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Marketing Terms Important Definitions

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Marketing Terms Important Definitions

shape Introduction

Marketing in a broader aspect can be defined as a transaction of exchange. Marketing primarily consists of activities designed to generate and facilitate exchanges intended to satisfy human organizational needs or wants. Marketing is broadly defined as advertising of a product or service to different market segments. The article Marketing Terms Important Definitions discusses important terms related to the domain of Marketing.


shape Marketing

Marketing is a total system of business activities designed to plan; price, promote, and distribute want-satisfying products to target markets in order to achieve organizational objectives. This definition has two significant implications:

William J. Stanton has defined marketing as a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers.


1. A La Carte Advertising Agency: An advertising agency which charges its clients on a per job basis for the specific services it provides them.


2. ABC Analysis: An inventory technique for listing products by sales volume in order to identify the best sellers that must be stocked at all times.


3. Absolute Product Failure: It occurs when a company is unable to regain its production and marketing costs. The firm incurs a financial loss.


4. Accessory Equipment: A less expensive industrial product used in the production or marketing of finished goods. Hand tools and office equipment are examples.


5. Additional mark up:: An increase in the original retail price of goods, commonly due to an error in original marketing or because the value of the merchandise has increased.


6. Administered System: A type of vertical marketing system in which one member ( usually the manufacturer) secures written agreement from other members to abide by certain distribution policies.


7. Advertising: The marketing function that can use paid nonpersonal communication of a message intended to sell or promote a product, service, person, idea or issue by an identified sponsor. The media employed to transmit advertising include newspapers, magazines, television, radio, direct mail etc.


8. Advertising Agency: An independent organization equipped to provide all phases of advertising for its clients. The agency prepares and places advertisements and may perform related research and promotional activities.


9. Advertising Appeal: The central theme, motive or idea of an advertisement which tells the potential consumer what the advertised product or service offers and why it should be purchased.


10. Advertising Campaign: The total advertising program for a product or brand that involves coordination, a central theme, and specific goals.


11. Advertising Media: Mass Communication channels- newspapers, magazines, television, radio, speciality etc.


12. Agents: whole sellers that do not take title to goods and are compensated through payment of a commission.


13. AIDA Process (Theory): A sequence of steps in various forms of promotion, notably personal selling and advertising, consisting of attracting attention, holding interest, arousing desire and generating buyer action.

14. Aided Recall: A method of testing a consumer’s ability to remember an advertisement and hence a means of determining the advertisement’s effectiveness.

15. Annual Marketing Plan: A return document that details the planned marketing activities for the given business unit or product for the given year.

16. Approach: The first few minutes of the contact between a salesperson and a potential customer. The approach is the stage in the sales presentation which is designed to gain and hold the prospect’s attention. Including the steps has (a) sales person introduced himself to the prospect’s (b) salesperson “sells” himself, the product on the company to the prospect (c) salesperson gets and holes the prospect’s attention and interest.

17. Approaching Customers: The stage in the selling process that consists of the pre-approach and greeting.

18. Attitude(opinion): A person’s positive, neutral or negative feelings about goods, services, company’s people or institutions

19. Augmented product: Value added to a core product by packaging, advertising, the reputation of the producer, financial and delivery arrangement and other benefits offered to a buyer by a seller.

20. Automatic vending: A method of non-store retailing in which products are sold directly to buyers from machines. Also called as automatic merchandising.

1. Barter Transaction: A marketing transaction in which goods or services are traded for other goods and services.

2. Base Point Pricing: A form of geographical pricing in which firms in an industry establishing basing points from which the cost of transportation is computed. The delivered price to a buyer reflects the cost of transporting goods from the basing point nearest to the buyer, regardless of the actual site of the supply

3. Behavioral Segmentation: Dividing a market into groups based on their knowledge, attitudes, use or response to a product.

4. Belief: A descriptive thought that a person holds about something.

5. Benefit Segmentation: Classifying market segments on the basis of particular benefit or values received from products and services by different consumer groups.

6. Blanket Ordering: A procurement method in which buyer and supplier enter into a long term contractual relationship.

7. Boston consulting group Matrix (BCG): A framework which enables a company to classify each of its strategic business units in terms of its market share relative to the major competitors and the annual growth rate of the industry. The matrix identifies four types of products, SBU’s-Cash cow, question mark, stars, and dogs and suggests appropriate strategies for each.

8. Boutique Agency: An advertising agency that specializes in writing and designing advertising material and thus focuses on the creative and artistic aspects of the advertising campaign_. Also called a creative boutique.

9. Brand: A name, term, symbol or design or a combination of them, which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

10. Brand Extension: Placing brand names from already existing successful products on new products.

11. Brand Extention Strategies: Actions marketers can take during the maturity stage of the product’s life cycle to lengthen the life cycle. An example is adding new uses by penetrating new market segments.

12. Brand Loyalty: The degree to which a buying unit such as a household, concentrates its purchases over time on a particular brand within a product category.

13. Brand Mark: The part of a brand that appears as a symbol, design or distinctive lettering or coloring ‘logo’.

14. Brand Name: The pronounceable part of a brand.

15. Brand Preference: The brand is accepted and preferred over others in the same product category.

16. Brand Recognition: The potential buyer has heard or read about the brand and remembers it.

17. Brand Image: The perception a person has towards a particular brand.

18. Brand Insistence: An extreme form of brand loyalty in which the customer will search extensively for the desired product or brand and accept no substitute.

19. The breadth of Product Mix: The number of product lines offered for sale by a firm.

20. Break Even Point: The level of sales at which a firm’s total revenue equals total cost.

21. Break Even Analysis: A method of price setting to determine what will happen to profits m. various price levels.

22. Budget: Monetary allocation to specific marketing activities before the activities are called out.

23. Bundled Pricing: An offering of a basic product, options, and service for one total price.

24. Business Analysis: The step in the new product development process that results in an estimate of profit, market share, break-even point and return on investment. The process of estimating future sales and profit potential or a proposed new product.

25. Business Cycle: The cyclic changes that occur in an economy’s overall level of business activity. Prosperity, recession, depression, recovery.

26. Business User: An organization that buys goods or services to resell, use in its own business or make other products.

27. Buy Classes: The three basic types of industrial buying: Straight rebuy, modified rebuy, and new task buying.

28. Buy Back: A product or service buyback agreement involves the sale of a product (or service) which, in turn, produces other products or services, e.g., the sale of industrial production facilities. Commonly the seller agrees to accept as compensation in part some of the output of the facility. The buyback is the practice found in international marketing where it is regarded as a form of countertrade.

29. Buy Phases: In industrial buying, the steps in new task buying; recognizing a need: specifying the need; searching for potential suppliers, inviting, acquiring and analyzing vendor proposals. Selecting the vendor and placing the order and follow up.

30. Buyer Seller Dyad: In personal selling, the buyer-seller dyad is the relationship between a salesperson and a customer, which strongly emphasizes personal, individual attention on the part of the salesperson.

31. Buyer’s Remorse: See Cognitive dissonance.

32. Buying Centre: Made up of people who determine what will be purchased to fill the organization’s needs and from whom the products will be purchased.

