KEYTERM PRINCIPLES OF MARKETING (15TH EDITION)

Name Definition Page

A
Accessible The market segments can be effectively reached and served 224
Accessory equipment Includes portable factory equipment and tools and office equipment. 252
Actionable Effective programs can be designed for attracting and serving the segments. 224
Product planners must turn the core benefit into an actual product. They need
to develop product and service features, design, a quality level, a brand name,
Actual product 249
and packaging. The actual product exists around the core and includes the
quality level, features, design, brand name, and packaging.
A vertical marketing system that coordinates successive stages of production
Administered VMS 369
and distribution through the size and power of one of the parties
Advertising is any paid form of non-personal presentation and promotion of
Advertising 456
ideas, goods, or services by an identified sponsor
Advertising can reach masses of geographically dispersed buyers at a low cost
Advertising 443
per exposure, and it enables the seller to repeat a message many times.
A marketing services firm that assists companies in planning, preparing,
Advertising agency 470
implementing and evaluating all or portions of their advertising programs.
The dollar and other resources allocated to a product or a company advertising
Advertising budget 459
program.
A specific communication task to be accomplished with a specific target
Advertising objective 457
audience during a specific period of time
The strategy by which the company accomplishes its advertising objectives. It
Advertising strategy consists of two major elements: creating advertising messages and selecting 460
advertising media
Affordable Buyers can afford to pay for the difference 236
Setting the promotion budget at the level management thinks the company can
Affordable method: 442
afford.
Age and life-cycle
Dividing a market into different age and life-cycle groups 216
segmentation
Product planners must build an augmented product around the core benefit and
actual product by offering additional consumer services and benefits. The
Augmented product 250
augmented product is the actual product plus the various services and benefits
offered with it, such as a warranty, free delivery, installation, and maintenance.
Average cost See details in book 318
B
Battle of the brands A battle between national and private brands 271
Behavioral Dividing a market into segments based on consumer knowledge, attitudes, uses
220
segmentation or responses to a product
Dividing the market into segments according to the different benefits that
Benefit segmentation 220
consumers seek from the product
A name, term, sign, symbol, or design, or a combination of these, that
Brand identifies the products or services of 1 seller or group of sellers and 255
differentiates them from those of competitors.
The differential effect that knowing the brand name has on customer response
Brand equity 266
to the product or its marketing.
Brand experiences Today, customers come to know a brand through a wide range of contacts and 274
touch points. These include advertising but also personal experience with the
 brand, word of mouth, company Web pages, and many others.
Brand extension Extending an existing brand name to new product categories. 273
Break-even volume Break-even volume = fixed cost/(price-variable cost) 320
Business advisory
See Supplies and services 252
services
Business organization Offer services - airlines, banks, hotels, … 260
Business services Include maintenance and repair services and business advisory services. 252
The stages consumers normally pass through on their way to a purchase,
Buyer-readiness
including awareness, knowledge, liking, preference, conviction, and, finally, 436
stages
the actual purchase
Involves cultivating opinion leaders and getting them to spread information
about a product or a service to others in their communities. Cutting oppiion
Buzz marketing 439
leaders to getting them to spread information about a product or service to
others in their communities
C
Are industrial products that aid in the buyer's production and operations,
including installations and accessory equipment.
Installations consist of major purchases such as buildings (factories, offices)
and fixed equipment (generators, drill presses, large computer systems,
Capital items 252
elevators).
Accessory equipment includes portable factory equipment and tools (hand
tools, lift trucks) and office equipment (computers, fax machines, desks). They
have a shorter life than installations and simply aid in the production process.
Disagreements among marketing channel members on goals, roles, and
Channel conflict 366
rewards- who should do what and for what rewards
Channel Brands can be differentiated through the way they design their channel's
234
differentiation coverage, expertise, and performance
A layer of intermediaries that performs some work in bringing the product and
Channel level 365
its ownership closer to the final buyer
The practice of using the established brand names of 2 different companies on
Co-branding 272
the same product.
