (See page(s) 561)



bottom of the pyramid	The largest but poorest socioeconomic group in the world consisting of 4 billion people who reside in developing countries and live on less than $2 per day. (See page(s) 181)



brand equity	The added value a given brand name gives to a product beyond the functional benefits provided. (See page(s) 293)



brand licensing	A contractual agreement whereby one company (licensor) allows its brand name(s) or trademark(s) to be used with products or services offered by another company (licensee) for a royalty or fee. (See page(s) 294)



brand loyalty	A favorable attitude toward and consistent purchase of a single brand over time. (See page(s) 126)



brand name	Any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's goods or services. (See page(s) 292)



brand personality	A set of human characteristics associated with a brand name. (See page(s) 293)



branding	A marketing decision by an organization to use a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors. (See page(s) 292)



breadth of product line	The variety of different items a store carries. (See page(s) 443)



break-even analysis	A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. (See page(s) 346)



break-even chart	A graphic presentation of the break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold. (See page(s) 348)



break-even point (BEP)	The quantity at which total revenue and total cost are equal. (See page(s) 346)



brokers	Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. (See page(s) 399)



bundle pricing	The marketing of two or more products in a single package price. (See page(s) 359)



business	The clear, broad, underlying industry category or market sector of an organization's offering. (See page(s) 33)



business analysis	The stage of the new-product process that involves specifying the product features and marketing strategy and making necessary financial projections needed to commercialize a product. (See page(s) 269)



business goods	Products that assist directly or indirectly in providing products for resale. Also called B2B goods, industrial goods, or organizational goods. (See page(s) 255)



business marketing	The marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others. (See page(s) 144)



business plan	A road map for the entire organization for a specified future period of time, such as one year or five years. (See page(s) 54)



buy classes	Consists of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy. (See page(s) 153)



buying center	The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision. (See page(s) 151)



capacity management	Integrating the service component of the marketing mix with efforts to influence consumer demand. (See page(s) 319)



category management	An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category. (See page(s) 454)



cause marketing	Occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. (See page(s) 107)



caveat emptor	The legal concept of "let the buyer beware" that was pervasive in the American business culture before the 1960s. (See page(s) 99)



central business district	The oldest retail setting, usually located in the community's downtown area. (See page(s) 453)



channel captain	A channel member (producer, wholesaler, or retailer) that coordinates, directs, and supports other channel members. (See page(s) 408)



channel conflict	Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. (See page(s) 407)



channel of communication	The means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process. (See page(s) 464)



channel partnership	Consists of agreements and procedures among channel members for ordering and physically distributing a producer's products through the channel to the ultimate consumer. (See page(s) 401)



choiceboard	An interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. (See page(s) 552)



code of ethics	A formal statement of ethical principles and rules of conduct. (See page(s) 101)



cognitive dissonance	The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. (See page(s) 118)



collaborative filtering	A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. (See page(s) 552)



commercialization	The stage of the new-product process that involves positioning and launching a new product in full-scale production and sales. (See page(s) 272)



communication	The process of conveying a message to others and requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. (See page(s) 464)



community shopping center	A retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive. (See page(s) 453)



company forecast	The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. Also called sales forecast. (See page(s) 246)



competencies	An organization's special capabilities, including skills, technologies, and resources, which distinguish it from other organizations and provide value to its customers. (See page(s) 35)



competition	The alternative firms that could provide a product to satisfy a specific market's needs. (See page(s) 83)



competitive advantage	A unique strength relative to competitors, often based on quality, time, cost, or innovation. (See page(s) 35)



competitive parity budgeting	Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market. (See page(s) 477)



consideration set	The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. (See page(s) 117)



constraints	In a decision, the restrictions placed on potential solutions to a problem. (See page(s) 202)



consultative selling	A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. (See page(s) 531)



consumer behavior	The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. (See page(s) 116)



Consumer Bill of Rights (1962)	A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard. (See page(s) 99)



consumer ethnocentrism	The tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products. (See page(s) 180)



consumer goods	Products purchased by the ultimate consumer. (See page(s) 255)



consumer socialization	The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. (See page(s) 132)



consumerism	A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions. (See page(s) 87)



consumer-oriented sales promotion	Sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions. (See page(s) 509)



convenience goods	Items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. (See page(s) 257)



cookies	Computer files that a marketer can download onto the computer of an online shopper who visits the marketer's website. (See page(s) 564)



cooperative advertising	Advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products. (See page(s) 514)



core values	The fundamental, passionate, and enduring principles of an organization that guide its conduct over time. (See page(s) 31)



corporate level	The level in an organization where top management directs overall strategy for the entire organization. (See page(s) 29)