33. By Product Pricing: Setting a price for by-products in order to make the main product’s price more competitive.
1. Cannibalization: Cannibalizations occurs when increasing sales of a firm’s new product are due mainly to decreasing sales of its established product or products.

2. Capital Items: Industrial goods that enter the finished product partly, including Installations and accessory equipment.

3. Captive Product Pricing: The pricing of products that must be used along with an mvm product such as blades for a razor and film for cameras.

4. Carrying Cost: Expenses involved in holding goods over a period of time.

5. Cash and Carry Wholesalers: Limited service wholesalers who do not extend credit provide transportation.

6. Cash Discount: A reduction in price granted to a firm for making payment within a time period.

7. Cash Cow: A category in the BCG matrix which describes a leading strategic business unit (high market share) in a relatively mature or declining industry (low growth). A cash cow generates more cash (Profit) then is required to retain its market share.

8. Centralization: The approach to marketing organization in which marketing decision tend to be made by top executives in the marketing department.

9. Chain Stores: Retailing organizations that have two or more stores under one ownership.

10. The channel of Distribution: Combination of middlemen that a company uses to move its products to the ultimate buyer.

11. Channel Length: The number of links (middlemen type) in a particular marketing chain.

12.Channel Width: The number of retail outlets or individual wholesale firms to employ at each level of a marketing channel.

13. Channels of Distribution: The combination of middlemen used by a seller in marketing his products and services

14. Channels of Distribution Management: The marketing function that involves establishing and maintaining a network of middlemen to market the company’s products or services.

15. Classified Advertising: In newspapers and magazines, classified advertising refers to those advertisements placed in special columns arranged by the type of product or service. The format and used in these columns are generally fairly uniform.

16. Close: The point in the sales presentation at which the salesperson attempts to clinch the sale, to get action. Involves asking the prospect for order.

17. Cognitive Consonance: The opposite of cognitive dissonance, cognitive consonance is the feeling of satisfaction experienced by a customer at the point of, or immediately following, a decision to purchase. The customer has a feeling of well being and the sense that the correct decision has been made.

18. Cognitive Dissonance: The anxiety created by the fact that in most purchases the alternative selected has some negative features and the alternatives not selected have some positive features/ Doubt that the correct purchase decision has been made. To overcome cognitive dissonance, the firm must realize that the purchase process does not end with the purchase.

19. Combination Strategy: The promotional technique of appealing to both consumers and middlemen to buy a product.

20. Commercialization: The final stage in the new product planning process. The firm introduces the product to its full target market. This corresponds to the introductory stage of the product life cycle.

21. Commission: Payment of money to salesperson based on the quality of his performance.

22. Comparative Advertising: Selective demand advertising in which the advertiser either directly (by naming a rival brand) or indirectly (through inference} points out how the advertised brand is better.

23. Component Part (Material): An industrial goods that have in some way, been shaped or finished and is incorporated into another product e.g., automobile carburetor, spark plug etc.


24. Concentrated Marketing Strategy: A product-marketing matching strategy in which a single product is offered to core markets.

25. Concentration: A function performed by wholesalers that involves consolidating small lots of products into larger lots.

26. Concept Testing: The process of securing customer reactions to new product ideas.

27. Conglomerates: A firm comprised of a number of companies that produce and market a wide variety of different products.

28. Consignment sale: Agreements between a seller and his middlemen that the middlemen do not have to pay for the products until they sell the products.

29. Consistency of a Product Mix: The relationship among product lines In terms of their sharing a common end use, distribution outlets, consumer groups, and price range.

30. Consumer Decision Process: The procedure or steps an individual uses in reaching a buying decision. The process includes 1-Need recognition, 2-identifying purchase alternatives, 3-evaluating alternatives, 4-buying, 5-Post buying behavior.

31. Consumer Market: The consumer market consists of persons who purchase goods and serv1ces for their own use or for the use of the persons in their household.

32. Consumer Goods: Goods and services intended for use by the ultimate consumer.

33. Consumerism: A social movement stemming from the efforts of consumers to promote and protect their own interests in the market place. Sometimes organized, sometimes not, these efforts center upon concern for the consumer’s rights to safety, information, fair pricing, truthful advertising, etc.

34. Continuous Monitoring: The stage in the marketing information system by which a changing environment is regularly viewed.

35. Control System: The procedures used to measure the effectiveness of the marketing department’s performance.

36. Convenience Goods: Goods and services that consumers want to buy quickly and with little efforts. These items are usually purchased by the customer in small quantities, at frequent intervals and with a minimum of comparison shopping e.g., bread, milk, butter etc.

37. Cooperative Advertising: Advertising in which two or more firms share the cost.

38. Core Product: The bundle of tangible and intangible features offered in the market place.

39. Cost Plus Pricing: The method of setting prices by totaling costs and adding a margin for profit.

40. Counter Advertising: Advertising whose aim is to counter, or convert, the effect of other advertising. For example, anti-smoking advertising.

41. Countertrades: Transactions in which purchases are paid for with something other than money and credit as the medium of exchange.

42. Culture: The unique way of life, or shared beliefs, rules of behavior, customers & artifacts of a society that is learned and handed down through generations. Culture most directly relates to the way people behave in the market place.

43. Customary Pricing: Customary pricing occurs when a company sets goods and service’s prices and seeks to maintain that for an extended period of time.

1. Dealer (Private) Brands: Items that contain the name of the wholesaler or retailer. Dealer secure exclusive right for their brands and are responsible for their distribution.

2. Deciders: Members of a buying center with the authority to make the final purchasing choice.

3. Deficient Products: Product that has neither immediate appeal nor long-run benefits.

4. Delphi Technique: An expert opinion method of arriving at business forecasts. A group of experts or knowledgeable individuals is pooled. The experts place their individual predictions on paper, compare the results and repeat the cycle until a consensus is reached. At each new estimate, a company analyst reviews and revises the results. Also known as Ju1y of Executive Opinion technique.

5. Demand Analysis: It involves an examination of factors which govern the sale and the use of the product or service: e.g., such factors as economic conditions, price, scarcity and buying habit.

6. Demand Curve/Demand Schedule: A schedule generally represented as a graph, depicting the relationship between a series of prices for a product and the demand for a product in the market place.

7. Demarketing: Efforts to persuade purchasers to consume fewer goods and services in order to save scarce resources. A marketing strategy calculated to reduce rather than increase demand for a product or service. Demarketing efforts are usually confined to periods of a product shortage.

8. Demographic Factors: Physical characteristics describing a population such as age, income level, sex, occupation, and many others.

9. Demographic Segmentation: segmenting the market on the basis of demographic factors.

10. Demonstration Advertising: A form of advertising in which the attributes of the product are actually demonstrated and which frequently emphasizes the competitive strengths of the product.

11. Departmentalization: The organization alternative in which various marketing functions are performed by Individual departments.

12. Depression: The phase of the business cycle characterized by a radical drop in business activity and consequent high unemployment and business failure.

13. The depth of Product Line: The number of separate product items within each product line.

14. Derived Demand: A condition in which the demand for one product is generated (derived) from the demand for some other product.

15. Differential Advantage: Enjoyed when a marketer provides a unique customer satisfying products that customers will buy from it rather than from its rivals.

