A
activity-based cost (ABC) accounting procedures that can
quantify the true profitability of different activities by identifying their
actual costs.
advertising any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor.
advertorials print ads that offer editorial content that
reflects favourably on the brand and are resemble newspaper or magazine
content.
anchoring and adjustment heuristic when consumers arrive at
an initial judgment and then make adjustments of their first impressions based
on additional information.
arm’s-length price the price charged by other competitors
for the same or a similar product.
aspirational groups groups a person hopes or would like to
join.
associative network memory model a conceptual representation
that views memory as consisting of a set of nodes and interconnecting links
where nodes represent stored information or concepts and links represent the
strength of association between this information or concepts.
attitude a person’s enduring favourable or unfavourable
evaluation, emotional feeling, and action tendencies toward some object or
idea.
augmented product a product that includes features that go
beyond consumer expectations and differentiate the product from competitors.
available market the set of consumers who have interest,
income, and access to a particular offer.
availability heuristic when consumers base their predictions
on the quickness and ease with which a particular example of an outcome comes
to mind.
average cost the cost per unit at a given level of
production; it is equal to total costs divided by production.
B
backward invention reintroducing earlier product forms that
can be well adapted to a foreign country’s needs.
banner ads (Internet) small, rectangular boxes containing
text and perhaps a picture to support a brand.
basic product what specifically the actual product is.
belief a descriptive thought that a person holds about
something.
brand a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or services of one seller
or group of sellers and to differentiate them from those of competitors.
brand associations all brand-related thoughts, feelings,
perceptions, images, experiences, beliefs, attitudes, and so on that become
linked to the brand node.
brand audit a consumer-focused exercise that involves a
series of procedures to assess the health of the brand, uncover its sources of
brand equity, and suggest ways to improve and leverage its equity.
brand awareness consumers’ ability to identify the brand
under different conditions, as reflected by their brand recognition or recall
performance.
brand contact any information-bearing experience a customer
or prospect has with the brand, the product category, or the market that
relates to the marketer’s product or service.
brand development index (BDI) the index of brand sales to
category sales.
brand dilution when consumers no longer associate a brand
with a specific product or highly similar products or start thinking less
favourably about the brand.
brand elements those trademarkable devices that serve to
identify and differentiate the brand such as a brand name, logo, or character.
brand equity the added value endowed to products and
services.
brand extension a company’s use of an established brand to
introduce a new product.
brand image the perceptions and beliefs held by consumers,
as reflected in the associations held in consumer memory.
brand knowledge all the thoughts, feelings, images:,
experiences, beliefs, and so on that become associated with the brand.
brand line all products, original as well as line and
category extensions, sold under a particular brand name.
brand mix the set of all brand lines that a particular
seller makes available to buyers.
brand personality the specific mix of human traits that may
be attributed to a particular brand.
brand portfolio the set of all brands and brand lines a
particular firm offers for sale to buyers in a particular category.
brand promise the marketer’s vision of what the brand must
be and do for consumers.
brand valuation an estimate of the total financial value of
the brand.
brand value chain a structured approach to assessing the
sources and outcomes of brand equity and the manner in which marketing
activities create brand value.
branded entertainment using sports, music, arts, or other
entertainment activities to build brand equity.
branded variants specific brand lines uniquely supplied to
different retailers or distribution channels.
branding endowing products and services with the power of a
brand.
branding strategy the number and nature of common and
distinctive brand elements applied to the different products sold by the firm.
breakeven analysis a means by which management estimates how
many units of the product the company would have to sell to break even with the
given price and cost structure.
brick-and-click existing companies that have added an online
site for information and/or e-commerce.
business database complete information about business
customers’ past purchases; past volumes, prices, and profits.
business market all the organizations that acquire goods and
services used in the production of other products or services that are sold,
rented, or supplied to others.