cost focus strategy	One of Porter's generic business strategies that involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments. (See page(s) 581)



cost leadership strategy	One of Porter's generic business strategies that focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments. (See page(s) 580)



cost per thousand (CPM)	The cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000). (See page(s) 498)



cost-plus pricing	Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price. (See page(s) 360)



countertrade	The practice of using barter rather than money for making global sales. (See page(s) 166)



cross-channel shopper	A consumer who researches offerings online and then purchases them at retail stores. (See page(s) 565)



cross-cultural analysis	The study of similarities and differences among consumers in two or more nations or societies. (See page(s) 177)



cross-functional teams	A small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals. (See page(s) 30)



cultural symbols	Things that represent ideas and concepts. (See page(s) 178)



culture	The set of values, ideas, and attitudes that are learned and shared among the members of a group. (See page(s) 76)



currency exchange rate	The price of one country's currency expressed in terms of another country's currency. (See page(s) 183)



customary pricing	Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors. (See page(s) 364)



customer contact audit	A flowchart of the points of interaction between consumers and a service provider. (See page(s) 316)



customer experience	The internal response that customers have to all aspects of an organization and its offerings. (See page(s) 19)



customer experience management (CEM)	The process of managing the entire customer experience within the company. (See page(s) 318)



customer relationship management (CRM)	The process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace. (See page(s) 19)



customer service	The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience. (See page(s) 423)



customer value	The unique combination of benefits received by targeted buyers that includes quality, price, convenience, on-time delivery, and both before-sale and after-sale service. (See page(s) 14)



customerization	The growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. (See page(s) 562)



customs	What is considered normal and expected about the way people do things in a specific country. (See page(s) 177)



data	The facts and figures related to the problem, divided into two main parts: secondary data and primary data. (See page(s) 204)



data mining	The extraction of hidden predictive information from large databases. (See page(s) 217)



decision	A conscious choice from among two or more alternatives. (See page(s) 200)



decoding	The process of having the receiver take a set of symbols, the message, and transform them back to an idea during the communication process. (See page(s) 464)



demand curve	A graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price. (See page(s) 339)



demand factors	Factors that determine consumers' willingness and ability to pay for goods and services. (See page(s) 340)



demographics	Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation. (See page(s) 71)



depth of product line	The store carries a large assortment of each item. (See page(s) 443)



derived demand	The demand for industrial products and services is driven by, or derived from, demand for consumer products and services. (See page(s) 147)



development	The stage of the new-product process that involves turning the idea on paper into a prototype. (See page(s) 270)



differentiation strategy	One of Porter's generic business strategies that requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments. (See page(s) 581)



differentiation focus strategy	One of Porter's generic business strategies that requires products to have significant points of difference to target one or only a few market segments. (See page(s) 581)



direct forecast	Estimating the value to be forecast without any intervening steps. (See page(s) 246)



direct investment	A global market-entry strategy that entails a domestic firm actually investing in and owning a foreign subsidiary or division. (See page(s) 188)



direct marketing	A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. (See page(s) 469)



direct marketing channels	Allowing consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. (See page(s) 395)



direct orders	The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. (See page(s) 482)



discretionary income	The money that remains after paying for taxes and necessities. (See page(s) 81)



disintermediation	Channel conflict that arises when a channel member bypasses another member and sells or buys products direct. (See page(s) 407)



disposable income	The money a consumer has left after paying taxes to use for food, shelter, clothing, and transportation. (See page(s) 80)



diversification analysis	The search for growth opportunities from among current and new markets as well as current and new products. (See page(s) 581)



dual distribution	An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product. (See page(s) 396)



dumping	When a firm sells a product in a foreign country below its domestic price or below its actual cost. (See page(s) 192)



dynamic pricing	The practice of changing prices for products and services in real time in response to supply and demand conditions. (See page(s) 563)



economic espionage	The clandestine collection of trade secrets or proprietary informtion about a company's competitors. (See page(s) 100)



