Mktg 1102

Break-even analysis

Examines the relationship between total revenue and total cost to determine profitability at different levels of output.

Demand curve

Graph relating quantity sold and price, which shows how many units will be sold at a given price.

Dumping

Occurs when a firm sells a product in a foreign country below its domestic prices or below its actual cost.

Fixed cost

Firm's expenses that are stable and do not change with the quantity of product that is produced and sold.

Grey market

Situations where products are sold through unauthorized channels of distribution.

Markup

The difference between selling price and cost, usually expressed as a percentage of cost.

Pricing constraints

factors that limit the range of price a firm may set.

Pricing objectives

Expectations that specify the role of price in an organization's marketing and strategic plans.

Profit equation

Profit = total revenue - total cost.

Total cost

Total expenses incurred by a firm in producing and marketing a a product; total cost is the sum of fixed cost and variable costs.

Total revenue

Total money received from the sale of a product.

Value

The ratio of perceived benefits to price.

Variable cost

Sum of the expenses of the firm that vary directly with the quantity of products that is produced and sold.

Channel conflict

Arises when one channel member believes another channel member is engaged in behaviour that prevents it from achieving its goals.

Cross-channel shopper

An online consumer who researches products online and then purchases them at a retail store.

Disintermediation

Vertical channel conflict that arises when a channel member bypasses another member and sells directly to consumers.

Dual distribution

Arrangement whereby a firm reaches buyers by using two or more different types of channels for the same basic product.

Electronic data interchange (EDI)

A computer-to-computer exchange of business documents from a retailer to a supplier and back.

Electronic marketing channels

Channels that use the Internet to make goods and services available to consumers or business buyers.

Exclusive distribution

Only one retail outlet in a specific geographical area carries the firm's products.

Franchising

Contractual arrangement in which a parent company (the franchiser) allows an individual or the firm (the franchisee) to operate a certain type of business under an established name and according to specific rules set by the franchiser.

Intensive distribution

A firm tries to place its products or services in as many outlets as possible.

Intermediaries

Individuals or firms performing a role in the marketing channel, involved in making a product available.

Just-in-time (JIT) inventory system

A system designed to deliver less merchandise on a more frequent basis than traditional inventory systems.

Logistics

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.

Marketing channel

The set of individuals or firms involved in the process of making a product available.

Multichannel marketing

Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with customers.

Selective distribution

A firm selects a few retail outlets in a specific geographical area to carry its products.

Supply chain

Sequence of firms that perform activities required to create and deliver a product to consumers or industrial users.

Supply chain management

Integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering good sand services that provide value to consumers.

Vertical marketing systems

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

Breadth of product line

The variety of different items a store carries.

Brokers

Independent firms or individuals whose main function is to bring buyers and sellers together to make sales.

Central business district

The oldest retail setting, the community's downtown area.

Community shopping centre

Retail location that has one primary store and 20 to 40 smaller outlets, serving a population of consumers within a 2- to 5-km drive.

Depth of product line

The assortment of products within each product line.

Form of ownership

Distinguishes retail outlets on the basis of whether individuals, corporate chains, or contractual systems own the outlet.

Intertype competition

Competition between very dissimilar types of retail outlets.

Level of service

The degree of service provided to the customer by self-, limited-, and full-service retailers.

Manufacturer's agents

Work for several producers and carry non-competitive, complementary merchandise in an exclusive territory.

Merchandise mix

How many different types of products a store carries and in what assortment.

Merchant wholesalers

Independently owned firms that take title to the merchandise they handle.

Multichannel retailers

Use a combination of traditional store formats and non-store formats such as catalogues and online retailing.

Off-price retailing

Selling brand-name merchandise at lower than regular prices.

Power centre

Large shopping strip with multiple anchor stores, a convenient location, and a supermarket.

Regional shopping centres

Consist of 50 to 150 stores that typically attract customers who live within a 5- to 15-km range; often containing two or three anchor stores.

Retailing

All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.

Retailing mix

The goods and services, pricing, physical distribution, and communications tactics chosen by a store.

Scrambled merchandising

Offering several unrelated product lines in a single retail store.

Selling agents

Represent a single producer and are responsible for the entire marketing function of that producer.

Shrinkage

Breakage and theft of merchandise by customers and employees.

Strip location

A cluster of stores serving people who live within a 5- to 10-minute drive.

Telemarketing

Using the telephone to interact with and sell directly to consumers.

Advertising

paid form of media used for non-personal communication to consumers about an organization, good, service, or idea.

Branded entertainment

The creation of an entertainment program, such as a TV episode, that is highly focused on an brand in exchange for payment.

Consumer promotions

Short-term marketing tools used to encourage immediate consumer purchase.