Involves the communicator understanding the effect on the target audience by
Collecting feedback: 440
measuring behavior resulting from the behavior
(Product quality) Freedom from defects and consistency in delivering a
Conformance quality 254
targeted level of performance.
Communicable The difference is communicable and visible to buyers 235
Communication Indicate whether the ad and media are communicating the ad message well and
469
effects should be tested before or after the ad runs
Competition-based Setting prices based on competitors' strategies , prices, costs, and market
321
pricing offerings.
An advantage over competitors gained by offering greater customer value,
Competitive
either by having lower prices or providing more benefits that justify higer 233
advantage
prices
Competitive- parity
Setting the promotion budget to match competitors’ outlays. 443
method:
Component materials Iron, yarn, cement, wires 252
Component parts Small motors, tires, casting 252
Concentrated (niche) A market-coverage strategy in which a firm goes after a large share of one or a
226
marketing few segments or niches
Consideration in
Figure 10.1 313
setting price
Companies are searching existing video sites, setting up their own sites and
Consumer generated sponsoring ad-creation contests and other promotions. If done well, however,
463
messages user-generated content can incorporate the voice of the customer into brand
messages and generate greater consumer brand involvement
Consumer product A product bought by final consumers for personal consumption. 250
Include convinience products, shopping products, specialty products, and
Consumer products 250
unsought products.
A vertical marketing system in which independent firms at different levels of
Contractual VMS 368
production and distribution join together through contracts
A consumer product that customers usually buy frequently, immediately, and
Convenience product 251
with minimal comparison and buying effort.
A channel consisting of one or more independent producers, wholesalers, and
Conventional
retailers, each a separate business seeking to maximize its own profits, perhaps 367
distribution channel
even at the expense of profits for the system as a whole
249
Core customer value Which addresses the question : "What is the buyer really buying?"
250
Corporate image
marketing Business firms sponsor public relations or corporate image advertising
(business firms campaigns to market themselves and polish their images 252
sponsor public
relation)
A vertical marketing system that combines successive stages of production and
Corporate VMS distribution under single ownership- channel leadership is established through 368
common ownership
Setting prices based on the costs for producing, distributing, and selling the
product plus a fair rate of return for effort and risk. Cost-based pricing
involves setting prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for its effort and risk.
Cost-based pricing 314
Design a good product
Determine product costs
Set price based on cost
Convince buyers of product's value
Setting prices based on the costs of producing, distributing, and selling the
Cost-based pricing 317
product plus a fair rate of return for effort and risk
Cost-plus pricing
Adding a standard markup to the cost of the product 319
(markup pricing)
The compelling idea that will bring the advertising message strategy to life in a
Creative concept 462
distinctive and memorable way
Grouping markets according to common languages, religions, values and
Cultural factors 223
attitudes, customs, and behavioral patterns
Customer experiences 249
Customer value-based Setting price based on buyers' perceptions of value rather than on the seller's
313
pricing cost
Customer-value The difference between what a customer gets from a product, and what he or
322
consideration she has to give in order to get it.
D
Decoding The process by which the receiver assigns meaning to the symbols encoded by 434
 the sender
A curve that shows the number of units the market will buy in a given time
Demand curve 325
period, at different prices that might be charged
Dividing the market into segments based on variables such as age, life-cycle
Demographic
stage, gender, income, occupation, education, religion, ethnicity and 216
segmentation
generation
Design is a larger concept than style. Unlike style, design is more than skin
deep—it goes to the very heart of a product. Good design contributes to a
Design product’s usefulness as well as to its looks. Design begins with observing 254
customers and developing a deep understanding of their needs.