Economic Espionage Act (1996)	A law that makes the theft of trade secrets by foreign entities a federal crime in the United States. (See page(s) 169)



economy	Pertains to the income, expenditures, and resources that affect the cost of running a business and household. (See page(s) 78)



efficient consumer response	Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. Also called quick response. (See page(s) 423)



eight-second rule	A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. (See page(s) 561)



electronic commerce	Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services. (See page(s) 83)



electronic data interchanges (EDIs)	Combining proprietary computer and telecommunication technologies to exchange electronic invoices, payments, and information among suppliers, manufacturers, and retailers. (See page(s) 421)



electronic marketing channels	Employing the Internet to make goods and services available for consumption or use by consumers or business buyers. (See page(s) 394)



e-marketplaces	Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services. Also called B2B exchanges or e-hubs. (See page(s) 157)



emotional intelligence	The ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis. (See page(s) 539)



encoding	The process of having the sender transform an idea into a set of symbols during the communication process. (See page(s) 464)



environmental forces	The uncontrollable factors in a marketing decision involving social, economic, technological, competitive, and regulatory forces. (See page(s) 13)



environmental scanning	The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. (See page(s) 70)



ethics	The moral principles and values that govern the actions and decisions of an individual or group. (See page(s) 96)



evaluative criteria	Factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. (See page(s) 117)



everyday low pricing (EDLP)	The practice of replacing promotional allowances with lower manufacturer list prices. (See page(s) 372)



exchange	The trade of things of value between buyer and seller so that each is better off after the trade. (See page(s) 7)



exclusive distribution	A level of distribution density whereby only one retail outlet in a specific geographical area carries the firm's products. (See page(s) 404)



experience curve pricing	A method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles, resulting in possible rapid price reductions. (See page(s) 361)



exporting	A global market-entry strategy in which a company produces goods in one country and sells them in another country. (See page(s) 185)



extranets	Internet-based technologies used to permit communication between a company and its suppliers, distributors, and other partners. (See page(s) 83)



failure fee	A penalty payment a manufacturer makes to compensate a retailer for sales its valuable shelf space failed to make. (See page(s) 273)



family life cycle	The distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. (See page(s) 132)



feedback	In the feedback loop, the sender's interpretation of the response, which indicates whether a message was decoded and understood as intended during the communication process. (See page(s) 466)



field of experience	A mutually shared understanding and knowledge that the sender and receiver apply to a message so that it can be communicated effectively during the communication process. (See page(s) 466)



fixed cost (FC)	The sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. (See page(s) 345)



flexible-price policy	Setting different prices for products and services depending on individual buyers and purchase situations. Also called dynamic pricing. (See page(s) 366)



FOB origin pricing	The "free on board" (FOB) price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (seller's factory or warehouse). (See page(s) 372)



Foreign Corrupt Practices Act (1977)	A law, amended by the International Anti-Dumping and Fair Competition Act (1998), that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country. (See page(s) 178)



form of ownership	Distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet. (See page(s) 440)



formula selling presentation	A presentation format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect. (See page(s) 531)



four I's of services	The four unique elements to services: intangibility, inconsistency, inseparability, and inventory. (See page(s) 309)



franchising	A contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules. (See page(s) 401)



frequency	The average number of times a person in the target audience is exposed to a message or an advertisement. (See page(s) 498)



full-service agency	An advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production. (See page(s) 507)



functional groupings	Organizational groupings that represent the different departments or business activities within a firm. (See page(s) 592)



functional level	The level in an organization where groups of specialists actually create value for the organization. (See page(s) 30)



gap analysis	A type of analysis that identifies the differences between a consumer's expectations about and experiences with a service based on dimensions of service quality. (See page(s) 316)



Generation X	Includes the 15 percent of the population born between 1965 and 1976. Also called baby bust. (See page(s) 73)



Generation Y	Includes the 72 million Americans born between 1977 and 1994. Also called echo-boom or baby boomlet. (See page(s) 74)



generic business strategy	A strategy that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage. (See page(s) 579)



geographical groupings	Organizational groupings in which sales territories are subdivided according to geographical location. (See page(s) 592)



global brand	A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs. (See page(s) 175)



global competition	Exists when firms originate, produce, and market their products and services worldwide. (See page(s) 173)



global consumers	Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services. (See page(s) 175)



global marketing strategy	Transnational firms that employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. (See page(s) 174)



goals	Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives. (See page(s) 34)



gray market	A situation where products are sold through unauthorized channels of distribution. Also called parallel importing. (See page(s) 192)



green marketing	Marketing efforts to produce, promote, and reclaim environmentally sensitive products. (See page(s) 106)



gross domestic product (GDP)	The monetary value of all goods and services produced in a country during one year. (See page(s) 167)



gross income	The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau. (See page(s) 79)



gross rating points (GRPs)	A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency. (See page(s) 498)



hierarchy of effects	The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). The stages include awareness, interest, evaluation, trial, and adoption. (See page(s) 476)



hypermarket	A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers consumers everything in a single outlet, eliminating the need to shop at more than one location. (See page(s) 444)



idea generation	The stage of the new-product process that involves developing a pool of concepts as candidates for new products. (See page(s) 267)



idle production capacity	Occurs when the service provider is available but there is no demand. (See page(s) 311)



industrial distributor	An intermediary that performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing. (See page(s) 394)



