glossary by thMXdAqM

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									Glossary


Accessories     short-lived capital items, including tools and equipment, used in
production or office activities (p. 273).
Accumulating            collecting products from many small producers (p. 334).
Addictive products      products to which consumers may be drawn against their will or
better judgment, such as tobacco, alcohol or gambling (p. 616).
Administered channel systems            channel members have an informal agreement to
cooperate with each other (p. 336).
Administered prices consciously set prices aimed at reaching the company’s objectives
(p. 395).
Adoption curve model            demonstrates when different groups accept new ideas (p.
317).
Adoption process        the steps individuals go through on the way to accepting or
rejecting a new product or service (p. 316).
Advertising     any paid form of non-personal presentation of ideas, goods, or services by
an identified sponsor (pp. 44 and 457).
Advertising agencies            specialists in planning and handling mass-promotion
details for organisations.
Advertising allowances          price reductions given to organisations in the channel to
encourage them to advertise or otherwise promote the supplier’s products locally (pp. 404
and 486).
Advertising managers            managers of their company’s mass communications efforts
in television, newspapers, magazines, and other media.
Agent intermediaries            wholesalers who do not take title to the products they sell
(p. 343).
AIDA model consists of four promotion tasks—to get attention, to hold interest, to
arouse desire, and to obtain action.
Alliance        a long-term agreement between two organisations explicitly aiming at a
common goal (pp. 231 and 337).



Glossary and index                             1
Allowances       reductions in price given to final customers or channel members for doing
something or accepting less of something (p. 403).
Association of Southeast Asian Nations (ASEAN)                countries in Asia aiming at
economic unity (p. 81).
Assorting        combining a variety of products to meet the needs of a target market (p.
334).
Attitude         a person’s point of view towards something which may be a product,
advertisement, salesperson, company or idea (p. 199).
Auction companies       agent intermediaries who provide a place where buyers and sellers
can come together and complete a transaction.
Auctions         determine the price potential customers are willing to pay—or not pay—
for a range of products (p. 434).
Auction sites are seller-driven and they are often used for items such as used equipment
and vehicles, surplus inventory and perishable products (p. 225).
Australian Consumer and Competition Commission (ACCC)                 an independent
statutory authority set up to enforce the Trade Practices Act 1974 and the Prices
Surveillance Act 1983 and other associated state or territory application legislation (p.
625).
Automatic vending       selling and delivering products through vending machines.
Average cost (AC) per unit the total cost divided by the related quantity (p. 424).
Average-cost pricing            adding a reasonable mark-up to the average cost of a
product (p. 424).
Average fixed cost (AFC) per unit the total fixed cost divided by the related quantity
(p. 424).
Average variable cost (AVC) per unit           the total variable cost divided by the related
quantity (p. 424).
Bait pricing     setting very low prices on some products to attract customers, but trying
to sell more expensive models or brands once customers are in the store (p. 409).
Balance sheet           an accounting statement that shows a company’s assets, liabilities,
and net worth.



Glossary and index                            2
Basic list prices        the prices that final customers or users are normally asked to pay
for products (p. 400).
Basic sales tasks        order-getting, order-taking and supporting.
Battle of the brands the competition between private labels and producers’ brands (p.
281).
Belief a person’s opinion about something, which may help shape a consumer’s
attitudes but does not necessarily involve any liking or disliking (p. 200).
Benchmarking             choosing a basis of comparison for evaluating how efficiently a
task is being implemented (p. 593).
Brand equity the value, to a company, of a brand’s overall position in the market (p.
279).
Brand familiarity        how well customers recognise and accept a company’s brand (p.
277).
Brand insistence         customers insist on a company’s branded product and are willing
to search for it (p. 278).
Brand name a word, letter, or a group of words or letters (p. 275).
Brand non-recognition            final customers do not recognise a brand even though
intermediaries may use the brand name for identification and inventory control (p. 278).
Brand preference         target customers usually choose a particular brand in preference to
other brands, perhaps because of habit or a favourable past experience (p. 278).
Brand recognition        customers remember the brand (p. 278).
Brand rejection          potential customers will not buy a brand unless its image is
changed (p. 278).
Branding         the use of a name, term, symbol or design, or a combination of these, to
identify a product (p. 275).
Break-even analysis an approach to determine whether the organisation will be able to
break even (that is, cover all its costs) with a particular price (p. 427).
Break-even point (BEP)           the sales quantity at which the organisation’s total cost will
just equal its total revenue (p. 427).




Glossary and index                             3
Breakthrough opportunities                opportunities that enable innovators to develop
marketing strategies that are difficult to imitate and are more likely to be profitable for a
long period of time (pp. 47 and 85).
Brokers          agent intermediaries who specialise in bringing buyers and sellers
together.
Bulk-breaking             dividing larger quantities into smaller quantities as products
approach the final market (p. 334).
Business and organisational customers             any buyers purchasing goods and services
for further production, resale or for other business purposes (p. 218).
Business product classes          product groups based on how organisational buyers think
about products, and how these products are used (p. 269).
Business products         products meant for use in producing other products (p. 269).
Buying centre             all the people who participate in, or influence, a purchase (p. 222).
Capital item a long-lasting product that can be used and must be depreciated over
several years (p. 272).
Cash discounts            reductions in price to encourage buyers to pay their accounts
quickly (p. 402).
Catalogue sites           websites that offer digital product catalogues, often for a number
of different sellers (p. 224).
Certified Practising Marketer (CPM)               a professional accreditation system which
recognises that a minimum body of knowledge must be acquired for managers to call
themselves marketers (p. 615).
Chain of supply           the complete set of organisations, facilities and logistic/s activities
that are involved in procuring materials, transforming them into intermediate or finished
products, and distributing them to customers (p. 368).
Channel captain           a manager who assists in directing the activities of an entire
channel and endeavours to avoid, or solve, channel conflicts (p. 335).
Channel of distribution           a series of organisations or individuals participating in the
flow of products from producer to final user or consumer (pp. 42 and 329).
Close the salesperson’s request for an order (p. 530).



