Glossary. Advertising – any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Administered prices – consciously set prices aimed at reaching the firm’s objectives.

Advertising – any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Advertising managers – managers of their company’s mass selling effort in television, newspapers, magazines, and other media.

Agent middlemen – wholesalers who do not own (take title to) the products they sell.

Automatic vending – selling and delivering products through vending machines.

Battle of the brands – the competition between dealer brands and manufacturer

brands.

Brand name – a word, letter, or a group of words or letters.

Branding – the use of a name, term, symbol, or design – or a combination of these – to identify a product.

Channel of distribution – any series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer.

Convenience store – a convenient place to shop – either centrally located near

other shopping or “in the neighborhood”.

Cost of sales – total value (at cost) of the sales during the period.

Discount houses – stores that sell “hard goods” (cameras, TVs, appliances) at substantial price cuts.

Door-to-door selling – going directly to the consumer’s home.

Expenses – all the remaining costs that are subtracted from the gross margin to get the net profit.

Facilitators – firms that provide one or more of the marketing functions other than buying or selling.

Federal Trade Commission (FTC) – federal government agency that polices antimonopoly laws.

Flexible-price policy – offering the same product and quantities to different customers at different prices.

Form utility – provided when someone produces something tangible.

Hypotheses – educated guesses about the relationships between things or what will happen in the future.

Inventory – the amount of goods being stored.

Marginal profit – profit on the last unit sold.

Market – a group of potential customers with similar needs and sellers offering various products – that is ways of satisfying those needs or a group of sellers and buyers who are willing to exchange goods and/or services for something of value.

Marketing is the process of creating a link between customers and products.

The marketing audit – a systematic, critical, and unbiassed review and appraisal of the basic objectives and policies of the marketing function – and of the organization, methods, procedures, and people employed to implement the policies.

Marketing concept – the idea that an organization should aim all its efforts at satisfying its customers – at a profit.

Marketing information system (MIS) – an organized way of continually gathering and analyzing data to provide marketing managers with information they need to make decisions.

Marketing mix – the controllable variables that the company puts together to satisfy a target group.

Marketing orientation – trying to carry out the marketing concept.

Marketing research – procedures to develop and analyze new information to help marketing managers make decisions.

Marketing strategy – specifies a target market and a related marketing mix.

Markup – a dollar amount added to the cost of products to get the selling price.

Markup chain – the sequence of markups used by firms at different levels in a channel – determining the price structure in the whole channel.

Markup (percent) – the percentage of selling price that is added to the cost to get the selling price.

Mass-merchandisers – large, self-service stores with many departments that emphasize “soft goods” (housewares, clothing, and fabrics) and selling on lower margins to get faster turnover.

Mass-merchandising concept – the idea that retailers can get faster turnover

and greater sales volume by charging lower prices that will appeal to larger markets.

Mass selling – communicating with large numbers of potential customers at the same time.

Merchant wholesalers – wholesalers who own (take title to) the products they sell.

Middleman – someone who specializes in trade rather than production.

Needs – the basic forces that motivate a person to do something.

New product – a product that is new in any way for the company concerned.

Operational decisions – short-run decisions to help implement strategies may be needed.

Packaging – promoting and protecting the product.

Personal selling – direct face-to-face communication between a seller and a potential customer.

Physical distribution (PD) – the transporting and storing of goods so as to match target customers’ needs with a firm’s marketing mix – within individual firms and along a channel of distribution.

Place – making products available in the right quantities and locations – when customers want them.

Place utility – having the product available where the customer wants it.

Positioning – shows where customers locate proposed and/or present brands in a market.

Possession utility – obtaining a product and having the right to use or consume it.

Price – what is charged for “something”.

Primary data – information specifically collected to solve a current problem.

Product – the need-satisfying offering of a firm.

Product development – offering new or improved products for present markets.

Product life cycle – the stages a new product idea goes through from beginning to end.

Product line – a set of individual products that are closely related.

Promotion – communicating information between seller and potential buyer to influence attitudes and behavior.

Public relations – communication with noncustomers – including labor, public interest groups, stockholders, and the government.

Pulling – getting customers to ask middlemen for the product.

Pushing – using normal promotion effort – personal selling, advertising, and sales promotion – to help sell the whole marketing mix to possible channel members.

Qualifying dimensions – the dimensions that are relevant to including a customer-type in a product-market.

Quality – the ability of a product to satisfy a customer’s needs or requirements.

Retailing – all of the activities involved in the sale of products to final consumers.

Return – when a customer sends back purchased products.

Risk taking – bearing the uncertainties that are part of the marketing process.

Sales analysis – a detailed breakdown of a company’s sales records.

Sales managers – managers concerned with managing personal selling.

Sales presentation – a sales person’s effort to make a sale.

Sales promotion – promotion activities – other than advertising, publicity, and personal selling – that stimulate interest, trial, or purchase by final customers or others in the channel.

Scientific method – a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them.

Selling function – promoting the product.

Service – a deed performed by one party for another.

Service wholesalers – merchant wholesales who provide all the wholesaling functions.

Single-line (or general-line) wholesalers – service wholesalers who carry a narrower line of merchandise than general merchandise wholesalers.

Single-line stores – stores that specialize in certain lines of related products rather than wide assortment – sometimes called limited-line stores.

Storing – the marketing function of holding goods.

Storing function – holding goods until customers need them.

Target market – a fairly homogeneous (similar) group of customers to whom a company wishes to appeal.

Telephone and direct-mail retailing – allows consumers to shop at home usually placing orders by mail or telephone calls and charging the purchase to a credit card.

Time utility – having the product available when the customer wants it.

Trademark – those words, symbols, or marks that are legally registered for use by a single company.

Transporting – the marketing function of moving goods.

Transporting function – the movement of goods from one place to another.

Utility – the power to satisfy human needs.

Wholesalers – firms whose main function is providing wholesaling activities.

Wholesaling – the activities of those persons or establishments that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users, but who do not sell in large amounts to final customers.