Customer Advocacy Funnel

A communications approach that takes consumers from initial product awareness through to brand advocacy.

Direct response marketing

A tool designed to communicate with consumers in a targeted and personalized way using either traditional or online approaches.

Earned media

The free publicity secured through unpaid media mentions and consumers who spread the word through word of mouth or the Internet.

Event marketing

The creation or involvement of a brand in an experience or occasion that will heighten its awareness, create positive associations, and generate a desired response.

Frequency

The number of times the target audience is exposed to the communication vehicle or the communication message.

Inbound marketing

When consumers find a product and its messaging by using online techniques that marketers facilitate, including search engine optimization, pay-per-click ads, and the use of social media to connect with consumers.

Integrated marketing communications (IMC)

A communications approach that coordinates all promotional activities to provide a consistent message to a target audience.

Lead generation

The requests for additional information that result form direct response marketing.

Marketing communication agencies

Broad-spectrum integrated agencies or specialist agencies that provide marketers with expertise on how best to communicate messages to their audiences.

Marketing communication tools

Advertising, public relations, sales promotion, direct response marketing, event marketing and sponsorship, product placement and branded entertainment, personal selling, online marketing, social media marketing, and mobile marketing.

Outbound marketing

Marketers seek out consumers by widely broadcasting messages using advertising, direct mail, email marketing, telemarketing, and personal-selling approaches.

Out-of-home (OOH) advertising

Casually referred to as outdoor; reaches consumers outside the home in outdoor locations, in transit, or in commercial or business locations.

Owned media

The media channels that a company controls, either fully or partially, such as a website, microsite, or social media page that is used to directly communicate with consumers.

Paid media

The media time purchased so that messages can be disseminated through channels that are controlled by others.

Personal selling

The two-way flow of communication between a buyer and seller, often face-to-face or facilitated through communication devices, to influence an individual and group purchase decision.

Press conference

A planned event where representatives of the media are invited to an informational meeting with the company.

Press release

An announcement written by an organization and sent to the media.

Product placement

The inclusion of a product in a movie or TV program in return for payment.

Promotional mix

The selection of promotional tools used to communicate with a target market.

Public relations

A communications tool that seeks to influence the opinions and attitudes of target groups through the use of unpaid media exposure; targets the media in an attempt to generate positive publicity for a company, product, or individual.

Publicity

A non-personal form of communication that appears in the media and is not paid for directly by the organization.

Pull strategy

When marketers focus communication efforts on ultimate consumers to build awareness, trial, and demand for a product.

Push strategy

When marketiers focus communication on the distribution channel to gain support from retailers, distributors, and wholesalers.

Reach

The number of people who are exposed to a communication vehicle or message; is presented as a percentage of the total number of people in a target audience.

Sales promotion

A communications tool that provides short-term incentives to generate interest in a product or cause and encourages purchase or support.

Social media release

A multimedia, online press-release platform that includes video, text, and images, as well as social media buttons for sharing social networks and comment areas where viewers can leave comments.

Sponsorship

When an advertiser pays a fee in exchange for inclusion in an event, involvement in its advertising opportunities, or exposure within the event itself.

Touch points

Any situation in which a customer comes into contact with a brand or company.

Trade promotions

Short-term promotional tools used to generate support with wholesalers, distributors, or retailers.

Traffic generation

The visits to a location or website that result from direct response marketing.

Advergaming

Placing ads in online or offline video games.

Affiliate marketing

When companies promote their business through a network of online associates (affiliates) to drive traffic, leads, and purchases.

Banner ads

Online ads that can stretch across the top of a web page or be formatted in various sizes, such as leaderboards, rectangles, big boxes, and skyscrapers.

Blog

A website in the form of an online diary that is used by organizations and individuals to post updates that include personal opinions, activities, and experiences with readers able to subscribe and post comments.

Common short codes (CSC)

Dedicated short messaging codes of typically five to six digits that are used to trigger subscriptions, donations, alerts, ordownloads, or to access promotional content.

Corporate websites

Websites that provide company and brand information to consumers and the media.

Cost per acquisition (CPA)

The cost of acquiring a new follower or sale.

Cost per click (CPC)

The cost of getting someone to click on a link or ad.

Cost per thousand (CPM)

The cost of reaching 1,000 people.

Display advertising

The use of online ads with graphics or animation that are placed on websites.

Engagement metrics

Measures how much and how often consumers interact with social media content.

Email marketing

The use of email to market products.

Feature phone

Cellphone that is Internet-based and that allows for emailing, texting, adn browsing but cannot download or use apps.

Geofencing

Uses global positioning system (GPS) to trigger an event to happen when a device enters a certain geographic area.