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Business LibreTexts

Glossary

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4Ps | the “marketing mix”—product, price, promotion, and place

5A framework | map of the consumer’s various need states as they find out about a product and finally decide to purchase

5Ms of marketing | internal elements of a marketing plan that need to be resolved if the plan is successful

acculturation | the process by which a person’s family cultural patterns change because of direct and constant contact with a different culture

accumulating | relates to intermediaries buying in bulk from different manufacturers

actual product | product available for purchase

ADAMS | the essential factors in effective market segmentation—accessible, differentiable, actionable, measurable, and substantial

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

adapted global marketing strategy | a strategy in which a company utilizes different marketing strategies in different global markets

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

additions to existing product lines | product line extensions that involve changes to styles or flavors

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

advertising | a paid form of nonpersonal communication about a product, service, or idea

advertising | paid communication messages that identify a brand or organization and are intended to reach a large number of recipients

affiliates | people or companies that earn a commission for driving traffic to another person’s or company’s website where they make a purchase

affinity audience | a group of potential customers who have interests or hobbies in common

agent | a type of intermediary who acts as an extension to the manufacturer

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

aided awareness | when a product, brand, or company list is provided to select from to measure awareness

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

ambiguous terms and conditions | when a contract is unclear and misleading

anonymous data | data in which the respondent is not identified

approach | the stage of the sales process where the salesperson makes the initial approach to introduce the product to the customer

artificial time constraints | pricing strategy that creates a sense of urgency in buyers’ minds

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

assurance | in terms of the RATER model, the degree to which an organization inspires trust in its customers

attitude tests | a type of advertising posttest that investigates the attitudes of a sample target audience toward a product or service

attitudes | a learned set of emotions, beliefs, and behaviors developed toward a particular brand, object, person, thing, or event

augmented product | product having unseen aspects essential to customers

authority | the right to give orders, supervise the work of others, and make certain decisions

automatic vending | the use of an electronic device that dispenses a product

awareness | a consumer’s familiarity with a product, brand, or company

B2B buying process | encompasses 8 stages: problem recognition, need description, product specification, supplier search, proposal selection, supplier selection, order-routine specification, performance review

BCG matrix | Boston Consulting Group’s framework for analyzing an organization’s strategic business units

behavioral segmentation | method of grouping customers by their behavior patterns or interactions with a brand

beliefs | ideas that a person holds as being true

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

bill of materials | a comprehensive inventory of the raw materials, assemblies, subassemblies, parts, and components

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)

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

brand | an intangible asset with tangible value; made up of promotion efforts and customer meaning

brand awareness | metric used to determine if audiences can recall information about a brand

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 recognition | the ability of a campaign audience to recognize and identify a specific brand

brand value | the financial asset associated with a brand

branding | the process of developing a brand

breach of confidentiality | a situation where the researcher promises to hold private information but discloses it in an unethical manner without permission

break-even pricing | pricing strategy in which marketers choose a price that will cover all the costs of manufacturing

brokers | individuals or businesses that bring buyers and sellers together, usually for a commission

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

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

business analysis | the fifth step in the new product development process, in which a potential new product is evaluated

business landscape | everything internal and external to the business, its industry, and its environment

business objectives and goals | achievable outcomes that provide a framework for achieving success

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

business-to-business (B2B) | a transaction or business conducted between one business and another

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

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

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

buyer | a person or institution that purchases goods or services

buyer persona | a semi-fictional representation of your ideal customers based on data and research

buyer persona | semi-fictional representation of an organization’s ideal customers based on data and research

buyers | the people in the buying center who handle the paperwork of the actual purchase

buyer’s black box | a model used in the study of the buying behavior of consumers

buying center | groups of people within organizations who make purchasing decisions

call center | a centralized space where agents or representatives answer inbound calls and place outbound calls

capital items | assets valuable to a business that also have tangible value

cash-and-carry wholesalers | wholesalers that offer a limited line of fast-moving goods that they sell to retailers for cash

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

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

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

central business district (CBD) | the commercial and business center of a given city or town

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

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

co-brand | to bring the equity of two brands together for greater value

cognitive dissonance | the mental conflict that occurs when a person’s behaviors and beliefs do not align; also referred to as buyer’s remorse

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

commission | the compensation paid to salespeople based on a fixed formula related to the salesperson’s activity or performance

communicability | the ability to communicate to the audience the benefits of using a particular product or service

communication channel | delivery mechanism that takes the message from the company to the consumer

communication gap | in the Gap Model of Service Quality, the variance between what is communicated to the customer and their actual experience

company centric | a company’s approach to focusing decisions and execution from the perspective of the organization rather than the customers

comparative advertising | type of advertising that showcases the benefits and values of one product as compared to its competitors

competition | the rivalry between companies selling similar products and services with the goal of achieving revenue, profit and market share growth

competition-based objective | product pricing based on the prices of a company’s competitors

competitive intelligence | a collection of information about competitors from the marketplace

competitive-parity approach | advertising budget strategy that relies on setting budgets based on the expected budgets of competitors

complex buying behavior | the consumer buying behavior that occurs when the consumer is highly involved with the purchase and perceives significant differences between brands

concentrated marketing | marketing segmentation strategy in which the firm concentrates its efforts and resources on serving one segment of the market

concentric diversification | the addition of similar products or services to an existing business

