| A | B |
|---|
| Basic product | “The physical product in its simplest form.” |
| Brand | “A name |
| Channels of distribution | “The routes products and services follow |
| Economic discrepancies | “Differences between the offerings of a business and the requirements of a consumer.” |
| Enhanced product | “A product that offers different features and options for the consumer.” |
| Extended product | “A product that includes additional features that are not part of the physical product but increase its usability.” |
| Product assortment | “The complete set of all products a business offers to a market.” |
| Product line | “A group of similar products with obvious variations in the design and quality to meet the needs of distinct customer groups.” |
| Administered channel | “A channel in which one organization takes a leadership position to benefit all channel members.” |
| Channel integration | “When one business owns the organizations at other levels of the channel.” |
| Channel members | “Businesses that participate in activities transferring goods and services from the producer to the user.” |
| Containerization | “Products are packed in large shipping containers at the factory and then shipped using a number of transportation methods before being unpacked.” |
| Direct distribution | “When producers sell directly to the ultimate consumer.” |
| Indirect distribution | “When distribution takes place through channel members.” |
| Piggyback service | “A distribution method where truck trailers are loaded and placed on railroad cars to be shipped close to their final destination.” |
| Telemarketing | “Selling goods and services by telephone.” |
| Cash discount | “Given if payment is received by a certain date.” |
| Discounts | “Reductions from the price of the product to encourage customers to buy.” |
| Distribution center | “A large building designed to accumulate and redistribute products efficiently.” |
| List price | “The original price the seller posts on the product.” |
| Quantity discount | “Used by sellers to encourage customers to buy in large quantities.” |
| Seasonal discount | “Given to the buyer for ordering or taking delivery of goods in advance of the normal buying period.” |
| Trade discount | “A special deduction from the list price that is given to certain types of buyers |
| Warehouses | “Used to store large quantities of products until they can be sold.” |
| Bar codes | “Production identification labels containing a unique set of vertical bars that can be read using computer scanning equipment” |
| Cost of goods sold | “The cost to product the product or buy it for resale.” |
| Gross profit margin | “The difference between the selling price and the cost of goods sold.” |
| Markdown | “Any amount by which the original selling price is reduced before an item is sold.” |
| Markup | “The amount added to the cost of a product to determine its selling price.” |
| Net profit | “The difference between the selling price and all costs and expenses of the business.” |
| Operating expenses | “The costs of operating a business.” |
| Selling price | “The actual price paid for a company’s products by the customer.” |
| Advertising | “All forms of paid promotion that deliver a message to many people at the same time.” |
| Advertising media | “The methods of delivering the promotional message to the intended audience.” |
| Buying motives | “The reasons people buy.” |
| Objections | “Concerns or complaints expressed by the customer.” |
| Personal selling | “Promotion through direct |
| Sales promotion | “Any promotional activities other than advertising and personal selling intended to motivate customers to buy.” |
| Cease and desist order | “Requires that a company stop using specific advertisements.” |
| Corrective advertising | “New advertising designed to change the false impression left by misleading information” |
| False advertising | “Advertising that is misleading in a material respect or in any way that could influence the customer’s purchase or use of the product.” |
| Full disclosure | “Providing all information necessary for consumers to make an informed decision.” |
| Self-service merchandising | “Customers select the products they wish |
| Substantiation | “Being able to prove all claims made about products and services in promotions.” |