16. Differentiated Marketing: The practice of dividing the market into segments or distinct classes of buyers and marketing to each segment with a different marketing mix.

17. Direct Marketing: A seller marketing his products to customers without using middlemen.

18. Discount Store: A retail establishment which operates on very low margins in order to offer merchandise at prices well below the recognized market level.

19. Discretionary Income: Any amount left from disposable income that a family or individual is free to spend for luxuries, or to save.

20. Discriminatory Pricing/Flexible or Variable Pricing Policy: The sale of goods or services at different prices to different customers. Pricing is discriminatory when it is calculated to give one party an unfair advantage over another.

21. Dispersion: A function performed by retailers that involves breaking down large lots of products into smaller lots.

22. Display: The impersonal, visual presentation of goods or ideas.

23. Disposable Income: Income that remains after taxes and that is spent on necessities like food, clothing, housing etc.

24. Diversification: A product/market opportunity matrix strategy in which a firm markets new products aimed at new markets.

25. Dog: Category in BCG matrix which describes a low market share strategic business unit (SBU) in a mature or decline industry. A dog usually has cost disadvantages and few growth opportunities.

26. Drive: A strong stimulus that necessitates action.

27. DROP Error: The type of screening mistake that occurs when a potentially profitable idea is judged unworthy to pursue.

28. Drop Shippers/Desk Jobbers: Limited service wholesalers who take title to merchandise but do not take physical possession.

29. Dual Distribution: The use by the producer of multiple and competing channels of distribution.

30. Dual Marketing: The practice of selling the same or similar products to both individual consumers and to industrial or institutional customers.

31. Dumping: The practice of selling goods overseas at a price lower than that charged in the home market.

32. Durable Goods: Physical products that are used over an extended period of time.
1. Economic Order Quantity (EOQ): The amount of stock that costs the least to keep on hand in order to meet the average level of demand.

2. Economy Pack: Several products, wrapped together and sold at a lower price than if each was sold separately, to provide a saving to the consumers. The economy pack most often comes directly from the producer, but middlemen organizations sometimes repackage merchandise to create an economy pack.

3. Economy Size: A large quantity of a product, such as detergent sold in the single large package to provide the consumer with a lower per unit price.

4. Efficiency Measures: Examining the output of resources over a given range of resources.

5. Elastic Demand: The relationship between price and revenue which holds if total revenue increases with a price drop or decreases with a price size.

6. The elasticity of Demand: The rate at which demand changes in response to price changes.

7. Emergency Products: Products consumers buy because of urgent and compelling needs. A subclass of convenience goods.

8. Enlightened Marketing: A marketing philosophy holding that a company’s marketing should support the best long-run performance of the marketing system; its five principles include consumer-oriented marketing, innovating marketing, value marketing, sense of mission marketing and societal marketing.

9. Environment: Areas outside the marketing department, in addition to the market, over which the marketing department can not exert direct control.

10. Environmental Analysis: The planning procedure of weighing both internal factors (largely within the organization’s control) and external ones (largely uncontrollable) that may help or hinder a marketing effort.

11. Exchange: In marketing, exchange occurs when two or more parties trade products for money (monetary transaction) or trade products for the product (Barter transaction).

12. Exclusive Distribution: Having products available in one retail outlet in a given geographical area/ Extreme form of selective distribution.

13. Executive Judgement: A method of sales forecasting that consists of obtaining opinions regarding future sales volume from one or more executives.

14. Exploratory Research: A category of marketing research that is used to gather data that suggest meaningful research questions.

15. Exports: Products and services sold to foreign countries.

16. Express Warranty: A statement in written or spoken words regarding restitution from seller to the customer if the seller’s product does not perform up to the reasonable expectations.

17. Extended Product: Those tangible and intangible elements which accompany a product or service. Included are warranties, service contracts, supplies and such intangibles as the status and prestige associated with ownership of the product.
1. Fabricated Parts: Industrial goods used in manufacturing without further changes in form e.g., an automobile battery.

2. Family Brand/Blanket Brand: One brand that is applied to an entire product mix or to all products in a particular line.

3. Family Life Cycle: Important stages of life that typical family passes through as marriage and family formation, maturation of children, children leaving home and sole survivor.

4. Flea Market: Originally an outdoor bazaar in which vendor offers cheap second-hand goods for sales to the public. Flea markets now may be held indoors and goods offered for sale may be new first quality merchandise selling well below regular retail prices.

5. FOB Pricing: The practice of having a buyer pay for all transportation charges from the time a product is loaded aboard an earner.

6. Forecasting: The art of predicting demand in the market place over a given period of time.

7. Forward Buying: Entering into contracts with suppliers to buy products that will be delivered in installments over a period of time.

8. Fragmented Market: Small market segments that can be identified and isolated through increasingly sophisticated demographic, behavioral and geographic data.

9. Franchise: A contractual association between a manufacturer, wholesaler or service organization (a franchiser) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system.

10. Franchising: It may be regarded as a vertical marketing system in which a manufacturer service organization confers upon an individual or firm the privilege of marketing a product or service.

11. Freight Absorption Pricing: A geographic pricing strategy whereby the seller pays for (absorbs) some of the freight charges in order to penetrate more distant markets.

12. Full Line Pricing: A pricing strategy which takes into consideration the way prices for individual products in a line relate to the prices of other products in the line.

13. Functional Discounts: A price reduction offered by the seller to the trade channel members who perform certain functions such as selling, storing and recordkeeping.

14. Functional Organisation: The marketing organization in which individuals are given responsibility for the management of various marketing functions, such as marketing research, sales, and physical distribution.

15. Functional Obsolescence: It occurs when technological breakthroughs render an existing product out of date.
1. Gatekeepers: Members of a buying center who control the flow of information to other members.

2. General Agreement on Tariffs and Trade (GATT): A formalized attempt by 90 participating countries to reduce tariff and trade barriers around the world. ·

3. Generic Demand /Primary Demand: Consumer demand for a class or type of product rather than for a particular brand e.g., demand for jeans, bread, wheat not for a particular brand.

4. Generic Product: A product that is packaged in a plain level and is sold with no advertising and without a brand name. The product goes by its generic name such as tomatoes etc.

5. Geographic Segmentation: Dividing a mass market into geographical units such as nations, regions, states, cities, neighborhoods and so on.

6. Go Error: The type of screening mistake that occurs when poor ideas are allowed to proceed to full-scale marketing.

7. Gravity Strategy: Concentrating on producing a superior product and depending only on word of mouth to sell it. Satisfied customers are expected to create demand for the product.

8. Gray Market/Parallel Imports: Consumer and industrial products sold outside a manufacture user are authorized distribution channel. Gray market goods are sometimes called parallel imports.

9. Growth Stage: The product life cycle stage in which sales increase rapidly and profits are the highest.

10. Growth/Share Matrix: See BCG Matrix.

11. Guarantee: A statement either Written or implied, by the seller of the merchandise, in which assurances are made concerning the proper performance of the product and which stipulates the corrective measures which Will be taken if it does not perform properly.
1. Handling Objections: The step in the selling process in which the salesperson seeks out clarifies and overcomes customer objections to buying.

