Technology Marketing

stop-to-market mistake

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CRM (customer relationship management)

A comprehensive business model for increasing revenues and profits by focusing on customers.

Strategy

A comprehensive plan stating how the organization will achieve its mission and objectives.

Census

A comprehensive record of each individual in the population.

Subculture

A group within a culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography.

comparative advertising

Advertising in which two or more brands are directly compared against each other on certain attributes.

competitive advertising

Advertising intended to build sales of a specific brand through shifting emotional appeal, persuasion, and providing information.

pioneering advertising

Advertising intended to stimulate primary demand, typically during the introductory or early growth stages of an offering.

institutional advertising

Advertising that promotes industry, company, family of brands, or some other issues broader than a specific product.

psychographic segmentation

Dividing consumer groups based on variables such as personality and AIOs: activities, interests, and opinions.

slotting allowance (shelf fee)

Extra incentives paid to wholesalers or retailers by the manufacturer for placing a particular product into inventory.

distribution intensity

The number of intermediaries involved in distributing the product.

marketing planning

The ongoing process of developing and implementing market-driven strategies for an organization.

retailer experience

The overall experience a consumer has shopping at a retail location or online.

materials requirement planning (MRP)

The overall management of the inbound materials from suppliers to facilitate minimal production delays.

Advantages

The particular product/service characteristic that helps meet the customer's needs.

Reach

The percentage of individuals in a defined target market that are exposed to an ad during a specific time period.

Reliability

The percentage of time a product works without failure or stoppage.

market share

The percentage of total category sales accounted for by a firm.

Tangibility

The physical aspects of a product.

Form

The physical elements of a product, such as size, shape, and color.

core product

The physical, tangible elements that make up a product's essential benefit.

service sector

The portion of an economy that is comprised of service-related jobs.

customer marketing

The practice of marketing that focuses on developing relationships with individuals.

consumer marketing

The practice of marketing toward large groups of like-minded customers.

Sustainability

The practicing of business that meets humanity's needs without harming future generations.

market-driven strategic planning

The process at the corporate or strategic business unit (SBU) level of a firm that acts to marshal the various resource and functional areas toward a central purpose around the customer.

selective distortion

The process in which an individual can misunderstand information or make it fit existing beliefs.

outbound logistics

The process of a product's movement from production by the manufacturer to purchase by the end-user consumer.

creating assortments

The process of accumulating products from several sources to then make those products available down the channel as a convenient assortment for consumers.

reducing transactions

The process of lowering the number of purchasing transactions carried out by a firm by utilizing the services of intermediaries.

customer expectations management

The process of making sure the firm does not set customer expectations so high that they cannot be effectively met on a consistent basis.

supply chain management

The process of managing the aspects of the supply chain.

marketing control

The process of measuring marketing results and adjusting the firm's marketing plan as needed.

reverse logistics

The process of moving goods back to the manufacturer or intermediary after purchase.

e-procurement

The process of online business purchasing.

selective retention

The process of placing in one's memory only those stimuli that support existing beliefs and attitudes about a product or brand

inbound logistics

The process of sourcing materials and knowledge inputs from external suppliers to the point at which production begins.

exclusive territory

The protection of an intermediary from having to compete with others selling a producer's goods.

sustainable competitive advantage

The resulting advantage a firm has when it invests in distinctive competencies.

marketing plan

The resulting document that records the marketing planning process in a useful framework.

output measures

The results of the efforts expended by the salesperson.

retail positioning

The retailer's brand image in the consumer's mind.

value proposition

The whole bundle of benefits a company promises to deliver to the customer, not just the benefits of the product itself.

Nimble

To be in a position to be maximally flexible, adaptable, and speedy in response to the many key change drivers affecting business.

marketing metrics

Tools and processes designed to identify, track, evaluate, and provide key benchmarks for improvement of marketing activities.

limited information search

When a consumer makes a purchase decision based on incomplete information and/or lack of personal knowledge.

minimal information search

When a consumer makes a purchase decision based on very little information or investigation.

cooperative advertising and promotion

When a manufacturer provides special incentive money to channel members for certain promotional performance.

inbound telemarketing

When a prospective customer contacts a company for more information.

bait and switch

When a seller advertises a low price but has no intent to actually make the lower priced item available for sale.

exclusive dealing

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products.

first-mover advantage

When a firm introduces a new market offering, thus defining the scope of the competitive marketplace.

Licensing

When a firm offers other manufacturers the right to use its brand in exchange for a set fee or percentage of sales.

category extensions

When a firm uses its brand to expand into new product categories.

stock-out

When an item is not in stock.

inelastic demand

When changes in demand are not significantly affected by changes in price.

price fixing

When companies collude to set prices at a mutually beneficial high level.

advertising wearout

When customers become bored with an existing advertising campaign.

brand association

When customers develop a number of emotional, psychological, and performance associations with a brand. These associations become a primary purchase driver, particularly with brand loyal users.

wholesaler cooperative

When retailers contract for varying degrees of exclusive dealings with a particular wholesaler.

reverse auctions

When sellers bid prices to buyers and the purchase typically goes to the lowest bidder.

zone pricing

When shippers set up geographic pricing zones based on the distance from the shipping location.

acceleration effect

When small changes in consumer demand lead to considerable shifts in business product demand.

administered vertical marketing system (VMS)

When the channel control of a vertical marketing system is determined by the size and power of one of its channel members.

fluctuating demand

When the level of consumer demand is not constant, having serious implications related to the perishability of services.

uniform delivered pricing

When the same delivery fee is charged to customers regardless of geographic location within a set area.