Glossary and index                              4
Closer economic relationship (CER)               an agreement between Australia and New
Zealand to remove all tariffs and quotas between the two countries (p. 81).
Clustering techniques           search for similar patterns within sets of data (p. 164).
Collaboration hubs Web sites designed to help organisations work together, often
focusing on the needs of smaller organisations, usually within a vertical industry (p. 226).
Combined target market approach                  combining two or more submarkets into one
larger target market as a basis for one strategy (p. 155).
Combiners       companies that endeavour to increase the size of their target markets by
combining two or more segments (p. 155).
Commerce Act            New Zealand law aimed at ensuring that companies behave in a
competitive manner so that consumers are offered a genuine choice in terms of both price
and quality.
Communication process           a source trying to reach a receiver with a message (p. 452).
Community sites         Web sites that offer information and communications of interest to
specific industries (p. 224).
Company objectives shape the direction and operation of the whole business.
Comparative advertising         advertising that is more aggressive, and involves making
specific brand comparisons using actual product names.
Competitive advantage           exists when the marketing mix of the company is perceived
by the target market as superior to those of the company’s competitors (pp. 85 and 167).
Competitive advertising         advertising that attempts to develop selective demand for a
specific brand rather than a product category.
Competitive barriers            the conditions that may make it difficult, or even
impossible, for a company to compete in a market (p. 73).
Competitive bids        terms of sale offered by the different suppliers in response to the
purchase specifications posted by a buyer (p. 225).
Competitive rivals      a company’s closest competitors—offer similar products.
Competitive tenders or bids             terms of sale offered by different suppliers in
response to the buyer’s purchase specifications.




Glossary and index                            5
Competitor analysis a systematic approach for evaluating the strengths and weaknesses
of current or potential competitors’ marketing strategies (p. 73).
Complementary product pricing           setting prices for several products as a group (p.
439).
Component materials             items that have been processed, but require further
processing to become part of the final product (p. 274).
Component parts         finished items ready for assembly, and items nearly finished and
requiring only minor processing (p. 274).
Components processed expense items that become part of a finished product (p. 274).
Concept testing         obtaining reactions from customers about how well a new-product
idea matches their needs (p. 311).
Confidence intervals            the range on either side of an estimate that is likely to
contain the true value for the whole population (p. 128).
Conjoint analysis       a technique to assist marketing managers in determining how
much importance customers place on certain elements of the company’s marketing mix
(p. 165).
Consultative selling approach           a sales presentation in which the salesperson
develops a good understanding of the individual customer’s needs before trying to close
the sale (p. 531).
Consumer privacy        the consumer’s right that information shared with a vendor will
not be used in ways inconsistent with the consumer’s expectations (p. 623).
Consumer product classes        product groupings based on how consumers think about,
and shop for, products (p. 269).
Consumer products products meant for the final consumer (p. 269).
Consumer satisfaction index             a measure of overall consumer satisfaction based
on consumer interview data.
Consumerism             a social movement that seeks to increase the rights and power of
consumers (p. 81).
Containerisation        grouping individual items into an economical shipping quantity
and sealing them in protective containers for transit to the final destination (p. 374).



Glossary and index                            6
Context advertising involves monitoring the content an Internet surfer views and then
serving up related advertisements (p. 497).
Contract manufacturing           handing over production to others while retaining control
of the marketing function.
Contractual channel systems             channel members agree, by contract, to cooperate
with each other (p. 336).
Contribution-margin approach            a cost analysis approach in which all costs are not
allocated in all situations (p. 598).
Control           the feedback process that assists the marketing manager to learn: (1) how
ongoing plans and implementation are working, and (2) how to plan for the future (p.
580).
Control procedures provide feedback that leads managers to modify their marketing
strategies (p. 47).
Convenience products             products a consumer needs, but on which they are
unwilling to spend much shopping time or effort (p. 269).
Cooperative chains       retailer-sponsored groups, formed by independent retailers, to run
their own buying organisations and conduct joint promotion efforts.
Coordination of physical distribution activities       when an organisation and its
channel systems transporting, storage, and product-handling activities are considered as
one system, which aims to minimise the cost of distribution for a given customer service
level (p. 365).
Corporate or institutional advertising          advertising that aims to promote an
organisation’s image, reputation, or ideas, rather than a specific product (p. 484).
Corporate chain          a company that owns and manages several stores.
Corporate channel systems corporate ownership throughout the channel (p. 336).
Corporate social responsibility (CSR)           a company’s understanding that it has a
responsibility to act ethically and with integrity.
Cost of sales total value (at cost) of the sales during the period.
Counterfeiting           making unauthorised copies.




