Glossary

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Glossary Entries
Word(s)	Definition	Image	Caption	Link	Source
5Ms of marketing	internal elements of a marketing plan that need to be resolved if the plan is successful
buyer	a person or institution that purchases goods or services
consumer	the final user of a purchased product or service
customer	a person who purchases a product or service
customer equity	total combined customer lifetime values of all the company’s customers
customer loyalty	an ongoing positive relationship between a customer and a business
customer relationship management (CRM)	all strategies, techniques, tools, and technologies used by companies to develop, acquire, and retain customers
customer retention	the ability of a company to turn customers into repeat buyers and prevent them from switching to a competitor
customer value	the ratio of the perceived benefits relative to the costs incurred by the customer in acquiring the product or service
customer-driven marketing strategy	a marketing strategy that shifts the focus from the product or service to its users
delight needs	an added value that a customer might receive from a seller without prior expectation or request for the same
desired object	a physical good, service, or experience that consumers expect will satisfy their wants and/or needs
ethical marketing	process that emphasizes trustworthy, transparent, social, and culturally sensitive marketing policies
exchange process	the process of satisfying a need or want by giving something of value in exchange
external interested parties	a person or organization that does not have a direct relationship with a company but is affected by the operations of the business
form utility	the value given to a product by virtue of the fact that the materials and components that comprise it have been combined to make the finished product
interested parties	a group that has an interest in a company or organization and can either affect or be affected by it; often referred to as “stakeholders”
internal interested parties	those persons whose interest in a company comes through a direct relationship such as employment, ownership, or investment
internal marketing	the promotion of a company’s objectives, products, and services to internal parties, such as employees, owners, managers, and shareholders
internet advertising	a set of tools for delivering promotional messages to people worldwide, using the internet as a global marketing platform
macroenvironment	the set of external factors and forces, not controlled by the company, that influence its operations
marketing	the activities a company undertakes to promote the buying or selling of a product or service
marketing concept	marketing philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs better than the competition
marketing environment	all of the internal and external factors that drive and influence an organization’s marketing activities
marketing mix	the set of actions or tactics that a company uses to promote its brand or product in the market
marketing process	the series of steps that assist businesses in planning, analyzing, implementing, and adjusting their marketing strategy
marketing strategy	a plan of action designed to promote or sell a product or service
microenvironment	those factors or elements in a firm’s immediate environment that affect its performance and decision-making
organizational culture	beliefs and behaviors that determine how a company’s employees and management interact and handle customer relationships
PESTLE analysis	a strategic framework used to assess the political, economic, social, technological, legal, and environmental factors affecting an organization
place	the geographical location in which the company sells its products and/or provides its services
place utility	making goods and/or services physically available or accessible to potential customers
possession utility	the amount of usefulness or perceived value from owning a product
price	the cost that consumers pay in order to acquire a product or service
product	anything that can be offered to a market that might satisfy a want or need
product concept	the orientation that consumers will favor those products that offer the most quality, performance, or innovative features
production concept	the orientation that consumers will always acquire products that are cheaper and more readily available
promotion	any type of marketing communication used to inform audiences of the relative merits or a product, service, or brand
real needs	the value the customer is going to derive from the stated good or service
retailers	companies that purchase large quantities of goods from producers and then sell smaller quantities to end customers for personal use or consumption
sales concept	orientation that analyzes buying and selling effects to place the focus primarily on generating sales transactions
secret needs	the needs that the consumer feels reluctant to admit
seller	the individual or organization that supplies the need-satisfying product, service, or experience
societal marketing concept	philosophy that a company should make marketing decisions by considering not only consumers’ wants and the company’s capabilities but also society’s long-term interests
stated needs	those product or service needs that are clearly specified by the customer
suppliers	sometimes also called vendors, these are partners from whom we receive the parts and products necessary for our business
time utility	adding value to the consumer by having the product or service available when the consumer needs it
unstated needs	those needs that are not obvious but are expected by the customer
utility	how a product can be useful to customers in a way that convinces them to make a purchase
value	the difference between a customer’s evaluation of the benefits and costs of one product when compared with others
value proposition	a promise of value to be delivered, communicated, and acknowledged
wholesalers	companies that purchase large quantities of products from producers and then sell to smaller businesses, such as retail stores
BCG matrix	Boston Consulting Group’s framework for analyzing an organization’s strategic business units
business portfolio	the group of products, services, and business units that a company possesses
business-level strategy	outline of the actions and decisions a company plans to take to reach its goals and objectives
buyer persona	a semi-fictional representation of your ideal customers based on data and research
concentric diversification	the addition of similar products or services to an existing business
conglomerate diversification	the development and addition of new products or services that are significantly unrelated to a company’s current offerings
corporate social responsibility (CSR)	the concept that a company should integrate social and environmental concerns into its business operations and practices
corporate-level strategy	strategy that establishes the overall value of a business through setting strategic goals and motivating employees to achieve them
customer acquisition cost	the amount an organization invests in attracting a new customer
customer lifetime value (CLV)	an estimate of how much a single customer is worth to a company over their customer life span
executive summary	a brief overview of a marketing plan
functional strategy	actions and goals assigned to business units that support the overall business strategy
gap analysis	an internal analysis of a company or organization to identify and review its inherent deficiencies that may hinder its ability to meet its goals
goals	the outcomes one intends to achieve
horizontal diversification	the development of new and perhaps even unrelated products or services to market to existing customers so that a company can garner a larger customer base
key performance indicators (KPIs)	quantifiable measure gauging a company’s performance against a set of targets, objectives, or competitors
market development strategy	a growth strategy that identifies and develops new market segments for current products
market penetration strategy	a strategy used when a company focuses on growing its market share in its existing markets
marketing dashboard	summarizes important marketing metrics and key performance indicators into easy-to-understand measurements
marketing ethics	area of applied ethics dealing with the moral principles behind the operation and regulation of marketing
marketing metrics	what marketers use to monitor, record, and measure progress over time; are varied and can change from platform to platform
mission statement	action-based statement declaring the purpose of an organization
objectives	specific targets to be achieved within a specified period of time
product development strategy	complete process of delivering a new product or improving an existing one for customers
product diversification strategy	strategy to increase profitability and achieve higher sales volume through new products
product positioning	strategic exercise that defines where a product or service fits in the marketplace
strategic business unit	a relatively autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities
strategy	set of plans, actions, and goals that outlines how a business will compete
SWOT analysis	identification of internal strengths and weaknesses and external opportunities and threats impacting a business
vision statement	aspirational statement that articulates what an organization aims to achieve
4Ps	the “marketing mix”—product, price, promotion, and place
attitudes	a learned set of emotions, beliefs, and behaviors developed toward a particular brand, object, person, thing, or event
beliefs	ideas that a person holds as being true
buyer’s black box	a model used in the study of the buying behavior of consumers
cognitive dissonance	the mental conflict that occurs when a person’s behaviors and beliefs do not align; also referred to as buyer’s remorse
complex buying behavior	the consumer buying behavior that occurs when the consumer is highly involved with the purchase and perceives significant differences between brands
consumer buying behavior	the actions taken by consumers before buying a product or service
consumer decision process	the process through which consumers become aware of and identify their needs, collect information on how to best solve those needs, evaluate alternative options, make a purchasing decision, and evaluate their purchase
consumer market	a market where consumers purchase products and/or services for consumption
cultural factors	a set of values or ideologies of a particular community or group of individuals that include culture, subcultures, social class, and gender
culture	the pattern of learned and shared behavior and beliefs of a particular social, ethnic, or age group
dissonance-reducing buying behavior	any activity aimed at decreasing the tension or feelings of discomfort and unease that accompany an unfamiliar purchase
economic situation	a measure of a consumer’s income and financial situation
environmental factors	factors such as music, lighting, ambient noise, and smell that can either discourage or encourage a consumer’s purchase decision
family	a group of persons united by ties of marriage, blood, or adoption, or those who live in the same household
gender	the socially constructed roles, behaviors, and norms of individuals, which vary between societies and over time
