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.
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.
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.
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.
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.
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.
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.
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.