C
capital items long-lasting goods that facilitate developing
or managing the finished product.
captive products products that are necessary to the use of
other products, such as razor blades or film.
category extension Using the parent brand to brand a new
product outside the product category currently served by the parent brand.
category membership the products or sets of products with
which a brand competes and which function as close substitutes.
cause-related marketing marketing that links a firm’s
contributions to a designated cause to customers’ engaging directly or
indirectly in revenue-producing transactions with the firm.
channel advantage when a company successfully switches its
customers to lower- cost channels, while assuming no loss of sales or
deterioration in service quality.
channel conflict when one channel member’s actions prevent
the channel from achieving its goal.
channel coordination when channel members are brought
together to advance the goals of the channel, as opposed to their own
potentially incompatible goals.
channel power the ability to alter channel members’
behaviour so that they take actions they would not have taken otherwise.
communication adaptation changing marketing communications
programs for each local market.
communication-effect research determining whether an ad is
communicating eiffectively.
company demand the company’s estimated share of market demand
at alternative levels of company marketing effort in a given time period.
company sales forecast the expected level of company sales
based on a chosen marketing plan and an assumed marketing environment.
competitive advantage a company’s ability to perform in one
or more ways that competitors cannot or will not match.
conformance quality the degree to which all the produced
units are identical and meet the promised specifications.
conjoint analysis a method for deriving the utility values
that consumers attach to varying levels of a product’s attributes.
conjunctive heuristic the consumer sets a minimum acceptable
cutoff level for each attribute and chooses the first alternative that meets
the minimum standard for all attributes.
consumer involvement the level of engagement and active
processing undertaken by the consumer in responding to a marketing stimulus.
consumerist movement an organized movement of citizens and
government to strengthen the rights and powers of buyers in relation to
sellers.
consumption system the way the user performs the tasks of
getting and using products and related services.
containerization putting the goods in boxes or trailers that
are easy to transfer between two transportation modes.
content-target advertising links ads not to keywords but to
the contents of Web pages.
contractual sales force manufacturers’ reps, sales agents,
and brokers, who are paid a commission based on sales.
convenience goods goods the consumer purchases frequently,
immediately, and with a minimum of effort.
conventional marketing channel an independent producer,
wholesaler(s), and retailer(s).
core benefit the service or benefit the customer is really
buying.
core competency attribute that (1) is a source of
competitive advantage in that it makes a significant contribution to perceived
customer benefits, (2) has applications in a wide variety of markets, (3) is
difficult for competitors to imitate.
core values the belief systems that underlie consumer
attitudes and behaviour, and that determine people’s choices and desires over
the long term.
corporate culture the shared experiences, stories, beliefs,
and norms that characterize an organization.
corporate retailing corporately owned retailing outlets that
achieve economies of scale, greater purchasing power, wider brand recognition,
and better-trained employees.
cues stimuli that determine when, where, and how a person
responds.
culture the fundamental determinant of a person’s wants and
behaviour.
customer-based brand equity the differential effect that
brand knowledge has on a consumer response to the marketing of that brand.
customer churn high customer defection.
customer consulting data, information systems, and advice
services that the seller offers to buyers.
customer database an organized collection of comprehensive
information about individual customers or prospects that is current,
accessible, and actionable for marketing purposes.
customer lifetime value (CLV) the net present value of the
stream of future profits expected over the customer’s lifetime purchases.
customer mailing list a set of names, addresses, and
telephone numbers.
customer perceived value(CPV) the difference between the
prospective customer’s evaluation of all the benefits and all the costs of an offering
and the perceived alternatives.
customer-performance scorecard how well the company is doing
year after year on particular customer-based measures.
D
customer profitability analysis (CPA) a means of assessing
and ranking customer
profitability through accounting techniques such as
Activity-Based Costing (ABC).
customer training training the customer’s employees to use
the vendor’s equipment properly and efficiently.
customer value analysis report of the company’s strengths
and weaknesses relative to various competitors.
customer value hierarchy five product levels that must be
addressed by marketers in planning a market offering.
customerization combination of operationally driven mass
customization with customized marketing in a way that empowers consumers to
design the product and service offering of their choice.
