424610
| Question | Answer |
| marketing | the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large |
| product orientation | a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace |
| sales orientation | the idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits |
| marketing concept | the idea that the social and economic justification for an org. existence is the satisfaction of customer wants and needs while meeting org. objectives |
| market orientation | a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a consumer's decision to purchase a product. synonymous with the marketing concept |
| societal marketing orientation | the idea that an org. exists not only to satisfy customer wants and needs and to meet org. objectives, but also to preserve or enhance individuals' and society's long-term best interests |
| customer value | the relationship between benefits and the sacrifice necessary to obtain those benefits |
| relationship marketing | a strategy that focuses on keeping and improving relationships with current customers |
| empowerment | delegation of authority to solve customers' problems quickly- usually by the first person that the customer notifies regarding a problem |
| strategic planning | the managerial process of creating and maintaining a fit between the org. objectives and resources and evolving market opportunities |
| strategic business unit (SBU) | a subgroup of a single business or a collection a related businesses within the larger org. |
| market penetration | a marketing strategy that tries to increase market share among existing customers |
| market development | a marketing strategy that entails attracting new customers to existing products |
| product development | a marketing strategy that entails the creation of new products for current customers |
| diversification | a strategy of increasing sales by introducing new products into new markets |
| star | in the portfolio matrix, a business unit that is a fast-growing market leader |
| cash cow | in the portfolio matrix, a business unit that usually generates more cash than it needs to maintain its market share |
| problem child (question mark) | in the portfolio matrix, a business unit that shows rapid growth but poor profit margins |
| dog | in the portfolio matrix, a business unit that has low growth potential and a small market share |
| marketing planning | designing activities relating to marketing objectives and the changing marketing environment |
| marketing myopia | defining a business in terms of goods and services rather than in terms of the benefits that customers seek |
| environmental scanning | collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the org. or the implementation of the marketing plan |
| competitive advantage | the set of unique features of a company and its products that is perceived by the target market as significant and superior to the competition |
| experience curves | the curves represent data on a chart that show costs declining at a predictable rate as experience with a product increases |
| product/ service differentiation competitive advantage | the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitions' |
| niche competitive advantage | the advantage achieved when a firm seeks to target and effectively serve a small segment of the market |
| sustainable competitive advantage | an advantage that cannot be copied by the competition |
| marketing strategy | the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets |
| market opportunity analysis (MOA) | the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments |
| marketing mix | a unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market |
| marketing audit | a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing org. |
| ethics | the moral principles or values that generally govern the conduct of an individual |
| deontological ethical theory | a theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma |
| utilitarian ethical theory | a theory that holds that the choice that yields the greatest benefit to the most people is the choice that is ethically correct |
| casuist ethical theory | a theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes |
| moral relativists | persons who believe that ethical truths depend on the individuals and groups holding them |
| virtue | a character trait valued as being good |
| morals | the rules people develop as a result of cultural values and norms |
| corporate social responsibility | businesses' concern for society's welfare |
| sustainability | the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time |
| stakeholder theory | a theory that holds that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation |
| pyramid of corporate social responsibility | a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure |
| cause-related marketing | the cooperative marketing efforts between a "for-profit" firm and a "nonprofit org." |
| target market | a defined group most likely to buy a firm's product |
| environmental management | when a company implements strategies that attempt to shape the external environment within which it operates |
| component lifestyles | the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle |
| demography | the study of people's vital statistics, such as their age, race and ethnicity, and location |
| generation Y | people born between 1979 and 1994 |
| generation X | people born between 1965 and 1978 |
| baby boomers | people born between 1946 and 1964 |
| greatest generation | cohort before the baby boomers who grew up in the great depression and fought in World War II |
| purchasing power | a comparison on income versus the relative cost of a set standard of goods and services in different geographic areas |
| global marketing | marketing that targets markets throughout the world |
| global vision | recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets |
| gross domestic product (GDP) | the total market value of all final goods and services produced in a country for a given time period |
| multinational corporation | a company that is heavily engaged in international trade, beyond exporting and importing |
| capital-intensive | using more capital than labor in the production process |
| exchange rate | the price of one country's currency in terms of another country's currency |
| multidomestic strategy | when multinational firms enable individual subsidiaries to compete independently in domestic markets |
| buyer for export | an intermediary in the global market that assures all ownership risks and sells globally for its own account |
| export broker | an intermediary who plays the traditional broker's role by bringing buyer and seller together |
| export agent | an intermediary who acts like a manufacturer's agent for the exporter. The export agent lives in the foreign market |
| licensing | the legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge |
| contract manufacturing | private-label manufacturing by a foreign company |