habitual buying behavior	consumer buying decisions made out of “habit” and without much deliberation or product comparison
heuristics	mental shortcuts that allow people to solve problems and make judgments quickly and efficiently
learning	the acquisition of knowledge or skills through experience, study, or being taught
life cycle stages	various stages in a human’s life, including fetus, baby, childhood, adolescence, adulthood, and elderly
lifestyle	the habits, attitudes, tastes, moral standards, economic level, etc. that together constitute the mode of living for an individual or group
Maslow’s hierarchy of needs	a theory of motivation by Abraham Maslow which states that five categories of human needs dictate an individual’s behavior
motivation	the process that initiates, guides, and maintains goal-oriented behaviors
occupation	an activity or task with which one occupies oneself, usually the productive activity, service, trade, or craft for which one is regularly paid
perception	the manner in which sensory information is organized, interpreted, and consciously experienced
personality	the combination of characteristics or qualities that form an individual’s distinctive character
product differentiation	a marketing strategy in which a brand identifies the one thing that makes it genuinely different from competitors
reference groups	groups that consumers compare themselves to or associate with
roles	the set of norms, values, behaviors, and personality characteristics attached to a status
selective attention	the process of directing one’s awareness to relevant stimuli while ignoring irrelevant stimuli in the environment
selective distortion	a tendency of people to interpret information in a manner that supports what they already believe
selective retention	the tendency of people to retain only part of the information to which they are exposed
social class	a group of people within a society that possesses the same or similar socioeconomic status
social factors	factors that are prevalent in the society where a consumer lives
status	the relative social, professional, or other standing of an individual
subculture	a cultural group within a larger culture, often having beliefs or interests at variance with those in the larger culture
variety-seeking buying behavior	the buying tendencies of consumers who do not have a high involvement with a product when there are significant differences between brands
authority	the right to give orders, supervise the work of others, and make certain decisions
B2B buying process	encompasses 8 stages: problem recognition, need description, product specification, supplier search, proposal selection, supplier selection, order-routine specification, performance review
bill of materials	a comprehensive inventory of the raw materials, assemblies, subassemblies, parts, and components
brokers	individuals or businesses that bring buyers and sellers together, usually for a commission
business objectives and goals	achievable outcomes that provide a framework for achieving success
business-to-business (B2B)	a transaction or business conducted between one business and another
buy classes	buying situations that are distinguished on four characteristics: newness to decision makers, number of alternatives to be considered, uncertainty inherent in the buying situation, and the amount of information needed for making a buying decision
buyers	the people in the buying center who handle the paperwork of the actual purchase
buying center	groups of people within organizations who make purchasing decisions
competition	the rivalry between companies selling similar products and services with the goal of achieving revenue, profit and market share growth
deciders	the people in the buying center who ultimately determine any part of the entire buying decision
derived demand	market demand for a good or service that results from a demand for a related good or service
direct demand	the demand for a commodity for direct consumption purposes
economic factors	factors that affect the economy, such as interest rates, tax rates, laws, policies, wages, and government actions
expertise	expert skill or knowledge in a particular field
Foreign Corrupt Practices Act (FCPA)	a US statute that prohibits firms and individuals from paying bribes to foreign officials
gatekeepers	individuals in the buying center who control information and/or access to decision makers and influencers
government markets	purchases made by the governing bodies of nations, states, or communities
influence	the capacity to have an effect on the character, development, or behavior of someone or something
influencers	individuals whose views influence other members of the buying center in making the final decision
initiator	the person in the buying center who first suggests or thinks of the idea of buying the product or service
institutions	organizations, establishments, foundations, societies, or the like devoted to the promotion of a particular cause or program, especially one of a public, educational, or charitable character
modified rebuy	a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some element of the previous order
new-task buy	a complex B2B buying situation in which the organization buys a product or service for the first time
personality	the combination of characteristics or qualities that form an individual’s distinctive character
political and legal factors	factors such as the political system, the political situation, and government policies that influence B2B buying decisions
producers	those individuals or businesses who buy raw goods to use in the creation of goods or services
product specifications	a document carrying essential information to keep teams on track when designing and developing a product
resellers	companies or individuals (merchants) that purchase goods or services with the intention of selling, leasing, or renting rather than consuming or using them
retailers	businesses that sell goods to consumers in relatively small quantities for personal consumption
social environment	the values, attitudes, beliefs, wants, and desires of the consuming public
straight rebuys	purchases in which the business customer buys the same goods from the same supplier in the same quantity at the same terms and requires minimal decision making
systems selling	selling a complete solution to a problem or need rather than one or more of the component parts
technology	applications of science, data, engineering, and information for business purposes
users	the people who consume or use the product or service
wholesalers	businesses that typically purchase larger quantities from producers and then resell them to retailers
workforce skills	also called employability skills, the basic skills a person must have to succeed in any workplace
ADAMS	the essential factors in effective market segmentation—accessible, differentiable, actionable, measurable, and substantial
affinity audience	a group of potential customers who have interests or hobbies in common
behavioral segmentation	method of grouping customers by their behavior patterns or interactions with a brand
buyer persona	semi-fictional representation of an organization’s ideal customers based on data and research
concentrated marketing	marketing segmentation strategy in which the firm concentrates its efforts and resources on serving one segment of the market
demographic segmentation	grouping customers and potential customers together by focusing on certain traits such as age, gender, income, occupation, and family status
determinant attributes	those attributes of a product or service that consumers rely upon when making a purchase decision
differentiated marketing	marketing strategy that involves creating marketing campaigns that appeal to two or more different target audiences, demographics, or marketing segments
differentiation positioning	product/service positioning based on the differentiating characteristics or qualities that make an organization better than its competitors in the mind of the target audience
firmographics	a grouping of B2B customers based on shared company attributes; includes five categories: industry, location, size, legal structure, and performance
geographic segmentation	marketing strategy used to target products or services at people who live in or shop at a particular location
head-to-head positioning	directly competing with competitors on similar product attributes in the same market
market segmentation	the process of dividing a broad consumer or business market into subgroups based on shared characteristics
micromarketing	marketing strategy used on a targeted group of customers in a niche market
multi-segment marketing	marketing strategy in which the firm targets several different market segments simultaneously
needs-based segmentation	dividing the market up into smaller groups of people who have approximately the same needs
perceptual map	visual depiction of how target customers view and feel about a given brand or product
positioning statement	short description of an organization’s target market(s) and the product(s) provided to them
product positioning	the process of deciding and communicating how an organization wants its market to think and feel about a product or service
psychographic segmentation	dividing consumers into subgroups based on shared psychological characteristics, including beliefs, motivations, and priorities
STP model	three-step marketing framework in which an organization segments the market, selects target market(s), and positions its products or services
target market	group of people with some shared characteristics that a company has identified as potential customers for its products
technographic segmentation	organizing B2B prospects by their technology ownership and usage
undifferentiated marketing	also called mass marketing, a strategy that entails creating one message for an entire audience
value-based segmentation	evaluating groups of customers in terms of the revenue they generate and the costs of establishing and maintaining relationships with them
aided awareness	when a product, brand, or company list is provided to select from to measure awareness
anonymous data	data in which the respondent is not identified
awareness	a consumer’s familiarity with a product, brand, or company
big data	the countless number of records that continues in an increasing capacity and at a faster rate; often described as volume, velocity, and variety of data generated
breach of confidentiality	a situation where the researcher promises to hold private information but discloses it in an unethical manner without permission
causal research	studies that define a cause-and-effect relationship between two factors
census	when all potential target population members are included in the research
competitive intelligence	a collection of information about competitors from the marketplace
confidential data	data that is tied back to a respondent, but the respondent’s personal information is not shared
convenience sample	a nonprobability sample type where potential respondents to the research are selected by convenience rather than through any scientific method
cross tabulation	an analysis of two variables and the frequency of each answer in relation to the other variable
customer acquisition cost	the total expenses a company spends to gain a new customer