Memory

Where people store all past learning events.

commission Incentive

payment based on short-term results.

product advertising

Advertising designed to increase purchase of a specific offering.

geographic segmentation

Dividing consumer groups based on physical location.

advertising execution

The way an advertisement communicates the information and image.

data warehouse

A compilation of customer data generated through touchpoints that can be transformed into useful information for marketing management decision making and marketing planning.

supply chain

A complex logistics network characterized by high levels of coordination and integration among its members.

modified re-buy

A buying decision in which a customer is familiar with the product and supplier in a purchase decision, but is looking for additional information because of one or more of three circumstances: the supplier has performed poorly, new products have come into the market, or the customer believes it is time for a change.

new purchase

A buying decision in which the purchase of a product or service by a customer is for the first time.

straight rebuy

A buying decision that requires little evaluation because the products are purchased on a consistent, regular basis.

return on customer investment (ROCI)

A calculation that estimates the projected financial returns from a customer. It is a useful strategic tool for deciding which customers deserve what levels of investment of various resources.

end-user purchase

A category of products purchased by manufacturers that represents the equipment, supplies, and services needed to keep their business operational.

reward power

A channel member's ability to coerce vendors by offering them incentives.

legitimate power

A channel member's ability to influence other members based on contracts or other formal agreements.

referent power

A channel member's ability to influence other members based on respect, admiration, or reverence.

expert power

A channel member's utilization of its unique competencies and knowledge to influence others in the channel.

indirect channel

A channel that contains one or more intermediary levels.

direct channel

A channel that has no intermediaries and operates strictly from producer to end-user consumer or business user.

direct foreign marketing

A company develops local distribution and service representation in a foreign market.

international marketing

A company makes the commitment to produce products outside its domestic market.

out supplier

A company that is not on a firm's list of approved suppliers.

follow-up

A company's actions after the customer has decided to purchase the product.

marketing dashboard

A comprehensive system of metrics and information uniquely relevant to the role of the marketing manager in a particular organization. Dashboards provide managers with up-to-the-minute information necessary to run their operation.

Laggard

A consumer who is a product avoider who evades adoption until there is no other product choice.

Innovator

A consumer who is a product enthusiast who is among the first to try to master a new product.

early adopter

A consumer who is a product opinion leader who seeks out new products consistent with his or her personal self-image.

market information system (MIS)

A continuing process of identifying, collecting, analyzing, accumulating and dispensing critical information to marketing decision makers.

franchise organization

A contractual relationship between a franchisor who is the grantor of the franchise, and the franchisee who is the independent entity entering into an agreement to perform at the standards required by the franchisor.

SWOT analysis

A convenient framework used to summarize key findings from a firm's situational analysis into a matrix of strengths, weaknesses, opportunities, and threats.

customer switching

A customer changes from purchasing one product to purchasing another competing product.

customer loyalty

A customer's commitment to a company and its products and brands for the long run.

change conflict

A customer's reluctance to choose change by selecting a company's product.

intensive distribution

A distribution strategy designed to saturate every possible intermediary, especially retailers.

selective distribution

A distribution strategy in which goods are distributed only to a limited number of intermediaries.

post-purchase dissonance

A feeling of doubt or anxiety following a recent purchase, generally attributed with high-involvement, large purchases.

direct selling

A form of non-store retailing that involves independent businesspeople contacting consumers directly to demonstrate and sell products or services in convenient locations.

television home shopping

A form of non-store retailing that involves showcasing products on a television network that can be ordered by the consumer.

tying contract

A formal requirement by the seller of an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy.

repeat purchase

A function of total demand that considers the number of products purchased by the same customer.

replacement purchase

A function of total demand that considers the number of products purchased to replace existing products that have either become obsolete or malfunctioned.

accumulating bulk

A function performed by intermediaries that involves taking product from multiple sources and sorting it into different classifications for sales through the channel.

reference group

A group of individuals whose beliefs, attitudes, and behavior influence (positively or negatively) the beliefs, attitudes, and behavior of an individual.

product line

A group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction.

Family

A group of two or more people living together and related by birth, marriage, or adoption.

behavioral segmentation

Dividing consumer groups based on similarities in benefits sought or product usage patterns.

cost leadership

A marketing strategy in which a firm utilizes its core cost advantages to gain an advantage over competitors due to flexibility in pricing strategies as well as its ability to translate cost savings to the bottom line.

customized (one-to-one) marketing

A marketing strategy that involves directing energy and resources into establishing a learning relationship with each customer to increase the firm's customer knowledge.

workload method

A method for determining the correct size of a company's sales force based on the premise that all salespeople should undertake an equal amount of work.

AIDA model

A model designed to illustrate the hierarchy of effects in the context of customer response to marketing communications. It states that the effects build in this order: Attention (or Awareness), Interest, Desire, and Action.

multiattribute model

A model that measures an individual's attitudes toward an object by evaluating it on several important attributes.

Brand

A name, term, sign, symbol, or design, or a combination of these elements, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors.

buying center

A number of individuals with a stake in a purchase decision who manage the purchase decision process and ultimately make the decision.

cash discounts

A percentage discount off invoice to elicit quicker payment by the customer.

crisis management

A planned, coordinated approach for disseminating information during times of emergency and for handling the effects of unfavorable publicity.

GE Business Screen

A popular approach for in-firm portfolio analysis that categorizes business units' level of contribution to the overall firm based on two factors: business position and market attractiveness.