Involves public relations with donors or members of nonprofit organizations to

Development 472
gain financial or volunteer support
The segments are conceptually distinguishable and respond differently to
different marketing mix elements and programs. If men and women respond
Differentiable 224
similarly to marketing efforts for soft drinks, they do no constitute separate
segments
Differentiated
A market-coverage strategy in which a firm decides to target several market
(segmented) 225
segments and designs separate offers for each
marketing
Differentiation (Consumer perception dimensions) what makes the brand stand out 266
Differntiation Differentiating the market offering to create superior customer value 214
Direct Marketing- direct mail and catalogs, online marketing, mobile
Direct marketing 444
marketing, and others
Direct marketing
A marketing channel that has no intermediary levels 365
channel
The cutting out of marketing channel intermediaries by product or service
Disintermediation producers or the displacement of traditional resellers by radical new types of 370
intermediaries
Competitors do not offer the difference or the company can offer it in a more
Distinctive 235
distinctive way
A large, highly automated warehouse designed to receive goods from various
Distribution center plants and suppliers, take orders, fill them efficiently, and deliver goods to 381
customers as quickly as possible
E
Grouping countries by population income lavels or by their overall level of
Economic factors 223
economic developmet
(Consumer perception dimensions) how highly consumers regard and respect
Esteem 266
the brand
Giving a limited number of dealers the exclusive right to distribute the
Exclusive distribution 373
company's products in their territories
Experience curve The drop in the average per-unit production cost that comes with accumulated
319
(learning curve) production experience
Marketable entities of product: To differentiate their offers, beyond simply
Experiences making products and delivering services, they are creating and managing 249
customer experiences with their brands or company.
F
Fantasy This style creates a fantasy around the product or its use. 462
Farm products Wheat, cotton, livestock, fruits, vegetables 252
Feedback The part of the receiver's response communicated back to the sender 435
Fixed costs
Costs that do not vary with production or sales level 318
(overhead)
Fixed equipment See Captial items 252
Franchise A contractual VMS in which a channel member, called a franchisor, links
368
organization several stages in the production-distribution process
Frequency is a measure of how many times the average person in the target
Frequency 466
market is exposed to the message
Function of
Figure 10.3 318
production experience
G
Gender segmentation Dividing a market into different segments based on gender 217
Grouping countries by regions such as Western Europe, Pacific Rim, Middle
Geographic location 223
East or Africa
Geographic Dividing a market into different geographical units, such as nations, states,
215
segmentation regions, counties, cities or even neighborhoods
H
Good value-pricing Offering just the right combination of quality and good service at a fair price 314
Horizontal conflict Occurs among firms at the same level of the channel 366
Horizontal marketing A channel arrangement in which two or more companies at one level join
369
system together to follow a new marketing opportunity
I
Ideas can also be marketed. In one sense, all marketing is the marketing of an
Ideas idea, whether it is the general idea of brushing your teeth or the specific idea 253
that Crest toothpastes create “healthy, beautiful smiles for life.”
Brand image conveying product's distinctive benefits and positioning must
Image differentiation 234
look different from their competitors' one
Impact The qualitative value of message exposure through a given medium 466
Important The difference delivers a highly valued benefit to target buyers 235
Income
Dividing a market into different income segments 217
segementation
Indirect marketing
A marketing channel containing one or more intermediary levels 365
channel
Tailoring products and marketing programs to the needs and preferences of
Individual marketing 230
individual customers
A product bought by individuals and organizations for further processing or for
Industrial product 251
use in conducting a business.
Informative Information advertising is used heavily when introducing a new product
457
advertising category.
Installations Consist of major purchases such as buildings and fixed equipment. 252
The logistics concept that emphasizes teamwork- both inside the company and
Integrated logistics
among all the marketing channel organizations- to maximize the performance 383
management
of the entire distribution system
Intensive distribution Stocking the product in as many outlets as possible 373
Training service employees in the fine art of interacting with customers to
Interactive marketing 263
satisfy their needs.
Intermaket (cross- Forming segments of aconsumers who have similar needs and buying
223
market) segmentation behaviors even though they are located different countries
Intermodal
Combining two or more models of transportation 383
transportation
Internal factors affecting pricing include the company’s overall marketing
strategy, objectives, and marketing mix, as well as other organizational
Internal and external
considerations. 321
consideration
External factors include the nature of the market and demand and other
environmental factors.