customer effort score	a survey used to measure ease of service experience with an organization
customer satisfaction score	also known as a CES, a survey used to measure ease of service experience with an organization
data analysis	the distillation of information into a more understandable and actionable format
data collection	systematic gathering of information that addresses an identified problem
database	a collection of related data
descriptive research	data collected to describe the situation in the market and help define an opinion, attitude, or behavior
electronic surveys	surveys sent through digital means to respondents; respondents also reply to the survey digitally
ethnographic research	method of collecting data that is conducted by observing people’s natural behavior
experimental research	studies that define a cause-and-effect relationship between two factors
exploratory research	research conducted that is more general to learn more about the industry or market
external data	data that originates from outside the organization
focus group	a small group, typically 8 to 12 people, who are asked several questions by a moderator and encouraged to build upon each other’s responses
frequency	a report of the number of each answer received
in-person surveys	surveys conducted when the respondent and data collector are face-to-face
infographic	a representation of data in a variety of visual presentations
internal data	critical marketing intelligence that already exists in the company’s records
judgment sample	a nonprobability sample type where the potential participants are selected based on a perceived match to the sample frame
mailed surveys	surveys sent to potential participants through a mail service, such as the US Postal Service
marketing information	also known as business intelligence, competitive intelligence, or marketing intelligence; information about the market that helps to identify opportunities available
marketing information system	a system used to collect, analyze, and report interesting findings from internal and external data of the company
marketing research	the function that links the consumer, customer, and public to the marketer through information
mean	an arithmetic average of values
mechanical observation	the use of electronic monitoring to record the actions of the observed
median	the middle number when all answers are organized from smallest to largest; if an even number of data, the mean of the two middle answers is the median
mode	the most common response
nonprobability sample	a situation which each member of the population has an unknown chance of being selected to be part of the sample
observational research	data collected by watching consumers and recording actions
one-on-one interview	an interview that happens on an individual level between researcher and respondent
personal observations	observations that are collected by human recorders
phone surveys	surveys conducted through the use of a telephone that can be completed through digital or human methods
primary data	unique information that is collected by the researcher with the current project in mind
privacy	maintaining the data of research participants discretely and holding confidentiality
probability sample	a sample in which everyone has a known chance of being included in the research
problem definition	the realization that there is an issue that needs to be addressed
qualitative data	data that cannot be distilled into number of responses, such as responses to an interview
qualitative research	data shared through words, descriptions, and open-ended comments
quantify the research	to take a variety of data and compile it into a quantity that is easily understood
quantitative data	data that can be reduced to number of responses, such as number of responses to each answer on a multiple-choice question
questionnaire	also known as a survey, a series of several questions that can collect a variety of qualitative and quantitative data; can be distributed through several different methods
sample	a portion of the entire population that is included in the research
sample frame	a parameter that defines who will be included in the sample and who would not be included
sample size	the number of respondents that are to be included in the research
sampling unit	each individual entities that is included in the sample
secondary data	any research that was completed, within the organization or outside of the organization, for another purpose
simple random sample	a type of probability sample where every entity has an equal chance of being selected
stratified random sample	a probability sample type where the population is divided into groups and then participants are selected from each stratum randomly
sugging	suggesting a purchase disguised as research
survey	also known as a questionnaire, a series of several questions that can collect a variety of qualitative and quantitative data; can be distributed through several different methods
syndicated data	a type of secondary data that is available through a subscription service
target population	the group of people that are of interest for a study
unaided awareness	when no prompts or lists of potential products, brands, or companies are given to test awareness
unobtrusive observation	a type of observation research where the observed is not aware they are being monitored
verbatims	exact quotations of responses to a qualitative question
adapted global marketing strategy	a strategy in which a company utilizes different marketing strategies in different global markets
business landscape	everything internal and external to the business, its industry, and its environment
consumer income	the amount of money a household or individual earns
cultural sensitivity	awareness and appreciation of and the ability to adapt to a cultural, ethnic, racial, or another group other than one’s own
cultural symbols	physical representations of a culture’s language, values, and traditions
cultural values	unspoken aesthetics, socialization, and religious aspects woven throughout a culture
customs	mannerisms or behaviors that are considered characteristics within a social system
discretionary income	the money individuals and households are left with after paying taxes and other living expenses, such as food and shelter
disposable income	the money individuals and households are left with after paying taxes
dumping	the practice in which a company manufactures a very large of number of goods and exports them to a foreign market to see cheaply
economic infrastructure	the physical facilities of an economy that benefit product and distribution
embargoes	trading bans on a product with a specific country; imposed between countries that have different political ideologies
ethnocentrism	an assumption that the business landscape or culture of an international market is the same as the home country or personal culture
exchange rate	the rate at which one country’s currency can be exchanged for that of another country
exporting	when a firm makes a product or service in one country and sells it in others
foreign direct investment (FDI)	the process of establishing operations within a foreign country
franchising	a business strategy in which the owner (the franchisor) allows another person or entity (the franchisee) to operate a business using the franchisor’s products, branding, and knowledge in exchange for a fee
global market opportunities	conditions that are favorable for a company to expand into the global marketplace
international firm	a company that operates on a global level regardless of intensity of involvement
joint venture	a business arrangement whereby two or more companies create a single enterprise or project
licensing	a contract in which one organization permits another to use its name brand or trademark on its own items
lifestyle	the way a person or group lives
outsourcing	the process of moving some of a business’s operations to a foreign country for the purpose of saving money and time or to increase volume and quality
product adaptation	when companies modify products to align with the local culture
product invention	when companies create entirely new products for a global market
purchasing power	the goods that can be purchased with one unit of currency
quotas	maximum allowable units (usually in currency) to be imported into or exported out of a specific country
risk	any situation or condition that leads a company to decreased profits or even failure
sociocultural factors	values, behaviors, culture, lifestyle, and language that shape a person’s or group’s way of living
standardized global marketing strategy	a strategy in which a company uses the same marketing strategy in all markets
stereotypes	oversimplified images, perceptions, or ideas of a person or group
straight product extension	a strategy that entails maintaining the same product for both the home and foreign markets
strategic alliance	when two companies from different countries agree to invest resources in a mutually beneficial way
tariffs	taxes that governments impose on imports into the country
trade blocs	intergovernmental agreements that remove barriers to trade within regions of the world
transnational firm	a company that allows for a higher degree of localization
whole channel	the design of the international channels that incorporates all members, including the manufacturing, retailer, and wholesaler sites as well as transportation
acculturation	the process by which a person’s family cultural patterns change because of direct and constant contact with a different culture
adaptation	the process of adjusting a company’s work efforts, goods, or services in response to specific needs, tastes, or expectations—whether real or perceived—from different groups of consumers
Asian population	third largest multicultural group in the United States; made up of 22 different subethnicities from the Asian continent, Hawaii, and islands of the Pacific; can belong to a single race or mixed races
Black population	second largest multicultural group in the United States; made up of three different subethnicities: single race, Black Hispanic, or Black mixed with another race (White or Native American)
company centric	a company’s approach to focusing decisions and execution from the perspective of the organization rather than the customers
consumers with disabilities	sociodemographic group living with some type of disability related to mobility, learning, intellectual, or other types of functions; a very diverse group because disabilities span cultural, social, and demographic factors
cultural duality	characteristic of a multicultural individual for whom cultures overlap with each other and the person feels a sense of belonging to both at the same time
cultural identity	how a person identifies with a given culture, ethnicity, or social group, which instills a sense of belonging that influences personal thinking and actions
culture	objective and subjective elements like social norms, beliefs, behaviors, accomplishments, customs, arts, language, foods, and skills that characterize a particular group of individuals’ way of life
customer centric	a company’s focus on putting targeted customers first regarding any decisions about its goods, services, or experiences to create satisfaction and strengthen loyalty
diversity marketing	a strategic approach that involves identifying different subsegments of the population—based on shared cultural and sociodemographic characteristics—and creating intentional marketing efforts to connect with these consumer groups