Glossary and index                             7
Countertrade               a special type of bartering in which products from one country are
traded for products from another country.
Coupon           after presentation of the coupon, the consumer is allowed a discount on
the list price (p. 403).
Credit sales     when the seller agrees to delay full payment for the purchase, with or
without adding interest to the price of the purchase (p. 402).
Cross-tabulation           shows the relationship between the answers to any two different
questions (p. 134).
Cues     products, signs, advertisements, and other stimuli in the environment (p. 199).
Culture          the complete set of beliefs, attitudes, and ways of doing things that belong
to a reasonably homogeneous set of people (p. 203).
Cumulative quantity discounts              reductions in price for larger purchases over a given
period, such as a year (p. 401).
Customer (user) needs              refer to the needs the product type is able to satisfy for the
customer (p. 152).
Customer relationship management (CRM)                     is an information industry term for
methodologies, software and, usually, Internet capabilities that help an enterprise manage
customer relationships in an organised way (p. 15).
Customer satisfaction              the extent to which a company fulfils a consumer’s needs,
desires and expectations.
Customer satisfaction index                a measure, based on regular interviews with a
number of consumers, indicating the extent to which a company fulfils a consumer’s
needs, desires, and expectations.
Customer service level             how rapidly and dependably an organisation can deliver
what customers require (p. 363).
Customer type              refers to the final consumer or user of a product type (p. 152).
Customer value             the difference between the benefits a customer sees from a market
offering and the costs of obtaining those benefits (p. 13).
Data mining the detection of relevant patterns in a database (p. 165).




Glossary and index                               8
Decision support system (DSS)           a computer program that makes it easy for a
marketing manager to access and use information as he or she makes decisions (p. 137).
Decoding        the receiver in the communication process translating the words or
symbols back into a message (p. 453).
Demand-backward pricing setting an acceptable final consumer price and working
backwards to calculate what a producer can charge (p. 437).
Demand curve            an if/then curve showing for a selected price the related quantity
that will be sold (p. 429).
Demand elasticity       the responsiveness of the quantity demanded to a change in price,
all other variables remaining unchanged.
Demographics            the description of people and populations (p. 181).
Deontology      an ethical perspective that emphasises the importance of methods and
intentions and, ultimately, judges individual acts by the nature of the act itself (p. 23).
Description (specification) buying buying by grade, brand or specification from a
written (or verbal) description of the product.
Determining dimensions          the dimensions that actually affect the customer’s purchase
of a specific product or brand in a product market (p. 160).
Differentiation         the marketing mix as distinct from that available from a
competitor.
Direct distribution     a producer deals directly with consumers or end users (p. 330).
Direct marketing        direct communication between a seller and an individual customer
using a promotion method other than face-to-face personal selling (p. 331).
Direct-response promotion or direct marketing           communications designed to prompt
immediate feedback by customers (p. 496).
Disaggregating          breaking down all possible needs into some generic markets and
broad product markets in which the company may be able to operate profitably (p. 153).
Discount stores         stores that sell soft goods (housewares, clothing and textiles) and
hard goods (car accessories, hardware and small appliances) at substantially reduced
prices, but offer little or no customer service.




Glossary and index                             9
Discounts       reductions from the list price given by a seller to channel members or
other customers who either give up some marketing function or provide that function
themselves (p. 401).
Discrepancy of assortment the difference between the product lines produced by a
typical producer and the assortment required by final users or consumers (p. 334).
Discrepancy of quantity        the difference between the quantity of product an
organisation can produce economically and the quantity final users or consumers want to
purchase (p. 333).
Discretionary income           what is left of disposable income after paying for
necessities (p. 192).
Disposable income       what is left of income after paying taxes (p. 192).
Distribution centre     a specialised type of warehouse designed to accelerate the flow of
goods and avoid unnecessary storage costs (p. 378).
Diversification strategy       moving into totally different lines of business—perhaps
entirely unfamiliar products, markets or even levels in the production-marketing system
(p. 86).
Drive a strong stimulus that encourages a need-reducing action/s (p. 196).
Dual distribution       when a producer uses several competing channels to reach the
same target market, perhaps using several intermediaries in addition to direct selling (p.
340).
Dumping         the international shipment of products sold below the costs of production,
or the selling of products in overseas markets at prices lower than those of equivalent
products in the home market (p. 431).
80/20 rule or Pareto rule      80 per cent of a company’s sales often come from only 20
per cent of its customers (p. 339).
Early adopters          the second group in the adoption curve to adopt a new idea; these
people are usually well respected by their peers and are often opinion leaders (p. 317).
Early majority          a group in the adoption curve that avoids risk and delays trying a
new idea or product until many early adopters try it and like it (p. 317).




Glossary and index                           10
Economic needs          is concerned with making the best use of time and money, from a
consumer’s perspective (p. 181).
Economies of scale      as a company produces larger numbers of a particular product, the
cost for each of these products goes down.
Electronic data interchange (EDI) an approach that converts information to a standard
format easily shared between different computer systems (p. 370).
Emergency products                products that are purchased immediately—when the need
is great.
Empowerment             giving employees the authority to correct a problem without first
having to check with management (p. 591).
Empty nesters           people whose children are grown and have left home, and who are
now able to spend their money in other ways (p. 193).
Encoding        the source in the communication process deciding what it wants to say
and translating it into words or symbols that will have the same meaning to the receiver
(p. 453).
Esteem needs personal needs for satisfaction, such as the need for fun, freedom,
relaxation, self-respect and status (p. 197).
Ethical decisions or dilemmas             decisions involving a judgment as to what is
morally right or wrong (p. 23).
Ethnocentrism or nationalism              an emphasis on a country’s interests above all else
(p. 79).
European Union (EU)               unification of the markets of European countries—to
remove economic and political barriers to trade between nations (p. 81).
Evaluative criteria     criteria the consumer uses to evaluate alternate products and reach
a final decision (p. 205).
Everyday low pricing              setting a low list price rather than relying on a high list
price that is changed frequently to incorporate various discounts or allowances (p. 403).
Exchange rate           the value of one country’s money in another’s currency.
Exchanges       operate similarly to the stock exchange by bringing buyers and sellers
together, usually anonymously, to agree on prices for commodities (p. 225).



