Business Vocab Units 13 - 18

Benefit Segmentation

Dividing the market by determining which benefits of the product to talk about.

Brand Name

A word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors.

Business-to-Business (B2B) Market

All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

Consumer Market

All the individuals or households that want goods and services for personal consumption or use and have the resources to buy them.

Customer Relationship Management (CRM)

The process of learning as much as possible about customers and doing everything you can over time to satisfy them or exceed their expectations.

Demographic Segmentation

Dividing the market by age, income, and education level.

Environmental Scanning

The process of identifying the factors that can affect marketing success.

Focus Group

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

Geographic Segmentation

Dividing the market by cities, counties, states, or regions.

Marketing

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers and society.

Marketing Concept

A three-part business philosophy: customer orientation, service orientation, and profit orientation.

Marketing Mix

The ingredients that go into a marketing program: product, price, place, and promotion.

Marketing Research

The analysis of markets to determine opportunities and challenges, and to find the needed information for good decisions.

Market Segmentation

The process of dividing the total market into groups with similar characteristics.

Mass Marketing

Developing products and promotions to please large groups of people.

Niche Marketing

The process of finding small but profitable market segments and designing or finding products for them.

One-To-One Marketing

Developing a unique mix of goods and services for each customer.

Primary Data

Data gathered by yourself, not from secondary sources.

Product

Any physical good, service, or idea that satisfies a want or need.

Promotion

The techniques used to inform people about and motivate them to buy products.

Psychographic Segmentation

Dividing the market using group values, attitudes, and interests.

Relationship Marketing

Strategy with the goal of keeping individual customers over time.

Secondary Data

Information that has already been compiled and published.

Target Marketing

Marketing directed toward groups a company decides it can serve profitably.

Test Marketing

The process of testing products among potential users.

Volume (or usage) Segmentation

Dividing the market by usage or volume of use.

Brand

A name, symbol, or design that identifies products of one seller and distinguishes them from competitors.

Brand Association

Linking a brand to other favorable images.

Brand Awareness

How quickly a 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 and committed to further purchases.

Brand Manager

A manager responsible for one brand or product line.

Break-even analysis

The process used to determine profitability at various sales levels.

Bundling

Grouping two or more products together and pricing them as a unit.

Commercialization

Promoting a product to distributors and retailers for wide distribution.

Competition-based pricing

Pricing strategy based on other competitors' prices.

Concept Testing

Taking a product idea to consumers to test their reactions.

Convenience Goods and Services

Products purchased frequently with minimal effort.

Dealer (Private-Label) Brands

Products carrying the name of the distributor or retailer instead of the manufacturer.

Distributed Product Development

Handing off parts of the innovation process to companies overseas.

Dynamic Pricing

Maximizing profit by changing price based on demand.

Everyday Low Pricing (EDLP)

Setting prices lower than competitors without special sales.

Generic Goods

Nonbranded products sold at a discount.

High-Low Pricing Strategy

Setting high regular prices but offering special sales.

Industrial Goods

Products used in the production of other products.

Knockoff Brands

Illegal copies of national brand-name goods.

Manufacturers’ (national brands)

Brand names of manufacturers that distribute products nationally.

Penetration Strategy

Pricing a product low to attract customers and discourage competition.

Price Leadership

Strategy where dominant firms set pricing practices for competitors.

Product Analysis

Making cost estimates and sales forecasts for new product ideas.

Product Differentiation

Creation of real or perceived product differences.

Product Life cycle

Theoretical model describing sales and profits over time.

Product Line

A group of products that are similar or intended for a similar market.

Product Mix

The combination of product lines offered by a manufacturer.

Product Screening

Process designed to reduce the number of new-product ideas.

Psychological Pricing

Pricing that makes products appear less expensive.

Shopping Goods and Services

Products bought after comparing value, quality, and price.

Skimming Price Strategy

Pricing a new product high to maximize profits with little competition.

Specialty Goods and Services

Consumer products with unique characteristics requiring special effort to purchase.

Target Costing

Designing a product to satisfy customers while meeting profit margins.

Total Fixed Costs

Expenses that remain the same regardless of production.

Total Product Offer

Everything consumers evaluate when deciding to buy a product.

Trademark

A brand with exclusive legal protection for its name and design.

Unsought Goods and Services

Products consumers are unaware of or need unexpectedly.

Value

Good quality at a fair price calculated by comparing benefits and costs.

Variable Costs

Costs that change according to production levels.

Administered Distribution System

A system where producers manage marketing functions at retail level.

Agents/Brokers

Intermediaries that bring buyers and sellers together without taking title.

Cash-and-Carry Wholesalers

Wholesalers serving smaller retailers with limited products.

Channel of Distribution

Set of intermediaries that transport and store goods from producers.

Contractual Distribution System

A distribution system where members are contractually bound.

Corporate Distribution System

A distribution system where all organizations are owned by one firm.

Direct Marketing

Activity that links manufacturers or intermediaries directly to consumers.

Direct Selling

Selling to consumers in their homes or workplaces.

Drop Shippers

Wholesalers that have merchandise shipped directly from producers to buyers.

Exclusive Distribution

Distribution sending products to only one retail outlet in an area.

Freight Forwarder

Organization that consolidates small shipments into large ones for cost-effective transport.

Inbound Logistics

Logistics involving bringing materials from suppliers to producers.

Information Utility

Adding value by opening two-way flows of information.

Intensive Distribution

Distribution that places products in as many retail outlets as possible.

Intermodal Shipping

Using multiple modes of transportation for a single freight movement.

Logistics

Planning and controlling the flow of materials and information from origin to consumption.

Marketing Intermediaries

Organizations that assist in moving goods from producers to businesses and consumers.

Materials Handling

Movement of goods within a warehouse and to various workstations.

Merchant Wholesalers

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

Online Retailing

Selling goods and services over the Internet to ultimate customers.

Outbound Logistics

Managing the flow of finished products and information to consumers.

Place Utility

Adding value by having products where people want them.

Possession Utility

Transferring ownership including credit, delivery, and installation.

Rack Jobbers

Wholesalers that furnish racks or shelves full of merchandise to retailers.

Retailer

An organization that sells to ultimate consumers.

Reverse Logistics

Bringing goods back to the manufacturer due to defects.

Selective Distribution

Distribution sending products to a preferred group of retailers.

Service Utility

Adding value by providing friendly service and teaching consumers.

Social Commerce

E-commerce that uses social media to support online buying and selling.

Supply Chain (Value Chain)

Sequence of linked activities to move goods from raw sources to consumers.

Supply-chain Management

Managing the flow of goods and information in the supply chain.

Telemarketing

Sale of goods and services by telephone.

Time Utility

Adding value by making products available when needed.

Utility

The value that organizations add to goods by making them more useful.