diversity marketing intelligence (DMiQ)	the capability of identifying, accepting, and valuing the diverseness of consumers within a market and using this knowledge to tailor the marketing mix accordingly
generational population	sociodemographic category based on birth year clusters that includes Lost Generation (1883–1900), Greatest Generation (1901–1927), Traditionalist/Silent Generation (1928–1945), baby boomers (1946–1964), Generation X (1965–1980), millennials/Generation Y (1981–1996), Zoomers/Generation Z (1997–2009), and Generation Alpha (2010–2024)
Hispanic population	largest multicultural group in the United States; made up of diverse subethnicities and races originating from 20 different Spanish-speaking countries in North America, Central America, the Caribbean, South America, and Europe
LGBTQIA+ population	community composed of individuals who express a diversity of genders, preferences, and sexual orientations that include lesbian, gay, bisexual, transsexual, queer/questioning, intersex, asexual, and other sexual identities
marginalized consumers	populations of consumers that have been pushed to the margins of society and are often excluded in mainstream advertising
marketing mix	the four key elements—product, price, place, and promotion—that shape the development and execution of marketing objectives to reach a target market
multicultural identity	having an affinity with multiple racial or ethnic groups that a person has been exposed to and self-categorizing as being part of more than one of them
multicultural marketing	a subcategory of diversity marketing aimed at intentionally targeting audiences based on different racial, ethnic, and cultural identities and backgrounds
Native American, Alaska Native population	multicultural group of individuals of a single race and mixed races who are native to the United States and its territories including American Indians, Alaska Natives, Native Hawaiians, and American Samoans
sociodemographic marketing	a subcategory of diversity marketing aimed at intentionally targeting audiences based on shared social and demographic characteristics such as gender and sexual orientation, age or generation, family structure, religion, education, income level, and disability
sociodemographics	the combination of social and demographic factors that characterize specific consumer groups in the market
socioeconomically disadvantaged population	disadvantaged community that lacks social resources and infrastructure to reduce poverty; members tend to be in low-income households, experience financial insecurity, and have less access to education
standardization	the process of purposefully applying identical or consistent guidelines to goods or services to achieve uniformity
tokenism	the practice of including an individual from either a minority group or an underrepresented community in marketing efforts simply as a symbol
actual product	product available for purchase
augmented product	product having unseen aspects essential to customers
brand	an intangible asset with tangible value; made up of promotion efforts and customer meaning
brand engagement	measure of how deeply the customer identifies emotionally with a brand
brand equity	the additional value that a brand has over a substitute
brand extensions	products that leverage the brand name to new product categories
brand lift	measure of customer and noncustomer perception of a product over time
brand name	the official name of a brand
brand positioning	the way a brand signals emotions in consumers’ minds
brand preference	measure of the degree to which a brand is preferred over others in the category
brand value	the financial asset associated with a brand
branding	the process of developing a brand
capital items	assets valuable to a business that also have tangible value
co-brand	to bring the equity of two brands together for greater value
convenience products	products that consumers can purchase easily, quickly, and without a lot of thoughtful decision-making
core product	product solution that the customer is actually buying: convenience, ego, ease, flexibility, etc.
cost of goods sold	expenses directly attributable to the product or service
cradle-to-cradle packaging design	product design that eliminates waste from the life cycle of package
customer experience	the overarching impression that customers have of a brand
decline stage	part of the product life cycle characterized by a significant decrease in sales and profitability
divest	to sell a brand or discontinue a product to protect a portfolio
gross profit margin	comparison of profit before expenses to total revenue
growth stage	part of the product life cycle characterized by increasing sales; stage when copycat brands may enter the market
hard-core loyals	tried-and-true customers who will generally only purchase one brand in a category
harvest	to reduce all unnecessary expenses to retain any remaining revenue
introduction stage	part of the product life cycle when consumer awareness is building and sales are starting to grow
licensed brands	brands that provide the likeness of their brand as a fee for use
line extensions	products that create new opportunities for an existing product and brand
manufactured materials and parts	products used to create a product
market modification	an extension of a product to new customers
maturity stage	part of the product life cycle when sales growth slows and profitability levels off
multibrands	new brand names within a company’s existing product category
national brands	name brands that sell a product or service under its corporate name and identity
net profit margin	calculation that deducts all expenses from profitability
new brands	an entirely different brand entity from a parent company
private-label brands	store brands that are similar products to a national brand and labeled privately
product item	a particular good that a company sells
product life cycle	the stages a product goes through, tracking its sales and profitability
product line	a set of products that are similar or complementary
product line depth	the number of products in a line
product line filling	products added to a product line to keep competitors from entering the market
product line stretching	addition of product lines
product mix	all the products a company sells
product mix width	the number of product lines a brand carries
product modification	alteration of products to fit the market
products	tangible items that are part of an exchange between a buyer and a seller
profit margins	a widely used financial measure to determine the profitability of a business; considers costs to manufacture and sell a product or service
rapid penetration pricing strategy	strategy that sets a lower-price strategy; appropriate when volume sales will increase market share quickly
rapid skimming strategy	strategy that sets a high price along with extensive advertising and sales promotion to establish a product in the marketplace
raw materials	products that a business needs to purchase in order to make a consumer good
services	intangible solutions that are an exchange between buyer and seller
shifting loyals	customers who are loyal to one product or service for a time, then turn their loyalty to a different product or service at another time
shopping products	products that require more thought from the consumer as they seek the best quality or price
slow penetration pricing strategy	strategy that sets low prices and little promotion to capture market share slowly in a market not susceptible to promotion
slow skimming strategy	strategy that sets high prices with low advertising and sales promotion investment
specialty products	products that have unique qualities that consumers will make an extra effort to seek out
split loyals	customers who have a consideration set of two or three products or services in a category
supplies and services	goods and services that are typically disposed of and do not contain a tangible value
switchers	customers who continually change their purchasing behaviors
trademarks (service marks)	symbols that show legal ownership of a brand name or brand mark
unsought products	consumer goods that a buyer doesn’t anticipate purchasing
additions to existing product lines	product line extensions that involve changes to styles or flavors
business analysis	the fifth step in the new product development process, in which a potential new product is evaluated
commercialization	the eighth step in the new product development process, in which the product is launched with full-scale production, distribution, advertising, and sales promotion
communicability	the ability to communicate to the audience the benefits of using a particular product or service
concept development and testing	the third step in the new product development process, in which a product concept is developed into a detailed idea
concept testing	market research method in which customers are presented with a description of a product or service
consumer adoption process	stages consumers go through in adopting a new product
continuous innovation	category of “newness” in which the existing product undergoes only marginal changes that do not alter consumer habits
copyrights	original works of authorship that include software, songs, television shows, and motion pictures
crowdsourcing	using the input of a large group of people for market testing
diffusion of innovation	theory about how products gain momentum and spread through a population or society
discontinuous innovation	new-to-the-world products that require a significant change in consumer behavior when adopted
divisibility	the ability of a consumer to give a product a “test run” before purchasing it
dynamically continuous innovation	changes to a product or service that require little change to consumer habits
early adopters	consumers who are willing to try new products typically before others but not as early as innovators
early majority	consumers who are initially reluctant to risk trying a new product but accept innovation
evaluation of results	the ninth and final step in the new product development process, in which a company evaluates product launch performance based on predetermined metrics
external sources	in product development, sources of ideas for new products or services from those outside the organization
idea generation	the first step in the new product development process, in which many new ideas for a product are developed
idea screening and evaluation	the second step in the new product development process, in which ideas are filtered to those most likely to turn a profit
improvements and revisions to existing products	improvements to existing products that fine tune or perfect them
innovators	consumers who are the first to take a risk and buy new products as soon as they are available
intellectual property	collective term used to describe patents, copyrights, and trademarks
internal sources	in product development, sources of ideas for new products or services from those inside the organization
laggards	consumers who are skeptical of new ideas and are reluctant to try new products
late majority	consumers who are slow to catch on to the popularity of new services, products, ideas, or solutions