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

confidential data | data that is tied back to a respondent, but the respondent’s personal information is not shared

conglomerate diversification | the development and addition of new products or services that are significantly unrelated to a company’s current offerings

consultative selling | focuses on the expertise of a salesperson with problem solving

consumer | the final user of a purchased product or service

consumer adoption process | stages consumers go through in adopting a new product

consumer buying behavior | the actions taken by consumers before buying a product or service

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

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 income | the amount of money a household or individual earns

consumer market | a market where consumers purchase products and/or services for consumption

consumer-oriented marketing | marketing strategies focused on customer needs and solving their problems

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

content marketing | creating and distributing online content that is valuable and relevant to a company’s target customers

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

continuous innovation | category of “newness” in which the existing product undergoes only marginal changes that do not alter consumer habits

continuous promotional schedule | process of conducting promotions year-round on a regular schedule

contractual VMS | independent companies that have joined together by contract for a mutually beneficial purpose

convenience products | products that consumers can purchase easily, quickly, and without a lot of thoughtful decision-making

convenience sample | a nonprobability sample type where potential respondents to the research are selected by convenience rather than through any scientific method

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

conversion rate | the percentage of an audience that has completed a desired action

conversions | happen when a company turns a visitor into a customer

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

copyrights | original works of authorship that include software, songs, television shows, and motion pictures

core product | product solution that the customer is actually buying: convenience, ego, ease, flexibility, etc.

corporate social responsibility (CSR) | the concept that a company should integrate social and environmental concerns into its business operations and practices

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

corporate VMS | when one member of the distribution channel owns the other members

corporate-level strategy | strategy that establishes the overall value of a business through setting strategic goals and motivating employees to achieve them

cost of goods sold | expenses directly attributable to the product or service

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

cost-based objective | product pricing based on the costs of doing business

coupon | a printed certificate entitling the bearer to a stated price reduction or special value on a specific product

coupons | sales promotion strategy that works to induce a consumer to buy a product based on a price reduction

cradle-to-cradle packaging design | product design that eliminates waste from the life cycle of package

creative strategy | method of translating a message into words, images, and sounds

credit terms | credit terms of the agreement between the buyer and seller with length of time and payments to be made

cross tabulation | an analysis of two variables and the frequency of each answer in relation to the other variable

cross-elasticity of demand | the change in price of one good or service as a similar good or service’s price changes

crowdsourcing | using the input of a large group of people for market testing

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 factors | a set of values or ideologies of a particular community or group of individuals that include culture, subcultures, social class, and gender

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

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

culture | the pattern of learned and shared behavior and beliefs of a particular social, ethnic, or age group

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 | a person who purchases a product or service

customer acquisition cost | the amount an organization invests in attracting a new customer

customer acquisition cost | the total expenses a company spends to gain a new customer

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

customer effort score | a survey used to measure ease of service experience with an organization

customer equity | total combined customer lifetime values of all the company’s customers

customer experience | the overarching impression that customers have of a brand

customer gap | in the Gap Model of Service Quality, the variance between the customer’s expectations and their perception of the service

customer lifetime value (CLV) | an estimate of how much a single customer is worth to a company over their customer life span

customer loyalty | an ongoing positive relationship between a customer and a business

customer loyalty | an ongoing positive relationship between a customer and a business that drives repeat purchases

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

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 satisfaction | a measurement that determines how happy customers are with a company’s products, services, and capabilities

customer satisfaction score | also known as a CES, a survey used to measure ease of service experience with an organization

customer value | the ratio of the perceived benefits relative to the costs incurred by the customer in acquiring the product or service

customer value–based objective | product pricing based on a company’s understanding of the value-added benefits of a product

customer-driven marketing strategy | a marketing strategy that shifts the focus from the product or service to its users

customer-driven objective | product pricing based on what a customer is willing to pay for a product or service

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

customer-value marketing | marketing strategies in which a company works to provide the customer with maximum value compared to competitors

customs | mannerisms or behaviors that are considered characteristics within a social system

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

deceptive price advertising | an unethical pricing practice in which the advertised price of a product is misleading to consumers

deciders | the people in the buying center who ultimately determine any part of the entire buying decision

decline stage | part of the product life cycle characterized by a significant decrease in sales and profitability

decoding | method of transforming and interpreting a message

delight needs | an added value that a customer might receive from a seller without prior expectation or request for the same

delivery gap | in the Gap Model of Service Quality, the difference between the experience specification and the actual delivery of the service