2. Heterogeneous Shopping Goods: A product that a customer will buy only after making a comparison of the style or quality of several brands (e.g., garments).

3. High Involvement: A purchase decision that involves all the stages of buying decision process.

4. Homogeneous Shopping Goods: A product that a customer Will buys only after making price comparisons in competing stores (e.g., tester).

5. Horizontal Business Market: A situation where a given product is usable in a Wide variety of industries.

6. Horizontal Marketing System: Two or more Organisations on the same level of distribution cooperate to accomplish a common goal.

7. Howard-Sheth (H-S) Model: A model of buyer behavior in which consumer buying is treated as rational and systematic behavior.

8. Hyper Market: A retail store whose operations represent a combination of discount store, supermarket and warehouse store under one roof.
1. Idea Marketing: The application of marketing principles in an effort to promote ideas, Issues, causes etc. Idea marketing may be carried on by profit and not nonprofit organizations.

2. Idea Generation: The process whereby ideas for potential new products are obtained.

3. Idea Screening: Use of checklists or other rating devices to decide if a new product idea has merit.

4. Image Utility: The emotional or psychological value that a person attaches to a product or brand because of the reputation or social standing of that product or brand.

5. Imports: Products and services purchased from foreign countries.

6. Impulse Items: A convenience consumer goods bought in the spur of the moment e.g., ice cream.

7. Incubation Period: The stage in the PLC when a product is conceived, developed and tested.

8. Indirect Marketing: The use of middlemen by a company for the marketing of its products.

9. Individual Brand: The distinct name given to each product a company produces.

10. Industrial Goods: Products bought by organizations for producing other goods or services.

11. Industrial Market: It consists of all those organizations which are involved in production, manufacturing, providing services. Producer, reseller and governmental organizations buy goods and services for use in producing other goods or services or for use in other operations.

12. Influencers: Members of a buying center who can affect the decision to purchase by assisting in evaluating alternate products.

13. Installations: A large expensive industrial product category for the production of finished goods, though it does not become part of those goods e.g., major equipment.

14. Institutional (Corporate) Advertising: A paid message designed to build long-range goodwill for a firm rather than stimulate demand for a product.

15. The intensity of Distribution/Intensive Distribution: Having products available in a high percentage of retail outlets.

16. Interactive Marketing: Marketing by a service firm which recognizes that perceived service quality of buyer-seller interaction.

17. Internal Data: Internal data available from the marketing researcher’s own company, such as annual reports, purchase orders, and invoices.

18. Introductory Phase: The stage in the PLC when a product is bought to full-scale marketing.

19. Inventory Control: Inventory control involves determining and recording the location and number of units of finished goods in warehouses as well as customer requirements for the goods.

20. Inverse Demand: Inverse demand is a condition in which demand increases as price increases. A condition of inverse demand often results in prestige pricing at the retail level.
1. Job Description: Descriptions of the duties and responsibilities of a sales position.

2. Jobbers: See wholesalers.

3. Joint Venture: The entry alternative to foreign markets that results in degrees of control between 0% and 100%/ A partnership in which the partners share ownership and control of the ventures operations and property rights.

4. A jury of Executive Opinion: See Delphi Method.
1. Level: The part of a product that carries verbal information about the product or the seller.

2. Leasing: A situation, found in both consumer and industrial markets in which a good is rented rather than purchased outright.

3. Licencing: A means of international marketing whereby a company grants a foreign firm the rights to patents, trademarks and use of the technical processes in exchange for the royalty.

4. Life Style: The overall pattern of attitudes, values, roles, and self-concept that an individual expresses through consumption work and play.

5. List Prices: Regularly quoted prices provided to customers. They may be preprinted.

6. Logistics: A marketing support activity primarily concerned with the flow of goods, i.e., the acquisition of suppliers and material, the distribution of finished products or the delivery of services.

7. Logo/Logotype: Generally one or more letters worked into some distinctive typographic or calligraphic design.

8. Loss Leader Pricing: An item priced below cost to attract customers.

9. Low Involvement: A purchase decision in which the consumer moves directly from need recognition to purchase.
1. Man/Job Specification: Description of the training, experience, skills and personal characteristics required by salespeople to perform a specific sales job.

2. Marginal Analysts: A method of price setting that considers both demand and costs to determine the best price for profit maximization.

3. Marginal Cost (MC): The addition to total cost due to the production of an additional unit of a product.

4. Marginal Revenue (MR): The change in total revenue due to the sale of an additional unit of a product.

5. Marginal Pricing: Establishing a price so that the revenue obtained exceeds the variable costs incurred to that a contribution to fixed costs results.

6. Mark up Pricing: A form of cost-based pricing in which prices are set by calculating per unit product costs and then determining the markup percentages that are needed to cover selling costs and profit. It can be calculated as Product Cost (100 -Make up Percent)/ 100

7. Market: Market ts place where buyer and sellers meet and are involved in the exchange process.

8. Market Aggregation: A strategy whereby an organization treats its total market as a unit that is as one mass market whose parts are considered to be alike in all major respects.

9. Market Challenger: A runner up firm in an industry that is fighting to increase its market share.

10. Market Follower: A firm in an industry that wants to hold its share without any major change in itself.

11. Market Leader: The firm in an industry with the largest market share.

12. Market Nicher: A firm in an industry that serves small segments that the other firms overlook or Ignore.

13. Maret Grid: A device employed in market segmentation studies in which a total market is subdivided in an effort to move precisely towards target potential customers. The information is frequently presented in the form of a grid.

14. Market Penetration: A product market growth strategy in which a company tries to sell more of its present products to its present markets.

15. Market Potential: The maximum possible sales of a specific product in a specific market (or market segment) over a specific time period for all sellers in the industry.

16. Market Positioning / Product Positioning/Target Positioning: Those efforts aimed at establishing a product or service in a particular niche or segment of a market place. Market positioning strategy usually includes those promotional activities which differentiate the product from competitors and which vividly establish the product’s image in the mind of potential customers.

17. Market Share: The proportion of total sales of a product during a stated time period in a specific market that is captured by a single firm.

18. Market Forecast: The expected sales of a specific product in a specific market (or market segment) or a specific time period.

19. Market Segments: Within the broader market, groups of similar consumers with similar product needs and wants.

20. Market Expansion Strategy: Increasing sales of a current product by directing the product to new markets or obtaining more frequent use or new uses by current customers.

21. Market Segmentation Strategy: A product market matching strategy in which product expectations are provided that satisfy the core members of a number of market segments.

22. Marketer: All organizations and individuals engaged in business may be regarded as marketers as in one way or another, they are selling something to somebody.

23. Marketing: The determination of needs and desires of the customers so that goods and services can be provided to satisfy these needs and desires.

24. Marketing Concept: The basic orientation of a firm’s marketing effort involving an emphasis on goal achievement, satisfying customer needs and wants, recognizing societal requirements and using a systems approach.

25. Marking Mix: The combination of marketing decisions used to market specific products to specific markets over a specified time period. The combination of marketing variables (such as product, price, place, and promotion) which when blended together form a marketing strategy designed to satisfy the firm’s customers.