market attractiveness	the measure of potential value; considers factors like short- and long-term profit, market growth rate, how much competition currently exists in the market, the cost of entry into the market, and how much the product satisfies the needs of customers in the target market
market strategy development	the fourth step in the new product development process, in which a preliminary marketing strategy is developed
marketing synergy	the fit between the needs of the new product development project and the company’s marketing capabilities
new-to-the-firm products	products that are new to a company but not to the world
new-to-the-world products	new product inventions that create new markets
patents	the right to exclude others from making, using, or offering for sale an invention
personal influence	communication between individuals in which individuals can affect the purchasing decision of others because of their authority, knowledge, or position
product adoption	the fifth stage in the consumer adoption process, also known as user adoption, in which people learn about a product and start using its features
product awareness	the first stage in the consumer adoption process, in which a company creates awareness that the product is available
product concepts	perceptions of a new idea or innovation
product development	the sixth step in the new product development process, in which a potential new product undergoes development; may include the creation of a prototype
product evaluation	the third stage in the consumer adoption process, in which consumers examine, compare, and evaluate the product prior to purchase
product idea	concept of a new product that a company could potentially offer to the market
product interest	stage in the consumer adoption process in which the product has piqued the consumer’s interest
product metrics	quantifiable data that a business tracks and analyzes to determine how successful its new products are
product trial	the fourth stage in the consumer adoption process, in which the consumer tries the product out
prototype	in new product development, the creation of a physical version of the product
repositioned products	products that are retargeted for a new use
return on investment (ROI)	a metric formula used to evaluate the profitability of an investment and, in marketing, the measurement of the profitability of a new product launch
revenue streams	all the ways in which a company can generate cash flow from the sale of its products or services
technological synergy	the extent to which a new product is built on the firm’s existing technological resources
test-marketing	the seventh step in the new product development process, in which a product concept is test-marketed to determine its viability before launch to market
trademarks	words or symbols legally registered or established by use as representing a company or product
assurance	in terms of the RATER model, the degree to which an organization inspires trust in its customers
communication gap	in the Gap Model of Service Quality, the variance between what is communicated to the customer and their actual experience
customer gap	in the Gap Model of Service Quality, the variance between the customer’s expectations and their perception of the service
customer loyalty	an ongoing positive relationship between a customer and a business that drives repeat purchases
customer satisfaction	a measurement that determines how happy customers are with a company’s products, services, and capabilities
delivery gap	in the Gap Model of Service Quality, the difference between the experience specification and the actual delivery of the service
empathy	in terms of the RATER model, focusing on customers attentively to assure they receive caring and distinguished service
employee retention	an organization’s ability to retain its employees and stop employees from leaving
employee satisfaction	the level of happiness and contentment employees have about their jobs and the work environment
equipment-based services	when machinery or equipment plays the primary role in the service delivery
external service marketing	the action of promoting or selling services to customers and potential customers
external value proposition	the value companies promise to deliver to customers post-purchase
GAP Model of Service Quality	theoretical marketing model that helps to identify the gaps between the perceived service and the expected service
information processing	intangible actions directed at a customer’s assets, such as insurance or consulting
intangible	unable to be seen, tasted, felt, smelled, or heard
interactive service marketing	the communication between the service provider and the customer; also called a service encounter
internal service marketing	satisfying employees to motivate them to work as a team to satisfy customers
internal service quality	the perceived level of satisfaction an employee experiences with services offered by internal service providers
knowledge gap	in the GAP Model of Service Quality, the difference between what customers expect and what managers think they expect
mental stimulus processing	situation in which the services interact with the customer’s mind rather than the body
people processing	services in which the customer is the direct recipient of the service and production and consumption are simultaneous
people-based services	tasks in which people, rather than equipment or machinery, play a major role in the delivery of the service
policy gap	in the GAP Model of Service Quality, the difference between managers understanding customer needs and being able to turn that into service delivery practices
possession processing	services in which the service is directed toward the customer’s physical possessions
productivity	the efficiency and output of employees
RATER framework of service quality	theoretical model that focuses on the five dimensions of service excellence: reliability, assurance, tangibles, empathy, and responsiveness
reliability	in terms of the RATER model, the organization’s capability to produce an accurate, dependable, and on-time service
responsiveness	in terms of the RATER model, promptness and willingness to provide satisfactory and quick service
service encounter	a consumer’s direct contact with a service provider
service inseparability	concept where services must be produced and consumed concurrently
Service Marketing Triangle	a visual representation of a strategic model that outlines the importance of people in a company’s ability to keep its service promises
service perishability	concept that states services cannot be stored in inventory for future use or sale
service variability	concept that states the quality of the service depends on who, when, where, and how it is provided
service-profit chain model	model that establishes relationships between profitability, employee satisfaction, loyalty, and productivity
services	nonphysical, intangible economic activities
tangibles	in terms of the RATER model, the physical appearance of both the facility and its employees
artificial time constraints	pricing strategy that creates a sense of urgency in buyers’ minds
break-even pricing	pricing strategy in which marketers choose a price that will cover all the costs of manufacturing
bundle pricing	pricing strategy that promotes purchasing multiple items at once; used to prod customers to purchase (and spend) more than they may have otherwise
competition-based objective	product pricing based on the prices of a company’s competitors
consumer confidence	an economic indicator that measures the degree of optimism that consumers have regarding the overall state of the country’s economy and their own financial situations
cost-based objective	product pricing based on the costs of doing business
cross-elasticity of demand	the change in price of one good or service as a similar good or service’s price changes
customer value–based objective	product pricing based on a company’s understanding of the value-added benefits of a product
customer-driven objective	product pricing based on what a customer is willing to pay for a product or service
deceptive price advertising	an unethical pricing practice in which the advertised price of a product is misleading to consumers
demand	a buyer’s ability and willingness to purchase a specific product or service
demand curve	a graph that illustrates the relationship between demand and price
demand elasticity	measure of the change in the quantity demanded in relation to the change in its price
discretionary income	a household’s money that is left over after all taxes and necessities are paid
economy pricing	setting a price much lower than competitors to sell high volumes of a product
fixed costs	costs of doing business that do not change based on number of units produced
income effect	the perception buyers have of how price changes will affect their income
inflation	an economic measure of the rate of rising prices of goods and services in an economy
market share–oriented objective	setting prices at, below, or above competitors in an effort to increase market share
monopoly gouging	when a seller increases the prices of goods and services that are not considered fair or competitive
odd-even pricing	psychological pricing strategy that uses prices that end with odd or even numbers to attract customers
penetration pricing	new product or service strategy that sets the lowest price possible in order to reach the majority of the market in the introduction stage
predatory pricing	when a company prices goods or services so low that other companies cannot compete
prestige pricing	a strategy marketers use to set high prices knowing that demand will increase with higher prices because the higher price increases the perceived value of the product
price	the exchange of something of value between a buyer and seller
price anchoring	a frame of reference for a buyer to set an expectation of a price
price appearance	the way in which a customer perceives a price based on how it is visually represented
price discrimination	selling goods and services at different prices to different customers
price fixing	two or more companies agreeing to set certain prices in the market
price gouging	when companies take advantage of a situation, typically an emergency or natural disaster, and charge exceptionally high prices for products or services
price skimming	pricing strategy in which a company initially sets a high price for a product or service and lowers it over time as new segments of the market are reached
product line pricing	setting a higher price for some product lines and lower price points for others in order to capture various target markets
profit	the financial gain of a company
sales-oriented objective	setting prices based on the goal of increasing the volume of sales
substitutes	products and services that are similar to the one being offered
target return objective	setting prices so they return a specific profit during a given period of time
total costs	total expenses of doing business
total revenue	the money generated from normal business operations
unemployment rate	measure of the number of people not employed in an economy during a given period of time
variable costs	costs that vary based on the number of units produced
5A framework	map of the consumer’s various need states as they find out about a product and finally decide to purchase
advertising	a paid form of nonpersonal communication about a product, service, or idea