industry potential	The maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms. Also called market potential. (See page(s) 245)



infomercials	Program-length (30-minute) advertisements that take an educational approach to communication with potential customers. (See page(s) 500)



information technology	Involves operating computer networks that collect, store, and process data. (See page(s) 217)



in-house agencies	Consists of the company's own advertising staff, who may provide full services or a limited range of services. (See page(s) 507)



institutional advertisements	Advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service. (See page(s) 491)



integrated marketing communications (IMC)	The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences. (See page(s) 464)



intensive distribution	A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible. (See page(s) 404)



interactive marketing	Two-way buyer–seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller. (See page(s) 552)



internal marketing	The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers. (See page(s) 318)



intertype competition	Competition between very dissimilar types of retail outlets. (See page(s) 444)



intranet	An Internet-based network used within the boundaries of an organization. (See page(s) 83)



involvement	The personal, social, and economic significance of the purchase to the consumer. (See page(s) 119)



ISO 14000	Worldwide standards for environmental quality and green marketing practices developed by the International Standards Organization (ISO). (See page(s) 107)



ISO 9000	Standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO). (See page(s) 149)



joint venture	A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership, control, and profits of the new company. (See page(s) 187)



just-in-time (JIT) concept	An inventory supply system that operates with very low inventories and requires fast, on-time delivery. (See page(s) 431)



key account management	The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. (See page(s) 537)



label	An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients. (See page(s) 299)



laws	Society's values and standards that are enforceable in the courts. (See page(s) 96)



lead generation	The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information. (See page(s) 482)



lead time	The lag from ordering an item until it is received and ready for use or sale. Also called order cycle time or replenishment time. (See page(s) 423)



learning	Those behaviors that result from (1) repeated experience and (2) reasoning. (See page(s) 126)



level of service	The degree of service provided to the customer from three types of retailers: self-, limited-, and full-service. (See page(s) 440)



lifestyle	A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. (See page(s) 128)



limited-service agencies	Advertising agencies that specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space. (See page(s) 507)



line positions	Managers who have the authority and responsibility to issue orders to the people who report to them. (See page(s) 592)



linear trend extrapolation	Using a straight line to extend a pattern observed in past data into the future. (See page(s) 246)



logistics	Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. (See page(s) 416)



logistics management	The practice of organizing the cost- effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements. (See page(s) 416)



loss-leader pricing	Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. (See page(s) 364)



lost-horse forecast	Making a forecast using the last known value and modifying it according to positive or negative factors expected in the future. (See page(s) 246)



make–buy decision	An evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself. (See page(s) 155)



manufacturer's agents	Agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturer's representatives. (See page(s) 399)



marginal analysis	A continuing, concise trade-off of incremental costs against incremental revenues. (See page(s) 396)



marginal cost (MC)	The change in total cost that results from producing and marketing one additional unit of a product. (See page(s) 345)



marginal revenue (MR)	The change in total revenue that results from producing and marketing one additional unit. (See page(s) 341)



market	People with both the desire and the ability to buy a specific product. (See page(s) 12)



market modification	A strategy in which a company tries to find new customers, increase a product's use among existing customers, or create new use situations. (See page(s) 288)



market orientation	An organization that focuses its efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value. (See page(s) 19)



market potential	The maximum total sales of a product by all firms to a segment during a specified time period under specified environmental conditions and marketing efforts of the firms. Also called industry potential. (See page(s) 245)



market segmentation	Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action. (See page(s) 46, 226)



market segments	The relatively homogeneous groups of prospective buyers that result from the market segmentation process. (See page(s) 226)



market share	The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. (See page(s) 34)



market testing	The stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. (See page(s) 271)



market-based groupings	Organizational groupings that utilize specific customer segments. (See page(s) 592)



marketing	The activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large. (See page(s) 6)



marketing channel	Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. (See page(s) 390)



marketing concept	The idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals. (See page(s) 18)



marketing dashboard	The visual display on a single computer screen of the essential information related to achieving a marketing objective. (See page(s) 41)



marketing metric	A measure of the quantitative value or trend of a marketing activity or result. (See page(s) 41)



marketing mix	The marketing manager's controllable factors— product, price, promotion, and place—that can be used to solve a marketing problem. (See page(s) 13)



marketing plan	A road map for the marketing activities of an organization for a specified future period of time, such as one year or five years. (See page(s) 42)



marketing program	A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers. (See page(s) 15)



marketing research	The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. (See page(s) 199)



marketing ROI	The application of modern measurement technologies to understand, quantify, and optimize marketing spending. (See page(s) 594)