| joint venture | when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity |
| direct foreign investment | active ownership of a foreign company or of overseas manufacturing or marketing facilities |
| dumping | the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter |
| countertrade | a form of trade in which all or part of the payment for goods or services is in the form of other goods or services |
| consumer behavior | processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use |
| consumer decision-making process | a five-step process used by consumers when buying goods or services |
| need recognition | result of an imbalance between actual and desired states |
| want | the way a consumer goes about addressing a need |
| stimulus | any unit of input affecting one or more of the five senses |
| internal info search | the process of recalling past information stored in the memory |
| external info search | the process of seeking info in the outside environment |
| nonmarketing-controlled info search | a product info source that is not associated with advertising or promotion |
| marketing-controlled info source | a product info source that originates with marketers promoting the product |
| evoked set | a group of brands, resulting from an info search, from which a buyer can choose |
| brand extensions | a well-known and respected brand name from one product category is extended into other product categories |
| cognitive dissonance | inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions |
| involvement | the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior |
| limited decision making | the type of decision making that requires a moderate amount of time for gathering info and deliberating about an unfamiliar brand in a familiar product category |
| routine response behavior | the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time |
| extensive decision making | the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bough item; requires use of several criteria for evaluating options and much time for seeking info |
| culture | the set of values, norms,attitudes, and other meaningful symbols that shape human behavior, and the artifacts, or products, of that behavior as they are transmitted from one generation to the next |
| value | the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct |
| subculture | a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group |
| social class | a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms |
| reference group | a group in society that influences an individual's purchasing behavior |
| primary membership group | a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, or fellow employees |
| secondary membership group | a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group |
| aspirational reference group | a group that someone would like to join |
| norm | a value or attitude deemed acceptable by a group |
| sponsored blog | a blog in which a company pays a blogger to say things about a good or service |
| shilling | when bloggers do not disclose that they were paid to promote a product |
| socialization process | how cultural values and norms are passed down to children |
| self-concept | how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations |
| perception | the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture |
| selective exposure | the process whereby a consumer notices certain stimuli and ignores others |
| selective distortion | a process whereby a consumer changes or distorts info that conflicts with his or her feelings or beliefs |
| selective retention | a process whereby a consumer remembers only that info that supports his or her beliefs |
| motive | a driving force that causes a person to take action to satisfy specific needs |
| Maslow's hierarchy of needs | a method of classifying human needs and motivations into 5 categories: physiological, safety, social, esteem, and self-actualization |
| stimulus discrimination | a learned ability to differentiate among similar products |
| belief | an organized pattern of knowledge that an individual holds as true about his or her world |
| attitude | a learned tendency to respond consistently toward a given object |
| market | people or organizations with needs or wants and the ability and willingness to buy |
| market segmentation | a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs |
| market segmentation | the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups |
| segmentation bases | characteristics of individuals, groups, and organizations |
| geographic segmentation | segmenting markets by region of a country in the world, market size, market density, or climate |
| demographic segmentation | segmenting markets by age, gender, income, ethnic background,and family life cycle |
| family life cycle | a series of stages determined by a combination of age, marital status, and the presence or absence of children |
| psychographic segmentation | market segmentation on the basis of personality, motives, lifestyles, and geodemographics |
| geodemographic segmentation | segmenting potential customers into neighborhood lifestyle categories |
| benefit segmentation | the process of grouping customers into market segments according to the benefits they seek from the product |
| user-rate segmentation | dividing a market by the amount of product bought or consumed |
| 80/20 principle | a principle holding that 20 percent of all customers generate 80 percent of the demand |
| satisficers | business customers who place an order with the first familiar supplier to satisfy product and delivery requirements |
| optimizers | business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one |
| target market | a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges |
| undifferentiated targeting strategy | a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix |
| concentrated targeting strategy | a strategy used to select one segment of a market for targeting marketing efforts |
| multisegment targeting strategy | a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each |
| cannibalization | a situation that occurs when sales of a new product cut into sales of a firm's existing products |
| one-to-one marketing | an individualized marketing method that utilizes customer info to build long-term, personalized, and profitable relationships with each customer |
| positioning | developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general |
| position | the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings |
| product differentiation | a positioning strategy that some firms use to distinguish their products from those of their competitors |
| perceptual mapping | a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds |
| repositioning | changing customers' perception of a brand in relation to competing brands |
| business product | a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers |
| consumer product | a product bought to satisfy an individual's personal wants |