D
data warehouse a collection of current data captured,
organized, and stored in a company’s contact centre.
database marketing the process of building, maintaining, and
using customer databases and other databases for the purpose of contacting,
transacting, and building customer relationships.
datamining the extracting of useful information about
individuals, trends, and segments from the mass of data.
delivery how well the product or service is delivered to the
customer.
demand chain planning the process of designing the supply
chain based on adopting a target market perspective and working backward.
direct marketing the use of consumer-direct (CD) channels to
reach and deliver goods and services to customers without using marketing
middlemen.
direct-order marketing in which direct marketers seek a
measurable response, typically a customer order.
direct product profitability (DPP) a way of measuring a
product’s handling costs from the time it reaches the warehouse until a
customer buys it in the retail store.
direct (company) sales force full-or part-time paid
employees who work exclusively for the company.
discrimination the process of recognizing differences in
sets of similar stimuli and adjusting responses accordingly.
dissociative groups those groups whose values or behaviour
an individual rejects.
distribution programming building a planned, professionally
managed, vertical marketing system that meets the needs of both manufacturer and
distributors.
drive a strong internal stimulus impelling action.
dual adaptation adapting both the product and the
communications to the local market.
dumping situation in which a company charges either less
than its costs or less than it charges in its home market, in order to enter or
win a market.
durability a measure of a product’s expected operating life
under natural or stressful conditions.
E
e-business the use of electronic means and platforms to
conduct a company’s business.
e-commerce a company or site offers to transact or
facilitate the selling of products and services online.
e-marketing company efforts to inform buyers, communicate,
promote, and sell its products and services over the Internet.
e-purchasing purchase of goods, services, and information
from various online suppliers.
elimination-by-aspects heuristic situation in which the
consumer compares brands on an attribute selected probabilistically, and brands
are eliminated if they do not meet minimum acceptable cutoff levels.
environmental threat a challenge posed by an unfavourable
trend or development that would lead to lower sales or profit.
everyday low pricing (EDLP) in retailing, a constant low
price with few or no price promotions and special sales.
exchange the process of obtaining a desired product from
someone by offering something in return.
exclusive distribution severely limiting the number of
intermediaries, in order to maintain control over the service level and outputs
offered by resellers.
expectancy-value model consumers evaluate products and
services by combining their brand beliefs—positive and negative— according to
their weighted importance.
expected product a set of attributes and conditions buyers
normally expect when they purchase this product.
experience curve (learning curve) a decline in the average
cost with accumulated production experience.
F
fad a craze that is unpredictable, short-lived, and without
social, economic and political significance.
family brand situation in which the parent brand is already
associated with multiple products through brand extensions.
family of orientation parents and siblings.
family of procreation spouse and children.
features things that enhance the basic function of a
product.
fixed costs (overhead) costs that do not vary with
production or sales revenue.
flexible market offering (1) a naked solution containing the
product and service elements that all segment members value, and (2) discretionary
options that some segment members value.
focus group a gathering of six to ten people who are
carefully selected based on certain demographic, psychographic, or other
considerations and brought together to discuss various topics of interest.
forecasting the art of anticipating what buyers are likely
to do under a given set of conditions.
form the size, shape, or physical structure of a product.
forward invention creating a new product to meet a need in
another country.
frequency programs (FPs) designed to provide rewards to
customers who buy frequently and in substantial amounts.
K
global firm a firm
that operates in more
than one country and
captures R&D,
production, logistical, marketing, and financial advantages
in its costs and reputation that are not available to purely domestic
competitors.
global industry an industry in which the strategic positions
of competitors in major geographic or national markets are fundamentally
affected by their overall global positions.
goal formulation the process of developing specific goals
for the planning period.
going-rate pricing price based largely on competitors’
prices.
gray market branded products diverted from normal or
authorized distributions channels in the country of product origin or across
international borders.
H
heuristics rules of thumb or mental shortcuts in the
decision process.
high-low pricing charging higher prices on an everyday basis
but then running frequent promotions and special sales.
holistic marketing a concept based on the development,
design, and implementation of marketing programs, processes, and activities
that recognizes their breadth and interdependencies.
horizontal marketing system two or more unrelated companies
put together resources or programs to exploit an emerging market opportunity.
hybrid channels use of multiple channels of distribution to
reach customers in a defined market.