marketing strategy	The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. (See page(s) 49)



marketing tactics	Detailed day-to-day operational decisions essential to the overall success of marketing strategies. (See page(s) 49)



market–product grid	A framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. (See page(s) 237)



marketspace	Information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings. (See page(s) 83)



measures of success	Criteria or standards used in evaluating proposed solutions to a problem. (See page(s) 201)



merchandise line	Describes how many different types of products a store carries and in what assortment. (See page(s) 440)



merchant wholesalers	Independently owned firms that take title to the merchandise they handle. (See page(s) 397)



message	The information sent by a source to a receiver during the communication process. (See page(s) 464)



microfinance	The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generation activities. (See page(s) 183)



mission	A statement of the organization's function in society, often identifying its customers, markets, products, and technologies. Often used interchangeably with vision. (See page(s) 32)



mixed branding	A branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market. (See page(s) 298)



moral idealism	A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. (See page(s) 104)



motivation	The energizing force that stimulates behavior to satisfy a need. (See page(s) 122)



multibranding	A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment. (See page(s) 297)



multichannel marketing	The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. (See page(s) 395)



multichannel retailers	Retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television, and online retailing. (See page(s) 457)



multicultural marketing	Combinations of the marketing mix that reflects the unique attitudes, ancestry, communication preferences, and lifestyles of different races. (See page(s) 76)



multidomestic marketing strategy	Multinational firms that have as many different product variations, brand names, and advertising programs as countries in which they do business. (See page(s) 174)



multiproduct branding	A branding strategy in which a company uses one name for all its products in a product class. (See page(s) 296)



need-satisfaction presentation	A presentation format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers. (See page(s) 531)



new-product process	The stages a firm goes through to identify business opportunities and convert them to a salable good or service. (See page(s) 266)



new-product strategy development	The stage of the new-product process that defines the role for a new product in terms of the firm's overall corporate objectives. (See page(s) 266)



noise	Extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process. (See page(s) 466)



nonprobability sampling	Using arbitrary judgments to select the sample so that the chance of selecting a particular element may be unknown or zero. (See page(s) 204)



North American Industry Classification System (NAICS)	Provides common industry definitions for Canada, Mexico, and the United States, which makes easier the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA). (See page(s) 145)



objective and task budgeting	Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks. (See page(s) 477)



objectives	Statements of an accomplishment of a task to be achieved, often by a specific time. Also called goals. (See page(s) 34)



observational data	Facts and figures obtained by watching, either mechanically or in person, how people actually behave. (See page(s) 206)



odd-even pricing	Setting prices a few dollars or cents under an even number. (See page(s) 358)



off-peak pricing	Charging different prices during different times of the day or days of the week to reflect variations in demand for the service. (See page(s) 320)



off-price retailing	Selling brand-name merchandise at lower than regular prices. (See page(s) 452)



one-price policy	Setting one price for all buyers of a product or service. Also called fixed pricing. (See page(s) 366)



online consumers	The subsegment of all Internet users who employ Internet-enabled technology to research products and services and make purchases. (See page(s) 557)



opinion leaders	Individuals who exert direct or indirect social influence over others. (See page(s) 130)



order getter	Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. (See page(s) 525)



order taker	Processes routine orders or reorders for products that were already sold by the company. (See page(s) 524)



organizational buyers	Those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale. (See page(s) 21, 144)



organizational buying behavior	The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers. (See page(s) 154)



organizational buying criteria	The objective attributes of the supplier's products and services and the capabilities of the supplier itself. (See page(s) 149)



organizational culture	A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization. (See page(s) 33)



packaging	A component of a product that refers to any container in which it is offered for sale and on which label information is conveyed. (See page(s) 299)



partnership selling	The practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and ultimately the customer. Also called enterprise selling. (See page(s) 524)



penetration pricing	Setting a low initial price on a new product to appeal immediately to the mass market. (See page(s) 357)



perceived risk	The anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. (See page(s) 125)



percentage of sales budgeting	Allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. (See page(s) 476)



perception	The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. (See page(s) 124)



perceptual map	A means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands and then take marketing actions. (See page(s) 244)



permission marketing	The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer. (See page(s) 553)



personal selling	The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. (See page(s) 467, 522)



personal selling process	Sales activities occurring before and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up. (See page(s) 528)



personality	A person's consistent behaviors or responses to recurring situations. (See page(s) 123)



personalization	The consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences. (See page(s) 553)



points of difference	Those characteristics of a product that make it superior to competitive substitutes. (See page(s) 46)



posttests	Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose. (See page(s) 508)



power center	A huge shopping strip with multiple anchor (or national) stores. (See page(s) 453)