Glossary and index                              11
Exclusive distribution           selling through only one intermediary in a particular
geographic area (p. 338).
Expense item a product, the total cost of which is treated as a business expense in the
year of purchase (p. 273).
Experience curve pricing         average-cost pricing using an estimate of future average
costs (p. 426).
Experimental method              a research approach in which researchers compare the
responses of two or more groups that are similar in all respects except on the
characteristic being tested (p. 132).
Export agents             manufacturers’ agents who specialise in export trade.
Exporting         selling some of what the company produces to overseas markets.
Extensive problem solving        the type of problem solving consumers use when a need is
completely new or particularly important to a consumer and much effort is made to
decide how to satisfy the need (p. 206).
Factor            a variable that measures the relationship that some other variable has with
the item being forecast (p. 582).
Factor model approach            forecasting sales by finding the relationship between the
company’s sales and some other factor (or factors) (p. 582).
Fad      an idea that is fashionable only with a certain group of enthusiasts (p. 302).
Fair Trade Practices Act         laws in Australia and New Zealand aiming to protect
consumers from misleading and unfair marketing practices (p. 625).
Family brand              a brand name that is used for several products (p. 280).
Farm products             items grown or produced by farmers, such as fruit, sugarcane,
poultry and milk (p. 274).
Fashion           the currently accepted or popular style (p. 301).
Fishbone diagram          a visual aid that helps organise cause and effect relationships for
‘things gone wrong’ (p. 590).
Fixed-cost (FC) contribution per unit            the selling price per unit minus the variable
cost per unit (p. 428).




Glossary and index                             12
Fixed-price policy      offering the same price to all customers who purchase products
under essentially the same conditions and in the same quantities (p. 395).
Flexible-price policy offering the same product and quantities to different customers at
different prices (p. 395).
Flow charts     show which marketing strategy activities must be executed in sequence
and which can be performed concurrently.
F.O.B.          a transportation term meaning free on board some vehicle at some place
(p. 404).
Focus group interview           an interview of six to 12 people in an informal group
setting (p. 126).
Food and Drug Acts legislation detailing rules governing such things as the permissible
additives to preserved food, the labelling of food, hygiene regulations for the preparation
of food and the testing of new drugs and medicines.
Form utility    provided when something tangible is produced (p. 16).
Franchise operation a franchisor develops a good marketing strategy, and franchisees
implement it in their own stores.
Freight absorption pricing absorbing freight cost so that an organisation’s delivered
price meets the nearest competitor’s price (p. 406).
Freight forwarders      transportation wholesalers who combine the small shipments of
many shippers into more economical shipping quantities (p. 375).
Full-cost approach      all costs are allocated to products, customers or other categories
(p. 598).
Full-line pricing       setting prices for a whole line of products (p. 439).
Functional accounts the categories to which various costs are charged to show the
purpose for which expenditures are made (p. 598).
Gap 1 the company does not fully understand the customer’s expectations of the product
or service required (p. 534).
Gap 2 managers or others have difficulty in translating their understanding of customer
expectations into product and service specifications (p. 534).




Glossary and index                           13
Gap 3 a discrepancy between customer-driven product and service standards and those
actually delivered by the company (p. 534).
Gap 4 a difference between what is promised by a company’s external communications
and what is actually delivered to the customer (p. 534).
Gap 5 the difference between a customer’s expectation and his or her perception of what
he or she actually receive (p. 534).
Gatekeepers people who control the flow of information within the organisation.
General merchandise wholesalers service wholesalers who carry a wide variety of
convenience and shopping products such as hardware, electrical supplies, plumbing
supplies, pharmaceuticals, cosmetics, and auto supplies.
Generic market          a market with broadly similar needs, with sellers offering various,
and often diverse, ways of satisfying those needs (p. 151).
Generic products        products that have no brand, other than identification of their
contents and the manufacturer or intermediary (p. 281).
Geographic area         where a company is competing, or thinking of competing, for
customers (p. 152).
Globalisation considering the whole world as a market (p. 621).
Global marketing        focusing on the similarities between markets around the world and
attempting to develop and implement common product, place and promotion strategies
and plans in those various markets (p. 58).
Good a tangible item, it can be seen and touched (p. 226).
Gross domestic product (GDP)           the total wealth produced domestically in an
economy in a given period (p. 185).
Gross margin (gross profit) the money left to cover the expenses of selling the products
and operating the business.
Gross national product (GNP)           the total wealth produced both domestically and
overseas by an economy in a given period (p. 185).
Gross sales     the total amount charged to all customers during some time period.
Heterogeneous shopping products shopping products the customer sees as different—
and wants to inspect for quality and suitability.



Glossary and index                            14
Homogeneous shopping products             shopping products the customer sees as basically
the same—and wants at the lowest price.
Horizontal cooperation            involves cooperation between several members at the same
level of a distribution channel, often occurs in relation to advertising (p. 486).
House brands or private labels            brands created by intermediaries (p. 281).
Iceberg principle          much good information is hidden in summary data.
Ideal market exposure             when a product is available widely enough to satisfy target
customers’ needs but not exceed them (p. 337).
Implementation             putting marketing plans into operation (pp. 48 and 580).
Implied warranties         go with the product and cannot be excluded, restricted or modified
(p. 284).
Import agents              manufacturers’ agents who specialise in import trade.
Impulse products           products that are bought quickly as unplanned purchases because
of a strongly felt need.
Indices           statistical combinations of several time series—used in an effort to find
some time series that will lead the series to be forecast (p. 583).
Indirect distribution             producers use intermediaries to reach consumers or end-
users (p. 331).
Individual brands          separate brand names used for each product (p. 280).
Individual product         a particular item within a product line (p. 268).
Inelastic demand           although the quantity demanded increases if the price is decreased,
the quantity demanded will not increase enough to avoid a decrease in total revenue.
Information standards             specify the information that must be contained on the label
of certain classes of goods.
Innovators        the first group to adopt a new idea (p. 317).
Inspection buying          inspecting every item.
Installations important capital items such as buildings, and major equipment that
usually requires extensive negotiation (p. 273).
Institutional or corporate advertising              advertising that aims to promote an
organisation’s image, reputation, or ideas, rather than a specific product (p. 484).