I
image the set of beliefs, ideas, and impressions a person
holds regarding an object.
industry a group of firms that offer a product or class of
products that are close substitutes for one another.
ingredient branding a special case of co-branding that
involves creating brand equity for materials, components, or parts that are
necessarily contained within other branded products.
innovation any good, service, or idea that is perceived by
someone as new.
innovation diffusion process the spread of a new idea from
its source of invention or creation to its ultimate users or adopters.
installation the work done to make a product operational in
its planned location.
institutional market schools, hospitals, nursing homes,
prisons, and other institutions that must provide goods and services to people
in their care.
integrated logistics systems (ILS) materials management,
material flow systems, and physical distribution, abetted by information
technology (IT).
integrated marketing mixing and matching marketing
activities to maximize their individual and collective efforts.
integrated marketing communications (IMC) a concept of marketing
communications planning that recognizes the added value of a comprehensive
plan.
intensive distribution the manufacturer placing the goods or
services in as many outlets as possible.
internal branding activities and processes that help to
inform and inspire employees.
interstitials advertisements, often with video or animation,
that pop up between changes on a Web site.
J
joint venture a company in which multiple investors share
ownership and control.
L
learning changes in an individual’s behaviour arising from
experience.
lexicographic heuristic consumer choosing the best brand on
the basis of its perceived most important attribute.
licensed product one whose brand name has been licensed to
other manufacturers who actually make the product.
life-cycle cost the product’s purchase cost plus the
discounted cost of maintenance and repair less the discounted salvage value.
lifestyle a person’s pattern of living in the world as
expressed in activities, interests, and opinions.
line extension the parent brand is used to brand a new
product that targets a new market segment within a product category currently
served by the parent brand.
line stretching a company lengthens its product line beyond
its current range.
long-term memory (LTM) a permanent repository of
information.
loyalty a commitment to re-buy or re-patronize a preferred
product or service.
M
maintenance and repair the service program for helping
customers keep purchased products in good working order.
market-buildup method identifying all the potential buyers
in each market and estimating their potential purchases.
market demand the total volume of a product that would be
bought by a defined customer group in a defined geographical area in a defined
time period in a defined marketing environment under a defined marketing
program.
market forecast the market demand corresponding to the level
of industry marketing expenditure.
market logistics planning the infrastructure to meet demand,
then implementing and controlling the physical flows or materials and final
goods from points of origin to points of use, to meet customer requirements at
a profit.
market opportunity analysis (MOA) system used to determine
the attractiveness and probability of success.
market partitioning the process of investigating the
hierarchy of attributes consumers examine in choosing a brand if they use
phased decision strategies.
market penetration index a comparison of the current level
of market demand to the potential demand level.
market-penetration pricing pricing strategy where prices
start low to drive higher sales volume from price-sensitive customers and
produce productivity gains.
market potential the upper limit to market demand whereby
increased marketing
expenditures would not be expected to stimulate fuDrther
demand.
market-skimming pricing pricing strategy where prices start
high and are slowly
lowered over time to maximize profits from less
price-sensitive customers.
marketer someone who seeks a response (attention, a
purchase, a vote, a donation) from another party, called the prospect.
marketing process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.
marketing audit a comprehensive, systematic, independent,
and periodic examination of a company’s or business unit’s marketing
environment, objectives, strategies, and activities.
marketing channel system the particular set of marketing
channels employed by a firm.
marketing channels sets of interdependent organizations
involved in the process of making a product or service available for use or
consumption.
marketing communications the means by which firms attempt to
inform, persuade, and remind consumers—directly or indirectly— about products
and brands that they sell.
marketing communications mix advertising, sales promotion,
events and experiences, public relations and publicity, direct marketing, and
personal selling.
marketing decision support system (MDSS) a coordinated
collection of data, systems, tools, and techniques with supporting software and
hardware by which an organization gathers and interprets relevant information
from business and the environment and turns it into a basis for marketing
action.
marketing implementation the process that turns marketing
plans into action assignments and ensures that such assignments are executed in
a manner that accomplishes the plan’s stated objectives.
marketing information system (MIS) people, equipment, and
procedures to gather, sort, analyze, evaluate, and distribute information to
marketing decision makers.
marketing intelligence system a set of procedures and
sources managers use to obtain everyday information about developments in the
marketing environment.
marketing management the art and science of choosing target
markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.