Boston Consulting Group (BCG) Growth-Share Matrix

A popular approach for in-firm portfolio analysis that categorizes business units' level of contribution to the overall firm based on two factors: market growth rate and competitive position.

target return pricing

A pricing decision made by considering fixed and variable costs and then demand forecasting to determine the price per unit.

average-cost pricing

A pricing decision made by identifying all costs associated with an offering to come up with what the average cost of a single unit might be.

target return on investment (ROI)

A pricing strategy in which a bottom-line profit is established first and then pricing is set to achieve that target.

value pricing

A pricing strategy in which a firm attempts to take into account the role of price as it reflects the bundle of benefits sought by the customer.

stability pricing

A pricing strategy in which a firm attempts to find a neutral set point for price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers.

competitor-based pricing

A pricing strategy in which a firm decides to price at some market average price in context with prices of competitors.

price skimming

A pricing strategy in which a firm enters a market at a relatively high price point, usually in an effort to create a strong price-quality relationship for the product.

reference pricing

A pricing strategy in which a firm gives customers comparative prices when considering purchase of a product so they are not viewing a price in isolation from prices of other choices.

penetration pricing

A pricing strategy in which a firm's objective is to gain as much market share as possible.

high/low pricing

A pricing strategy in which the retailer offers frequent discounts, primarily through sales promotions, to stated regular prices.

low-price guarantee policy

A pricing strategy used by retailers that guarantees consumers the lowest price for any given product by matching the sales price of competitors.

product line pricing (price lining)

A pricing tactic in which a firm affords the marketing manager an opportunity to develop a rational pricing approach across a complete line of related items.

variable pricing

A pricing tactic in which customers are allowed or encouraged to haggle about prices.

price bundling

A pricing tactic in which customers are given the opportunity to purchase a package deal at a reduced price compared to what the individual components of the package would cost separately.

auction pricing

A pricing tactic in which individuals competitively bid against each other and the purchase goes to the highest bidder.

even pricing

A pricing tactic in which the price is expressed in whole dollar increments.

odd pricing

A pricing tactic in which the price is not expressed in whole dollar increments.

one-price strategy

A pricing tactic in which the price marked on a good is what it typically sells for.

captive pricing (complementary pricing)

A pricing tactic of gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate.

everyday low pricing (EDLP)

A pricing tactic that entails relatively low, constant prices and minimal spending on promotional efforts.

prestige pricing

A pricing tactic that lends prestige to a product or brand by virtue of a price relatively higher than the competition.

emotional choice

A product choice based more on emotional attitudes about a product rather than rational thought.

attribute-based choice

A product choice based on the premise that product choices are made by comparing brands across a defined set of attributes.

attitude-based choice

A product choice that relies on an individual's beliefs and values to direct his or her assessment.

new-to-the-world product

A product that has not been available before or bears little resemblance to an existing product.

Fads

A product that moves through its life cycle quickly, often in months, and is then replaced.

service

A product that represents a bundle of benefits that can satisfy customer wants and needs without having physical form.

Conformance

A product's ability to deliver on features and performance characteristics promised in marketing communications.

VALS™ (Values and Lifestyles)

A psychographic instrument developed by SRI Consulting that divides U.S. adults into groups based on their primary motivation and resources.

selective awareness

A psychological tool an individual uses to help focus on what is relevant and eliminate what is not relevant.

focus group

A qualitative research method that consists of a meeting (either in person or increasingly online) of 6 to 10 people that is moderated by a professional who carefully moves the conversation through a defined agenda in an unstructured, open format.

in-depth interview

A qualitative research method that consists of an unstructured (or loosely structured) interview with an individual who has been chosen based on some characteristic of interest, often a demographic attribute.

Survey

A quantitative research method that employs structured questionnaires given to a sample group of individuals representing the population of interest and that are intended to solicit specific responses to explicit questions.

social class

A ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation.

Value

A ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits.

awareness set

A reduced set of possible alternatives a consumer considers after eliminating available options based on gathered information and personal preference.

primary group

A reference group an individual has frequent contact with.

secondary group

A reference group with which an individual has limited contact.

Allowances

A remittance of monies to the consumer after the purchase of the product.

catalog retailer

A retailer that offers merchandise in the form of a printed or online catalog.

non-store retailer

A retailer that uses alternative methods to reach the customer that do not require a physical location.

consideration (evoked) set

A refined list that encompasses the strongest options an individual considers in a purchase decision once he or she has obtained additional information and carried out an evaluation.

internal information search

A search for information stored in memory and accessed by the individual.

FAB

A selling approach designed to make the company's products more relevant for customers by explaining the products features, advantages, and benefits.

brand equity

A set of assets and liabilities linked to a brand's name and symbol that adds to or subtracts from the value provided by a product or service to a firm or that firm's customers.

new dominant logic for marketing

A shift in worldview from the traditional goods versus services dichotomy to recognition of both goods and services as "offerings" that create value for consumers.

breaking bulk

A shipping method used by manufacturers to better match quantities needed in terms of the space constraints and inventory turnover requirements of their buyers.

Involvement

A significant outcome of an individual's motivation that mediates the product choice decision. It is activated by three elements: background and psychological profile, aspirational focus, and the environment at the time of purchase decision.

enterprise resource planning (ERP) system

A software application designed to integrate information related to logistics processes throughout the organization.

data mining

A sophisticated analytical approach to using the massive amounts of data accumulated through a firm's CRM system to develop segments and microsegments of customers either for purposes of market research or development of market segmentation strategies.

cost reduction

A specific method for introducing lower-cost products that frequently focuses on value-oriented product price points in the product mix.

partner relationship management (PRM) strategies

A strategic alliance that includes connectivity of inventory, billing systems, and market research among marketing channel members.

integrated marketing communications (IMC)

A strategic approach to communicating the brand and company message to targeted customers in ways that are clear, concise, and consistent and yet are customizable as needed to maximize the impact on a particular audience.

household life cycle (HLC)

A structured set of chronological activities a particular household follows over time.