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

demographic segmentation | grouping customers and potential customers together by focusing on certain traits such as age, gender, income, occupation, and family status

department stores | larger retailers that have separated areas—or departments—for similar product lines

derived demand | market demand for a good or service that results from a demand for a related good or service

descriptive research | data collected to describe the situation in the market and help define an opinion, attitude, or behavior

desired object | a physical good, service, or experience that consumers expect will satisfy their wants and/or needs

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

diffusion of innovation | theory about how products gain momentum and spread through a population or society

digital wallets | software-based systems that allow for secure transactions

direct channel | when companies sell and distribute their products directly to consumers

direct demand | the demand for a commodity for direct consumption purposes

direct mail | solicited or unsolicited advertising of products and services to prospective customers through the mail

direct marketing | method of promotion that directly connects with the customer and generally requires a response or transaction

direct marketing | using communication tools that directly engage with individual consumers for the ultimate purpose of calling them to take some marketing action

direct marketing channel | when a manufacturer does not use intermediaries but rather involves the manufacturer distributing its market offering directly to consumers

direct selling | a marketing strategy that involves selling products and services directly to the consumer in a non-retail setting

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

discontinuous innovation | new-to-the-world products that require a significant change in consumer behavior when adopted

discount store | retailer that sells a broad range of products at lower prices than competitors

discretionary income | the money individuals and households are left with after paying taxes and other living expenses, such as food and shelter

discretionary income | a household’s money that is left over after all taxes and necessities are paid

disintermediation | the process of removing an intermediary from a marketing channel

disposable income | the money individuals and households are left with after paying taxes

dissonance-reducing buying behavior | any activity aimed at decreasing the tension or feelings of discomfort and unease that accompany an unfamiliar purchase

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

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

divest | to sell a brand or discontinue a product to protect a portfolio

divisibility | the ability of a consumer to give a product a “test run” before purchasing it

drop shippers | a wholesaler business model where retailers use suppliers to ship products directly to the end consumer

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

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

economic factors | factors that affect the economy, such as interest rates, tax rates, laws, policies, wages, and government actions

economic infrastructure | the physical facilities of an economy that benefit product and distribution

economic pillar (governance pillar) | the sustainability pillar that concerns profitability and business ethics

economic situation | a measure of a consumer’s income and financial situation

economy pricing | setting a price much lower than competitors to sell high volumes of a product

electronic surveys | surveys sent through digital means to respondents; respondents also reply to the survey digitally

email marketing | a type of direct marketing that is highly personal and designed to build relationships with consumers

embargoes | trading bans on a product with a specific country; imposed between countries that have different political ideologies

emotional appeals | advertising messages that appeal to human emotions

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

encoding | process of putting ideas and thoughts into a transmittable form

engagement | any interaction with advertising content

enter to win | promotion strategy where consumers must complete entry requirements for a chance to win something of value from a company

environmental | a strategy that holds companies accountable for a sustainability strategy

environmental factors | factors such as music, lighting, ambient noise, and smell that can either discourage or encourage a consumer’s purchase decision

environmental pillar | the sustainability pillar that focuses on reducing a company’s impact on the environment

equipment-based services | when machinery or equipment plays the primary role in the service delivery

ESG pillars | the three pillars of environmental, social, and governance that guide corporate sustainability work

ethical marketing | process that emphasizes trustworthy, transparent, social, and culturally sensitive marketing policies

ethnocentrism | an assumption that the business landscape or culture of an international market is the same as the home country or personal culture

ethnographic research | method of collecting data that is conducted by observing people’s natural behavior

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

exchange process | the process of satisfying a need or want by giving something of value in exchange

exchange rate | the rate at which one country’s currency can be exchanged for that of another country

exclusive distribution | a strategy that involves allowing a limited number of intermediaries to distribute a company’s market offering

executive summary | a brief overview of a marketing plan

experimental research | studies that define a cause-and-effect relationship between two factors

expertise | expert skill or knowledge in a particular field

exploratory research | research conducted that is more general to learn more about the industry or market

exporting | when a firm makes a product or service in one country and sells it in others

external data | data that originates from outside the organization

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

external service marketing | the action of promoting or selling services to customers and potential customers

external sources | in product development, sources of ideas for new products or services from those outside the organization

external value proposition | the value companies promise to deliver to customers post-purchase

facilitating functions | activities such as financing and information sharing in the marketing channel

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

family | a group of persons united by ties of marriage, blood, or adoption, or those who live in the same household

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

final consumer | the end user of a good or service

firmographics | a grouping of B2B customers based on shared company attributes; includes five categories: industry, location, size, legal structure, and performance

fixed costs | costs of doing business that do not change based on number of units produced

flighting promotion schedule | process of running a period of heavy promotions and then going for a period of time without any promotional messaging

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

Foreign Corrupt Practices Act (FCPA) | a US statute that prohibits firms and individuals from paying bribes to foreign officials

foreign direct investment (FDI) | the process of establishing operations within a foreign country