predatory pricing	The practice of charging a very low price for a product with the intent of driving competitors out of business. (See page(s) 376)



prestige pricing	Setting a high price so that quality- or statusconscious consumers will be attracted to the product and buy it. (See page(s) 357)



pretests	Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement. (See page(s) 506)



price	The money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service. (See page(s) 331)



price discrimination	The practice of charging different prices to different buyers for goods of like grade and quality. (See page(s) 374)



price elasticity of demand	The percentage change in quantity demanded relative to a percentage change in price. (See page(s) 343)



price fixing	A conspiracy among firms to set prices for a product. (See page(s) 374)



price lining	Setting the price of a line of products at a number of different specific pricing points. (See page(s) 358)



price war	Successive price cutting by competitors to increase or maintain their unit sales or market share. (See page(s) 368)



pricing constraints	Factors that limit the range of prices a firm may set. (See page(s) 336)



pricing objectives	Specifying the role of price in an organization's marketing and strategic plans. (See page(s) 334)



primary data	Facts and figures that are newly collected for the project. (See page(s) 204)



private branding	A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding. (See page(s) 298)



probability sampling	Using precise rules to select the sample such that each element of the population has a specific known chance of being selected. (See page(s) 203)



product	A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. (See page(s) 254)



product advertisements	Advertisements that focus on selling a good or service and that take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder. (See page(s) 490)



product class	Consists of the entire product category or industry. (See page(s) 286)



product differentiation	A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products. (See page(s) 226)



product form	Consists of variations of a product within the product class. (See page(s) 286)



product life cycle	Describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. (See page(s) 280)



product line	A group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. (See page(s) 255)



product-line groupings	Organizational groupings in which a unit is responsible for specific product offerings. (See page(s) 592)



product line pricing	The setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. (See page(s) 367)



product mix	The number of product lines offered by a company. (See page(s) 255)



product modification	Altering a product's characteristic, such as its quality, performance, or appearance, to increase the product's value and sales. (See page(s) 288)



product or program champion	A person who is able and willing to cut red tape and move the program forward. (See page(s) 589)



product placement	A consumer sales promotion tool that uses a brand-name product in a movie, television show, video, or a commercial for another product. (See page(s) 512)



product positioning	The place an offering occupies in consumers' minds on important attributes relative to competitive products. (See page(s) 243)



product repositioning	Changing the place an offering occupies in consumers' minds relative to competitive products. (See page(s) 244)



production goods	Items used in the manufacturing process that become part of the final product. (See page(s) 257)



profit	The money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings. (See page(s) 28)



profit equation	Profit = Total revenue – Total cost; or Profit = (Unit price × Quantity sold) – (Fixed cost + Variable cost). (See page(s) 333)



promotional allowances	Cash payments or extra amount of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product. (See page(s) 372)



promotional mix	The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product. (See page(s) 464)



protectionism	The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas. (See page(s) 170)



protocol	A statement that, before product development begins, identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) what the product will be and do. (See page(s) 261)



public relations	A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. (See page(s) 468)



publicity	A nonpersonal, indirectly paid presentation of an organization, good, or service. (See page(s) 468)



publicity tools	Methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost. Examples include news releases, news conferences, and public service announcements. (See page(s) 515)



pull strategy	Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. (See page(s) 475)



purchase decision process	The five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. (See page(s) 116)



push strategy	Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. (See page(s) 474)



quantity discounts	Reductions in unit costs for a larger order. (See page(s) 370)



questionnaire data	Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors. (See page(s) 209)



quick response	Inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise, which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistic expenses. Also called efficient consumer response. (See page(s) 423)



quota	A restriction placed on the amount of a product allowed to enter or leave a country. (See page(s) 171)



rating	The percentage of households in a market that are tuned to a particular TV show or radio station. (See page(s) 498)



reach	The number of different people or households exposed to an advertisement. (See page(s) 498)



receivers	Consumers who read, hear, or see the message sent by a source during the communication process. (See page(s) 464)



reciprocity	An industrial buying practice in which two organizations agree to purchase each other's products and services. (See page(s) 151)



reference groups	People to whom an individual looks as a basis for self-appraisal or as a source of personal standards. (See page(s) 132)



regional shopping centers	Consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores. (See page(s) 453)



regulation	Restrictions state and federal laws place on business with regard to the conduct of its activities. (See page(s) 86)



relationship marketing	Linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits. (See page(s) 15)



relationship selling	The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. (See page(s) 524)



response	In the feedback loop, the impact the message had on the receiver's knowledge, attitudes, or behaviors during the communication process. (See page(s) 466)



