Marketing Test Two Key Terms

retailer

One of a variety of retail formats through which products are sold to end customers, usually individuals. Retailer formats include (but are not limited to) department stores, mass merchandisers, supercenters (hypermarkets), convenience stores, discount stores, websites, catalogs, warehouse clubs, and drugstores.

distributor

One who sells products to retailers or business end users. Distributors own and take physical control of inventory; they also promote the products or services and arrange for financing, ordering, and payment with their customers. Also known as a wholesaler.

supplier

Producers (or manufacturers), assemblers, or designers of a product or service being sold. Examples include car companies like Toyota, consumer packaged goods players like Coca-Cola, and fashion designers like Gucci

brand extension (product policy)

Product line extension marketed under the same general brand as a previous item or items. To distinguish the brand extension from the other item(s) under the primary brand, one can either add a secondary brand identification or add a generic. A brand extension is usually aimed at another segment of the general market for the overall brand.

SEO and SEM

Search engine marketing (SEM) is a form of Internet marketing that promotes websites by increasing their visibility in search engine results usually through paid advertising, whereas search engine optimization (SEO) is the process of improving the flow of website traffic to a website organically.

targeting

Selecting the potential customer segments to whom a company wishes to sell products or services, after an analysis of each segment's attractiveness.

brand culture

Shared, taken-for-granted stories and ideas associated with a brand that give the brand meaning. Over time, brand cultures evolve as various authors (the firm, popular culture, customers, and influencers) create stories that involve the brand

Jobber

Specialized sales agents hired by the supplier and/or manufacturer who focus on a particular customer segment. They typically do not take physical control of the products or services they sell, and they are compensated through commissions or fees. Also known as broker.

ASSESSOR

The ASSESSOR model is a pre-test market model that forecasts sales or market share (or both) for a new brand, provides a structure for evaluating alternative marketing strategies, and generates diagnostics that aid in improving the product.

E-commerce

The activity of electronically buying or selling products or services online over the internet

branding elements

The collection of markers that identify a brand, including the brand name, logo, tagline, symbol, and character.

marketing mix

The components of an effective marketing strategy, typically involving product, price, placement, and promotion (the 4 Ps). The term was first coined by Neil Borden, the president of the American Marketing Association, in 1953.

channel stewardship

The construction and continual guidance and management of a set of channel tasks or functions that mirrors the needs of the company's customers as closely as possible.

economy of scale

The cost advantage that arises with increased volume output of a product. The greater the quantity of a good produced, the lower the per-uniit fixed cost because these costs are shared over a larger number of goods.

product item design

The detailed specification of a manufactured item's parts and their relationship to the whole. A product design needs to take into account how the item will perform its intended functionality in an efficient, safe, and reliable manner. The product also needs to be capable of being made economically and be attractive to targeted consumers.

product mix

The entirety of a company's product offerings

coverage intensity

The extent of retail coverage necessary to reach the customers in the market, expressed as a percentage. This does not mean that every distributor or retailer has to be covered to reach 100% of the market. Reaching those distributors and/or retailers that carry the largest volumes can often get a supplier close enough to a large number (called all commodity volume [ACV] in retailing)

country of origin effect

The influence that the location of a product's manufacture has on a consumer's perception of that product. Preexisting opinions about a country can lead to positive or negative customer bias.

willingness to pay

The maximum amount a customer thinks a product or service is worth. This amount is considered when developing an asking price for products and services

product line depth

The number of product varieties (subcategories) within a product or service line or category. Companies with deep product lines focus on a specialized product mix or an expertise in a specialized service offering.

product mix breadth

The number of the product or service lines (categories) that a company offers to its customers.

brand value

The quantitative measurement of the financial value of a brand. Third-party valuation models are often used to judge the relative success of marketing efforts and to provide external validation for marketing budgets.

brand equity

The set of assets linked to a brand's name that adds to or subtracts from the value of that product or service. Assets can include brand awareness, perceived quality, brand associations, brand loyalty, and intellectual property.

customer centricity

The set of beliefs that puts the customer's interests first, while not excluding those of other stakeholders, to develop a long-term, profitable enterprise.

brand personality

The set of human traits ascribed to a brand. Consumers tend to gravitate toward brands whose personalities match their own.

value proposition

The suite of benefits that a firm promises to deliver to its customers to produce value in their lives

online platform

The term is used to describe a range of services on the internet. In this chapter it is mainly used to describe a market place of sellers and buyers, either B2C (business to consumer) or B2B (business to business).

