Marketing II

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Advanced marketing terms

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Simultaneous product development: A team-oriented approach to new-product development.
Supply chain management: A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.
Price lining: The practice of offering a product line with several items at specific price points.
Category killers: Specialty discount stores that heavily dominate their narrow merchandise segment.
Materials-handling system: A method of moving inventory into, within, and out of the warehouse.
Supply chain team: An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer.
Perishability: The inability of services to be stored, warehoused, or inventoried.
Service: The result of applying human or mechanical efforts to people or objects
Specialty store: A retail store specializing in a given type of merchandise.
Value-based pricing: Setting the price at a level that seems to the customer to be a good price compared to the prices of other options.
Price bundling: Marketing two or more products in a single package for a special price.
Development: The stage in the product development process in which a prototype is developed and a marketing strategy is outlined.
Freight absorption pricing: A price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyer.
Just-in-time production (JIT): A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.
Warehouse membership clubs: Limited-service merchant wholesalers that sell a limited selection of brand-name appliances, household items, and groceries on a cash-and-carry basis to members, usually small businesses and groups.
Discrepancy of assortment: The lack of all the items a customer needs to receive full satisfaction from a product or products.
Single-price tactic: A price tactic that offers all goods and services at the same price.
Cash discount: A price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill.
Base price: The general price level at which the company expects to sell the good or service.
Product category: All brands that satisfy a particular type of need.
Supply chain: The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function.
Direct Marketing (direct response marketing): Techniques used to get consumers to make a purchase from their home, office, or another nonretail setting.
Brainstorming: The process of getting a group to think of unlimited ways to vary a product or solve a problem.
Zone pricing: A modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone.
Simulated (laboratory) market testing: The presentation of advertising and other promotion materials for several products, including a test product, to members of the products target market.
Supermarket: A large, departmentalized, self-service retailer that specializes in food and some nonfood items.
Electronic data interchange (EDI): Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission.
Channel conflict: A clash of goals and methods between distribution channel members
Retailing mix: A combination of the six P's- product, place, promotion, price, presentation, and personnel- to sell goods and services to the ultimate consumer.
Franchisor: The originator of a trade name, product, methods of operation, and so on that grants operating rights to another party to sell its product.
Escalator pricing: A price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made.
Credence quality: A characteristic that consumers may have difficulty assessing even after purchase because they do not have necessary knowledge or experience.
Heterogeneity: The variability of the inputs and outputs of services, which cause services to tend to be less standardized and uniform than goods.
Seasonal discount: A price reduction for buying merchandise out of season.
Buyer: A department head who select the merchandise for his or her department and may also be responsible for promotion and personnel.
Diffusion: The process by which the adoption of an innovation spreads.
Order processing system: A system whereby orders are entered into the supply chain and filled.
Nonprofit organization marketing: The effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.
Online retailing: A type of shopping available to consumers with personal computers and access to the internet.
Empathy: Caring, individualized attention to customers.
Supplementary service: A group of services that support or enhance the core service.
Price fixing: An agreement between two or more firms on the price they will charge for a product.
New-product Strategy: A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
Price shading: The use of discounts by salespeople to increase demand for one of more products in a line.
Maturity stage: A period during which sales increase at a decreasing rate.
Department store: A store housing several departments under one roof.
Decline stage: A long-run drop in sales.
Adopter: A consumer who was happy enough with his or her trial experience with a product to use it again.
Tangibles: The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.
Channel members: All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer.
Channel leader/captain: A member of a marketing channel that exercises authority and power over the activities of other channel members.
Unbundling: Reducing the bundle of services that comes with the basic product.
Independent retailers: Retailers owned by a single person or partnership and not operated as part of a larger retail institution.
Reliability: The ability to perform a service dependably, accurately, and consistently.
Price skimming: A pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion.
Commercialization: The decision to market a product.
Convenience store: A miniature supermarket, carrying only a limited line of high-turnover convenience goods.
Promotional allowance (trade): A payment to a dealer for promoting the manufacturer's products.
Introductory stage: The full-scale launch of a new product into the marketplace.
Supercenter: A retail store that combines groceries and general merchandise good with a wide range of services.
Chain stores: Stores owned and operated as a group by a single organization.
Price strategy: A basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle.
Unfair trade practice acts: Laws that prohibit wholesalers and retailer from selling below cost.
Assurance: The knowledge and courtesy of employees and their ability to convey trust.
Mass customization: A strategy that uses technology to deliver customized services on a mass basis.
Penetration pricing: A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach a mass market.
Retailer: A channel intermediary that sells mainly to consumers.
Materials requirement planning (MRP): An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer.
Predatory pricing: The practice of charging a very low price for a product with the intent of driving competitors out of business or out of the market.