Glossary and index                              15
Integrated marketing communications            the intentional coordination of every
communication from a company to a target customer to convey a consistent and complete
message (p. 469).
Intelligent agent        a computer program that helps customers to solve his or her own
problems (p. 552).
Intensive distribution          selling a product through all responsible and suitable
wholesalers or retailers willing to stock and/or sell the product (p. 337).
Interest rate the time-related cost of borrowing money (p. 76).
Intermediary someone who specialises in trade rather than production.
Intermodal shipments            moving products using several different transport modes
and carriers during the journey (p. 374).
Internet        a system for linking computers around the world.
Intranet        a system linking computers within a company (p. 137).
Introductory offers      temporary price reductions to accelerate new products into a
market (p. 398).
Inventory       the quantity of goods being stored (p. 375).
Inventory turnover rate         the number of times average inventory is sold in a year (p.
423).
Involvement reflects the degree of risk associated with the purchase and consumption
of a product (p. 205).
Job description          a written statement of what a salesperson is expected to do (p.
525).
Joint venturing          in international marketing, a domestic company entering into a
long-term partnership with an overseas company.
Jury of executive opinion       forecasting by combining the opinions of experienced
executives, perhaps from marketing, production, finance, purchasing, and top
management (p. 583).
Just-in-time (JIT) delivery reliably delivering products just before the customer
requires them (pp. 229 and 369).




Glossary and index                            16
Laggards or non-adopters          prefer to continue past behaviours and are suspicious of
new ideas (p. 317).
Late majority            a group of adopters who are cautious about new ideas (p. 317).
Leader pricing           setting some very low prices, real bargains, to attract customers
into retail stores (p. 435).
Leading series           a time series that changes in the same direction but ahead of the
series to be forecast (p. 582).
Learning          a change in a person’s thought processes caused by prior experience (p.
199).
Licensed brand           a well-known brand that sellers pay a fee to use (p. 280).
Licensing         selling the right to use some process, trademark or patent for a fee or
royalty.
Lifestyle analysis or psychographics             the analysis of a person’s day-to-day pattern
of living as expressed in that person’s activities, interests, and opinions, sometimes
referred to as AIOs (p. 200).
Lifetime value of a customer             the value or profit a customer is worth to an
organisation over the lifetime of a relationship (p. 536).
Limited line or single-line stores       retailers that specialise in certain lines of related
products rather than a wide assortment.
Limited problem solving           when a consumer is willing devote some effort to deciding
on the best way to satisfy a need (p. 206).
Literacy levels          the proportion of a country’s population able to read and write (p.
186).
Logistics or physical distribution and handling (PD)             the transporting, storing and
handling of goods to match target customers’ needs with a organisation’s marketing
mix—both within individual organisations and along a channel of distribution (p. 363).
Long-run target return pricing           pricing to cover all costs and over the long run
achieve an average target return (p. 427).
Macro-marketing          a process that directs an economy’s flow of goods and services
from producers to consumers in a way that effectively matches supply and demand and



Glossary and index                             17
accomplishes the economic, legal, technological, political, environmental and social
objectives of that society (p. 7).
Management contracting           the seller only provides management skills, while others
own the production and distribution facilities.
Manufacturer brands              brands created by producers (p. 281).
Manufacturers’ agents            agent intermediaries who sell similar products for several
non-competing producers for a commission on what is actually sold.
Marginal analysis       evaluating the change in total revenue and total cost from selling
one more unit to find the most profitable price and quantity (p. 429).
Marginal cost (MC) the change in total cost that results from producing one more unit
(p. 430).
Marginal profit         the extra profit on the last unit sold (p. 430).
Marginal revenue (MR)            the change in total revenue that results from the sale of one
more unit of a product (p. 429).
Market          a group of potential customers with similar needs who are willing to
exchange something of value for various need-satisfying goods and/or services (p. 150).
Market development strategy             trying to increase sales by selling exisiting products
in new markets (p. 86).
Market growth           a stage of the product life cycle when industry sales are growing
quickly, but industry profits rise and then begin to fall (p. 297).
Market introduction              a stage of the product life cycle when sales are low as a
new idea is first introduced to a market (p. 296).
Market maturity         a stage of the product life cycle when industry sales level off and
competition increases (p. 297).
Market penetration strategy             trying to increase sales of a company’s present
products in its present markets, probably using a more aggressive marketing strategy (p.
85).
Market research         procedures to develop and analyse new information for assistance
in decision-making (p. 118).