buy one get one (BOGO)	promotion strategy in which consumers are offered the opportunity to buy one product at regular price and get a second item free
communication channel	delivery mechanism that takes the message from the company to the consumer
continuous promotional schedule	process of conducting promotions year-round on a regular schedule
coupons	sales promotion strategy that works to induce a consumer to buy a product based on a price reduction
creative strategy	method of translating a message into words, images, and sounds
decoding	method of transforming and interpreting a message
direct marketing	method of promotion that directly connects with the customer and generally requires a response or transaction
emotional appeals	advertising messages that appeal to human emotions
encoding	process of putting ideas and thoughts into a transmittable form
enter to win	promotion strategy where consumers must complete entry requirements for a chance to win something of value from a company
fear appeals	campaigns that seek to change behavior through fear
feedback loop	notification that the message has been received between the sender and the receiver
flighting promotion schedule	process of running a period of heavy promotions and then going for a period of time without any promotional messaging
frequency	number of times the target market is exposed to a promotion
integrated marketing communications	development and execution of multiple promotional methods that include a coordinated message
Internet/digital marketing	promotional method that utilizes the Internet and digital technology such as text messaging, phone applications, and social media to reach consumers
key performance indicators (KPIs)	methods of evaluating promotional campaigns
medium	various methods of communicating with a target audience; may include broadcast, print, outdoor, and other forms
message strategy	method of developing a message based on how the message will best tie the brand to the target market
moral appeal	information communicated to the consumer to appeal to their sense of right and wrong
noise	unplanned distractions that interfere with the communication between a sender and a receiver
paid sponsorship	when a person promoting a product is paid by the company to make the endorsement
personal selling	one-to-one communication between the seller and the buyer; used to inform and persuade the buyer
promotion mix	tactics marketers use to communicate with the customer
promotional mix elements	tactics to communicate with the customer including advertising, sales promotion, personal selling, public relations, and direct marketing
public relations	nonpaid, nonpersonal communication
puffery	providing unrealistic and unsubstantiated claims about a product
pulsing schedule	process of running steady promotions followed by a period of heavy promotions
rational appeals	information communicated to the consumer based on how they will benefit
rebates	sales promotion strategy in which consumers must provide key information to a company in exchange for dollars off the product
receiver	intended message recipient
return on customer investment (ROCI)	a marginal analysis that shows the efficiency of marketing communication spending
sales promotion	promotion that creates an incentive to purchase; provides for a fairly immediate increase in sales in the short term
sender	source of a message; can be an organization or person
advertising	paid communication messages that identify a brand or organization and are intended to reach a large number of recipients
aided recall	a type of advertising posttest that uses cues to assist a sample audience in recalling brands and products in an advertisement
all-you-can-afford approach	advertising budget approach that ensures everything else in the organization is budgeted for and then sets aside the remaining funds for advertising
attitude tests	a type of advertising posttest that investigates the attitudes of a sample target audience toward a product or service
brand awareness	metric used to determine if audiences can recall information about a brand
brand recognition	the ability of a campaign audience to recognize and identify a specific brand
comparative advertising	type of advertising that showcases the benefits and values of one product as compared to its competitors
competitive-parity approach	advertising budget strategy that relies on setting budgets based on the expected budgets of competitors
conversion rate	the percentage of an audience that has completed a desired action
engagement	any interaction with advertising content
frequency	how many times someone is exposed to an advertisement in a given time period or how many times an advertisement is shown in a time period
impact	how quickly members of the audience receive an advertising message
impressions	quantifying how many times an advertisement appears in a medium
informative advertising	a type of advertising intended to raise awareness of a product through educational communication to increase demand of the product
inquiry test	a type of advertising posttest that runs two or more similar ads on a limited scale and determines which of the ads are most recalled by and effective for respondents
institutional advertisements	advertisements intended to create a positive image or support for an entire organization
jury tests	a form of pretesting in which the respondents discuss the advertisements that are most likely to induce a purchase
key performance indicators (KPIs)	indicators (metrics) that measure how an advertising campaign is achieving certain goals or objectives
lobbying	networking and other efforts that have the intention of influencing public policy and law
objective-and-task approach	advertising budget strategy that is based on the objectives set previously for the advertising plan
percentage-of-sales approach	advertising budget strategy that utilizes prior years’ sales or predicted year’s sales and sets a percentage of those sales aside for advertising
persuasive advertising	a type of advertising that aims to highlight the benefits of a product or service being advertised
portfolio tests	a type of advertising pretest that consists of respondents browsing through various versions of an advertisement and then being asked to recall certain details from each
press relations	efforts to establish and maintain positive relationships with those in the media by sending press releases and other stories that help to maintain a positive image of the brand
pretesting advertising	research that predicts the performance of an advertisement before it airs
product advertisements	advertisements that promote a specific product within the organization’s product mix
public affairs	efforts to influence public policy and engage with public officials and trade associations
public relations	any actions that help to create and maintain a favorable public image
publicity	notice or attention given by the media
pull strategy	advertising strategy intended to bring audiences to the product
push strategy	advertising strategy aimed at pushing the brand in front of an audience
reach	the estimated number of potential customers you can reach with an advertising campaign
reminder advertising	advertising aimed at bringing a product back into the forefront of the consumer’s mind
return on ad spend (ROAS)	metric that measures the amount of revenue earned for every dollar spent on advertising
return-on-investment (ROI) approach	advertising budget strategy that focuses on every dollar spent on advertising; a return of that dollar—plus some—is expected
sales test	a type of posttest in advertising that determines how many sales will be made based on a test market
theater tests	a form of advertising pretest in which the audience is shown advertisements—usually television ads—in the context that they would be shown to the entire market
unaided recall	a type of advertising posttest that does not use any cues or prompts to test the recollection of the advertisement message
adaptive selling	an approach to personal selling in which selling behaviors are altered during the sales interaction or across customer interactions, based on information about the nature of the selling situation
AIDA model	the model consumers go through when becoming interested in a product. First the product must grab their attention, then they gain interest, they have a desire for the product, and they act to acquire the product
ambiguous terms and conditions	when a contract is unclear and misleading
approach	the stage of the sales process where the salesperson makes the initial approach to introduce the product to the customer
commission	the compensation paid to salespeople based on a fixed formula related to the salesperson’s activity or performance
consultative selling	focuses on the expertise of a salesperson with problem solving
contest	a marketing or consumer sales promotion technique that involves collection, matching, or use of skill to complete a project or activity with the goal of a prize or reward for the player
cooperative advertising	an approach to paying for local advertising or retail advertising whereby the details are handled by a local retail store but is partly or fully paid for by a national manufacturer whose product is featured in the ad
coupon	a printed certificate entitling the bearer to a stated price reduction or special value on a specific product
credit terms	credit terms of the agreement between the buyer and seller with length of time and payments to be made
customer relationship management	the process sales personnel undertake to work with the customer to build the relationship and move into the role of a trusted advisor
formula selling	an approach in which the sales presentation is designed to move the customer through the stages in the decision-making process, such as get the customer’s attention, develop interest, build desire, and secure action
hidden fees	also called undisclosed fees and are fees that are not made known to the buyer
inside order taker	a salesclerk or order clerk that is employed for a company that address questions and complete the final sale
kickbacks	illegal payment for preferential or improper service
lead response time	the activity of evaluating factors through data analytics, demographics, buyer behavior, competitor analysis, and economics
loyalty programs	a form of promotion focused on repeat purchases and frequently attached to a sales receipt, punch card, or stamp card
missionary salespeople	individuals who have the power to influence the customer to purchase a product or service
need/satisfaction format	a type of customized sales presentation in which the salesperson first identifies the prospective customer’s needs and then tries to offer a solution that satisfies those needs
opportunity win rate	the number of sales closed divided by the total number of opportunities created; calculates another opportunity to track sales
order getters	highly trained salespeople who know their products, services involved, and competition across the street
order takers	sales personnel that are responsible for taking orders from customers by identifying the customer and finding the right product fit
outside order takers	salespeople out in the trenches, visiting customers and delivering inventory to retailers and wholesalers
personal selling	communication between a buyer and seller. The primary responsibility is to build a relationship with the buyer.