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

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

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

freestanding retail locations | store retailers that are not attached to any other retailer or establishment

frequency | a report of the number of each answer received

frequency | number of times the target market is exposed to a promotion

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

full-service wholesalers | wholesalers that offer retailers the most complete range of services, such as buying, selling, storage, transportation, sorting, and financing

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

GAP Model of Service Quality | theoretical marketing model that helps to identify the gaps between the perceived service and the expected service

gatekeepers | individuals in the buying center who control information and/or access to decision makers and influencers

gender | the socially constructed roles, behaviors, and norms of individuals, which vary between societies and over time

general-merchandise (full-line) wholesalers | wholesalers that offer an extensive list of merchandise for sale

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)

geographic segmentation | marketing strategy used to target products or services at people who live in or shop at a particular location

global market opportunities | conditions that are favorable for a company to expand into the global marketplace

goals | the outcomes one intends to achieve

government markets | purchases made by the governing bodies of nations, states, or communities

gross margin | net sales minus the cost of goods sold

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

habitual buying behavior | consumer buying decisions made out of “habit” and without much deliberation or product comparison

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

head-to-head positioning | directly competing with competitors on similar product attributes in the same market

heuristics | mental shortcuts that allow people to solve problems and make judgments quickly and efficiently

hidden fees | also called undisclosed fees and are fees that are not made known to the buyer

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

horizontal conflict | when there is disagreement among firms at the same level in the marketing channel

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

horizontal marketing system | a group of unrelated companies that offer products and services in a shared space

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

impact | how quickly members of the audience receive an advertising message

impression | when users see an online ad

impressions | quantifying how many times an advertisement appears in a medium

improvements and revisions to existing products | improvements to existing products that fine tune or perfect them

in-person surveys | surveys conducted when the respondent and data collector are face-to-face

income effect | the perception buyers have of how price changes will affect their income

indirect channel | involves the utilization of one or more intermediaries to distribute a market offering to consumers

inflation | an economic measure of the rate of rising prices of goods and services in an economy

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

infographic | a representation of data in a variety of visual presentations

information processing | intangible actions directed at a customer’s assets, such as insurance or consulting

informative advertising | a type of advertising intended to raise awareness of a product through educational communication to increase demand of the product

initiator | the person in the buying center who first suggests or thinks of the idea of buying the product or service

innovative marketing | marketing strategies that use media as the method for capturing prospects’ attention and converting them into customers

innovators | consumers who are the first to take a risk and buy new products as soon as they are available

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

inside order taker | a salesclerk or order clerk that is employed for a company that address questions and complete the final sale

institutional advertisements | advertisements intended to create a positive image or support for an entire organization

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

intangible | unable to be seen, tasted, felt, smelled, or heard

integrated marketing communications | development and execution of multiple promotional methods that include a coordinated message

integrated social media marketing | involves creating a clear, consistent, and synergistic message across all social media platforms

intellectual property | collective term used to describe patents, copyrights, and trademarks

intensive distribution | a distribution strategy that entails distributing a company’s market offering through all possible intermediaries

interactive service marketing | the communication between the service provider and the customer; also called a service encounter

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”

intermediaries | companies that act as liaisons between the buyer and seller

internal data | critical marketing intelligence that already exists in the company’s records

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

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

internal sources | in product development, sources of ideas for new products or services from those inside the organization

international firm | a company that operates on a global level regardless of intensity of involvement

internet advertising | a set of tools for delivering promotional messages to people worldwide, using the internet as a global marketing platform

Internet/digital marketing | promotional method that utilizes the Internet and digital technology such as text messaging, phone applications, and social media to reach consumers

introduction stage | part of the product life cycle when consumer awareness is building and sales are starting to grow

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

joint venture | a business arrangement whereby two or more companies create a single enterprise or project

judgment sample | a nonprobability sample type where the potential participants are selected based on a perceived match to the sample frame

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) | quantifiable measure gauging a company’s performance against a set of targets, objectives, or competitors

key performance indicators (KPIs) | methods of evaluating promotional campaigns

key performance indicators (KPIs) | indicators (metrics) that measure how an advertising campaign is achieving certain goals or objectives

keystone pricing | a pricing strategy that doubles the price from the wholesaler or manufacturer

kickbacks | illegal payment for preferential or improper service

knowledge gap | in the GAP Model of Service Quality, the difference between what customers expect and what managers think they expect

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

lead response time | the activity of evaluating factors through data analytics, demographics, buyer behavior, competitor analysis, and economics

learning | the acquisition of knowledge or skills through experience, study, or being taught

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

licensed brands | brands that provide the likeness of their brand as a fee for use

licensing | a contract in which one organization permits another to use its name brand or trademark on its own items

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

lifestyle | the way a person or group lives

limited-service wholesalers | wholesalers that offer a limited range of services to retailers to increase value

line extensions | products that create new opportunities for an existing product and brand

lobbying | networking and other efforts that have the intention of influencing public policy and law