Orienting and motivating customer-contact employees and supporting service
Internal marketing 263
employees to work as a team to provide customer satisfaction.
Involves maintaining relationships with shareholders and others in the
Investor relations 472
financial community.
K
(Consumer perceptuon dimensions) how much consumers know about the
Knowledge 266
brand
L
Lifestyle This style shows how a product fits in with a particular lifestyle. 462
Extending an existing brand name to new forms, colors, sizes, ingredients, or
Line extension 272
flavors of an existing product category.
A company can expand its product line in two ways: by line filling or line
stretching. Product line filling involves adding more items within the present
Line filling range of the line. There are several reasons for product line filling: reaching for 258
extra profits, satisfying dealers, using excess capacity, being the leading full-
line company, and plugging holes to keep out competitors
Product line stretching occurs when a company lengthens its product line
beyond its current range. The company can stretch its line downward, upward,
or both ways. Companies located at the upper end of the market can stretch
Line stretching their lines downward. A company may stretch downward to plug a market hole 258
that otherwise would attract a new competitor or respond to a competitor’s
attack on the upper end. Or it may add low-end products because it finds faster
growth taking place in the low-end segments
Some companies license names or symbols previously created by other
manufacturers, names of well-known celebrities, or characters from popular
Licensing 271
movies and books. For a fee, any of these can provide an instant and proven
brand name.
Involves building and maintaining relations with legislators and government
Lobbying 472
officials to influence legislation and regulation
Tailoring brands and marketing to the needs and wants of local customer
Local marketing 227
segments - cities, neighborhoods, and even specific stores
Products or services that inspire loyalty beyond reason. Custimers don’t just
Lovemarks like these brenads, they have trong emotional connections with them and love 269
them unconditionally
Loyalty status Market can be segmented by comsumer loyalty 221
M
A term that has come to represent the merging of advertising and
Madison & vine entertainment in an effort to break through the clutter and create new avenues 461
for reaching customers with more engaging messages.
Maintenance and
See Supplies and services 252
repair services
Manufactured Consist of component materials (iron, yarn, cement, wires) and component
252
materials and parts parts (small motors, tires, casting)
Market and demand See more in book 324
Market offering Products are a key element in overall market offering. 249
Dividing a market into smaller segments of buyers with distinct needs,
Market segmentation characteristics, or behaviors that might require separate marketing strategies or 214
mixes
Evaluating each market segment's attractiveness and selecting one or more
Market targeting 214
segments to enter
Marketing channel A set of interdependent organizations that help make a product or service
363
(distribution channel) available for use or consumption by the consumer or business user
Designing effective marketing channels by analyzing customer needs, setting
Marketing channel
channel objectives, identifying major channel alternatives, and evaluating 372
design
those alternatives
Marketing channel Selecting, managing, and motivating individual channel members and
375
management evaluating their performance over time
Planning, implementing, and controlling the physical flow of materials, final
Marketing logistics
goods, and related information from points of origin to points of consumption 379
(physical distribution)
to meet customer requirements at a profit
The process by which firms interact one-to-one with masses of customers to
Mass customization 230
design products and services tailor-made to individual needs
Materials and parts Include raw materials as well as manufactured materials and parts. 252
Measurable The size, purchasing power, and profiles of the segments can be measured 224
The communication channels through which the message moves from the
Media 434
senderto the receiver
Megabrand strategies—weeding out weaker or slowergrowing brands and
focusing their marketing dollars on brands that can achieve the number-one or
Megabrand strategies number-two market share positions with good growth prospects in their 274
categories

The advertiser now must turn the big idea into an actual ad execution that
Message execution 462
capture the target market's attention and interest
Tailoring products and marketing programs to the needs and wants of specific
Micromarketing individuals and local customer segments; it includes local marketing and 227
individual marketing
Monopolistic The market consists of many buyers and sellers who trade over a range of
325
competition prices rather than a single market price.