point-of-purchase displays	displays that allow manufacturers to showcase their products in a way that stands out from all the other products in the store
pre-approach stage	the stage of the sales process where the salesperson will work to understand the needs of the customer and begin working with them to become a customer
premiums	a promotional tool that is often defined in three forms: merchandise offered at a lower price or free; an item of value, other than the product; souvenir merchandise
presentation	the stage of the sales process where the salesperson showcases the features about a product that will be of most benefit to the prospect based on the needs uncovered during the pre-approach and approach stages
prospect	a potential qualified customer who has the willingness, financial capacity, authority, and eligibility to buy the salesperson’s offering
qualification	the process the salesperson undertakes to make sure the sales lead is a good fit for the product they are selling
quantitative assessments	numbers driven and based on inputs and outputs of the sales cycle
rebates	a form of promotion that rewards consumers for sending information to the company
relationship selling	a method of personal selling used to better understand the needs and wants of the buyer
sales force automation	a software tool that helps organizations acquire customers
sales leads	a database of potential customers that sales professionals work to create and develop through lead generation
sales promotion	a short-term way of enticing the consumer to purchase a product or service
samples	providing consumers with a free sample of a product is a form of promotion
selling process	includes all of the steps the salesperson will implement as they work with the buyer to become a customer
support personnel	fulfill the responsibilities that assist the sales team in supporting the customer and completing the sale
sweepstakes	a marketing or consumer sales promotion that involves the offering of prizes to participants, where winners are selected by chance and no consideration is required
team selling	the practice of involving a group of people familiar with the viewpoints and concerns of a customer’s key decision makers to sell and service a major account
technical specialist	a salesperson who has extensive product knowledge and uses this knowledge as the focal aspect of the sales presentation
affiliates	people or companies that earn a commission for driving traffic to another person’s or company’s website where they make a purchase
blog	an online journal of interests, beliefs, and other topics published by a person, a group of people, or an organization
bounce rate	a metric that online marketers use to measure what percentage of visitors who visit the site, view one page, and then leave
call center	a centralized space where agents or representatives answer inbound calls and place outbound calls
catalog marketing	also known as direct mail order and is one of the oldest forms of promotion, which typically includes a variety of products often vividly displayed in a high-gloss magazine-like format
click-through rate (CTR)	the percentage of people who click on an online ad
client reviews	involve feedback that a customer or client posts directly to a platform that can accessed by consumers during the buying process
content marketing	creating and distributing online content that is valuable and relevant to a company’s target customers
conversions	happen when a company turns a visitor into a customer
cost per acquisition (CPA)	also known as cost per action or cost per conversion, relates to the aggregate or cumulative cost of acquiring a customer and can be measured by channel or campaign
cost per click (CPC)	the cost companies pay search engines for each click that a search advertisement receives, which is based on the keywords a company bids on
direct marketing	using communication tools that directly engage with individual consumers for the ultimate purpose of calling them to take some marketing action
direct-mail marketing	a type of direct marketing that involves marketers sending mail directly to people’s homes or places of business; for example, catalogs and postcards
direct-response television marketing	a type of direct marketing that is designed to compel viewers to take some immediate action such, as calling a phone number or visiting a website presented during a television commercial
email marketing	a type of direct marketing that is highly personal and designed to build relationships with consumers
impression	when users see an online ad
integrated social media marketing	involves creating a clear, consistent, and synergistic message across all social media platforms
marketing emails	emails that are promotional in nature and typically involve a marketing offer
mobile marketing	using multiple digital marketing channels that are designed to reach consumers on their smartphones and tablets
mobile-friendly emails	emails whose images, text, and links display in a way that is easy to read when accessed via a mobile device
new visitors	people who are first visiting your website, also known as new users
online direct marketing	uses a rich collection of online tools, such as websites and email, to target individual consumers with an offer designed to compel consumers to take some action, such as visit a website or make an online purchase
online video marketing	involves creating videos that tell a story about a product, company, or brand that is designed to drive consumer engagement through activities such as liking, sharing, and retweeting
organic search	the list of websites on a search engine results page that have not been paid for by marketers
page views	a metric related to how many total pages have been viewed on your website
paid search	a type of digital advertising where marketers pay search engines like Google and Bing to place their ads in sponsored spots at the top or bottom of a search results page
paid social	a type of digital marketing advertising where a company pays a social media company to display a digital advertisement to targeted customers on its platform
podcasts	often free, on-demand, downloadable audio recordings that cover a variety of topics and are typically made available on a weekly or monthly basis
responsive web design	designing a website that is configured to adapt to any device, making it easy for visitors to read and interact with its features
returning visitors	visitors or users who have been to your website before
sales funnel	a visual representation of the customer journey from product awareness to product purchase
search trends	data points that indicate how frequently a term is searched
seminars	a tool that allows companies to share their expertise and knowledge related to a topic, issue, or industry; can be done in person or virtually
SERP (Search Engine Results Page)	the list of search results that displays on a search engine’s page after someone enters key search terms into a search query box
session	a collection of interactions that occur on a company’s website
social engagement	relates to the number of actions that social media users take in direct relation to your company, brand, or product
social media marketing	using social media platforms, such as Facebook, Instagram, LinkedIn, and Twitter, to deliver content that drives engagement with your brand
telemarketing	a type of direct marketing that involves a company representative placing or answering customer phone calls with the intention of guiding the consumer toward making a purchase
trade shows	exhibition events that provide companies the opportunity to present themselves and their products and services to industry peers
traffic by source	means paying attention to the site from which the website traffic came
website marketing	The promotion of a website that results in driving traffic or visitors to the site to learn more about the product or company or to make a purchase
website traffic	the total number of visitors to a company’s website
accumulating	relates to intermediaries buying in bulk from different manufacturers
adjusting for discrepancy of assortment	occurs when an intermediary buys from manufacturers, then regroups products into different assortments based on what consumers are demanding from retailers
administered VMS	one type of vertical marketing system where there is no ownership of channel members but instead one member who is large enough to coordinate and manage the distribution activities of other channels members
agent	a type of intermediary who acts as an extension to the manufacturer
bulk and weight	the density and heaviness of one unit of product
bulk-breaking	occurs when an intermediary takes a large bundling of a manufacturer’s product and breaks it down into single units to be distributed to retailers based on the retailer’s order
business-to-business (B2B)	a market comprised of companies who buy from and/or sell to other companies
business-to-consumer (B2C)	a market comprised of companies that manufacture and sell products or services directly to a final consumer or end user
channel conflict	disagreements between companies in the marketing channel due to a competitive versus a collaborative mindset
channel length	relates to the number of intermediaries in the marketing channel
channel member (intermediary)	a company that works in a network with other companies to help gets products from manufacturers to final consumers
contractual VMS	independent companies that have joined together by contract for a mutually beneficial purpose
corporate VMS	when one member of the distribution channel owns the other members
customer-perceived value	the overall perception that a consumer has about a company, brand, or product and is measured by what the consumer is willing to pay in return for the features and benefits in the market offering
direct channel	when companies sell and distribute their products directly to consumers
direct marketing channel	when a manufacturer does not use intermediaries but rather involves the manufacturer distributing its market offering directly to consumers
disintermediation	the process of removing an intermediary from a marketing channel
distribution	the process of making products and services available and accessible to consumers to purchase
distributor	a type of intermediary that takes ownership of the product and tends to align itself closely with a manufacturer
exclusive distribution	a strategy that involves allowing a limited number of intermediaries to distribute a company’s market offering
facilitating functions	activities such as financing and information sharing in the marketing channel
final consumer	the end user of a good or service
horizontal conflict	when there is disagreement among firms at the same level in the marketing channel
horizontal marketing system	a group of unrelated companies that offer products and services in a shared space
indirect channel	involves the utilization of one or more intermediaries to distribute a market offering to consumers
intensive distribution	a distribution strategy that entails distributing a company’s market offering through all possible intermediaries
inventory management	a function that involves identifying the type of inventory and how much a company has on hand at any given time
