Chapter 12 Vocab - BCOR 199

advertising

paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message

agents/brokers

marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods

brand

a name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors

brand awareness

how quickly or easily a given brand name comes to mind when a product category is mentioned

brand equity

the value of the brand name and associated symbols

brand loyalty

the degree to which customers are satisfied, like the brand, and are committed to further purchases

brand manager

a manager who has direct responsibility for one brand or one product line; called a product manager in some firms

break-even analysis

the process used to determine profitability at various levels of sales

bundling

grouping two or more products together and pricing them as a unit

channel of distribution

a whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers

competition-based pricing

a pricing strategy based on what all the other competitors are doing. The price can be set at above, or below competitors' prices

direct marketing

any activity that directly links manufacturers or intermediaries with the ultimate consumer

direct selling

selling to consumers in their homes or where they work

everyday low pricing (EDLP)

setting prices lower than competitors and then not having any special sales

exclusive distribution

distribution that sends products to only one retail outlet in a given geographic area

high-low pricing strategy

setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'

integrated marketing communication (IMC)

a technique that combines all the promotional tools into one comprehensive and unified promotional strategy

intensive distribution

distribution that puts products into as many retail outlets as possible

marketing intermediaries

organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)

online retailing

selling goods and services to ultimate customers over the Internet

penetration strategy

strategy in which a product is priced low to attract many customers and discourage competition

personal selling

the face-to-face presentation and promotion of goods and services

price leadership

the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow

product differentiation

the creation of real or perceived product differences

product life cycle

a theoretical model of what happens to sales and profits for a product class over time; the four stages of the cycle are introduction, growth, maturity, and decline

product line

a group of products that are physically similar or are intended for a similar market

product mix

the combination of product lines offered by a manufacturer

product placement

putting products into TV shows and movies where they will be seen

promotion mix

the combination of promotional tools an organization uses

psychological pricing

pricing goods and services at price points that make the product appear less expensive than it is

publicity

any information about an individual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller

public relations (PR)

the management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance

pull strategy

promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they'll request the products from retailers

push strategy

promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

retailer

an organization that sells to ultimate consumers

sales promotion

the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

sampling

a promotional tool in which a company lets consumers have a small sample of a product for no charge

selective distribution

distribution that sends products to only a preferred group of retailers in an area

skimming price strategy

strategy in which a new product is priced high to make optimum profit while there's little competition

social commerce

a form of electronic commerce that involves using social media, online media that support social interaction, and user contributions to assist in the online buying and selling of products and services

supply chain

aka chain value; the sequence of linked activities that must be preformed by various organizations to move goods from the sources of raw materials to ultimate consumers

target costing

designing a product so that it satisfies customers and meets the profit margins desired by the firm

telemarketing

the sale of goods and services by telephone

total fixed cost

all the expenses that remain the same no matter how many products are made or sold

total product offer

everything that consumers evaluate when deciding whether to buy something; also called a value package

trademark

a brand that has exclusive legal protection for both its brand name and its design

trial close

a step in the selling process that consists of a question or statement that moves the selling process towards the actual close

value

good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs

variable costs

costs that change according to the level of production

viral marketing

the term now used to describe everything from paying customers to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific website

wholesaler

a marketing intermediary that sells to other organizations

word-of-mouth promotion

a promotional tool that involves people telling other people about products they've purchased