marketing metrics the set of measures that helps firms to
quantify, compare, and interpret their marketing performance.
marketing network the company and its supporting
stakeholders, with whom it has built mutually profitable business
relationships.
marketing opportunity an area of buyer need and interest in
which there is a high probability that a company can profitably satisfy that
need.
marketing plan written document that summarizes what the
marketer has learned about the marketplace, indicates how the firm plans to
reach its marketing objectives, and helps direct and coordinate the marketing
effort.
marketing public relations (MPR) publicity and other
activities that build corporate or product image to facilitate marketing goals.
marketing research the systematic design, collection,
analysis, and reporting of data and findings relevant to a specific marketing
situation facing the company.
markup pricing an item by adding a standard increase to the
product’s cost.
materials and parts goods that enter the manufacturer’s
product completely.
media selection finding the most cost-effective media to
deliver the desired number and type of exposures to the target audience.
megamarketing the strategic coordination of economic,
psychological, political, and public relations skills, to giain the cooperation
of a number of parties in order to enter or operate in a given market.
megatrends large social, economic, political, and
technological changes that are slow to form, and once in place, have an
influence for seven to ten years or longer.
membership groups groups having a direct influence on a
person. memory encoding
how and where information gets into memory.
memory retrieval how and from where information gets out of
memory.
mental accounting the manner by which consumers code,
categorize, and evaluate financial outcomes of choices.
microsales analysis examination of specific products and
territories that fail to produce expected sales.
microsite a limited area on the Web managed and paid for by
an external advertiser/ company.
mission statements statements that organizations develop to
share with managers, employees, and (in many cases) customers.
mixed bundling the seller offers goods both individually and
in bundles.
multichannel marketing a single firm uses two or more
marketing channels to reach one or more customer segments.
multitasking doing two or more things at the same time.
N
net price analysis analysis that encompasses company list
price, average discount, promotional spending, and co-op advertising to arrive
at net price.
noncompensatory models in consumer choice, when consumers do
not simultaneously consider all positive and negative attribute considerations
in making a decision.
O
Online alliances and affiliate programs when one Internet
company works with another one and they advertise each other.
opinion leader the person in informal, product-related
communications who offers advice or information about a specific product or
product category.
ordering ease how easy it is for the customer to place an
order with the company.
organization a company’s structures, policies, and corporate
culture.
organizational buying the decision-making process by which
formal organizations establish the need for purchased products and services and
identify, evaluate, and choose among alternative brands and suppliers.
overall market share the company’s sales expressed as a
percentage of total market sales.
P
parent brand an existing brand that gives birth to a brand
extension.
partner relationship management (PRM) activities the firm
undertakes to build mutually satisfying long-term relations with key partners
such as suppliers, distributors, ad agencies, and marketing research suppliers.
penetrated market the set of consumers who are buying a
company’s product.
perceived value the value promised by the company’s value
proposition and perceived by the customer.
perception the process by which an individual selects,
organizes, and interprets information inputs to create a meaningful picture of
the world.
performance quality the level at which the product’s primary
characteristics operate.
personal communications channels two or more persons
communicating directly face-to-face, person-to-audience, over the telephone, or
through e-mail.
personal influence the effect one person has on another’s
attitude or purchase probability.
personality a set of distinguishing human psychological
traits that lead to relatively consistent responses to environmental stimuli.
place advertising (also out-of-home advertising) ads that
appear outside of home and where consumers work and play.
point-or-purchase (P-O-P) the location where a purchase is
made, typically thought of in terms of a retail setting.
potential market the set of consumers who profess a
sufficient level of interest in a market offer.
potential product all the possible augmentations and
transformations the product or offering might undergo in the future.
price discrimination a company sells a product or service at
two or more prices that do not reflect a proportional difference in costs.
price escalation an increase in the price of a product due
to added costs of selling it in different countries.
primary groups groups with which a person interacts
continuously and informally, such as family, friends, neighbours, and
co-workers.
principle of congruity psychological mechanism that states
that consumers like to see seemingly related objects as being as similar as
possible in their favourability.
private label brand brands that retailers and wholesalers
develop and market.