This style builds a mood or image around the product or service, such
Mood or image as beauty, love, intrigue, or serenity. Few claims are made about the product or 462
service except through suggestion
Multibranding offers a way to establish different features that appeal to
different customer segments, lock up more reseller shelf space, and capture a
Multibranding 274
larger market share. Companies often market many different brands in a given
product category.
Multichannel A distribution system in which a single firm sets up two or more marketing
370
distribution system channels to reach one or more customer segments
Musical Shows people or cartoon characters singing about their product 463
N
 Focuses the message on selected market segments: lowers cost, targets more
Narrowcasting 467
effectively, engages customers better
National brand The product may be launched as a national brand (or manufacturer’s brand), as
(manufacturer’s when Sony and Kellogg sell their output under their own brand names (Sony 270
brand) Bravia HDTV or Kellogg’s Frosted Flakes)
Natural products Fish, lumber, crude petroleum, iron ore 252
The unplanned static or distortion during the communication process, which
Noise 435
results in the receiver getting a different message than the one the sender sent
Are media that carry messages without per sonal contact or feedback. They
include major media, atmospheres, and events: - major media include print,
Nonpersonal
broadcast, display,and online media| - atmospheres are designed environments
communication 439
that create or reinforce the buyer’s leanings toward buying a product| -events
channels
are staged occurrences that communicate messages to target audiences, press
conferences, grand openings, exhibits, public tours
Market situation in which competitors would not lower prices for fear of a
price war. Instead they focus on extensive promotions to highlight the
Nonprice positions 322
distinctive benefits or features of their products. Non price competition is an
anomaly in a free market systems based on price-quantity relationship.
Nutritional labeling Stating the nutritional values in the product. 257
O
Developing the promotuon budget (1) defining specific promotion objectives,
Objective- and- task (2) determining the tasks needed to achieve these objectives, and (3)
443
method: estimating the costs of performing these tasks. The sum of these costs is the
proposed promotion budget.
Occasion Dividing the market into segments according to occasions when buyers get the
220
segmentation idea to buy, actually make their purchase or use the purchased item
Office equipment See Capital items 252
Oligopolistic
The market consists of only a few large sellers. 325
competition
Open dating Stating the expected shelf life of the product. 257
Operating supplies See Supplies and services 252

For their brands— people whose opinions are sought by others—by supplying
Opinion leaders influencers with the product on attractive terms or by educating them so that 439
they can inform others

Consists of activities undertaken to create, maintain, or change the attitudes

Organization
and behavior of target consumers toward an organization. Both profit and not- 252
marketing
for-profit organizations practice organization marketing.
Organizational
See in book 324
consideration

P
The activities of designing and producting the container or wrapper for a
Packaging 255
product.
Gaining strong competive advantage through hiring and training better people
People differentiation 234
than their competitors do
Percentage- of- sales Setting the promotion budget at a certain percentage of current or forecasted
442
method: sales or as a percentage of the unit sales price.
Perceptual positioning Map showing consumer perceptions of their brands versus competing products
232
map on important buying dimension
Performance quality (Product quality) the ability of a product to perform its functions. 254
Consists of activities undertaken to create, maintain, or change attitudes or
behavior toward particular people.