inventory turnover rate	a metric that measures how quickly inventory is turned over, or sold
logistical functions	the handling, packing, inventorying, transporting, warehousing, and ensuring the security of products as they make their way to the customer
logistics	the coordination of all supply chain activities, such as warehousing, inventory management, and transportation
marketing channel	system of people, organizations, and activities that work together to make goods and services available to consumers for use
multichannel distribution system	where a single company sets up multiple distribution channels to reach customers
omnichannel marketing system	multichannel approach whereby companies give consumers a variety of ways to purchase, receive, and return products
order accuracy rate	a metric that measures the percentage of orders that are processed, fulfilled, and shipped to consumers without any errors
percentage of on-time shipments	a metric used to evaluate how well a channel member meets its promise of delivering goods on time
perishability	relates to the likelihood that a product will spoil, decay, or expire if not used in a timely manner
post-sale service	all activities provided by a company that reinforce the value of the product or service for the buyer
pre-sale service	all activities provided by a company that help a buyer make a purchase decision
producer	a company that supplies the raw materials that manufacturers need to create consumer products
producer to retailer to consumer channel	when manufacturers or producers sell to retailers without the use of wholesalers or distributors
product life cycle	the various stages that a product goes through from its introduction phase, to its growth and maturity phase, and in some cases to its decline phase
purchasing	the process of buying materials needed to manufacture products
retailer	a type of intermediary where retailers take ownership of the product and their sole focus is on reaching the end user or customer directly
selective distribution	a strategy that includes choosing more than one, but fewer than all possible intermediaries to distribute a company’s market offering
standardized	products that have no difference in how they are manufactured
supply chain	a network between a company and its suppliers to produce and distribute a specific product to the final buyer
supply chain management	all members and activities from the procurement and transformation of raw materials into finished goods through their distribution to targeted consumers
sustainability	a company’s effort to reduce its impact on the environment as products move from source procurement through production through distribution to final consumers
sustainable sourcing	the process of considering suppliers’ social, ethical, and environmental performance
target market coverage	resources and capabilities needed to reach consumers in a company’s target market
third-party logistics (3PL) provider	a company that is contracted by a channel member to handle one or more of the functional areas of logistics; often warehouses, distribution centers, or fulfillment centers that have expertise in managing certain logistical activities
time to ship	also known as order cycle time, the length of time from when a customer places an order to when it reaches them
total number of orders	the sum of all orders that a company received in a given time period
total units in storage	a metric used to evaluate warehouse efficiency that changes as items are sold and leave the warehouse and new inventory moves in
transactional functions	buying, selling, and risk-bearing that goes along with the movement of products along the marketing channel
unit value	the price that a company charges for one unit or item
vertical conflict	a conflict that exists between different levels of a vertical channel
vertical marketing system	companies in the marketing channel that work together in a coordinated, collaborative, and customer-centric way
warehousing	the stocking, maintaining, and controlling of products while they await the next step in their journey to the final consumer
wholesaler	similar to distributors in that they take ownership of products; buys products in large quantities for the purpose of distributing an assortment of products to retailers
automatic vending	the use of an electronic device that dispenses a product
cash-and-carry wholesalers	wholesalers that offer a limited line of fast-moving goods that they sell to retailers for cash
category killers	large superstores, most often chains stores, that are bigger, cheaper, and more convenient than competitors
category management	grouping similar products into categories based on customer usage
central business district (CBD)	the commercial and business center of a given city or town
convenience store	a small retail business that stocks a limited range of everyday items such as groceries, snacks, soft drinks, tobacco, toiletries, and lottery tickets
department stores	larger retailers that have separated areas—or departments—for similar product lines
digital wallets	software-based systems that allow for secure transactions
direct mail	solicited or unsolicited advertising of products and services to prospective customers through the mail
direct selling	a marketing strategy that involves selling products and services directly to the consumer in a non-retail setting
discount store	retailer that sells a broad range of products at lower prices than competitors
drop shippers	a wholesaler business model where retailers use suppliers to ship products directly to the end consumer
factory outlets	retailers that offer overstocked merchandise at discounted prices
false or misleading advertising	an unethical marketing practice by which consumers are given false or misleading information about a product or service
freestanding retail locations	store retailers that are not attached to any other retailer or establishment
full-service wholesalers	wholesalers that offer retailers the most complete range of services, such as buying, selling, storage, transportation, sorting, and financing
general-merchandise (full-line) wholesalers	wholesalers that offer an extensive list of merchandise for sale
gross margin	net sales minus the cost of goods sold
intermediaries	companies that act as liaisons between the buyer and seller
keystone pricing	a pricing strategy that doubles the price from the wholesaler or manufacturer
limited-service wholesalers	wholesalers that offer a limited range of services to retailers to increase value
maintained markup	the actual markup on the merchandise that is sold to the consumer
manufacturer’s agents	independent contractors who act as salespeople for multiple manufacturers to sell similar (but not competing) products to retailers
markdown	a price decrease for a product that is at the end of its life cycle or season
markup	the amount added to the cost retailers purchase goods for
merchandise	the goods that are being offered for sale by a retailer
merchant wholesalers	wholesalers that engage in buying, storing, and physically handling products in large quantities and selling those products in smaller quantities to retailers
non-store retailers	retailers that operate outside of traditional brick-and-mortar locations
off-price retailers	retailers that provide high-quality goods at lower prices
omnichannel marketing	utilization of multiple distribution channels
omnichannel strategy	manufacturer strategy that uses multiple distribution channels to distribute a product
online retailing	a business model that allows consumers to search and purchase products remotely over the Internet
original markup	the markup a business has decided upon at the onset of the offering, which includes planned sales and overhead
product traceability	the ability to track all processes for a product from the procurement of raw materials to production, consumption, and disposal
rack jobbers	wholesalers (or manufacturers) that agree with retailers to display and sell a product in a retail store
regional shopping centers	commonly referred to as “malls”; collection of stores that offer general merchandise or fashion-oriented offerings
retailing	the process of selling goods and services to consumers
social commerce	a blend of e-commerce and social media
specialty stores	retailers that focus on selling a single type of product or a single product line
specialty wholesalers	wholesalers that focus on a limited line of products but carry the line in some depth
store retailer	a traditional brick-and-mortar establishment where products are displayed for customers to purchase
strip malls	classified by an attached row of retail stores offering both products and services
supermarket	retailer that mostly focuses on a product mix of grocery items but also carries household and personal items and offers limited services
superstores	very large retailers that have characteristics of both supermarkets and department stores
telemarketing	the attempted sale, or marketing, of goods and services to potential customers via telephone
television home shopping	a business practice in which products or services are sold via television
truck jobbers	wholesalers that make calls to retailers carrying goods on a truck
warehouse clubs	retailers that sell goods in bulk at discounted prices
wholesaling	the business of buying goods in bulk at a discount from a manufacturer or other distribution channel member and selling them retailers for a higher price
consumer-oriented marketing	marketing strategies focused on customer needs and solving their problems
corporate social responsibility (CSR)	sustainable business strategy where companies use their platform to do good, improve the world, and be socially accountable to their customers and other interested parties
customer-value marketing	marketing strategies in which a company works to provide the customer with maximum value compared to competitors
economic pillar (governance pillar)	the sustainability pillar that concerns profitability and business ethics
environmental pillar	the sustainability pillar that focuses on reducing a company’s impact on the environment
environmental, social, and governance strategy	a strategy that holds companies accountable for a sustainability strategy
ESG pillars	the three pillars of environmental, social, and governance that guide corporate sustainability work
innovative marketing	marketing strategies that use media as the method for capturing prospects’ attention and converting them into customers
mission-driven marketing	marketing strategies that align purpose and brand by using the corporate core mission and purpose as their focus
purpose-driven strategy	strategy in which companies work to make a difference in their communities through their decisions and support of environmental programs
social pillar	the sustainability pillar that focuses on creating an inclusive environment for the community
societal marketing	a marketing strategy focused on fulfilling social responsibility obligations while also satisfying customer needs
sustainable marketing	a marketing strategy that infuses purpose into socially conscious products and services

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