retail life cycle	The process of growth and decline that retail outlets, like products, experience. Consists of the early growth, accelerated development, maturity, and decline stages. (See page(s) 456)



retail positioning matrix	A matrix that positions retail outlets on two dimensions: breadth of product line and value added. (See page(s) 450)



retailing	All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use. (See page(s) 438)



retailing mix	The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise. (See page(s) 451)



reverse auction	In an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other. (See page(s) 159)



reverse logistics	A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. (See page(s) 432)



sales forecast	The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts. Also called company forecast. (See page(s) 246)



sales management	Planning the selling program and implementing and controlling the personal selling effort of the firm. (See page(s) 522)



sales plan	A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. (See page(s) 534)



sales promotion	A short-term inducement of value offered to arouse interest in buying a good or service. (See page(s) 469)



sales quota	Specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. (See page(s) 541)



sales response function	Relates the expense of marketing effort to the marketing results obtained. (See page(s) 576)



salesforce automation (SFA)	The use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient. (See page(s) 542)



salesforce survey forecast	Asking the firm's salespeople to estimate sales during a coming period. (See page(s) 246)



sampling	Selecting representative elements from a population. (See page(s) 203)



scrambled merchandising	Offering several unrelated product lines in a single store. (See page(s) 443)



screening and evaluation	The stage of the new-product process that involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort. (See page(s) 269)



secondary data	Facts and figures that have already been recorded before the project at hand. (See page(s) 204)



selective distribution	A level of distribution density whereby a firm selects a few retail outlets in a specific geographical area to carry its products. (See page(s) 404)



self-concept	The way people see themselves and the way they believe others see them. (See page(s) 123)



self-regulation	An alternative to government control where an industry attempts to police itself. (See page(s) 89)



selling agents	Agents who represent a single producer and are responsible for the entire marketing function of that producer. (See page(s) 399)



semiotics	A field of study that examines the correspondence between symbols and their role in the assignment of meaning for people. (See page(s) 178)



service continuum	The range of offerings companies bring to the market, from the tangible to the intangible or good-dominant to service-dominant offerings. (See page(s) 311)



services	Intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value. (See page(s) 308)



share points	An analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. (See page(s) 577)



shopping goods	Items for which the consumer compares several alternatives on criteria, such as price, quality, or style. (See page(s) 257)



situation analysis	Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's plans and the external factors and trends affecting it. (See page(s) 44)



situational influences	The five aspects of the purchase situation that impacts the consumer's purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states. (See page(s) 121)



skimming pricing	When introducing a new or innovative product, setting the highest initial price that customers really desiring the product are willing to pay. (See page(s) 356)



slotting fee	A payment a manufacturer makes to place a new item on a retailer's shelf. (See page(s) 273)



social audit	A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. (See page(s) 107)



social class	The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. (See page(s) 134)



social forces	The demographic characteristics of the population and its values. (See page(s) 71)



social responsibility	The idea that organizations are part of a larger society and are accountable to that society for their actions. (See page(s) 105)



societal marketing concept	The view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. (See page(s) 20)



source	A company or person who has information to convey during the communication process. (See page(s) 464)



spam	Communications that take the form of electronic junk mail or unsolicited e-mail. (See page(s) 562)



specialty goods	Items that a consumer makes a special effort to search out and buy. (See page(s) 257)



staff positions	People who have the authority and responsibility to advise people in line positions but cannot issue direct orders to them. (See page(s) 592)



standard markup pricing	Adding a fixed percentage to the cost of all items in a specific product class. (See page(s) 360)



statistical inference	Drawing conclusions about a population from a sample taken from that population. (See page(s) 204)



stimulus-response presentation	A presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy. (See page(s) 530)



strategic alliances	Agreements among two or more independent firms to cooperate for the purpose of achieving common goals. (See page(s) 173)



strategic business unit (SBU)	A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. (See page(s) 30)



strategic business unit (SBU) level	The level in an organization where managers set a more specific strategic direction for their businesses to exploit value creating opportunities. (See page(s) 30)



strategic channel alliances	A practice whereby one firm's marketing channel is used to sell another firm's products. (See page(s) 396)



strategic marketing process	The approach whereby an organization allocates its marketing mix resources to reach its target markets. (See page(s) 44)



strategy	An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. (See page(s) 29)



strip location	A cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive. (See page(s) 453)



subcultures	Subgroups within the larger, or national, culture with unique values, ideas, and attitudes. (See page(s) 135)



subliminal perception	Seeing or hearing messages without being aware of them. (See page(s) 125)



supplier development	The deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers. (See page(s) 149)



supply chain	A sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users. (See page(s) 416)



supply chain management	The integration and organization of information and logistic activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers. (See page(s) 416)



supply partnership	A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer. (See page(s) 151)



support goods	Items used to assist in producing other goods and services. (See page(s) 257)



survey of buyers' intentions forecast	Asking prospective customers if they are likely to buy the product during some future time period. (See page(s) 246)



sustainable development	Conducting business in a way that protects the natural environment while making economic progress. (See page(s) 108)