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

loyalty programs | a form of promotion focused on repeat purchases and frequently attached to a sales receipt, punch card, or stamp card

macroenvironment | the set of external factors and forces, not controlled by the company, that influence its operations

mailed surveys | surveys sent to potential participants through a mail service, such as the US Postal Service

maintained markup | the actual markup on the merchandise that is sold to the consumer

manufactured materials and parts | products used to create a product

manufacturer’s agents | independent contractors who act as salespeople for multiple manufacturers to sell similar (but not competing) products to retailers

marginalized consumers | populations of consumers that have been pushed to the margins of society and are often excluded in mainstream advertising

markdown | a price decrease for a product that is at the end of its life cycle or season

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 development strategy | a growth strategy that identifies and develops new market segments for current products

market modification | an extension of a product to new customers

market penetration strategy | a strategy used when a company focuses on growing its market share in its existing markets

market segmentation | the process of dividing a broad consumer or business market into subgroups based on shared characteristics

market share–oriented objective | setting prices at, below, or above competitors in an effort to increase market share

market strategy development | the fourth step in the new product development process, in which a preliminary marketing strategy is developed

marketing | the activities a company undertakes to promote the buying or selling of a product or service

marketing channel | system of people, organizations, and activities that work together to make goods and services available to consumers for use

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 dashboard | summarizes important marketing metrics and key performance indicators into easy-to-understand measurements

marketing emails | emails that are promotional in nature and typically involve a marketing offer

marketing environment | all of the internal and external factors that drive and influence an organization’s marketing activities

marketing ethics | area of applied ethics dealing with the moral principles behind the operation and regulation of marketing

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 metrics | what marketers use to monitor, record, and measure progress over time; are varied and can change from platform to platform

marketing mix | the set of actions or tactics that a company uses to promote its brand or product in the market

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

marketing process | the series of steps that assist businesses in planning, analyzing, implementing, and adjusting their marketing strategy

marketing research | the function that links the consumer, customer, and public to the marketer through information

marketing strategy | a plan of action designed to promote or sell a product or service

marketing synergy | the fit between the needs of the new product development project and the company’s marketing capabilities

markup | the amount added to the cost retailers purchase goods for

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

maturity stage | part of the product life cycle when sales growth slows and profitability levels off

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

medium | various methods of communicating with a target audience; may include broadcast, print, outdoor, and other forms

mental stimulus processing | situation in which the services interact with the customer’s mind rather than the body

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

message strategy | method of developing a message based on how the message will best tie the brand to the target market

microenvironment | those factors or elements in a firm’s immediate environment that affect its performance and decision-making

micromarketing | marketing strategy used on a targeted group of customers in a niche market

mission statement | action-based statement declaring the purpose of an organization

mission-driven marketing | marketing strategies that align purpose and brand by using the corporate core mission and purpose as their focus

missionary salespeople | individuals who have the power to influence the customer to purchase a product or service

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

mode | the most common response

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

monopoly gouging | when a seller increases the prices of goods and services that are not considered fair or competitive

moral appeal | information communicated to the consumer to appeal to their sense of right and wrong

motivation | the process that initiates, guides, and maintains goal-oriented behaviors

multi-segment marketing | marketing strategy in which the firm targets several different market segments simultaneously

multibrands | new brand names within a company’s existing product category

multichannel distribution system | where a single company sets up multiple distribution channels to reach customers

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

national brands | name brands that sell a product or service under its corporate name and identity

Native American | 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

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

needs-based segmentation | dividing the market up into smaller groups of people who have approximately the same needs

net profit margin | calculation that deducts all expenses from profitability

new brands | an entirely different brand entity from a parent company

new visitors | people who are first visiting your website, also known as new users

new-task buy | a complex B2B buying situation in which the organization buys a product or service for the first time

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

noise | unplanned distractions that interfere with the communication between a sender and a receiver

non-store retailers | retailers that operate outside of traditional brick-and-mortar locations

nonprobability sample | a situation which each member of the population has an unknown chance of being selected to be part of the sample

objective-and-task approach | advertising budget strategy that is based on the objectives set previously for the advertising plan

objectives | specific targets to be achieved within a specified period of time

observational research | data collected by watching consumers and recording actions

occupation | an activity or task with which one occupies oneself, usually the productive activity, service, trade, or craft for which one is regularly paid

odd-even pricing | psychological pricing strategy that uses prices that end with odd or even numbers to attract customers

off-price retailers | retailers that provide high-quality goods at lower prices

omnichannel marketing | utilization of multiple distribution channels

omnichannel marketing system | multichannel approach whereby companies give consumers a variety of ways to purchase, receive, and return products

omnichannel strategy | manufacturer strategy that uses multiple distribution channels to distribute a product

one-on-one interview | an interview that happens on an individual level between researcher and respondent

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 retailing | a business model that allows consumers to search and purchase products remotely over the Internet