Test marketing: The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Innovation: A product perceived as new by a potential adopter.
Channel partnering/cooperation: The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.
Cumulative quantity discount: A deduction from list price that applies to the buyer's total puchases made during a specific period.
Franchise: The right to operate a business or to sell a product.
Joint costs: Costs that are shared in the manufacturing and marketing of several products in a product line.
Functional discount (trade): A discount to wholesalers and retailers for performing channel functions.
Direct retailing: The selling of products by representative who work door-to-door, office-to-office or at home parties.
Strategic channel alliance: A cooperative agreement between business firms to use the other's already established distribution channel.
FOB origin pricing: A price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")
Product development: A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
Internal marketing: Treating employees as customers and developing systems and benefits that satisfy their needs.
Leader pricing: A price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.
Responsiveness: The ability to provide prompt service.
Delayed-quotation pricing: A price tactic used for industrial installations and many accessory items, in which a firm price is not set until the item is either finished or delivered.
Vertical conflict: A channel conflic that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.
Concept test: A test to evaluate a new-product idea, usually before any prototype has been created.
Franchisee: An individual or business that is granted the right to sell another party's product.
Uniform delivered pricing: A price tactic in which the seller pays the actual freight chargers and bills every puchaser an identical, flat freight charge.
New product: A product new to the world, the market, the producer, the seller, or some combination of these.
Spatial descrepancy: The difference between the location of a producer and the location of widely scattered markets
Dual distribution (multiple distribution): The use of two or more channels to distribute the same product to target markets.
Public service advertisement: An announcement that promotes a program of a federal state, or local government or of a nonprofit organization.
Product offering: The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix.
Channel control: A situation that occurs when one marketing channel member intentionally affects another member's behavior.
Basing-point pricing: A price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shipped.
Intensive distribution: A form of distribution achieved by screening dealers to eliminate all but a few in any single area.
Scrambled merchandising: The tendency to offer a wide variety of non-traditional goods and services under one roof.
Automatic vending: The use of machines to offer goods for sale.
Destination stores: Stores that consumers purposely plan to visit.
Two-part pricing: A price tactic that charges two separate amounts to consume a single good or service.
Atmosphere: The overall impression conveyed by a store's physical layout, decor, and surroundings.
Nonprofit organization: An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Business analysis: The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated.
Specialty discount store: A retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume, and high turnover.
Telemarketing: The use of the telephone to sell directly to consumers.
Discount store: A retailer that competes on the basis of low prices, high turnover, and high volume.
Product life cycle: A concept that provides a way to trace the stages of a product's acceptance from its introduction to its decline
Consumer penalty: An extra fee paid by the consumer for violating the terms of the purchase agreement.
Screening: The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.
Logistics: The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Intangibility: The inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.
Search quality: A characteristic that can be easily assessed before purchase
Product line pricing: Setting prices for an entire line of products.
Noncumulative quantity discount: A deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain period.
Logistics information system: The link that connects all of the logistics functions of the supply chain.
Factory outlet: An off-price retailer that is owned and operated by a manufacturer.
Nonstore retailing: Shopping without visiting a store.
Off-price retailer: A retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges.
Distribution resource planning (DRP): An inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.
Flexible pricing: A price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantities.
Exclusive distribution: A form of distribution that establishes one of a few dealers within a given area.
Mass customization (build to order): A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications.
Core service: The most basic benefit the consumer is buying.
Horizontal conflict: A channel conflict that occurs among channel members on the same level.
Inseparability: The inability of the production and consumption of a service to be separated. Consumers must be present during the production.
Odd-even pricing: A price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply quality.
Outsourcing (contract logistics): A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing.
Retailing: All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Channel power: The capacity of a particular marketing channel member to control of influence the behavior of other channel members.
Marketing channel ( channel of distribution): A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
Electronic distribution: A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals.
Gap model: A model identifying five gaps that can cause problems in service delivery and influence customer evaluations or service quality.
Full-line discount stores: A retailer that offers consumers very limited service and carries a broad assortment of well-known, nationally branded "hard goods".
Growth stage: The second stage of the product life cycle when sales typically grow at an increasing rate, many competitiors enter the market, large companies may start acquiring small pioneering firms, and profits are healthy.
Drugstore: A retail store that stocks pharmacy-related products and services as its main draw.
Gross margin: The amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted.
Inventory control system: A method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or customers demand.
Mass merchandising: A retailing strategy using moderate to low prices on large quantities of merchandise and lower level of service to stimulate high turnover or products.
Direct channel: A distribution channel in which producers sell directly to consumers.

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