People ranging from presidents, entertainers, and sports figures to
Person marketing 252
professionals such as doctors, lawyers, and architects use person marketing to
build their reputations. And businesses, charities, and other organizations use
well-known personalities to help sell their products or causes
Personal Channels through which two or more people communicate directly with each
communication other, icluding face to face, on the phone, via mail or email, or even through 438
channels texting, internet chat
Personal selling is the most effective tool at certain stages of the buying
Personal selling process, particularly in building up buyers' preferences, convictions, and 444
actions
Personality symbol This style creates a character that represents the product 463
Persuasive advertising Persuasive advertising becomes more important as competition increases. 457
Involves activities undertaken to create, maintain, or change attitudes or
behavior toward particular places. Cities, states, regions, and even entire
Place marketing 252
nations compete to attract tourists, new residents, conventions, and company
offices and factories
The way a roduct is defined by consumers on important attributes - the place
Poduct position 232
the product occupies in consumers' minds relative to competing products
Political and legal Grouping countries by type and stability of government, receptivity to foreign
223
factors firms, monetary regulations and amount of bureaucracy
Portable factory
See Capital items 252
equipment
Arranging for a market, offering to occupy a clear distinctive and desirable
Positioning 214
place relative to competing products in the minds of target consumers
A statement that summarizes company or brand positioning using this form:
Positioning statement 238
To (target segment and need) our (brand) is (concept) that (point of difference)
Possible value
Figure 7.4 237
proposition
Preemptive Competitors cannot easily copy the difference 235
Press relations or Creating and placing newsworthy information in the news media to attract
472
press agency attention to a person, product or service
Price elasticity A measure of the sensitivity of demand to changes in price 326
Price elasticity of
( % Change in quantity demanded) / (% change in price) 326
demand
Each price the company might charge will lead to a different level of demand.
Price-Demand The relationship between the price charged and the resulting demand level is
325
relationship shown in the
demand curve
Private brand (store
brand or distributor A brand created and owned by a reseller of a product or service. 270
brand)
Private not-for-profit Offer services through museums, charities, churches colleges, foudations, and
260
organizations hospitals.
Anything that can be offered to a market for attention, use, or consumption that
Product 248
might satisfy a want or need.
Product attributes Such as quality, features, and style and design. 253
Product
Brands can be differentiated on features, performance or style and design 234
differentiation
A product can be offered with varying features. Features are a competitive tool
for differentiating the company’s product from competitors’ products. Being
Product feature 254
the first producer to introduce a valued new feature is one of the most effective
ways to compete.
A group of products that are closely related because they function in a similar
Product line manner, are sold to the same customer groups, are marketed through the same 258
types of outlets, or fall within given price ranges.
Product line filling Involves adding more items within the present range of the line. 258
Product line length The number of items in theproduct line. 258
Product line
Occurs when a company lengthens its product line beyond its current range. 258
stretching
Product mix (product
The set of all product lines and items that a particular seller offers for sale. 258
portfolio)
Product mix depth Refers to the number of versions offered for each product in the line. 259
Product mix length Refers to the total number of items a company carries withinits product lines. 259
Product mix width Refers to the number of different product lines the company carries. 259
Product publicity Publicizing specific product 472
The characteristics of a product or service that bear on its ability to satisfy
Product quality 253
stated or implied customer needs.
Product style and
A way to add customer value is through distinctive product style and design. 254
design
Include:
Products - Tangible objects. 248
- Services, events,persons, places, organizations, ideas, or a mixture of these.
Profitable The company can introduce the difference profitably 236
Promotion mix: The specific blend of promotion tools that the company uses
Promotion mix to persuasively communicate customer value and build customer relationships.
444-
strategies: (2 (5 major promotion tools: advertising, sales promotion, personal selling, public
445
strategies) relations, direct marketing)
Stratefies: Push and pull strategy
Provider-customer A special feature of services marketing. Both the provider and the customer
260
interaction affect the service outcome.
Psychographic Dividing a market into different segments based on social class, lifestyle or
218
segmentation personality characteristics
Public affairs Involves building and maintaining national or local community relations 472
Building good relations with the company's various publics by obtaining
Public relations favorable publicity; building up a good corporate image; and handling or 472
heading off unfavorable rumors, stories and events
Public relations is very believable- news stories, features, sponsorships, and
Public relations 444
events seem more real and believable to readers than ads do
 A promotion strategy that calls for spending a lot on consumer advertising and
Pull strategy promotion to induce final consumers to buy the product, creating a demand 445
vacuum that "pulls" the product through the channel
Under Pure competition, the market consists of many buyers and sellers
trading in a unit form commodity, such as wheat, copper, or financial
securities.
Pure competition No single buyer or seller has much effect on the going market price. In a 325
purely competitive market, marketing research, product development, pricing,
advertising, and sales promotion play little or no role.