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

opportunity win rate | the number of sales closed divided by the total number of opportunities created; calculates another opportunity to track sales

order accuracy rate | a metric that measures the percentage of orders that are processed, fulfilled, and shipped to consumers without any errors

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

organic search | the list of websites on a search engine results page that have not been paid for by marketers

organizational culture | beliefs and behaviors that determine how a company’s employees and management interact and handle customer relationships

original markup | the markup a business has decided upon at the onset of the offering, which includes planned sales and overhead

outside order takers | salespeople out in the trenches, visiting customers and delivering inventory to retailers and wholesalers

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

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

paid sponsorship | when a person promoting a product is paid by the company to make the endorsement

patents | the right to exclude others from making, using, or offering for sale an invention

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

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

percentage of on-time shipments | a metric used to evaluate how well a channel member meets its promise of delivering goods on time

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

perception | the manner in which sensory information is organized, interpreted, and consciously experienced

perceptual map | visual depiction of how target customers view and feel about a given brand or product

perishability | relates to the likelihood that a product will spoil, decay, or expire if not used in a timely manner

personal influence | communication between individuals in which individuals can affect the purchasing decision of others because of their authority, knowledge, or position

personal observations | observations that are collected by human recorders

personal selling | one-to-one communication between the seller and the buyer; used to inform and persuade the buyer

personal selling | communication between a buyer and seller. The primary responsibility is to build a relationship with the buyer.

personality | the combination of characteristics or qualities that form an individual’s distinctive character

personality | the combination of characteristics or qualities that form an individual’s distinctive character

persuasive advertising | a type of advertising that aims to highlight the benefits of a product or service being advertised

PESTLE analysis | a strategic framework used to assess the political, economic, social, technological, legal, and environmental factors affecting an organization

phone surveys | surveys conducted through the use of a telephone that can be completed through digital or human methods

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

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

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

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

political and legal factors | factors such as the political system, the political situation, and government policies that influence B2B buying decisions

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

positioning statement | short description of an organization’s target market(s) and the product(s) provided to them

possession processing | services in which the service is directed toward the customer’s physical possessions

possession utility | the amount of usefulness or perceived value from owning a product

post-sale service | all activities provided by a company that reinforce the value of the product or service for the buyer

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

pre-sale service | all activities provided by a company that help a buyer make a purchase decision

predatory pricing | when a company prices goods or services so low that other companies cannot compete

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

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

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

pretesting advertising | research that predicts the performance of an advertisement before it airs

price | the cost that consumers pay in order to acquire a product or service

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

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

private-label brands | store brands that are similar products to a national brand and labeled privately

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

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

producers | those individuals or businesses who buy raw goods to use in the creation of goods or services

product | anything that can be offered to a market that might satisfy a want or need

product adaptation | when companies modify products to align with the local culture

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 advertisements | advertisements that promote a specific product within the organization’s product mix

product awareness | the first stage in the consumer adoption process, in which a company creates awareness that the product is available

product concept | the orientation that consumers will favor those products that offer the most quality, performance, or innovative features

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 development strategy | complete process of delivering a new product or improving an existing one for customers

product differentiation | a marketing strategy in which a brand identifies the one thing that makes it genuinely different from competitors

product diversification strategy | strategy to increase profitability and achieve higher sales volume through new products

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 invention | when companies create entirely new products for a global market

product item | a particular good that a company sells

product life cycle | the stages a product goes through, tracking its sales and profitability

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

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 pricing | setting a higher price for some product lines and lower price points for others in order to capture various target markets

product line stretching | addition of product lines

product metrics | quantifiable data that a business tracks and analyzes to determine how successful its new products are

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

product positioning | strategic exercise that defines where a product or service fits in the marketplace

product positioning | the process of deciding and communicating how an organization wants its market to think and feel about a product or service

product specifications | a document carrying essential information to keep teams on track when designing and developing a product

product traceability | the ability to track all processes for a product from the procurement of raw materials to production, consumption, and disposal

product trial | the fourth stage in the consumer adoption process, in which the consumer tries the product out

production concept | the orientation that consumers will always acquire products that are cheaper and more readily available

productivity | the efficiency and output of employees

products | tangible items that are part of an exchange between a buyer and a seller

profit | the financial gain of a company

profit margins | a widely used financial measure to determine the profitability of a business; considers costs to manufacture and sell a product or service

promotion | any type of marketing communication used to inform audiences of the relative merits or a product, service, or brand