| convenience product | a relatively inexpensive item that merits little shopping effort |
| shopping product | a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores |
| specialty product | a particular item for which consumers search extensively and are very reluctant to accept substitutes |
| unsought product | a product unknown to the potential buyer, or a known product that the buyer does not actively seek |
| product item | a specific version of a product that can be designated as a distinct offering among an organization's products |
| product line | a group of closely related product items |
| product mix | all products that an organization sells |
| product mix width | the number of product lines an organization offers |
| product line depth | the number of product items in a product line |
| planned obsolescence | the practice of modifying products so those that have already been sold become obsolete before they actually need replacement |
| product line extension | adding additional products to an existing product line in order to compete more broadly in the industry |
| brand | a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products |
| brand name | the part of a brand that can be spoken, including letters, words, and numbers |
| brand mark | the elements of a brand that cannot be spoken |
| brand equity | the value of company and brand names |
| global brand | a brand where at least one-third of the product is sold outside its home country |
| brand loyalty | a consistent preference for one brand over all others |
| manufacturer's brand | the brand name of a manufacturer |
| private brand | a brand name owned by a wholesaler or a retailer |
| captive brand | a brand that carries no evidence of a retailer's affiliation, is manufactured by a third party, and is sold exclusively at the retailer |
| individual branding | using different brand names for different products |
| family brand | marketing several different products under the same brand name |
| cobranding | placing two or more brand names on a product or its package |
| trademark | the exclusive right to use a brand or part of a brand |
| generic product name | identifies a product by class or type and cannot be trademarked |
| universal product code (UPC) | a series of thick and thin vertical lines, readable by computerized optical scanners, that represent numbers used to track products |
| warranty | a confirmation of the quality or performance of a good or service |
| express warranty | a written guarantee |
| implied warranty | an unwritten guarantee that the good or service is fit for the purpose for which it is sold |
| new-product strategy | a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation |
| product development | a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products |
| brainstorming | the process of getting a group to think of unlimited ways to vary a product or solve a problem |
| screening | the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason |
| concept test | a test to evaluate a new-product idea, usually before any prototype has been created |
| business analysis | the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated |
| development | the stage in the product development process in which a prototype is developed and a marketing strategy is outlined |
| simultaneous product development | a team-oriented approach to new-product development |
| test marketing | the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation |
| commercialization | the decision to market a product |
| adopter | a consumer who was happy enough with his or her trial experience with a product to use it again |
| innovation | a product perceived as new by a potential adopter |
| diffusion | the process by which the adoption of an innovation spreads |
| product life cycle (PLC) | a biological metaphor that traces the stages of a product's acceptance, from its introduction to its decline |
| product category | all brands that satisfy a particular type of need |
| introductory stage | the first stage of the product life cycle in which the full-scale launch of a new product into the marketplace occurs |
| growth stage | the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies might start acquiring small pioneering firms, and profits are healthy |
| maturity stage | the third stage of the PLC during which sales increase at a decreasing rate |
| decline stage | the fourth stage of the PLC, characterized by a long-run drop in sales |
| service | the result of applying human or mechanical efforts to people or objects |
| intangibility | the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed |
| search quality | a characteristic that can be easily assessed before purchase |
| experience quality | a characteristic that can be assessed only after use |
| credence quality | a characteristic that consumers might have difficulty assessing even after purchase because they do not have the necessary knowledge or experience |
| inseparability | the inability of the production and consumption of a service to be separated. consumers must be present during production |
| heterogeneity | the variability of the inputs and outputs of services, which causes services to tend to be less standardized and less uniform than goods |
| perishability | the inability of services to be stored, warehoused, or inventoried |
| core service | the most basic benefit the consumer is buying |
| supplementary services | a group of services that support or enhance the core service |
| mass customization | a strategy that uses technology to deliver customized services on a mass basis |
| internal marketing | treating employees as customers and developing systems and benefits that satisfy their needs |
| marketing channel | a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer |
| channel members | all parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer |
| discrepancy of quantity | the difference between the amount of product produced and the amount an end user wants to buy |
| discrepancy of assortment | the lack of all the items a customer needs to receive full satisfaction from a product or products |
| temporal discrepancy | a situation that occurs when a product is produced but a customer is not ready to buy it |
| spatial discrepancy | the difference between the location of the producer and the location of widely scattered markets |
| retailer | a channel intermediary that sells mainly to consumers |
| merchant wholesaler | an institution that buys goods from manufacturers and resells them to businesses, gov't agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them |
| agents and brokers | wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers |
| logistics | the efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related info, into, through, and out of channel member companies. typically include transportation and storage of assets, as well as their sorting, accumulation, consolidation, and/or allocation for the purpose of meeting customer requirements |
