| A | B |
|---|
| Marketing | An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders |
| Relationship Marketing | Establishing long-term, mutually satisfying buyer-seller relationships |
| Customer Relationship Management (CRM) | Using information about customers to create marketing strategies that develop and sustain desirable customer relationships |
| Customer Lifetime Value | A combination of purchase frequency, average value or purchases, and brand switching patterns over the entire span of a customer’s relationship with a company |
| Utility | The ability of a good or service to satisfy a human need |
| Form Utility | Utility created by converting production inputs into finished products |
| Place Utility | Utility created by making a product available at a location where customers wish to purchase it |
| Time Utility | Utility created by making a product available when customers wish to purchase it |
| Possession Utility | Utility created by transferring title (or ownership) of a product to a buyer |
| Marketing Concept | A business philosophy that a firm should provide goods and services that satisfy customers’ needs through a coordinated set of activities that allows the firm to achieve its objectives |
| Market | A group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products |
| Marketing Strategy | A plan that will enable an organization to make the best use of its resources and advantages to meet its objectives |
| Marketing Mix | A combination of product, price, distribution, and promotion development to satisfy a particular target market |
| Target Market | A group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group |
| Undifferentiated Approach | Directing a single marketing mix at the entire market for a particular product |
| Market Segment | A group of individuals or organizations within a market that shares one or more common characteristics |
| Market Segmentation | The process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market |
| Marketing Plan | A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group |
| Sales Forecast | An estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort |
| Marketing Information System | A system for managing marketing information that is gathered continually from internal and external sources |
| Marketing Research | The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem |
| Buying Behavior | The decisions and actions of people involved in buying and using products |
| Consumer Buying Behavior | The purchasing of products for personal or household use, not for business purposes |
| Business Buying Behavior | The purchasing of products by producers, resellers, governmental units, and institutions |
| Personal Income | The income an individual receives from all sources less the Social Security taxes the individual must pay |
| Disposable Income | Personal income less all additional personal taxes |
| Discretionary Income | Disposable income less saving and expenditures on food, clothing, and housing |
| Product | Everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or idea |
| Consumer Product | A product purchased to satisfy personal and family needs |
| Business Product | A product bought for resale, for making other products, or for use in a firm’s operations |
| Convenience Product | A relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort |
| Shopping Product | An item for which buyers are willing to expend considerable effort on planning and making the purchase |
| Specialty Product | An item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort |
| Raw Material | A basic material that actually becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes |
| Major Equipment | Large tools and machines used for production purposes |
| Accessory Equipment | Standardized equipment used in a firm’s production of office activities |
| Component Part | An item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly |
| Process Material | A material that is used directly in the production of another product but is not readily identifiable in the finished product |
| Supply | An item that facilitates production and operations but does not become part of a finished product |
| Business Service | An intangible product that an organization uses in its operations |
| Product Life Cycle | A series of stages in which a product’s sales revenue and profit increase, reach a peak, and then decline |
| Product Mix | All the products a firm offers for sale |
| Product Line | A group of similar products that differ only in relatively minor characteristics |
| Product Modification | The process of changing one or more of a product’s characteristics |
| Line Extension | Development of a new product that is closely related to one of more products in the existing product line but designed specifically to meet somewhat different customer needs |
| Product Deletion | The elimination of one or more products from a product line |
| Brand | A name, term, symbol, design, or any combination of these that identifies a seller’s products as distinct from those of other sellers |
| Brand Name | The part of a brand that can be spoken |
| Brand Mark | The part of a brand that is a symbol or distinctive design |
| Trademark | A brand name or brand mark that is registered with the U.S. Patent and Trademark Office and thus is legally protected from use by anyone except its owner |
| Trade Name | The complete and legal name of an organization |
| Manufacturer (or producer) Brand | A brand that is owned by a manufacturer |
| Store (or private) Brand | A brand that is owned by an individual wholesaler or retailer |
| Generic Product (or brand) | A product with no brand at all |
| Brand Loyalty | Extent to which a customer is favorable toward buying a specific brand |
| Brand Equity | Marketing and financial value associated with a brand’s strength in a market |
| Individual Branding | The strategy in which a firm uses a different brand for each of its products |
| Family Branding | The strategy in which a firm uses the same brand for all or most of its products |
| Brand Extension | Using an existing brand to brand a new product in a different product category |
| Packaging | All the activities involved in developing and providing a container with graphics for a product |
| Labeling | The presentation of information on a product or its package |
| Express Warranty | A written explanation of the responsibilities of the producer in the event that a product is found to be defective or otherwise unsatisfactory |
| Price | The amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances |
| Supply | The quantity of a product that producers are willing to sell at each of various prices |
| Demand | The quantity of a product that buyers are willing to purchase at each of various prices |
| Price Competition | An emphasis on setting a price equal to or lower than competitors’ prices to gain sales or market share |
| Nonprice Competition | Competition based on factors other than price |
| Product Differentiation | The process of developing and promoting differences between one’s product and all similar products |
| Markup | The amount a seller adds to the cost of a product to determine its basic selling price |
| Breakeven Quantity | The number of units that must be sold for the total revenue (from all units sold) to equal the total cost (of all units sold) |
| Total Revenue | The total amount received from sales of a product |
| Fixed Cost | A cost incurred no matter how many units of a product are produced or sold |
| Variable Cost | A cost that depends on the number of units produced |
| Total Cost | The sum of the fixed costs and the variable costs attributed to a product |
| Price Skimming | The strategy of charging the highest possible price for a product during the introduction stage of its like cycle |
| Penetration Pricing | The strategy of setting a low price for a new product |
| Negotiated Pricing | Establishing a final price through bargaining |
| Secondary-Market Pricing | Setting one price for the primary target market and a different price for another market |
| Periodic Discounting | Temporary reduction of prices on a patterned or systematic basis |
| Random Discounting | Temporary reduction of prices on an unsystematic basis |
| Odd-Number Pricing | The strategy of setting prices using odd numbers that are slightly below whole-dollar amounts |
| Multiple-Unit Pricing | The strategy of setting a single price for two or more units |
| Reference Pricing | Pricing a product at a moderate level and positioning it next to a more expensive model of brand |
| Bundle Pricing | Packaging together two or more complementary products and selling them for a single price |
| Everyday Low Price (EDLPs) | Setting a low rice for products on a consistent basis |
| Customary Pricing | Pricing on the basis of tradition |
| Captive Pricing | Pricing the basis product in a product line low, but pricing related items at a higher level |
| Premium Pricing | Pricing the highest-quality or most versatile products higher than other models in the product line |
| Price Lining | The strategy of selling goods only at certain predetermined prices that reflect price breaks |
| Price Leaders | Products priced below the usual markup, near cost, or below cost |
| Special-Event Pricing | Advertised sales or price cutting linked to a holiday, season, or event |
| Comparison Discounting | Setting a price at a specific level and comparing it with a higher price |
| Transfer Pricing | Prices charged in sales between an organization’s units |
| Discount | A deduction from the price of an item |