26. Marketing Audit: A periodic complete appraisal of the effectiveness of a firm’s entire marketing operations.

27. Marketing Control: Evaluating the performance of the firm’s marketing operations so that performance can be improved.

28. Marketing Ethics: Judgements about what is right and what is wrong for both the organization and its employees in their role as marketers.

29. Marketing Planning: The ongoing process of auditing the situation, establishing marketing objectives, developing marketing strategies, developing marketing plans and developing a marketing program.

30. Marketing Program: Marketing program combines several marketing plans into one overall plan for the total organization.

31. Marketing Research: The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.

32. Marketing strategy: Abroad plan of action for selecting and analyzing a target market and developing and maintaining a marketing mix to satisfy that target.

33. Marketing Intermediary: Independent business organizations that directly aids in the flow of products between a marketing organization and its markets.

34. Marketing Myopia: A short-sighted, narrow-minded view of marketing and its environment.

35. Marketing Information System: It is a complex of persons, procedures, and equipment which, in concern, collect information relevant to marketing decision making. It is more broadly based than marketing research in that the marketing information system gathers data from within the firm as well as externally in the marketing environment.

36. Mass Market Strategy/Total Market Strategy: The market is defined to include all potential buyers of brands in a product category with one marketing mix.

37. Maturity Stage: The product life cycle stage in which sales increase begin to slow down and profits begin to drop.

38. Megamarketing: Defined by Philip Kotler as the strategically coordinated application of economic, psychological, political and public relation skills to gain the cooperation of a number of parties in order to enter and or operate In a given market. Kotler adds power and public relations to the four P’s of the marketing mix.

39. Micro Marketing: A form of target marketing in which companies tailor their marketing programs to the needs and wants of narrowly defined geographic, demographic, psychographic or benefit segments.

40. Mismarketing: Failed marketing efforts generally as a result of faulty information.

41. Missionary Sales Person: A professional salesperson who does not take orders from customers but calls on retailers and wholesalers to encourage them to stock his product.

42. Monopolistic Competition: Motivational research a type of market structure in which there are many sellers and many buyers, but each seller offering is somewhat differentiated from the others.

43. Monopoly: The market situation that exists when one seller has absolute control over the price of a product.

44. Monopsony: A market condition in which there is only one buyer.

45. Motivational Research: Motivational Research attempts to discover the ‘whys’ of consumer behavior by analyzing the major motives that influence it, particularly unconscious motives.

46. Motive: Inner striving conditions, that activate or move behavior toward goals.

47. MRO Items: Three classes of industrial supplies-maintenance supplies, repair suppliers and operating supplies.

48. Multi-National Corporation: A company that has production or service in more than six countries.

49. Multiple Branding: A marketing strategy in which a firm give each item in a line of products a separate brand name.

50. Multiple Packaging: The packaging together of two or more items (as Johnson’s baby kit) as a means of encouraging multiple purchases on the part of the consumer.
1. National Brand/ Manufacturer Brand: Product that carries the manufacturer’s brand name and distributed nationally.

2. Needs: The basic motivations which cause the individual consumer to make purchase decisions or take other actions.

3. New Product: Any good or service new to the company producing it, though not necessarily innovative itself.

4. New Product Development Process: Proceeds the first stage (introduction) of the product life cycle. Its stages or idea generation, idea screening, business analysis, product development, test marketing, and commercialization.

5. Niche Marketing: A strategy in which goods and services or tailored to meet the needs of small market segments.

6. Non – Commercial Advertising: Paid messages sponsored by non – profit organizations.

7. Non-Price Competition: A strategy in which a firm tries to compete based on some factors other than price, for example, promotion, product differentiation or the variety of services.

8. Non-profit advertising: Advertising by organizations such as government, colleges, political parties for achieving their well-denned objectives other than profit, but they still have messages to communicate to the public.

9. Non-Store Retailing: Costumers do not go to a store to shop. They shop through by mail or by telephone.

10. Non-Profit Organisation: An organization in which profit is not any intended organization goal.

11. Non Tariff Barriers: Government policies and loss other than tariff’s which restrict international trade. Nontariff barriers include local content laws, export subsidies, safety and health standards, import quotas, government purchasing rules, and border taxes.
1. Objective Task Method: A method of budgeting for promotional expenditures, including advertising based on pre set goals and objectives and an analysis of the activities necessary to reach them.

2. Odd Pricing: Setting prices that end in odd numbers such as Rs. 49 Rs. 55 etc.

3. Oligopoly: A type of market structure in which a few large and interdependent firms account for the bulk of an industry’s sale.

4. On Pack Premium: A free gift or other item attached to the outs ide of a package.

5. One Price Policy: All customers who buy the sellers product under the same conditions, in the same quantities, and at the same time pay the same price.

6. Operating Supplies: The convenience goods of the business (industrial) market. Short-lived, priced items purchased with a minimum of time and effort.

7. Opinion Leader: A member of a group who is capable of influencing others in that group to buy.

8. Optimization: The effort to minimize total cost or maximize total profit in a trade-off situation.

9. Order Cycle: The period of time span a customer’s placing an order and its receipt.

10. Order Cycle Length: The time taken for an order to be received after it is sent to the supplier.

11. Order Processing: Order processing includes such activities as order receipt, credit approval, invoice preparation and collection of accounts receivable.
1. Packaging: Designing and manufacturing the container or wrapper for the product.

2. Patronage Rewards: Cash or other awards for the regular uses of a certain company’s products or service.

3. Penetration Pricing: Placing a low price on a new product so that it will secure quick acceptance and preclude competition.

4. Perceived Value Pricing: A strategy in which the price of a product or service is based upon the buyer’s perception of its value rather than on the seller’s cost of production.

5. Percentage Analysis: Determining the percentage of a total figure accounted for by a specific aspect of the company’s marketing operation.

6. Perception: The process through which an individual – selects relevant stimuli from the environment, organizes it and assigns meaning to it.

7. Performance Improvement Analysis: Determining why performance is not up to the standards and developing corrective action to improve poor performance.

8. Perishability: A characteristic of service indicating that it is highly perishable and can not be stored.

9. Person Marketing: Activities undertaken to create, maintain or change attitudes or behavior towards particular persons.

10. Personal Selling: A sales technique which frequently involves face to face contact between salesman and customer to satisfy their needs and desires and attempts to obtain, their purchase by the market.

11. Physical Distribution: The marketing management function that decides the route taken by the finished goods from the point of origin to the point of sale.

12. Place Utility: The value that products have because they are available where purchasers want them. Place utility is provided by transportation function.

13. Planned Obsolescence: A product strategy designed to make an existing product out of date and thus to increase the market for replacement products. There are two forms Technological and style.

14. Point of purchase (pop) Materials: The collective name for promotional tools used in sales displays (e.g., banners, price cards, posters etc.)

15. Post Decisional Dissonance: The state of doubt that arises in a buyer’s mind after purchase because of regret about lost options.

16. Post Testing: Measuring the effectiveness of a promotional campaign after its completion.

17. Post Testing of Advertisement: Research designed to determine the effectiveness of an advertisement or advertising campaign after its general appearance in the media.

18. Pre Emptive Pricing/Keep out Pricing/Stay Out Pricing: A strategy in which price levels are set so low that makers of competing products are discouraged from entering the market place.