product adaptation altering the product to meet local
conditions or preferences.
product assortment the set of all products and items a
particular seller offers for sale.
product invention creating something new via product
development or other means.
product mix see product assortment.
product penetration percentage the percentage of ownership
or use of a product or service in a population.
product system a group of diverse but related items that
function in a compatible manner.
profitable customer a person, household, or company that
over time yields a revenue stream that exceeds by an acceptable amount the
company’s cost stream of attracting, selling, and servicing that customer.
prospect theory when consumers frame decision alternatives
in terms of gains and losses according to a value function.
public any group that
has an actual or potential interest in or impact on a company’s
ability to achieve its objectives.
public relations (PR) a variety of programs designed to
promote or protect a company’s image or its individual products.
publicity the task of securing editorial space—as opposed to
paid space—in print and broadcast media to promote something.
pull strategy when the manufacturer uses advertising and
promotion to persuade consumers to ask intermediaries for the product, thus
inducing the intermediaries to order it.
purchase probability scale a scale to measure the
probability of a buyer making a particular purchase.
pure bundling a firm only offers its products as a bundle.
pure-click companies that have launched a Web site without
any previous existence as a firm.
push strategy when the manufacturer uses its sales force and
trade promotion money to induce intermediaries to carry, promote, and sell the
product to end users.
R
reference groups all the groups that have a direct or
indirect influence on a person’s attitudes or behaviour.
reference prices pricing information a consumer retains in
memory which is used to interpret and evaluate a new price.
relational equity the cumulative value of the firm’s network
of relationships with its customers, partners, suppliers, employees, and
investors.
relationship marketing building mutually satisfying long-term
relationships with key parties, in order to earn and retain their business.
relative market share market share in relation to a
company’s largest competitor.
reliability a measure of the probability that a product will
not malfunction or fail within a specified time period.
repairability a measure of the ease of fixing a product when
it malfunctions or fails.
representativeness heuristic when consumers base their
predictions on how representative or similar an outcome is to other examples.
risk analysis a method by which possible rates of returns
and their probabilities are calculated by obtaining estimates for uncertain
variables affecting profitability.
role the activities a person is expected to perform.
S
sales analysis measuring and evaluating actual sales in
relation to goals.
sales budget a conservative estimate of the expected volume
of sales, used for making current purchasing, production, and cash flow
decisions.
sales promotion a collection of incentive tools, mostly
short term, designed to stimulate quicker or greater purchase of particular
products or services by consumers or the trade.
sales quota the
sales goal set for
a product line,
company division, or sales
representative.
sales-variance analysis a measure of the relative
contribution of different factors to a gap in sales performance.
satisfaction a person’s feelings of pleasure or
disappointment resulting from comparing a product’s perceived performance or
outcome in relation to his or her expectations.
scenario analysis developing plausible representations of a
firm’s possible future that make different assumptions about forces driving the
market and include different uncertainties.
search-related ads ads in which search terms are used as a
proxy for the consumer’s consumption interests and relevant links to product or
service offerings are listed along side the search results.
secondary groups groups which tend to be more formal and
require less interaction than primary groups, such as religious, professional,
and trade-union groups.
selective attention the mental process of screening out
certain stimuli while noticing others.
selective distortion the tendency to interpret product
information in a way that fit consumer perceptions.
selective distribution the use of more than a few but less
than all of the intermediaries who are willing to carry a particular product.
selective retention good points about a product that
consumers like are remembered and good points about competing products are
forgotten.
served market all the buyers who are able and willing to buy
a company’s product.
served market share a company’s sales expressed as a
percentage of the total sales to its served market.
service any act or performance that one party can offer to
another that is essentially intangible and does not result in the ownership of
anything.
share penetration index a comparison of a company’s current
market share to its potential market share.
shopping goods goods that the consumer, in the process of
selection and purchase, characteristically compares on such bases as
suitability, quality, price, and style.
short-term memory (STM) a temporary repository of
information.
social classes homogeneous and enduring divisions in a
society, which are hierarchically ordered and whose members share similar
values, interests, and behaviour.
social marketing marketing done by a nonprofit or government
organization to further a cause, such as “say no to drugs.”