Glossary and index                            18
Market research process        a five-step application of the scientific method that
includes (1) defining the problem, (2) analysing the situation, (3) getting problem-specific
data, (4) interpreting the data, and (5) solving the problem.
Market segment          a (relatively) homogeneous group of customers who are likely to
respond to a marketing mix in a similar way (p. 154).
Market segmentation            a two-step process of: (1) naming broad product markets
and (2) segmenting these broad product markets in order to select target markets and
develop suitable marketing mixes (p. 153).
Market-share price objective           seeking to gain some specific share (percentage) of
a market (p. 394).
Marketing audit         a systematic, critical, and unbiased review and appraisal of the
basic objectives and policies of the marketing function and of the organisation, methods,
procedures, and people employed to implement the policies (p. 601).
Marketing communications or promotion communicating information between sellers
and potential buyers and/or others in the channel in order to influence attitudes and
behaviour (p. 453).
Marketing company orientation          a time when, in addition to short-run marketing
planning, marketing people develop long- range plans—sometimes 10 or more years
ahead—and the whole company effort is guided by the marketing concept.
Marketing concept       the idea that an organisation aims all of its efforts, in a coordinated
and integrated manner, at simultaneously satisfying its customers and achieving its own
corporate goals (p. 10).
Marketing department orientation               a time when all marketing activities are
brought under the control of a single department to improve short-run policy planning and
overall efficiency.
Marketing ethics        the moral standards that guide marketing decisions and actions.
Marketing information system (MIS)             an organised way of continually collecting,
accessing and analysing information that marketing managers need to make better
decisions (p. 136).




Glossary and index                           19
Marketing management process             the process of (1) planning marketing activities, (2)
directing the implementation of the plans, and (3) controlling these plans.
Marketing mix or the four Ps             the controllable variables that the company puts
together to satisfy a target group (p. 37).
Marketing model         a statement of relationships among various marketing variables (p.
137).
Marketing orientation           endeavouring to carry out the marketing concept.
Marketing plan          a written statement of a marketing strategy and the time-related
details for carrying out the strategy (p. 47).
Marketing program blends all of a company’s marketing plans into an overall plan (p.
46).
Marketing strategy      specifies a target market and a related marketing mix (p. 37).
Marketing strategy planning              finding attractive opportunities and developing
profitable marketing strategies (pp. 37 and 85).
Mark-up         a given amount added to the cost of a product to obtain the selling price
(p. 421).
Mark-up chain           the sequence of mark-ups used by organisations at different levels
in the channel—determines the price structure for the whole channel (p. 421).
Mark-up percentage              the percentage of selling price that is added to the cost to
obtain the selling price.
Mass marketing          assumes that everyone is the same, and it considers everyone as a
potential customer (p. 38).
Merchandiser            a wholesaler that specialises in non-food products that are
displayed on its own stands—housewares, greeting cards and magazines.
Merchant wholesalers            wholesalers that take title to the products they sell (p. 342).
Message channel         the carrier of the message.
Micro-macro dilemma             what is good for some producers and consumers may not
be good for society as a whole.




Glossary and index                               20
Micro-marketing          the performance of activities that collectively seek to accomplish
an organisation’s objectives by anticipating customer needs and directing a flow of need-
satisfying goods and services from the producer to the customer or client (p. 8).
Misleading or deceptive conduct         anything that could give another party the wrong
impression or idea about the real situation (p. 625).
Misleading list prices          an illegal practice that suggests that the prices customers
are being asked to pay have been discounted (p. 407).
Mission statement        sets out the organisation’s basic purpose for being (p. 69).
Missionary salespeople          supporting salespeople who work for producers by calling
on their intermediaries and their customers.
Modified rebuy           the between process where some review of the buying situation is
required—though not as much as in new-task buying or as little as in straight rebuys (p.
223).
Monopolistic competition        a market situation where several different companies offer
marketing mixes that at least some customers view as different—each competitor
attempting to obtain control (a monopoly) in its ‘own’ target market (p. 72).
Monopoly          a situation in which one company completely controls a broad product
market (p. 72).
Multinational corporations (MNCs)               companies that have a direct investment in
several countries and run their businesses, depending on the choices available, from
anywhere in the world (p. 600).
Multiple buying influence       several people, perhaps even top management, share in
making a purchase decision (p. 221).
Multiple target market approach         segmenting the market and choosing two or more
segments, then treating each as a separate target market requiring a different marketing
mix (p. 155).
National Privacy Principles Australian privacy guidelines for companies dealing with
data collection, use and disclosure, data quality, data security, openness, access and
correction, identifiers, anonymity, trans-border data flows and sensitive information (p.
624).



Glossary and index                             21
Nationalism        an emphasis on a country’s interests above all else.
Natural products          items that occur in nature, such as honey, zinc, iron ore, oil and
coal (p. 274).
Needs the basic forces that motivate a person to do something (p. 196).
Negotiated contract buying agreeing to a contract that allows for changes in the
purchase arrangements.
Negotiated price          a price that is arrived at after bargaining between the buyer and
seller (p. 441).
Net     payment for the face value of the invoice that is due immediately (p. 402).
Net profit         what the company earns from its operations during a particular period.
Net sales          the actual sales dollars the company receives.
Network            the totality of organisations and stakeholders that can directly or indirectly
influence a focal dyadic relationship (p. 231).
New product a product that is new in any way for the company concerned (p. 307).
New-product development process a process that moves logically through five steps—
(1) idea generation, (2) screening, (3) idea evaluation, (4) development, and (5)
commercialisation (p. 308).
New-task buying           when an organisation has a new need and the buyer requires a
great deal of information to set product specifications, evaluate sources of supply and
establish an order procedure (p. 223).
Noise any distraction that reduces the effectiveness of the communication process (p.
453).
Nominal accounts          the categories to which various costs are charged in the normal
financial accounting cycle (p. 598).
Non-adopters or laggards          prefer to continue past behaviours and are suspicious of
new ideas (p. 317).
Non-cumulative quantity discounts                 reductions in price when a customer
purchases a larger quantity in a single order (p. 401).
Non-personal communication                communication that deals with large numbers of
customers at the same time (p. 44).