Sample

A subgroup of the population selected for participation in research.

brand identity

A summary of unique qualities attributed to a brand.

North American Industrial Classification System (NAICS)

A system developed by the United States, Canada, and Mexico that classifies companies on the basis of their primary output to define and segment business markets.

channel of distribution

A system of interdependent relationships among a set of organizations that facilitates the exchange process.

Culture

A system of values, beliefs, and morals shared by a particular group of people that permeates over time.

Perception

A system to select, organize, and interpret information to create a useful, informative picture of the world.

transaction cost analysis (TCA)

A tool that measures cost of using different types of selling agents.

portfolio analysis

A tool used in strategic planning for multibusiness corporations that views SBUs, and sometimes even product lines, as a series of investments from which it expects maximization of returns.

personal selling

A two-way communication process between salesperson and buyer with the goal of securing, building, and maintaining long-term relationships with profitable customers.

stock keeping unit (SKU)

A unique identification number used to track a product through a distribution system, inventory management, and pricing.

mechanical observation

A variation of observational data that uses a device to chronicle activity.

perceptual maps

A visual tool used in positioning that allows for comparing attributes to gauge consumer perceptions of each competitor's delivery against those attributes.

customer advocacy

A willingness and ability on the part of a customer to participate in communicating the brand message to others within his or her sphere of influence.

relationship-based enterprise

A firm that strives to facilitate long-term, win-win relationships between buyers and sellers.

global marketing

A firm treats all world markets (including the company's own domestic market) as a single market with many different segments.

distinctive competencies

A firm's core competencies that are superior to those of their competitors.

capital equipment

A firm's significant, long-term investments in critical equipment or technology necessary for its manufacturing and production activities.

Salary

A fixed sum of money paid at regular intervals.

cognitive learning

Active learning that involves mental processes that acquire information to work through problems and manage life situations.

facilitating functions

Activities that help fulfill completed transactions and also maintain the viability of the channel relationships.

value-creating activities

Activities within a firm's value chain that act to increase the value of its products and services for its customers. These can take the form of either primary activities or support activities.

User

Actual customers of a product or service who have a great deal of input at various stages of the buying decision process, but are typically not decision makers.

enhanced product

Additional features, designs, or innovations that extend beyond the core product to exceed customer expectations.

interactive marketing

An Internet-driven relationship between companies, their brands, and customers. Interactive marketing enables customers to control information flow and encourages customer-company interaction as well as a higher level of customer service.

situation analysis

An analysis of the macro- and micro-level environment within which a firm's marketing plan is being developed.

merchandise category

An assortment of items considered substitutes for each other.

service economy

An economy that is predominantly comprised of service-related jobs.

advertising response function

An effect in which, beyond a certain ad spending level, diminishing returns tend to set in.

Language

An established system of ideas and phonetics shared by members of a particular culture that serves as their primary communication tool.

coercive power

An explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.

additions to existing product lines

An extension to an existing product that has already been developed and introduced to the market.

trade discounts

An incentive to a channel member for performing some function in the channel that benefits the seller.

Gatekeeper

An individual who controls access to information and relevant individuals in the buying center.

Decider

An individual within the buying center who ultimately makes the purchase decision.

customer mind-set

An individual's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

preferred state

An individual's desires that reflect how he or she would like to feel or live in the present time.

real state

An individual's perceived reality of present time.

Lifestyle

An individual's perspective on life that manifests itself in activities, interests, and opinions.

Personality

An individual's set of unique personal qualities that produce distinctive responses across similar situations.

online database

Data stored on a server that is accessed remotely over the Internet or some other telecommunications network.

influencer

An individual, either inside or outside the organization, with relevant expertise in a particular area who provides information used by the buying center in making a final buying decision.

sales promotion

An inducement for an end-user consumer to buy a product or for a salesperson or someone else in the channel to sell it.

trade show

An industry- or company-sponsored event in which booths are set up for the dissemination of information about offerings to members of a channel.

direct marketing

An interactive marketing system that uses one or more advertising media to affect a measurable response and/or transaction at any location.

just-in-time (JIT) inventory control system

An inventory management system designed to balance levels of overstock and stock-out in an effort to reduce warehousing costs.

competitive strategy

An organization-wide strategy designed to increase a firm's performance within the marketplace in terms of its competitors.

generic strategy

An overall directional strategy at the business level.

business case analysis

An overall evaluation of a product that usually assesses the product's probability of success.

value network

An overarching system of formal and informal relationships within which the firm participates to procure, transform, and enhance, and ultimately supply its offerings in final form within a market space.

corporate-level strategic plan

An umbrella plan for the overall direction of the corporation developed above the strategic business unit (SBU) level.

global experience learning curve

An understanding of marketing beyond a company's home market that develops over time as the company gets more international business experience.

publicity

An unpaid and relatively less personal form of marketing communications, usually through news stories and mentions at public events.

competitive scenario analysis

Analyzing competitors using various scenarios to predict competitor behavior.

electronic commerce (e-commerce)

Any action that uses electronic media to communicate with customers, facilitate the inventory, exchange, and distribution of goods and services, or facilitate payment.

Retailing

Any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption and is an essential component of the supply chain.