SWOT analysis	An acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats. (See page(s) 44)



synergy	The increased customer value achieved through performing organizational functions more efficiently. (See page(s) 229)



synergy analysis	Seeks growth opportunities by finding the optimum balance between marketing efficiencies versus R&D– manufacturing efficiencies. (See page(s) 582)



target market	One or more specific groups of potential consumers toward which an organization directs its marketing program. (See page(s) 13)



target pricing	Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers. (See page(s) 358)



target profit pricing	Setting an annual target of a specific dollar volume of profit. (See page(s) 362)



target return-on-investment pricing	Setting a price to achieve an annual target return-on-investment (ROI). (See page(s) 363)



target return-on-sales pricing	Setting a price to achieve a profit that is a specified percentage of the sales volume. (See page(s) 362)



tariffs	A government tax on goods or services entering a country, primarily serving to raise prices on imports. (See page(s) 170)



team selling	The practice of using an entire team of professionals in selling to and servicing major customers. (See page(s) 527)



technology	Inventions or innovations from applied science or engineering research. (See page(s) 81)



telemarketing	Using the telephone to interact with and sell directly to consumers. (See page(s) 448)



third-party logistics providers	Firms that perform most or all of the logistics functions that manufacturers, suppliers, and distributors would normally perform themselves. (See page(s) 425)



total cost (TC)	The total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost. (See page(s) 345)



total logistics cost	Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return goods handling. (See page(s) 422)



total revenue (TR)	The total money received from the sale of a product. (See page(s) 341)



trade name	A commercial, legal name under which a company does business. (See page(s) 292)



trademark	Identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it. (See page(s) 292)



trade-oriented sales promotions	Sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions. (See page(s) 513)



trading down	Reducing the number of features, quality, or price. (See page(s) 291)



trading up	Adding value to the product (or line) through additional features or higher-quality materials. (See page(s) 291)



traditional auction	In an e-marketplace, it is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other. (See page(s) 159)



traffic generation	The outcome of a direct marketing offer designed to motivate people to visit a business. (See page(s) 482)



trend extrapolation	Extending a pattern observed in past data into the future. (See page(s) 246)



ultimate consumers	The people who use the goods and services purchased for a household. Also called consumers, buyers, or customers. (See page(s) 21)



uniform delivered pricing	The price that the seller quotes includes all transportation costs. (See page(s) 372)



unit variable cost (UVC)	Variable cost expressed on a per unit basis. (See page(s) 345)



unsought goods	Items that the consumer either does not know about or knows about but does not initially want. (See page(s) 257)



usage rate	The quantity consumed or patronage (store visits) during a specific period. Also called frequency marketing. (See page(s) 232)



utilitarianism	A personal moral philosophy that focuses on the "greatest good for the greatest number," by assessing the costs and benefits of the consequences of ethical behavior. (See page(s) 104)



utility	The benefits or customer value received by users of the product. (See page(s) 22)



value	The ratio of perceived benefits to price; or Value = Perceived benefits divided by Price. (See page(s) 332)



value analysis	A systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs. (See page(s) 155)



value consciousness	The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior. (See page(s) 78)



value-pricing	The practice of simultaneously increasing product and service benefits while maintaining or decreasing price. (See page(s) 332)



values	A society's personally or socially preferable modes of conduct or states of existence that tend to persist over time. (See page(s) 177)



variable cost (VC)	The sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold. (See page(s) 345)



vendor-managed inventory (VMI)	An inventory-management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. (See page(s) 432)



vertical marketing systems	Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. (See page(s) 399)



viral marketing	An Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail. (See page(s) 562)



warranty	A statement indicating the liability of the manufacturer for product deficiencies. (See page(s) 302)



web communities	Websites that allow people to congregate online and exchange views on topics of common interest. (See page(s) 562)



wheel of retailing	A concept that describes how new forms of retail outlets enter the market. (See page(s) 455)



whistle-blowers	Employees who report unethical or illegal actions of their employers. (See page(s) 103)



word of mouth	The influencing of people during conversations. (See page(s) 131)



workload method	A formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size. (See page(s) 537)



World Trade Organization (WTO)	A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions. (See page(s) 171)



yield management pricing	The charging of different prices to maximize revenue for a set amount of capacity at any given time. (See page(s) 359)

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