19. Pre Emptive Marketing: The advertising of a product or service before it is actually available in the market place in an effort to foretell the purchase of a competitor’s product.

20. Predatory Pricing/Put out pricing/Extinction Pricing: The setting of prices at a level so low as to derive competitors out of business.

21. Premium Pricing/Prestige Pricing: The setting of the price at a level above that commonly found in the market place in an effort to indicate that the product is of premium quality.

22. Presentation: The stage in the sales process during which a salesperson translates the features of the products he is selling into benefits the customer can understand.

23. Prestige Pricing: Setting the price of a product high to benefit from the price-quality relationship that exists in many consumer’s minds.

24. Pretesting: Measuring the effectiveness of an organization’s promotion on a small part of the market before spending for a large scale campaign.

25. Pretesting of Advertisement: Research designed to determine the effectiveness of an advertisement or advertising campaign prior to the general appearance in the media.

26. Price: The amount of money and/or products needed to acquire some combination of another product and its accompanying services.

27. Price Discrimination: Selling the same product to two different competitive buyers at different prices.

28. Price Leader: A dominant member of an industry that announces pricing policies and is usually followed by, other firms in the industry.

29. Price Lining: A common practice of retailers that involves charging different prices for different quality levels of a product.

30. Pricing: The marketing function concerned with the establishment and maintenance of an overall pricing program.

31. Primary Data: First-hand data collected by the researcher.

32. Primary-Demand Advertising: Advertising designed to stimulate demand for a generic product.

33. Principle 20/80: A small percentage of the firm’s products customers, salespeople etc., accounts for large percentages of sales volume and profit.

34. Private (distributor) Brands: Products that carry the middleman’s brand instead of manufacturer’s brands.

35. Product: A combination of physical and intangible attributes, services and symbols designed to supply certain expected benefits to users.

36. Product Image: The sun total of attitudes and knowledge that people hold of a product.

37. Product Life Cycle: A series of stages through which a product or service passes as it evolves into the market place often classified into introduction, growth, maturity, and decline.

38. Product Development: The creation of a physical product for market introduction.

39. Product Item: A specific member of a product line/A specified model, brand or size of a product that a company sells.

40. Product Line: A group of products that are closely related in some way or the another /the line of products having similar characteristics.

41. Product Mix: The total composite of all products offered by a company.

42. Product Management: The marketing function that involves developing new products and services that satisfy customer’s needs and wants, management of these products and services over their lifetime and consideration of marginal products and services for elimination.

43. Product Differentiation: It seeks to create a difference in people’s minds between the marketer’s brand and rival brands that seek to serve the same mas market.

44. Product Adaptation Strategy: An international product planning strategy in which domestic products are modified to meet language needs, taste preference, foreign conditions, electrical requirements, water conditions, or legal regulations.

45. Product Development: A product/market opportunity matrix strategy in which a firm develops new or modified products to appeal to present markets.

46. Product Positioning: Creating and maintaining in the mind of target customers the intended image for the product relative to other brands so they will perceive the product as possessing, the attributes they want.

47. Product Detection/Product Pruning: The withdraw of a product from a company’s line of products, generally because it is no longer profitable.

48. Productivity Measures: Productivity measures determine the effectiveness of the performance of a given resource by expressing a variable on a per unit basis.

49. Professional Pricing: The approach used by many doctors and lawyers who are bound by ethical codes in setting their fees, or prices. Such codes are based on the premise that standard fees are more appropriate than fees based on the amount of time spend with individual patients or clients.

50. Professional Sales: Salespeople who sell to medical doctors, architects, and other professionals. They establish a strong personal relationship with the professionals, provide samples, brochures, and other services, and are continually on the lookout for new product development, new uses for existing products, and new products.

51. Profitability Analysis: Determining net profit accounted for by various areas of a company’s marketing operations, such as individual customers, individual salespeople, and individual products.

52. Promotion Mix: One of the four major components of the marketing mix, involves a careful blending of advertising, personal selling, sales promotion, public relations, publicity and packaging to accomplish the organization’s promotional objectives.

53. Promotional Allowance: A payment or reduction from list price granted by sellers to compensate buyers for performing promotional service.

54. Prospecting: Determining With current and prospective customers will help maximize sales volume, profit, and the sales person’s income.

55. Prosperity: The phase of the business cycle characterized by high income, employment, and business growth.

56. Psychographic Segmentation: Classification of personal activities, interests, and opinions that attempt to measure consumer lifestyle patterns.

57. Public Relations: Any message that attempts to generate a favorable attitude toward an organization among employees, stockholders, suppliers, and the government as well as among customers.

58. Publicity: Any form of non-paid commercially significant news or editorial comment about ideas, products or institutions.

59. Pull Strategy: Stimulating consumer or industrial user’s demand by focusing promotional effort directly on ultimate consumers or industrial users instead of middlemen in the marketing channel.

60. Pure Competition: A type of market structure where there are many small sellers and buyers, a homogeneous product, easy entry into and exit from the industry, all buyers buy and all sellers sell under the same conditions and perfect information in the hands of buyers and sellers.

61. Pure Monopoly: A type of market structure in which one firm manufacturer a product that has no close substitute.

62. Push Strategy: Focuses on pushing a product through the marketing channels. Typically, involves heavy reliance by the manufacturer on the company’s sales force and various types of sales promotion directed to company salespersons and to middlemen and their sales forces.
1. Qualifying: The stage in the selling process when a salesperson discovers whether a potential customer has an interest in buying and the purchasing power to do so.

2. Qualitative Performance Criteria: No numerical measures of output to measure the salesforce performance.

3. Quantitative (verifiable) Performance Criteria: Numerical measures of output to measure sales force performance.

4. Quantity Discount: A deduction from list price given to middleman for buying in large volumes.

5. Quantity Discount: A reduction in price offered by the seller of goods as an inducement to the buyer to purchase large quantities.

6. Question Mark (Problem Child): A category in BCG matrix which describes a low market share SBU in an expanding industry. A question mark requires substantial marketing investments to maintain or increase market share in the face of strong competition.
1. Rack Jobbers: A regular wholesaler specializing in selling non-food items to food stores.

2. Real Income: The amount of income earned in a year adjusted by the rate of inflation.

3. Recession: The phase of the business cycle characterized by decreasing income, employment, and growth.

4. Reciprocity: The situation of “I will buy from you and you will buy from me”. A customer buys from a supplier if that supplier also buys from its customer.

5. Reference Group: Group of small people who influence that behavior of each other very much/ groups with whom an individual identifies in forming his attitudes, values, and perspectives. Reference groups influence role behavior and self-evaluation.

6. Relative product Failure: It occurs if a company is able to make a profit on an item but the product does not reach profit objectives and/or adversely affects the image.

7. Reliability: The accuracy of the data.

8. Remarketing: A strategy aimed at reviving demand for a product which has been in a state of decline.

9. Reminder Advertising: Advertising used to keep consumers thinking about a product.

10. Repositioning: A market strategy designed to increase the consumption of an already existing product by changing its target market.