Learning

Any change in the content or organization of long-term memory or behavior.

marketing's stakeholders

Any person or entity inside or outside a firm with whom marketing interacts, impacts, and is impacted by.

Features

Any product attribute or performance characteristic.

food retailer

Any retailer that includes food as a part of its breadth of merchandise.

Product

Anything that delivers value to satisfy a need or want and includes physical goods, services, events, people, places, organizations, information, and ideas.

market creation

Approaches that drive the market toward fulfilling a whole new set of needs that customers did not realize was possible or feasible before.

gender roles

Behaviors regarded as proper for men and women in a particular society.

adaptive selling

Being able to adjust the sales style from one sales situation to another in real time based on customer feedback.

demographic segmentation

Dividing consumer groups based on a variety of readily measurable descriptive factors about the group.

store brands

Brands created by retailers for sale only in their store locations.

stand-alone brands

Brands created to be separate from a company brand that can insulate the company if there is a problem with the brand.

general warranty

Broad promises about product performance and customer satisfaction.

cost-plus pricing

Building a price by adding standardized markup on top of the costs associated with the offering.

marketing concept

Business philosophy that emphasizes an organization-wide customer orientation with the objective of achieving long-run profits.

outbound telemarketing

Calling potential customers at their home or office, either to make a sales call via telephone or to set up an appointment for a field salesperson.

mass customization

Combining flexible manufacturing with flexible marketing to greatly enhance customer choice.

transportation and storage

Commonly provided intermediary functions for producers that do not perform these functions themselves.

Differentiation

Communicating and delivering value in different ways to different customer groups.

Resellers

Companies that buy products and then resell them to other businesses or consumers for a profit.

late majority

Consumers who are product followers who are price sensitive, risk averse, and generally prefer products with fewer features.

early majority

Consumers who are product watchers who want to be convinced of the product's claims and value proposition before making a commitment to it.

secondary data

Data collected for some other purpose than the problem currently being considered.

psychological pricing

Creating a perception about price merely from the image the numbers provide the customer.

modifications to existing products

Creating newer, better, faster versions of existing products that target, for the most part, existing customers.

primary data

Data collected specifically for a particular research question.

promotion mix strategies

Decisions about which combination of elements in the promotion mix is likely to best communicate the offering to the marketplace and achieve an acceptable ROI for the marketer.

buying decision

Decisions made throughout the purchase decision process that vary widely and are based on factors such as nature of the purchase, number of people involved in the decision, understanding of the product being purchased, and time frame for the decision.

derived demand

Demand that originates from the demand for consumer products in business-to-business (B-2-B) marketing.

product demand

Demand within business markets affected by three critical dimensions: derived demand, fluctuating demand, and inelastic demand.

causal research

Descriptive research designed to identify associations between variables.

FOB (free on board)

Determination of title transfer and freight payment based on shipping location.

database marketing

Direct marketing involving the utilization of the data generated through CRM practices to create lists of customer prospects who are then contacted individually by various means of marketing communication.

Discounts

Direct, immediate reductions in price provided to purchasers.

one-to-one marketing

Directing energy and resources into establishing a learning relationship with each customer and connecting that knowledge with the firm's production and service capabilities to fulfill that customer's needs in as customary a manner as possible.

channel conflict

Disagreements among channel members that can result in their relationship becoming strained or even falling apart.

quantity discounts

Discounts taken off an invoice price based on different levels of product purchased.

seasonal discounts

Discounts that reward the purchaser for shifting part of the inventory storage function away from the manufacturer.

exclusive distribution

Distribution strategy built on prestige, scarcity, and premium pricing in which a producer distributes its products to only one or very few vendors.

market segmentation

Dividing a market into meaningful smaller markets or submarkets based on common characteristics.

indirect foreign marketing

Doing business with international customers through intermediaries or limited direct contact. The company has no formal channel relationships or global marketing strategy.

long-term memory

Enduring memory storage that can remain with an individual for years or even a lifetime.

viral marketing

Entertaining and informative messaging created by a firm intended to be passed among individuals and delivered through online and other media channels.

Parts

Equipment that is either fully assembled or in smaller pieces that will be assembled in larger components and then used in the production process.

target marketing

Evaluating market segments and making a decision about which among them shows the most promise for development.

specific warranty

Explicit product performance promises related to components of the product.

strategic type

Firms of a particular strategic type have a common strategic orientation and a similar combination of structure, culture, and processes consistent with that strategy. Four strategic types are prospectors, analyzers, defenders, and reactors—depending on a firm's approach to the competitive marketplace.

convenience goods

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information about or considering other product options.

Goals

General statements of what the firm wishes to accomplish in support of the mission and vision.

incentive pay

Generally commissions tied to sales volume or profitability, or bonuses for meeting or exceeding specific performance targets.

impulse goods

Goods whose sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.

agent intermediaries

Intermediaries who do not take title to the product during the exchange process.

merchant intermediaries

Intermediaries who take title to the product during the exchange process.

Interstitials

Graphic, visually interesting Internet advertisements that move across the Web page.

insourcing (third-party logistics)

Handing over one or more core functions to a third-party supplier with expertise in those areas so the firm can better focus on its core business.

event sponsorship

Having your brand and company associated with events in the sports, music, arts, and other entertainment communities.

reposition existing products

Identify for new markets for existing products.

market mavens

Individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information.

opinion leaders

Individuals with expertise in certain products or technologies who classify, explain, and then bestow information to a broader audience.

behavioral data

Information about when, what, and how often customers purchase products and services as well as other customer "touches."

banner ads

Internet advertisements that are small boxes containing graphics and text, and have a hyperlink embedded in them.

relationship orientation

Investing in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new ones.

co-branding

Joins two or more brands in a common product or takes two brands and markets them in partnership.

deceptive pricing

Knowingly stating prices in a manner that gives a false impression to customers.

fair trade laws

Laws designed to allow manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices.

minimum markup laws

Laws that require retailers to apply a certain percentage of markup to their products for sale.