| direct channel | a distribution channel in which producers sell directly to consumers |
| dual distribution | the use of two or more channels to distribute the same product to target markets |
| strategic channel alliance | a cooperative agreement between business firms to use another business' already established distribution channel |
| intensive distribution | a form of distribution aimed at having a product available in every outlet where target customers might want to buy it |
| selective distribution | a form of distribution achieved by screening dealers to eliminate all but a few in any single area |
| exclusive distribution | a form of distribution that establishes one or a few dealers within a given area |
| channel power | the capacity of a particular marketing channel member to control or influence the behavior of other channel members |
| channel control | a situation that occurs when one marketing channel member intentionally affects another member's behavior |
| channel leader | a member of a marketing channel that exercises authority and power over the activities of other channel members |
| channel partnering | the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage |
| retailing | all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use |
| independent retailers | retailers owned by a single person or partnership and not operated as part of a larger retail institution |
| chain stores | stores owned and operated as a group by a single organization |
| franchise | a business owned or operated by an individual that is licensed by a larger supporting organization |
| gross margin | the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted |
| department store | a store housing several departments under one roof |
| buyer | a department head who selects the merchandise for his or her department and may also be responsible for promotion and personnel |
| specialty store | a retail store specializing in a given type of merchandise |
| supermarket | a large, departmentalized, self-service retailer that specializes in food and some nonfood items |
| scrambled merchandising | the tendency to offer a wide variety of nontraditional goods and services under one roof |
| drugstore | a retail store that stocks pharmacy-related products and services as its main draw |
| convenience store | a miniature supermarket that carries only a limited line of high-turnover convenience goods |
| discount store | a retailer that competes on the basis of low prices, high turnover, and high volume |
| full-line discount stores | a retailer that offers customers very limited service and carries a broad assortment of well-known, nationally branded "hard goods" |
| mass merchandising | a retailing strategy using moderate to low prices on large quantities of merchandise and lower service to simulate high turnover of products |
| supercenter | a retailer that combines a full line of groceries and general merchandise with a wide range of services in one location |
| specialty discount store | a retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover |
| category killers | specialty discount stores that heavily dominate a narrow merchandise segment |
| warehouse membership clubs | limited-service merchant wholesalers that sell a limited selection of brand-name appliances, household items, and groceries on a cash-and-carry basis to members, usually small businesses and groups |
| off-price retailers | a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges |
| factory outlet | an off-price retailer that is owned and operated by a manufacturer |
| nonstore retailing | selling to customers through other means than by visiting a store |
| franchisor | the originator of a trade name, product, methods of operation, and so on, that grants operating rights to another party to sell its product |
| franchisee | an individual or business that is granted the right to sell another party's product |
| retailing mix | a combination of the six Ps to sell goods and services to the ultimate consumer |
| product offering | the mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix |
| promotion | communication by marketers that informs, persuades, and reminds potential buyers or a product in order to influence an opinion or elicit a response |
| competitive advantage | one or more unique aspects of an org. that cause target consumers to patronize that firm rather than competitors |
| communication | the process by which we exchange or share meaning through a common set of symbols |
| encoding | the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs |
| channel | a medium of communication-such as a voice, radio, or newspaper- for transmitting a message |
| noise | anything that interferes with, distorts, or slows down the transmission of info |
| promotional mix | the combination of promotional tools- including advertising, PR, personal selling, and sales promotion- used to reach the target market and fulfill the org.'s overall goals |
| AIDA | a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; attention, interest, desire, and action |
| integrated marketing communications (IMC) | the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer |
| push strategy | a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell particular merchandise |
| pull strategy | a marketing strategy that stimulates consumer demand to obtain product distribution |
| advertising | impersonal, one-way mass communication about a product or org. that is paid for by a marketer |
| advertising response function | a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns |
| insititutional advertising | a form of advertising designed to enhance a company's image rather than promote a particular product |
| product advertising | a form of advertising that touts the benefits of a specific good or service |
| pioneering advertising | a form of advertising designed to stimulate primary demand for a new product or product category |
| advertising campaign | a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals |
| advertising objective | a specific communication task that a campaign should accomplish for a specified target audience during a specified period |
| advertising appeal | a reason for a person to buy a product |
| unique selling proposition | a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign |
| medium | the channel used to convey a message to a target market |
| media planning | the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience |
| cooperative advertising | an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand |
| media mix | the combination of media to be used for a promotional campaign |
| cost per contact | the cost of reaching one member of the target market |
| cost per thousand (CPM) | allows marketers to compare the relative costs of specific media |
| reach | the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks |
| frequency | the number of times an individual is exposed to a given message during a specific period |