specialty goods goods that have unique characteristics or
brand identification for which a sufficient number of buyers are willing to
make a special purchasing effort.
sponsorship financial support of an event or activity in
return for recognition and acknowledgment as the sponsor.
stakeholder-performance scorecard a measure to track the
satisfaction of various constituencies who have a critical interest in and
impact on the company’ s performance.
status one’s position within his or her own hierarchy or
culture.
straight extension introducing a product in a foreign market
without any change in the product.
strategic brand management the design and implementation of
marketing activities and programs to build, measure, and manage brands to
maximize their value.
strategic business units (SBUs) a single business or
collection of related businesses that can be planned separately from the rest
of the company, with its own set of competitors and a manager who is
responsible for strategic planning and profit performance.
strategic group firms pursuing the same strategy directed to
the same target market.
strategic marketing plan laying out the target markets and
the value proposition that will be offered, based on analysis of the best
market opportunities.
strategy a company’s game plan for achieving its goals.
style a product’s look and feel to the buyer.
sub-brand a new brand combined with an existing brand.
subculture subdivisions of a culture that provide more
specific identification and socialization, such as nationalities, religions,
racial groups, and geographical regions.
subliminal perception receiving and processing subconscious
messages that affect behaviour.
supersegment a set of segments sharing some exploitable
similarity.
supplies and business services short-term goods and services
that facilitate developing or managing the finished product.
supply chain management (SCM) procuring the right inputs
(raw materials, components, and capital equipment); converting them efficiently
into finished products; and dispatching them to the final destinations.
T
tactical marketing plan marketing tactics, including product
features, promotion, merchandising, pricing, sales channels, and service.
target costing deducting the desired profit margin from the
price at which a product will sell, given its appeal and competitors’ prices.
target market the part of the qualified available market the
company decides to pursue.
target-return pricing determining the price that would yield
the firm’s target rate of return on investment (ROI).
telemarketing the use of telephone and call centres to
attract prospects, sell to existing, customers, and provide service by taking
orders and answering questions.
total costs the sum of the fixed and variable costs for any
given level of production.
total customer cost the bundle of costs customers expect to
incur in evaluating, obtaining, using, and disposing of the given market
offering, including monetary, time, energy, and psychic costs.
total customer value the perceived monetary value of the
bundle of economic, functional, and psychological benefits customers expect
from a given market offering.
total quality management (TQM) an organizationwide approach
to continuously improving the quality of all the organization’s processes,
products, and services.
tracking studies collecting information from consumers on a
routine basis over time.
transaction a trade of
values between two or more parties: A gives X to B
and receives in return.
transfer in the case of gifts, subsidies, and charitable
contributions: A gives X to B
but does not receive anything tangible in return.
transfer price the price a company charges another unit in
the company for goods it ships to foreign subsidiaries.
trend a direction or sequence of events that has some
momentum and durability.
two-part pricing a fixed fee plus a variable usage fee.
tying agreements agreement in which producers of strong
brands sell their products to dealers only if dealers purchase related products
or services, such as other products in the brand line.
U
unsought goods those the consumer does not know about or
does not normally think of buying, like smoke detectors.
V
value-delivery network a company’s supply chain and how it
partners with specific suppliers and distributors to make products and bring
them to markets.
value-delivery system all the expectancies the customer will
have on the way to obtaining and using the offering.
value network a system of partnerships and alliances that a
firm creates to source, augment, and deliver its offerings.
value pricing winning loyal customers by charging a fairly
low price for a high- quality offering.
value proposition the whole cluster of benefits the company
promises to deliver.
variable costs costs that vary directly with the level of
production.
venture team a cross-functional group charged with
developing a specific product or business.
vertical integration situation in which manufacturers try to
control or own their suppliers, distributors, or other intermediaries
vertical marketing system (VMS) producer, wholesaler(s), and
retailer(s) acting as a unified system.
viral marketing using the Internet to create word of mouth
effects to support marketing efforts and goals.
Y
yield pricing situation in which companies offer (1)
discounted but limited early purchases, (2) higher-priced late purchases, and
(3) the lowest rates on unsold inventory just before it expires.
Z
zero-level channel (direct-marketing ch