11. Resale Price Maintenance: A pricing policy whereby the manufacturer sets the retail price for a product.

12. Retailers: Middlemen to sell to those customers who use the product for their own use rather than for reselling or industrial purposes.

13. Risk Reduction: In the consumer buying process, risk reduction is the customer’s attempt to solve a problem and make a purchase while cutting down on the uncertainties associated with the product or service.

14. Role: The rights, duties, actions, and activities, appropriate to a person who occupies a particular position in a group or in society at large.

15. Role Playing: It is a simulation training device in which the trainee usually plays the part of a salesperson making a presentation to a customer.
1. S-Curve Effect: It occurs if the sales of a product rise sharply after it is introduced because of heavy initial promotional effort, drop slightly as promotional support is reduced, and then rise again as positive word of mouth communication takes place.

2. Salary: Payment of money to a salesperson regardless of how much product he is.

3. Sales Analysis: The breakdown of a company’s sales data by product or customer demand; territorial volume and salesperson performance.

4. Sales Force Survey: A means of arriving at a sales forecast by asking field sales representatives to estimate demand in their territories in the upcoming year.

5. Sales Forecast: The prediction of actual sales a company can expect to make in a certain market or segment.

6. Sales Management: The marketing function that involves recruiting, selecting and training salespeople, supervising and motivating them on the job and evaluating their performance.

7. Sales Promotion: All other promotional activities of a firm besides advertising, personal selling, publicity, and public relations that stimulate consumer purchases or aid dealer effectiveness.

8. Sales Force Composite Method: A sales forecasting method that involves asking salespeople to forecast attainable sales volume in their territories for a given time period and combining them to produce a total sales forecast.

9. Sales Potential: The upper limit of sales a firm could possibly reach for a specific product in a specified market (or market segment) over a specific time period.

10. Sales Penetration: The degree to which a company achieves its sales potential.

11. Sales Quota: A performance standard in the form of a specific goal or objective set by management for its sales staff.

12. Salutary Products: Products that have low appeal but benefit consumers in the long run.

13. Sample : The sample of the population contacted in order to obtain information.

14. Scrambled Merchandising: The retailing practice of carrying product lines to appear to be unrelated.

15. Screening: The process in the in the introduction phase of the PLC of separating those new ideas worth pursuing from those that are not

16. Sealed Bid: An offer to perform a service or to supply goods submitted to a buyer in a sealed envelope to be opened at a specific future time. Under this system, the competitive bid is not revealed publicly.

17. Sealed Bid Pricing: A pricing strategy in which a firm sets the prices for its products on the basis of what it anticipates its competitors will bid.

18. Seasonal Discount: A deduction from list price for buying out of season.

19. Secondary Data: Data that are in written form and already available. They are second-hand data.

20. Segmentation Pricing: A strategy in which prices are set at different levels for different segments of the population. The legal form of price discrimination is commonly found in the airline industry where different classes of service are provided for different segments of the traveling public.

21. Selective Demand: The market demand for a particular brand of merchandise as opposed to the demand for a total class of products.

22. Selective Perception/Selective Retention: The ability of individuals to filter out certain sensory data or stimuli, while retaining others.

23. Selective Demand Advertising: Advertising aimed at persuading customers to buy ones firm’s product or brand rather than a competitor.

24. Selective Distribution: Having products available in a low percentage of retail outlets.

25. Self Image: The mental picture an individual has of himself and the way he imagines others perceive him.

26. Self Service: a form of retail selling in which the merchandise is displayed so that the customer can make a selection without the aid of a salesperson.

27. Self Concept/ Self Image: A mental picture an individual has of himself and the way he imagines others perceive him. It includes characteristics, traits, possessions, role, behavior etc.

28. Services: Intangible activities that provide benefits when marketed to users; intangible activities that are an extension of the product only, such as after-sale delivery, service would not be included separately as service.

29. Shopping Goods: Merchandise purchased by the consumer only after considerable effort has been made to comparison shop. Their products are often expensive products e.g., automobiles in which price and quality comparisons are of primary importance. They may also be products in which appearance or style comparisons are of greater significance e.g., garments.

30. Single Line Store: A retail store whose merchandise offering a narrow product line with the deep assortment within that line.

31. Situation Analysis: The stage in the marketing research study that involves obtaining Information about the company and its business environment.

32. Skimming Pricing: Placing a high price on a new product so that it can generate high Initial profits.

33. Social Class: Groups of individuals sharing common goals, value and ways of thinking and behaving.

34. Societal Marketing Concept: A marketing management orientation in which the interests of society at large are taken into consideration.

35. Specialty Goods: Goods or services that are well known to consumers and are highly preferred because of its high quality, brand identification, uniqueness etc. Consumers do not readily accept substitutes for them and they make unusual effort to acquire them.

36. Staple Items: A consumer convenience good bought through habit e.g., milk.

37. Star: A category in the BCG matrix that describes a high market share SBU in an expanding industry. A star generates substantial profits but requires a large number of resources to finance continued growth.


38. Stimulus-Response Theory: The theory that learning occurs as a person responds to some stimuli and is rewarded with need satisfaction for a correct response.


39. Store Audit: A data collection method employed in retailing to track the performance of a particular brand of products in a specific time frame. Store audit commonly conforms to the following formula.Inventory on hand + New purchases (less returns) = Stock available for sale – Present Inventory = Consumer sales.

40. Strategic Objectives: Major long-run objectives that require more than one year to achieve.

41. Strategic Organisational Planning: A long run, the ongoing process through which top management seeks to relate the organization to Hs environment by matching originals Uo n resources and capabilities with market opportunity.


42. Strategic Marketing Planning: The level of planning that consists of 1. Conducting a situation analysis 2. Determining marketing objectives, 3. Selecting target markets and measuring the market, and, 4. Designing a strategic marketing mix.


43. Strategic Business Unit (SBU): A term used to describe an organization’s individual businesses, a company within a larger organization a division within a larger organization, a group of related products or a single major product or brand. Each SBU has its own strategic plan.


44. Subculture: A subgroup within a large culture that has distinct beliefs and exhibits different modes of bahaviour.


45. Substitute Method of Sales Forecasting: An approach to forecasting sales for a new product which is replacing an older one that is based on an analysis of the sales of the older product.


46. Substitute Product: Two or more products that satisfy essentially the same need(s).


47. Substitutes: Goods or services that may be used interchangeably, thus offering a choice to the customer.

48. Suggestion Selling: A sales person’s effort to induce the customer to buy other related items along with the Original purchase.


49. Survey of Buyers Intention: A method of preparing a sales forecast that involves identifying potential buyers and asking them if they Intend to buy a certain product during the specific future time period, and if, so how many units and from whom they will buy.


50. Swap Market: A meeting place where people gather to exchange goods.


51. Symbiotic Marketing: A strategy in which two or more firm enter into a venue jointly.


52. Synergism: In the context of the marketing system, synergism refers to the cooperative Interaction of the various parts of the system so that its total effect is greater than the total of the effects of the parts taken independently i.e., the whole is greater than the sum of its parts.


53. Systems Selling: Developing a total product offering that will provide the total solution to a customer’s problem.


54. Systems Approach: A concept in which the various components of the marketing environment are viewed as interrelated and interdependent making up a rational system. The systems approach may also refer to a form of company organization in which the firm’s various functions are integrated to facilitate the marketing effort.