Attitude

Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.

classical conditioning

Learning that takes place by associating a stimulus (marketing information, brand experience) and response (attitude, feeling, behavior).

operant conditioning

Learning that takes place by rewarding a desirable behavior, for example a product trial or purchase, with a positive outcome that reinforces that behavior.

qualitative research

Less structured research not meant to be used for statistical analysis that can employ methods such as surveys and interviews to collect data.

Government

Local, state, and federal entities that have unique and frequently challenging purchasing practices for manufacturing firms.

customer retention

Low propensity among a firm's customer base to consider switching to other providers.

capital goods

Major purchases in support of significant business functions.

original equipment manufacturer (OEM)

Manufacturing firms that sell products that are used as integral manufacturing components by their customer companies.

promotion mix

The elements of promotion, including advertising, sales promotion, public relations (PR), personal selling, direct marketing, and interactive marketing.

product choice

The end result of evaluating product alternatives in the purchase decision process.

primary target markets

Market segments that clearly have the best chance of meeting ROI goals and the other attractiveness factors.

secondary target markets

Market segments that have reasonable potential but for one reason or another are not best suited for development immediately.

tertiary target markets

Market segments that may develop emerging attractiveness for investment in the future but that do not appear attractive at present.

tactical marketing

Marketing activities that take place at the functional or operational level of a firm.

B-2-B (business-to-business) markets

Markets in which a firm's customers are other firms, characterized by few but large customers, personal relationships, complex buying processes, less price sensitive demand.

retailer cooperative (co-op)

The binding of retailers across a variety of product categories to gain cost and operating economies of scale in the channel.

Materials

Natural or farm products that become part of the final product.

Institutions

Nongovernmental organizations driven by the delivery of service to the target constituency, rather than by profits.

Marketing (big M)

The dimension of marketing that focuses on external forces that affect the organization and serves as the driver of business strategy.

marketing (little m)

The dimension of marketing that focuses on the functional or operational level of the organization.

closing the sale

Obtaining commitment from the customer to make the purchase.

price discrimination

Occurs when a seller offers different prices to different customers, without a substantive basis, such that competition is reduced.

strategic vision

Often included within a firm's mission statement, it is a discussion of what the company would like to become in the future.

organizational factors

Organization-wide beliefs and attitudes that factor into a purchase decision.

network organization (virtual organization)

Organizations that eliminate many in-house business functions and activities in favor of focusing only on those aspects for which they are best equipped to add value.

intermediaries

Organizations that play a role in the exchange process between producers and consumers.

brand assets

Other assets brands possess such as trademarks and patents that represent a significant competitive advantage.

data collection

The distribution of a survey to its respondents, recording of the respondents' responses, and making the data available for analysis.

search-related ads

Paid advertisements featured in Internet search engine results based on analysis of keywords entered in the search field.

Advertising

Paid form of relatively less personal marketing communications often through a mass medium to one or more target markets.

subjective measures

Personal evaluations by someone connected to the salesperson's sales process.

customer orientation

Placing the customer at the core of all aspects of the enterprise.

customer-centric

Placing the customer at the core of the enterprise and focusing on investments in customers over the long term.

SBU-level strategic plan

Planning that occurs within each of the firm's strategic business units (SBUs) designed to meet individual performance requirements and contribute satisfactorily to the overall corporate plan.

functional-level plans

Plans for each business function that makes up one of the firm's strategic business units (SBUs). These include core business functions within each SBU such as operations, marketing, finance, as well as other pertinent operational areas.

price points

Prices established to convey the differences in benefits offered as the customer moves up and down the product line.

cultural values

Principles shared by a society that assert positive ideals.

marketing mix (4Ps of marketing)

Product, price, place, and promotion—the fundamental elements that comprise the marketer's tool kit that can be developed in unique combinations to set the product or brand apart from the competition.

Desirability

The extent and direction of the emotional connection an individual wishes to have with a particular group.

aspirational purchases

Products bought outside the individual's social standing.

national brands

Products created, manufactured, and marketed by a company and sold to retailers around the country and the world.

private-label brands

Products managed and marketed by retailers, also known as store or house brands.

loss leader products

Products sacrificed at prices below costs in an effort to attract shoppers to the retail location.

nondurable product

Products that are usually consumed in a few uses and, in general, are of low cost to the consumer.

unsought goods

Products that consumers do not seek out and often would rather not purchase at all.

shopping goods

Products that require consumers to do research and compare across product dimensions like color, size, features, and price.

materials, repairs, and operational (MRO)

Products used in everyday business operations that are not typically considered to be a significant expense for the firm.

durable product

Products with a comparatively long product life that are often expensive.

loyalty programs

Programs that reinforce the customer's benefits of purchasing at the retailer.

pull strategy

Promotional and distribution strategy in which the focus is on stimulating demand for an offering directly from the end user.

push strategy

Promotional and distribution strategy in which the focus is on stimulating demand within the channel of distribution.

rational appeal

Promotional appeal that centers on the benefits an offering can provide to a customer.

emotional appeal

Promotional appeal that plays on human nature using a variety of human emotions and aspirations in developing promotional messages.

moral appeal

Promotional appeal that strikes a chord with a target customer's sense of right and wrong.

promotional campaign

Promotional expenditures to a particular creative execution aimed at a particular product or product line during a specified time period.

open-ended questions

Question format that encourages respondents to be expressive and offers them the opportunity to provide more detailed, qualitative responses.

closed-ended questions

Question format that encourages respondents to provide specific responses.