Thus, sellers in these markets do not spend much time on marketing strategy.
Under monopolistic competition, the market consists of many buyers and
sellers who trade over a range of prices rather than a single market price. A
range of prices occurs because sellers can differentiate their offers to buyers.
Pure monopoly Because there are many competitors, each firm is less affected by competitors’ 325
pricing strategies than in oligopolistic markets. Sellers try to develop
differentiated offers for different customer segments and, in addition to price,
freely use branding, advertising, and personal selling to set their offers apart.
Pure servies Which the market offer consists primarily of a service for. 249
Pure tangible good Soap, toothpaste, or salt 249
A promotion strategy that calls for using the sales force and trade promotion to
Push strategy push the product through channels. The producer promotes the product to 444
channel members, which in turn promote it to final consumers.

Q
The characteristics of a products or services that bear on its ability to satisfy
Quality 253
stated or implied customer needs.
Quality level (Product quality) 254
R
Consist of farm products (wheat, cotton, livestock, fruits, vegetables) and
Raw materials 252
natural products (fish, lumber, crude petroleum, iron ore).
Reach is a measure of the percentage of people in the target market who are
Reach 466
exposed to the ad campaign during a given period of time
Receiver The party receiving the message send by another party 434
Relevance (Consumer perception dimensions) how consumers feel it meets their needs 266
Reminder advertising is important for mature products, it helps to maintain
Reminder advertising 458
customer relationships and keep consumers thinhking about the product.
Repair and
See Supplies and services 252
maintenance items
Response The reactions of the receiver after being exposed to the message 434

Return on advertising The net return on advertising investment divided by the costs of the advertising
469
investment investment

(Total quality management) A “return on quality” approach is about viewing

Return on quality quality as an investment and holding quality efforts accountable for bottom- 254
line results.
S
Sales and profit Sales and profits are affected by many factors other than advertising—such as
469
effects product features, price, and availability.
 Sales promotion includes a wide assortment of tools- coupons, contests,
Sales promotion 444
discounts, premiums, and others- all of which have many unique qualities
This style presents survey or scientific evidence that the brand is better or
Scientific evidence 463
better liked than one or more other brands
The major stepsbin advertising media selection are: (1) determining reach,
Selecting advertising
frequency and impact; (2) choosing among major media types; (3) selecting 465
media
specific media vehicles; (4) choosing media timing
Involves decisions presenting the media effectively and efficiently to the target
Selecting media
customer and must consider the 468
vehicles
message’s: impact, effectiveness and cost
The message’s impact on the target audience is affected by how the audience
Selecting the Message
views the communicator: -Celebrities: Athletes,Entertainers - Professionals: 439
Source:
Health care providers
The use of more than one but fewer than all of the intermediaries who are
Selective distribution 373
willing to carry the company's products
An activity, benefit, or satisfaction offered for sale that is essentially intangible
Service 248
and does not result in the ownership of anything.
In these days of intense price competition, service marketers often complain
Service differentiation about the difficulty of differentiating their services from those of competitors. 264
See more in book.
Services are produced and consumed at the same time and cannot be separated
Service inseparability 260
from their providers.
Service intangibility Services cannot be seen, tasted, felt, heard, or smelled before they are bought. 260
Service perishability Services cannot be stored for later sale or use. 261
With their costs rising rapidly, service firms are under great pressure to
Service productivity 264
increase service productivity. See more in book
The chain that links service firm profits with employee and customer
Service profit chain 261
satisfaction.
A service firm can differentiate itself by delivering consistently higher quality
Service quality 264
than its competitors provide. See more in book.
Good service recovery can turn angry customers into loyal ones. In fact, good
Service recovery recovery can win more customer purchasing and loyalty than if things had 264
gone well in the first place.
The quality of services may vary greatly depending on who provides them and
Service variability 260
when, where, and how they are provided.
