| Planning | The process of deciding now what to do later, including when and how to do it.
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| Implementation | The stage of the management process during which an organization attempts to carry out its strategic plans.
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| Evaluation | The stage of the management process during which an organization determines how well it is achieving the goals set in its strategic planning.
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| Geographic specialization | One method of organizing selling activities, in which each sales person is assigned a specific geographic area-called a territory-in which to sell.
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| Product specialization | One method of organizing selling activities so that each sales person is assigned one or more product lines to sell.
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| Customer specialization | One method of organizing selling activities in which each sales person is assigned a specific group of customers, categorized by type of industry or channel of distribution, to which to sell. Same as market specialization.
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| Major accounts organization | A variation of customer specialization that usually involves team selling to better service key accounts.
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| Warranty | An assurance given to buyers that they will be compensated in case the product does not perform up to reasonable expectations.
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| Express warranty | A statement in written or spoken words regarding restitution from seller to customer if the seller's product does not perform up to reasonable expectations.
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| Implied warranty | An intended but unstated assurance regarding restitution from seller to customer if the seller's product does not perform up to reasonable expectations.
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| Product liability | A legal action alleging that an illness, accident, or death resulted from the named product because it was harmful, faulty, or inadequately labeled.
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| Warning label | The part of a product that tells consumers not to misuse the product and informs them of almost every conceivable danger associated with using it.
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| Postsale service | Maintenance and repairs as well as other services that are provided to customers in order to fulfill the terms of a firm's warranty and/or to augment the firm's revenues.
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| Marketing audit | A comprehensive review and evaluation of the marketing function in an organization-its environment, philosophy, goals, strategies, organizational structure, human and financial resources, and performance.
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| Misdirected marketing effort | Marketing endeavors that do not produce results commensurate with the resources expended.
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| 80-20 principle | A situation in which a large proportion of the total orders, customers, territories, or products account for only a small share of the company's sales or profit, and vice versa.
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| Iceberg principle | A concept related to performance evaluation stating that the summary data (tip of the iceberg) regarding an activity may hide significant variations among segments of this activity.
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| Sales volume analysis | A detailed study of the net sales section of a company's profit and loss statement.
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| Market-share analysis | A detailed analysis of the company's share of the market relative to competitors in total as well as by product line and market segment.
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| Marketing cost analysis | A detailed study of the operating expenses section of a company's profit and loss statement.
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| Direct costs | Separate expenses that are incurred totally in connection with one market segment or one unit of the sales organization. Same as separable expenses.
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| Indirect costs | Expenses that are incurred jointly for more than one marketing unit and therefore cannot be totally charged to one market segment.
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| Contribution-margin approach | In marketing cost analysis, an accounting method in which only direct expenses are allocated to each marketing unit being analyzed.
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| Full-cost approach | In marketing cost analysis, an accounting method in which all expenses-direct and indirect-are allocated to the marketing units being analyzed.
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| Small-order problem | A situation confronting many firms, in which revenue from an order is less than allocated expenses because several costs, such as billing and direct selling, are essentially the same regardless of order size.
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