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

prospect | a potential qualified customer who has the willingness, financial capacity, authority, and eligibility to buy the salesperson’s offering

prototype | in new product development, the creation of a physical version of the product

psychographic segmentation | dividing consumers into subgroups based on shared psychological characteristics, including beliefs, motivations, and priorities

public affairs | efforts to influence public policy and engage with public officials and trade associations

public relations | nonpaid, nonpersonal communication

public relations | any actions that help to create and maintain a favorable public image

publicity | notice or attention given by the media

puffery | providing unrealistic and unsubstantiated claims about a product

pull strategy | advertising strategy intended to bring audiences to the product

pulsing schedule | process of running steady promotions followed by a period of heavy promotions

purchasing | the process of buying materials needed to manufacture products

purchasing power | the goods that can be purchased with one unit of currency

purpose-driven strategy | strategy in which companies work to make a difference in their communities through their decisions and support of environmental programs

push strategy | advertising strategy aimed at pushing the brand in front of an audience

qualification | the process the salesperson undertakes to make sure the sales lead is a good fit for the product they are selling

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 assessments | numbers driven and based on inputs and outputs of the sales cycle

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

quotas | maximum allowable units (usually in currency) to be imported into or exported out of a specific country

rack jobbers | wholesalers (or manufacturers) that agree with retailers to display and sell a product in a retail store

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

RATER framework of service quality | theoretical model that focuses on the five dimensions of service excellence: reliability, assurance, tangibles, empathy, and responsiveness

rational appeals | information communicated to the consumer based on how they will benefit

raw materials | products that a business needs to purchase in order to make a consumer good

reach | the estimated number of potential customers you can reach with an advertising campaign

real needs | the value the customer is going to derive from the stated good or service

rebates | sales promotion strategy in which consumers must provide key information to a company in exchange for dollars off the product

rebates | a form of promotion that rewards consumers for sending information to the company

receiver | intended message recipient

reference groups | groups that consumers compare themselves to or associate with

regional shopping centers | commonly referred to as “malls”; collection of stores that offer general merchandise or fashion-oriented offerings

relationship selling | a method of personal selling used to better understand the needs and wants of the buyer

reliability | in terms of the RATER model, the organization’s capability to produce an accurate, dependable, and on-time service

reminder advertising | advertising aimed at bringing a product back into the forefront of the consumer’s mind

repositioned products | products that are retargeted for a new use

resellers | companies or individuals (merchants) that purchase goods or services with the intention of selling, leasing, or renting rather than consuming or using them

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

responsiveness | in terms of the RATER model, promptness and willingness to provide satisfactory and quick service

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

retailers | companies that purchase large quantities of goods from producers and then sell smaller quantities to end customers for personal use or consumption

retailers | businesses that sell goods to consumers in relatively small quantities for personal consumption

retailing | the process of selling goods and services to consumers

return on ad spend (ROAS) | metric that measures the amount of revenue earned for every dollar spent on advertising

return on customer investment (ROCI) | a marginal analysis that shows the efficiency of marketing communication spending

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

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

returning visitors | visitors or users who have been to your website before

revenue streams | all the ways in which a company can generate cash flow from the sale of its products or services

risk | any situation or condition that leads a company to decreased profits or even failure

roles | the set of norms, values, behaviors, and personality characteristics attached to a status

sales concept | orientation that analyzes buying and selling effects to place the focus primarily on generating sales transactions

sales force automation | a software tool that helps organizations acquire customers

sales funnel | a visual representation of the customer journey from product awareness to product purchase

sales leads | a database of potential customers that sales professionals work to create and develop through lead generation

sales promotion | promotion that creates an incentive to purchase; provides for a fairly immediate increase in sales in the short term

sales promotion | a short-term way of enticing the consumer to purchase a product or service

sales test | a type of posttest in advertising that determines how many sales will be made based on a test market

sales-oriented objective | setting prices based on the goal of increasing the volume of sales

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

samples | providing consumers with a free sample of a product is a form of promotion

sampling unit | each individual entities that is included in the sample

search trends | data points that indicate how frequently a term is searched

secondary data | any research that was completed, within the organization or outside of the organization, for another purpose

secret needs | the needs that the consumer feels reluctant to admit

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 distribution | a strategy that includes choosing more than one, but fewer than all possible intermediaries to distribute a company’s market offering

selective retention | the tendency of people to retain only part of the information to which they are exposed

seller | the individual or organization that supplies the need-satisfying product, service, or experience

selling process | includes all of the steps the salesperson will implement as they work with the buyer to become a customer

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

sender | source of a message; can be an organization or person

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

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 | intangible solutions that are an exchange between buyer and seller

services | nonphysical, intangible economic activities

session | a collection of interactions that occur on a company’s website

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

simple random sample | a type of probability sample where every entity has an equal chance of being selected

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

social class | a group of people within a society that possesses the same or similar socioeconomic status

social commerce | a blend of e-commerce and social media

social engagement | relates to the number of actions that social media users take in direct relation to your company, brand, or product

social environment | the values, attitudes, beliefs, wants, and desires of the consuming public

social factors | factors that are prevalent in the society where a consumer lives

social media marketing | using social media platforms, such as Facebook, Instagram, LinkedIn, and Twitter, to deliver content that drives engagement with your brand

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

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

sociocultural factors | values, behaviors, culture, lifestyle, and language that shape a person’s or group’s way of living