Glossary and index                              22
Non-price competition            aggressive action on one or more of the 4Ps, other than
price (p. 395).
North American Free Trade Agreement (NAFTA)                     lays out a plan to reshape the
rules of trade among the US, Canada, and Mexico (p. 81).
Objective-and-task method determines which promotional objectives are most
important, and which methods are most economical for achieving them (p. 594).
Observation researchers try to see or record what subjects do naturally (p. 131).
Odd-even pricing          setting prices that end in certain numbers (p. 436).
Office of the Federal Privacy Commissioner               an Australian office set up to handle
tax file numbers and to ensure companies follow the National Privacy Principle
guidelines (p. 623).
Open to buy a buyer has budgeted funds that can be spent during the current time
period (p. 234).
Operational decisions            short-run decisions to help implement strategies (p. 48).
Operational linkages             direct ties between the internal operations of the buyer and
seller organisations.
Opinion leader            a person who influences others (p. 203).
Order getters             salespeople concerned with establishing relationships with new
customers and obtaining further business with existing customers.
Order-getting             seeking possible buyers with a well-organised sales presentation
designed to sell a good, service or idea.
Order takers salespeople who maintain business with existing customers, handling
relatively routine sales situations.
Order-taking the routine completion of sales made regularly to the target customers.
Packaging          promoting, protecting and enhancing the product (p. 281).
Pareto chart a graph that shows the number of times a particular cause of a problem
occurs, with problem causes ordered from most frequent to least frequent (p. 590).
Pareto rule or 80/20 rule        80 per cent of a company’s sales often come from only 20
per cent of its customers (p. 339).




Glossary and index                             23
Penetration pricing policy        attempting to sell the whole market at one low price (p.
398).
Perception      how we gather and interpret information from the world around us (p.
198).
Perceptual mapping computer-generated graphs summarise product users’ judgments
about different brands and their ‘ideal’ brand—used for positioning decisions (p. 167).
Performance analysis              analysis that identifies exceptions or variations from
planned performance (p. 595).
Performance index          a number showing the relationship of one value to another (p.
596).
Personal needs             an individual’s need for personal satisfaction that is independent
of what others think or do.
Personal selling           direct spoken communication between sellers and potential
customers, usually in person but sometimes over the telephone (pp. 441 and 446).
Physical distribution (PD) or logistics           the transporting, storing and handling of
goods to match target customers’ needs with an organisation’s marketing mix—both
within individual organisations and along a channel of distribution (p. 363).
Physiological needs        biological needs such as the need for food, drink, rest and sex (p.
197).
Piggyback or roadrailer service           loading truck trailers, or flat-bed trailers carrying
containers, onto railcars to provide both speed and flexibility (p. 374).
Place making the right goods and services available in the right quantities and at the
right locations, when customers want them (p. 329).
Place utility   having the product available where the customer wants it (p. 16).
Planned obsolescence              releasing new products that the company plans to replace
with newer, improved versions in the near future (p. 307).
Pointcasting the display of an advertisement only to a person meeting certain
qualifications (p. 497).
Population      in marketing research, the total group you are interested in.
Portals         Web sites that act as a gateway to the Internet (p. 497).



Glossary and index                              24
Positioning      refers to how customers regard proposed and/or present brands in a
market (p. 167).
Possession utility       obtaining a good or service and having the right to use or consume
it (p. 16).
Prepared sales presentation              a memorised presentation that is not adapted to
each individual customer (p. 530).
Press releases           a tool used by public relations experts to ensure the company’s
point of view is represented (p. 504).
Prestige pricing         setting a relative high price to suggest high quality or high status
(p. 436).
Price    what is charged for ‘something’ of value (p. 391).
Price discrimination selling the same products (of similar grade and quality) to different
buyers at different prices, if this substantially lessens competition (p. 409).
Price escalation         increases in price due to the added costs incurred as a result of
exporting products from one country to another (p. 423).
Price fixing     competitors illegally getting together to raise or stabilise prices (p. 407).
Price leader     usually a seller who sets a price to maximise profits or to acheive a certain
target return or investment, and (without collusion) that other members of the industry
tend to follow (p. 431).
Price lining     setting a few price levels for a product line and then marking all items at
these prices (p. 436).
Price skimming policy            aims to sell to the top of a market or the top of the demand
curve at a high price before aiming at more price-sensitive customers (p. 397).
Primary data information specifically collected to solve a current problem (p. 123).
Primary demand           demand for the general product idea, not just the company’s own
brand.
Private labels or house brands           brands created by intermediaries (p. 281).
Private warehouses storage facilities owned or leased by companies for their own use
(p. 377).




Glossary and index                             25
Procurement hub sites           direct suppliers from one place to particular companies or
industries (p. 225).
Producers’ sales branches       warehouses at locations separate from the producer’s
factories—operating as wholesalers (p. 341).
Product advertising advertising that promotes the sale of a specific product (p. 484).
Product assortment or product mix              the set of all product lines and individual
products that a company sells (p. 268).
Product attributes      features or characteristics of a product or service (p. 264).
Product-bundle pricing          setting one price for a set of products (p. 440).
Product classes         all products fit into one of two broad groups—consumer products
or business products—based on the type of customer that will use them.
Product development strategy            aiming new or improved products at existing
markets (p. 86).
Product liability       the legal obligation of sellers to pay damages to individuals who
are injured by defective or unsafe products (p. 311).
Product life cycle      describes the stages a new product goes through from beginning to
end (p. 296).
Product line    a set of individual products that are closely related (p. 268).
Product managers or brand managers             manage specific products or brands, often
taking control of tasks formerly handled by advertising managers (p. 315).
Product market          a market with very similar needs, with sellers offering similar, or
substitute, products to satisfy those needs (p. 151).
Product-market name             describes a market segment in terms of product type,
customer needs, customer type and geographic area (p. 152).
Product mix or product assortment              the set of all product lines and individual
products that a company sells (p. 268).
Products        need-satisfying offerings of an organisation (p. 264).
Product type describes the goods and/or services that customers want (p. 152).
Production orientation          a time when a company focuses on production of a few
specific products—perhaps because few of these products are available in the market.