Puffery

Relatively minor embellishments of product claims to bolster the persuasive message.

descriptive research

Research designed to explain or illustrate some phenomenon.

exploratory research

Research geared toward discovery that can either answer the research question or identify other research variables for further study. It is generally the first step in the marketing research process.

quantitative research

Research used to develop a measured understanding using statistical analysis to assess and quantify the results.

trade servicer

Resellers such as retailers or distributors with whom the sales force does business.

extrinsic rewards

Rewards controlled or given by people other than the salesperson, such as managers and customers.

intrinsic rewards

Rewards that salespeople attain for themselves, such as feelings of accomplishment, personal growth, and self-worth.

nonfinancial incentives

Sales force motivators beyond financial compensation.

promotional allowances

Sales promotions initiated by the manufacturer and carried out by the retailer, who is then compensated by the manufacturer.

request for proposal (RFP)

The document distributed to potential vendors that outlines an organization's product or service needs. It serves as a starting point from which vendors put together their product solution.

key account salespeople

Salespeople responsible for the firm's largest customers.

missionary salespeople

Salespeople who do not take orders from customers directly but persuade customers to buy their firm's product from distributors or other suppliers.

supplier choice

Selecting between multiple suppliers offering similar product configurations by examining their qualifications.

technical selling

Selling that requires a salesperson to have technical understanding of the product or service.

observational data

The documentation of behavioral patterns among the population of interest.

Repairability

The ease of fixing a problem with a product.

input measures

The efforts of salespeople during the sales process.

electronic data interchange (EDI )

Sophisticated programs that link a customer with its suppliers to manage inventories and automatically replenish supplies.

external information sources

Sources of information outside the individual that include independent groups, personal associations (friends and family), marketercreated information (advertising), and experiences (product trial).

Sponsorships

Spaces sold on high traffic Web sites that enable companies to subsidize some section of the Web page on the site.

Objectives

Specific, measurable, and potentially attainable milestones necessary for a firm to achieve its goals.

objective measures

Statistics the sales manager gathers from the firm's internal data.

market development strategies

Strategies designed to allow for expansion of the firm's product line into heretofore untapped markets, often internationally.

market penetration strategies

Strategies designed to involve investing against existing customers to gain additional usage of existing products.

product development strategies

Strategies designed to recognize the opportunity to invest in new products that will increase usage from the current customer base.

diversification strategies

Strategies designed to seize on opportunities to serve new markets with new products.

public relations (PR)

Systematic approach to influencing attitudes, opinions, and behaviors of customers and others.

core competencies

The activities a firm can do exceedingly well.

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.

instrumental performance

The actual performance features of the product in terms of what it was promised to do.

markup on cost

The addition to the price of an offering after costs have been considered.

benefits

The advantageous outcome from the advantage found in a product feature.

degree of affiliation

The amount of interpersonal contact an individual has with the reference group.

just noticeable difference (JND)

The amount of price increase that can be taken without impacting customer demand.

organizational learning

The analysis and refinement phase of the CRM process that is based on customer response to the firm's implementation strategies and programs.

Frequency

The average number of times a person in the target market is exposed to the message.

contractual VMS

The binding of otherwise independent entities in the vertical marketing system legally through contractual agreements.

Assortment

The number of different product items within a product category.

undifferentiated target marketing (mass market)

The broadest approach to target marketing that involves offering a product or service that can be perceived as valuable to a very generalized group of consumers.

family life cycle

The changes in life stage that transform an individual's buying habits.

Perishability

The characteristic of a product or service in which it cannot be stored or saved for future use.

Intangibility

The characteristic of a service in which it cannot be experienced through the physical senses of the consumer.

Inseparability

The characteristic of a service in which it is produced and consumed at the same time and cannot be separated from its provider.

Variability

The characteristic of a service in which its service quality can only be as good as that of its provider.

Demographics

The characteristics of human populations and population segments, especially when used to identify consumer markets.

mass marketing

The classic style of consumer marketing in which a firm views all consumers as equal reactors to a firm's marketing strategies.

marketing intelligence

The collecting, analyzing, and storing of data from the macro environment on a continuous basis.

product mix

The combination of all the products offered by a firm.

value co-creation

The combining of capabilities among members of a value network to create value.

electronic retailing

The communication and sale of products or services to consumers over the Internet.

Positioning

The communication of sources of value to customers so they can easily make the connection between their needs and wants and what the product has to offer.

customer touchpoints

The company touches the customer in some way—retail store, direct mail piece, Web site-thus allowing information about him or her to be collected.

societal marketing

The concept that, at the broadest level, members of society at large can be viewed as a stakeholder for marketing.

promotional appeal

The connection an offering establishes with customers; includes rational appeals, emotional appeals, and moral appeals.

shopping experience

The consumer's holistic experience while looking for and evaluating products during the purchase decision process.

perceived quality

The conveyed perception of quality of a brand that is either positive or negative.

family branding

The creation of brands that have synergy between them in terms of the overall company brand.

channel power

The degree to which any member of a marketing channel can exercise influence over the other members of the channel.

sales presentation

The delivery of information relevant to meet the customer's needs.

pricing objectives

The desired or expected results associated with a pricing strategy that is consistent with other marketing-related objectives.

research problem

The definition of what information is needed to help management in a particular situation.

management research deliverable

The definition of what management wants to do with marketing research.