| audience selectivity | the ability of an advertising medium to reach a precisely defined market |
| media schedule | designation of the media, the specific publications or programs, and the insertion dates of advertising |
| public relations | the marketing function that evaluates public attitudes, identifies areas within the org. the public may be interested in, and executes a program of action to earn public understanding and acceptance |
| publicity | public info about a company, product, service, or issue appearing in the mass media as a news item |
| product placement | a public relations strategy that involves getting a product, service, or company name to appear in a movie, tv show, radio program, magazine, newspaper, etc. |
| sales promotion | marketing activities- other than personal selling, advertising, and PR- that stimulate consumer buying and dealer effectiveness |
| consumer sales promotion | sales promotion activities targeting the ultimate consumer |
| trade sales promotion | sales promotion activities targeting a channel member, such as a wholesaler or retailer |
| loyalty marketing program | a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers |
| frequent buyer program | a loyalty program in which loyal customers are rewarded for making multiple purchases |
| point-of-purchase (P-O-P) | a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying |
| trade allowance | a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers |
| personal selling | a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other |
| relationship selling | a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships |
| sales process | the set of steps a salesperson goes through in a particular org. to sell a particular good or service |
| lead qualification | determination of a sales prospect's 1. recognized need 2. buying power 3. receptivity and accessibility |
| needs assessment | a determination of the customer's specific needs and wants, and the range of options the customer has for satisfying them |
| sales proposal | a formal written document or professional presentation that outlines how the salesperson's product or service will meet or exceed the prospect's needs |
| sales presentation | a formal meeting in which the salesperson presents a sales proposal to a prospective buyer |
| negotiation | the process during which both the salesperson and the prospect offer special concessions in an attempt to arrive at a sales agreement |
| quota | a statement of the individual salesperson's sale objectives, usually based on sales volume alone but sometimes including key accounts |
| revenue | the price charged to customers multiplied by the number of units sold |
| profit | revenue minus expenses |
| return on investment (ROI) | net profit after taxes divided by total assets |
| market share | a company's product sales as a percentage of total sales for that industry |
| status quo pricing | a pricing objective that maintains existing prices or meets the competition's prices |
| demand | the quantity of a product that will be sold in the market at various prices for a specified period |
| supply | the quantity of a product that will be offered to the market by a supplier at various prices for a specified period |
| price equilibrium | the price at which demand and supply are equal |
| elasticity of demand | consumer's responsiveness or sensitivity to changes in price |
| elastic demand | a situation in which consumer demand is sensitive to changes in price |
| inelastic demand | a situation in which an increase or decrease in price will not significantly affect demand for the product |
| unitary elasticity | a situation in which total revenue remains the same when prices change |
| yield management systems (YMS) | a technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting earlier purchases, limiting early sales at these discounted prices, and overbooking capacity |
| variable cost | a cost that varies with the changes in the level of output |
| fixed cost | a cost that does not change as output is increased or decreased |
| average variable cost (AVC) | total variable costs divided by quantity of output |
| average total cost (ATC) | total costs divided by quantity of output |
| marginal cost (MC) | the change in total costs associated with a one-unit change in output |
| markup pricing | the cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for |
| keystoning | the practice of marking up prices by 100 percent, or doubling the cost |
| profit maximization | a method of setting prices that occurs when marginal revenue equals marginal cost |
| marginal revenue (MR) | the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output |
| break-even analysis | a method of determining what sales volume must be reached before total revenue equals total cost |
| selling against the brand | stocking well-known branded items at high prices in order to sell store brands at discounted prices |
| customer relationship management (CRM) | a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups |
| customer-centric | a philosophy under which the company customizes its product and service offering based on data generated through interactions between the customer and the company |
| learning | an informal process of collecting customer data through customer comments and feedback on product or service performance |
| knowledge management | the process by which learned info from customers is centralized and shared in order to enhance the relationship between customers and the org. |
| interaction | the point at which a customer and a company representative exchange info and develop learning relationships |
| touch points | all possible areas of a business where customers communicate with that business |
| point-of-sale interactions | communications between customers and orgs. that occur at the point of sale, normally in a store |
| data warehouse | a central repository for data from various functional areas of the org. that are stored and inventoried on a centralized computer system so that the info can be shared across all functional departments of the business |
| response list | a customer list that includes the names and addresses of individuals who have responded to an offer of some kind |
| compiled list | a customer list that is developed by gathering names and addresses from telephone directories and membership rosters, usually enhanced with info from public records, such as census data, auto registrations, birth announcements, business start-ups, etc |
| lifetime value analysis (LTV) | a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers |
| predictive modeling | a data manipulation technique in which marketers try to determine, based on some past set of occurrences, what the odds are that a response or purchase will take place in the future |
| campaign management | developing product or service offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships |
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