55. Systems Selling: A form of selling found primarily in industrial markets in which products, supplies, and services are sold in combination in an effort to meet the needs of the customer’s on a continuing basis. For example, a firm may sell a materials handling system which includes transporters together with an array of packaging materials used for shipping.

1. Tactic: In marketing context, a tactic is a specific, generally short term course of action taken to execute a strategic plan.


2. Tactical Objectives: Objectives that take less than one year to achieve that are used to obtain a strategic plan.


3. Target Market: The particular subdivision or segment of a total potential market selected by a company as the target of its marketing efforts.


4. Tariff: Tax on imports / A tax levied against imported products.


5. Technology: The application of science to the solution of practical problems.


6. Telemarketing: A form of nonstore retailing in which a salesperson initiates contact ith a shopper and also closes the sale over the telephone.


7. Telephone Retaining: Selling by telephone at the retail level.


8. Teleshopping: The use of the telephone by customers to order merchandise or services they have seen in print advertising, heard about on the radio or seen on television.


9. Test Marketing: The trial marketing of a product in a limited area chosen as representative of the entire market.


10. Time Utility: The value that products have because they are available when purchasers want them. Time utility is provided by the storage function.


11. Total Product Concept: A marketing concept in which all the services and benefits which may accompany a product are considered as a package with the product itself. For example, a new automobile brings with its transportation, but also a warranty, a sense of pride, and other benefits. Sometimes referred to as the generic product because consumers are seen as shopping not just for products but for a cluster of benefits which include the product itself.


12. Trade Advertising: Advertising by the producers of products or the providers of services directed to customers other than the ultimate consumer i.e., wholesalers, et.c. The objective is to widen the distribution of the product or service.


13. Trade Name: A name used to designate a particular business organization, i.e., the firm together with its reputation and accrued goodwill. Trade names may or many not be exclusive. The term name is not applied to individual products which often carry the firm’s trademark. Sometimes known as the commercial name.


14. Trade (Functional) Discount: A reduction in price granted to various classes of customers.


15. Trade Mark: A brand name or brand symbol registered with the government and declared the sole property of the seller.


16. Trading up: A product line strategy wherein a company adds a higher priced prestige products to its line in order to increase sales of the existing lower-priced products in that line and attract a higher income market.


17. Trading Down: A product line strategy wherein a company adds a lower priced item to its line of prestige goods in order to reach a market that cannot afford the high priced items.


18. Transaction: An individual act of reciprocal giving and receiving (involving either money or barter) in the exchange process. A transaction nearly always involves the transfer of ownership of some product or the transfer of the use of some service from one party to another.


19. Transfer Price: Intracompany charges made for goods transferred from one division to another or for goods shipped to foreign subsidiaries.


20. Turnkey Operation: A supplier provides the overseas buyer with an operating facility. The supplier designs and builds the plant and trains local nationals to run it.


21. Turnover: The rate at which inventory is replaced.

1. Ultimate Consumers: People who buy and/or use products for their personal and/or household use.


2. Umbrella Mark/Family Brand/Blanket Brand: A line of products offered for sale by a single producer all of which carry the company’s brand name, logo or similar identifying design.


3. Unaided Recall: A method of testing a consumer’s ability to remember an advertisement and hence, a means of determining the advertisement’s effectiveness.


4. Unbundled Pricing: A strategy that breaks down prices by individual components and allows consumers to decide what to purchase.


5. Undifferentiated Marketing (Strategy): A product market matching strategy in which a single product is offered to customers.


6. Uniform Delivery Pricing: The practice of aver aging the transportation charges to all buyers and adding that figure to the selling price.


7. Unique Selling Proposition (U.S.P): The USP is the promise made in a highly competitive and convincing manner which positions the product clearly in the mind of the consumer.


8. Unit Pricing: The practice of pricing merchandise relative to a common denominator such as price per kg, per dozen etc.


9. Unsought Goods: Goods and services that are unknown or otherwise not wanted; people do not seek them out.


10. Usage Rate Segmentation: The division of the market into classes on the basis of the rate at which members buy and use products. The classes are composed of heavy, light and non-users.


11. Users: The people in the buying center who actually use a particular product.


12. Utllity: The want satisfying power of goods or services.

1. Validity: The suitability of data for the research objective involved.


2. Value Analysis: Reviewing existing product specifications as set by user departments to identify and eliminate in essential cost factor and/or to improve products and develop the greater capability for the same cost as products presently purchased or manufactured in house.


3. Value Added by Manufacturing: The value added to a product when processing or manufacturing operations caused a change in the product’s form utility.


4. Value of Information: The monetary worth of information used in making decisions.


5. Value Added by Marketing: The increase in the worth of a product as a result of the activities it passes through in the distribution chain. It may be computed as the value of sales, less cost of goods sold, less the cost of supplies, energy and all other activities involved in the marketing of the product.


6. Values: Values are those broad standards and ideas shared by the members of the society or a subgroup of that society which reflect the society’s moral order. Vales, which strongly affect consumer behavior.


7. Variable Price Polley: The policy of setting special prices for different customers.


8. Variety Store: A retail outlet that sells a large assortment of small cheap items.


9. Vendor Analysis: An approach to evaluating the performance capability of potential suppliers.


10. Venture Team: A less formal, less structured and more innovative organisational alternative for new product idea generation and evaluation.


11. Visual Merchandising: A strategy frequently used in retailing for the in-store presentation of merchandise so that it would be shown to its greatest advantage. Visual merchandising includes traditional display techniques, increasingly involves planning store layout, decor, and activities which appeal to other senses, such as music.


12. Voluntary ChainA wholesaler sponsored voluntary association of independent retailers.


13. Vertical Audit: An in-depth analysis of one aspect of the firm’s marketing strategy.


14. Vertical Integration: The ownership achieved by merger or internal expansion, of the marketing channel intermediaries connecting the manufacturer, with the consumer.


15. Vertical Marketing System (VMS): A system in which one member of the marketing channel owns, controls or coordinates the operations of other channel members.

1. Want Satisfaction Theory: The sales approach which stresses that the sales person must first determine what a buyer really desires before launching a sales talk.


2. Warehouse: A commercial establishment in which large quantities of goods may be stored.


3. Warranty: An assurance given by the manufacturer of a product as to the quality and performance of the product and a statement relating the conditions under which the product would be replaced or repaired if it proves to be defective.


4. Waste Circulation: In advertising, waste circulation is the number of persons reached by an advertising campaign who are not potential customers.


5. Wholesalers/Jobbers: Middlemen who purchase goods for resale to retailers or other other wholesalers or industrial users, institutions, commercial firms, and government agencies. Those middlemen who sell the product to those customers who resell it to other parties for reselling for commercial use.


6. Wholly Owned Subsidiary: The entry alternative to foreign markets that results in 100% control.


7. Width of Product Mix: The number of different product lines offered.

1. Zero Level Channel: See direct selling.


2. Zone Dellvery Pricing: The practice of dividing the market into areas and varying the rate of transporting goods depending upon the designated zone of the buyer.