Formalization

The formal establishment of a firm's structure, processes and tools, and managerial knowledge and commitment to support its culture.

service-profit chain

The formalization of linkages between employee and customer aspects of service delivery.

essential benefit

The fundamental need met by a product.

Exchange

The giving up of something of value for something desired.

retail target market

The group of consumers targeted by a retailer.

symbolic performance

The image-building aspects of the product in terms of how it makes the consumer feel after purchase.

market orientation

The implementation of the marketing concept, based on an understanding of customers and competitors.

sales orientation

The increase of sales and consequently production capacity utilization by having salespeople "push" product into the hands of customers.

Initiator

The individual who starts the buying decision process.

sales skill levels

The individual's learned proficiency at performing necessary sales tasks.

short-term memory

The information an individual recalls at the present time. Sometimes referred to as working memory.

physical distribution (logistics)

The integrated process of moving input materials to the producer, in-process inventory through the firm, and finished goods out of the firm through the channel of distribution.

Touchpoints

The intersection of a selling firm with a customer via a media channel.

corporate vertical marketing system (VMS)

The investment of a channel member in backward or forward vertical integration by buying controlling interest in other intermediaries.

channel captain (channel leader)

The lead player in an administered vertical marketing system (VMS).

marketing management

The leading and managing of the facets of marketing to improve individual, unit, and organizational performance.

low-involvement learning

The learning process in which an individual is not prompted to value new information, characterized by little or no interest in learning about a new product offering.

high-involvement learning

The learning process in which an individual is stimulated to acquire new information.

Durability

The length of product usage.

innovation diffusion process

The length of time it takes a product to move from first purchase to last purchase.

Clutter

The level of competing messages on a particular medium.

sales experience

The level of ease a consumer experiences in purchasing and returning merchandise at a retailer.

customer satisfaction

The level of liking an individual harbors for an offering.

product life cycle (PLC)

The life of a product as identified in four stages: introduction, growth, maturity, and decline.

strategic marketing

The long-term, firm-level commitment to investing in marketing—supported at the highest organization level—for the purpose of enhancing organizational performance.

Style

The look and feel of a product.

production orientation

The maximization of production capacity through improvements in products and production activities without much regard for what is going on in the marketplace.

nonverbal communication

The means of communicating through facial expressions, eye behavior, gestures, posture, and any other body language.

price elasticity of demand

The measure of customers' price sensitivity estimated by dividing relative changes in quantity sold by relative changes in price.

lifetime value of a customer

The measurement of important business success factors related to long-term relationships with customers.

market research

The methodical identification, collection, analysis, and distribution of data related to discovering then solving marketing problems or opportunities and enhancing good decision making.

brand awareness

The most basic form of brand equity is simply being aware of the brand. Awareness is the foundation of all other brand relationships.

personal factors

The needs, desires, and objectives of those involved in a purchase decision.

Variety

The number of different product categories offered by a retailer.

product breadth

The number of different product categories offered by a retailer.

product depth:

The number of different product items within a product category offered by a retailer.

nonprobability sampling

The selection of individuals for statistical research in which the probability of everyone in the population being included in the sample is not identified.

vending machine retailing

The selling of merchandise or services that are stored in a machine then dispensed to the consumer when the payment has been made.

firing a customer

The shifting of investment of resources from a less attractive customer to more profitable ones.

Disintermediation

The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries.

probability sampling

The specific protocol used to identify and select individuals from the population in which each population element has a known non-zero chance of being selected.

Motivation

The stimulating power that induces and then directs an individual's behavior.

brand loyalty

The strongest form of brand equity and reflects a commitment to repeat purchases.

Macroeconomics

The study of economic activity in terms of broad measures of output and input as well as the interaction among various sectors of an entire economy.

Microeconomics

The study of individual economic activity.

value chain

The synthesis of activities within a firm involved in designing, producing, marketing, delivering, and supporting its products or services.

differentiated target marketing

The target marketing approach that involves developing different value offerings for different targeted segments.

concentrated target marketing (focus or niche strategy)

The target marketing approach that involves targeting a large portion of a small market.

internal marketing

The treating of employees as customers and developing systems and benefits that satisfy their needs to promote internal service quality.

brand strategy

The unique elements of a brand that define the products sold by a firm.

mission statement

The verbal articulation of an organization's purpose, or reason for existence.

complete set

The very large set of possible alternatives a consumer considers during the initial search for information.

Utility

The want-satisfying power of a good or service. There are four types of utility: form utility, time utility, place utility, and ownership utility.

specialty goods

Unique products in which consumers' purchase decision is based on a defining characteristic.

outsourcing the sales force

Using independent sales agents to sell a company's products.

Repositioning

Using the marketing mix approach to change present consumer perceptions of a firm's product or service.

markup on sales price

Using the sales price as a basis for calculating the markup percentage.

value equation

Value in terms of price and delivered benefits to the customer.

Promotion

Various forms of communication to inform, persuade, or remind.

vertical marketing system (VMS)

Vertically aligned networks behaving and performing as a unified system.

market makers

Web sites that bring buyers and sellers together.

customer communities

Web sites where customers come and share stories about their vendor experiences.

return on marketing investment (ROMI)

What impact an investment in marketing has on a firm's success, especially financially.

go-to-market mistake

When a company fails to stop a bad product idea from moving into product development.

price war

When a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share.

extensive information search

When a consumer makes a purchase decision based on a thorough process of investigation and research.

Buzz

Word-of-mouth communication generated about a brand in the marketplace.