brand extensions

The use of an existing brand name on a new product in a related or different category

brand equity (product policy)

The value premium that a company realizes from a product with a recognizable name when compared to its generic equivalent

irrelevant attributes

Those things that are distinguishing attributes of the product, but that ostensibly offer consumers no economic, functional, experiential, or social value.

business-to-consumer (B2C)

When goods and services are in a near-finished form for sale by a producer to a consumer.

business-to-business (B2B)

When goods and services from a producer are sold to another business for adding further value, before a finished product is ready for further sale to customer.

segmentation

a marketing planning process that involves dividing a broad target market into subsets or groups of consumers who have common needs or characteristics

positioning

defining a value proposition for the target segments; differentiating a product or service (or its brand) from others in the perception of consumers

hierarchy-of-effects model

1. A concept related to the manner in which advertising supposedly works; it is based on the premise that advertising moves individuals systematically through a series of psychological stages such as awareness, interest, desire, conviction, and action. 2. An early model that depicted consumer purchasing as a series of stages including awareness, knowledge, liking, preference, conviction, and purchase.

identity brand

A brand that derives most of its value from what it symbolizes and how it helps consumers present their identities. Repositioning an identity brand is difficult because its consumers rely on it to present their identities to others.

BASES test

A concept test that assesses a sample of consumers' reactions to a concept; a key measure is their expressed purchase intention. With this measure and others, such as perceived uniqueness of the product, BASES makes a market share forecast.

brand community

A geographically agnostic group specifically formed around a shared connection to a brand

product line

A group of products or services marketed and positioned by an organization to one general market. The products have some characteristics, customers, or uses in common, and they may also share technologies, distribution channels, prices, services, and so on.

conjoint analysis

A market research technique that asks customers to make a series of trade-offs between component attributes; analysis of these trade-offs helps companies determine how to develop and price the features of products and services.

one-to-one marketing

A marketing approach based on customer relationship management (CRM), emphasizing personalized relationships with individual customers.

product line extension

A new product marketed by an organization that already has at least one other product being sold in that product or market area. Line extensions are usually new flavors, sizes, models, applications, strengths, and the like. Sometimes the distinction is made between near line extensions (very little difference) and distant line extensions (almost completely new entries).

channel steward

A participant in a distribution channel (such as a manufacturer or service provider) who crafts a strategy for going to market that will produce profits for the channel partners while addressing customers' concerns and interests.

mass customization

A product delivery approach utilizing flexible, computer-aided manufacturing systems. Each customer can select and customize the product's final features to his or her individual preferences.

Cannibalization

A reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

stock-keeping unit (SKU)

A specific unit of inventory that is carried as a separate, identifiable unit. In retailing it is the lowest level of identification of merchandise.

latent class analysis

A statistical method for identifying unmeasured class membership among subjects using categorical and/or continuous observed variables.

stealth positioning

A strategy for positioning a product or service by associating a tainted product with a category consumers embrace in order to overcome consumer resistance.

breakaway positioning

A strategy for positioning a product or service by deliberately disassociating it from its normal product category and associating it with a different one

reverse positioning

A strategy for positioning a product or service in which managers strip away attributes consumers expect in a mature product and add some surprising new ones.

gender-bending

A strategy for repositioning a brand that involves taking a brand that has historically been positioned to appeal to one gender and repositioning it for the other gender.

unique selling proposition (USP)

A type of value claim that offers a prospective customer a specific, unique, and superior claim about a product or service that provides a reason to purchase it.

horizontal positioning

Adding new attributes, benefits, or value for customers to consider.

multi-attribute model

An approach that analyzes a consumer's evaluation of an object (product, brand, service, etc.) as a function of the beliefs that he or she has toward the object on various attributes and the importance of these attributes.

quick-response (QR) system

An inventory management and product delivery system that takes advantage of point of sale for product tracking to compress the time between product or service design concept and appearance on the retail shelf.

channel value chain activities

Channel functions that create value for the customer by making product availability convenient and allowing for better support through information and service.

DTC

Direct-to-customer refers to selling products directly to customers, bypassing middlemen

demand space segmentation

Dividing the market into unqiue demand spaces that exist at the intersection of different usage occasions and consumers' emotional and functional needs.

vertical positioning

Highlighting attributes that are shared among brands, but stressing a particular brand's superior performance on those attributes, using superlatives such as smaller, faster, and cheaper to delineate a natural pecking order among brands.