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

specialty products | products that have unique qualities that consumers will make an extra effort to seek out

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

split loyals | customers who have a consideration set of two or three products or services in a category

standardization | the process of purposefully applying identical or consistent guidelines to goods or services to achieve uniformity

standardized | products that have no difference in how they are manufactured

standardized global marketing strategy | a strategy in which a company uses the same marketing strategy in all markets

stated needs | those product or service needs that are clearly specified by the customer

status | the relative social, professional, or other standing of an individual

stereotypes | oversimplified images, perceptions, or ideas of a person or group

store retailer | a traditional brick-and-mortar establishment where products are displayed for customers to purchase

STP model | three-step marketing framework in which an organization segments the market, selects target market(s), and positions its products or services

straight product extension | a strategy that entails maintaining the same product for both the home and foreign markets

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

strategic alliance | when two companies from different countries agree to invest resources in a mutually beneficial way

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

stratified random sample | a probability sample type where the population is divided into groups and then participants are selected from each stratum randomly

strip malls | classified by an attached row of retail stores offering both products and services

subculture | a cultural group within a larger culture, often having beliefs or interests at variance with those in the larger culture

substitutes | products and services that are similar to the one being offered

sugging | suggesting a purchase disguised as research

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

suppliers | sometimes also called vendors, these are partners from whom we receive the parts and products necessary for our business

supplies and services | goods and services that are typically disposed of and do not contain a tangible value

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

support personnel | fulfill the responsibilities that assist the sales team in supporting the customer and completing the sale

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

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 marketing | a marketing strategy that infuses purpose into socially conscious products and services

sustainable sourcing | the process of considering suppliers’ social, ethical, and environmental performance

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

switchers | customers who continually change their purchasing behaviors

SWOT analysis | identification of internal strengths and weaknesses and external opportunities and threats impacting a business

syndicated data | a type of secondary data that is available through a subscription service

systems selling | selling a complete solution to a problem or need rather than one or more of the component parts

tangibles | in terms of the RATER model, the physical appearance of both the facility and its employees

target market | group of people with some shared characteristics that a company has identified as potential customers for its products

target market coverage | resources and capabilities needed to reach consumers in a company’s target market

target population | the group of people that are of interest for a study

target return objective | setting prices so they return a specific profit during a given period of time

tariffs | taxes that governments impose on imports into the country

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

technographic segmentation | organizing B2B prospects by their technology ownership and usage

technological synergy | the extent to which a new product is built on the firm’s existing technological resources

technology | applications of science, data, engineering, and information for business purposes

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

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

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

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

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

time utility | adding value to the consumer by having the product or service available when the consumer needs it

tokenism | the practice of including an individual from either a minority group or an underrepresented community in marketing efforts simply as a symbol

total costs | total expenses of doing business

total number of orders | the sum of all orders that a company received in a given time period

total revenue | the money generated from normal business operations

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

trade blocs | intergovernmental agreements that remove barriers to trade within regions of the world

trade shows | exhibition events that provide companies the opportunity to present themselves and their products and services to industry peers

trademarks | words or symbols legally registered or established by use as representing a company or product

trademarks (service marks) | symbols that show legal ownership of a brand name or brand mark

traffic by source | means paying attention to the site from which the website traffic came

transactional functions | buying, selling, and risk-bearing that goes along with the movement of products along the marketing channel

transnational firm | a company that allows for a higher degree of localization

truck jobbers | wholesalers that make calls to retailers carrying goods on a truck

unaided awareness | when no prompts or lists of potential products, brands, or companies are given to test awareness

unaided recall | a type of advertising posttest that does not use any cues or prompts to test the recollection of the advertisement message

undifferentiated marketing | also called mass marketing, a strategy that entails creating one message for an entire audience

unemployment rate | measure of the number of people not employed in an economy during a given period of time

unit value | the price that a company charges for one unit or item

unobtrusive observation | a type of observation research where the observed is not aware they are being monitored

unsought products | consumer goods that a buyer doesn’t anticipate purchasing

unstated needs | those needs that are not obvious but are expected by the customer

users | the people who consume or use the product or service

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

value-based segmentation | evaluating groups of customers in terms of the revenue they generate and the costs of establishing and maintaining relationships with them

variable costs | costs that vary based on the number of units produced

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

verbatims | exact quotations of responses to a qualitative question

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

vision statement | aspirational statement that articulates what an organization aims to achieve

warehouse clubs | retailers that sell goods in bulk at discounted prices

warehousing | the stocking, maintaining, and controlling of products while they await the next step in their journey to the final consumer

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

whole channel | the design of the international channels that incorporates all members, including the manufacturing, retailer, and wholesaler sites as well as transportation

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

wholesalers | companies that purchase large quantities of products from producers and then sell to smaller businesses, such as retail stores

wholesalers | businesses that typically purchase larger quantities from producers and then resell them to retailers

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

workforce skills | also called employability skills, the basic skills a person must have to succeed in any workplace

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