Services Include maintenance and repair services and business advisory services. 252
Services
Brands can be differentiated on speedy, convenient or careful delivery 234
differentiation
Setting the Total Affordable budget method sets the budget at an affordable level. Ignores the
440
Promotion Budget effects of promotion on sales
A consumer product that the customer, in the process of selecting and
Shopping product purchasing, usually compares on such attributes as suitability, quality, price, 251
and style.
This style shows one or more “typical” people using the product in a normal
Slice of life 462
setting.
Social ideas See social marketing 253
The use of commercial marketing concepts and tools in programs designed to
Social marketing 253
influence individuals’ behavior to improve their well-being and that of society.
Specialty product A consumer product with unique characteristics or brand identification for 251
 which a significant group of buyers is willing to make a special purchase
effort.
Store brand (Private
A brand created and owned by a reseller of a product or service. 270
brand)
Style Simply describes the appearance of a product 254
Substantial The market segments are large or profitable enough to serve 224
The difference is superior to other ways that customers might obtain the same
Superior 235
benefit
Supplies Include operating supplies and repair and mantainence items. 252
Supplies are the convenience products of the industrial field because they are
usually purchased with a minimum of effort or comparison. Supplies include
operating supplies (lubricants, coal, paper, pencils) and repair and maintenance
Supplies and services items (paint, nails, brooms). ). 252
Business services include maintenance and repair services (window cleaning,
computer repair) and business advisory services (legal, management
consulting, advertising). Such services are usually supplied under contract.
Managing upstream and downstream value added flows of materials, final
Supply chain
goods, and related information among suppliers, the company, resellers, and 379
management
final consumers
T
Tangible objects Such as cars, computers and mobile phones. 248
The audience may be current users or potential buyers, those who make the
Target audience buying decisions or those who influence it.the audience may be 436
individuals,groups, special publics, or the general public
Product costing method in which a final cost is determined after market
Target costing analysis, and the product is designed or redesigned to meet it. See also target 322
cost.
A set of buyers sharing common needs or characteristics that the company
Target market 225
decides to serve
Technical expertise This style shows the company's expertise in making the product. 463
Testimonial or
This style features a highly believable or likable source endorsing the product 463
endorsement
The nature of each 5 443-
See more in book
promotion tools 444
Third party logistics An independent logistics provider that performs any or all of the functions
385
provider (3PL) required to get a client's product to market
Total costs The sum of the fixed and variable costs for any given level of production 318
Total quality An approach in which all of the company’s people are involved in constantly
253
management (TQM) improving the quality of products, services, and business processes
U
Undifferentiated A market-coverage strategy in which a firm decides to ignore market segment
225
(mass) marketing differences and go after the whole market with one offer
Unit pricing Stating the price per unit of a standard measure. 257
A consumer product that the consumer either does not know about or knows
Unsought product 251
about but does not normally consider buying.
Usage rate Market can be segemented into light, meditum, and heavy product users. 221
Market can be segemented into nonusers, exusers, potential users, first-time
User status 221
users and regular users of a product, marketers
 V
A network composed of the company, suppliers, distributors, and, ultimately,
Value delivery
customers who partner with each other to improve the performance of the 363
network
entire system in delivering customer value
The full positioning of a brand - the full mix of benefits on which it is
Value proposition 232
positioned
Attaching value-added features and services to differentiate a company's offers
Value-added pricing 315
and charging higher prices
Value-Based Pricing
Figure 10.2 314
vs Cost Based Pricing
Variable costs Costs that vary directly with the level of production 318
Vertical conflict Conflict between different levels of the same channel, is even more common 366
A channel structure in which producers, wholesalers, and retailers act as a
Vertical marketing
unified system. One channel member owns the others, has contracts with them, 367
system (VMS)
or has so much power that they all cooperate
W
What is the buyer (Core customer value) When designing products, marketers must first define
249
really buying? the core, problem-solving benefits or services that consumers seek.
Word-of-mouth Personal communications about a product between target buyers and
438
influence neighbors, friends, family members, associates, and other consumers