Glossary and index                           26
Professional services           specialised services which are important in supporting a
company’s operation (p. 274).
Profit maximisation objective           seeks to achieve as much profit as possible (p.
393).
Promotion or marketing communications communicating information between sellers
and potential buyers and/or others in the channel in order to influence attitudes and
behaviour (p. 453).
Prospecting     following all the leads in the target market to identify potential customers
(p. 529).
Psychographics (lifestyle analysis) the analysis of a person’s day-to-day pattern of
living as expressed in that person’s activities, interests and opinions, sometimes referred
to as AIOs (p. 200).
Psychological pricing           setting prices that have special appeal to target customers
(p. 435).
Public relations         communication aimed at improving the attitudes of various
identified groups towards the company and/or its product (p. 461).
Public warehouses        independent storage facilities (p. 377).
Publicity       any unpaid form of non-personal presentation of ideas, goods or services
(pp. 44 and 459).
Pull strategy using marketing communications focused on consumers; aiming at getting
them to ask intermediaries for the product (p. 465).
Purchasing officers      are the buying specialists for their employers (p. 220).
Purchasing specifications       a written, or electronic, description of what the company
wants to buy (p. 220).
Pure competition or oligopoly           a market situation where competitors offer very
similar products, and customers see different available products (and associated
marketing mixes) as close substitutes, forcing marketing managers to compete with lower
and lower prices, leading to shrinking profit margins (p. 72).




Glossary and index                            27
Push strategy           using normal marketing communications efforts—such as
personal selling, advertising and sales promotion—to help communicate the whole
marketing mix to members of the distribution channel (p. 464).
Qualify         establish which prospects deserve more of a personal selling effort (p.
529).
Qualifying dimensions            the dimensions that are relevant to the decision of whether
or not to include a customer type in a product market (p. 160).
Qualitative research seeks in-depth, open-ended responses, not yes or no answers (p.
126).
Quality         the ability of a product to satisfy a customer’s needs or requirements (p.
265).
Quantitative research            seeks structured responses that can be summarised
numerically—such as percentages, averages, frequencies or other statistics (p. 127).
Quantity discounts      discounts offered to encourage trade members and other customers
to buy in larger quantities (p. 401).
Quotas          act like restrictive tariffs, setting the specific quantities of products that
can move into, or out of, a country.
Rain check      when a product is out of stock during a sale and the seller offers
prospective buyers the same low price for new stock when it becomes available (p. 409).
Random sampling         each member of the research population has an equal chance of
being included in the sample (p. 128).
Raw materials           unprocessed items that are moved to the next production process
with little handling (p. 274).
Rebates         refunds paid to consumers after a purchase has been made (p. 403).
Receiver        the target of a message in the communication process (p. 453).
Reciprocity     trading sales for sales—that is, ‘if you buy from me, I’ll buy from you’ (p.
230).
Reference group         the people to whom an individual looks when forming attitudes
about a particular topic (p. 202).
Reference price         the price a consumer expects to pay (p. 202).



Glossary and index                            28
Regional or zone pricing        making an average freight charge to all buyers within a
specific geographic area (p. 405).
Regrouping activities           adjusting the quantities and/or assortments of products
handled at each level in a channel of distribution (p. 334).
Regularly unsought products             products that stay unsought but not unbought
forever.
Reinforcement           of the learning process occurs when the consumer’s response is
followed by satisfaction—strengthening the relationship between the cue and the response
(p. 199).
Relationship marketing          focusing on keeping, and improving, relationships with
current customers, rather than acquiring new customers (p. 536).
Relationship-specific adaptations       changes in a company’s product or procedures that
are unique to the need or capacities of a relationship partner.
Relativism      an ethical view that holds that no universal ethical rule exists because all
normative beliefs are a function of a culture or individual (p. 23).
Reliability     the extent to which results can be expected to hold when a test or survey
is repeated (p. 130).
Resale price maintenance        an illegal practice whereby a producer (or wholesaler)
specifies a minimum price below which goods may not be resold or advertised for resale
(p. 408).
Research proposal       a plan specifying what information is to be obtained and how (p.
125).
Response        an effort to satisfy a drive, which acts as a strong stimulus encouraging
action.
Response rate           the proportion of people contacted in a research sample who
complete the questionnaire (p. 130).
Retailing       all of the activities involved in selling to final consumers (p. 343).
Return on assets (ROA)          the ratio of net profit (after taxes) to the assets used to
make the net profit—multiplied by 100 to get rid of decimals.




Glossary and index                            29
Return on investment (ROI)              ratio of net profit (after taxes) to the investment
used to make the net profit—multiplied by 100 to get rid of decimals.
Reverse auctions        suppliers bid to supply goods and services that a company requires
and the lowest bid is accepted (p. 225).
Reverse channels        distribution channels used to retrieve products that customers no
longer want (p. 341).
Risk taking      bearing the uncertainties that are part of the marketing process.
Roadrailer or piggyback service         loading truck trailers, or flat-bed trailers carrying
containers, onto railcars to provide both speed and flexibility (p. 374).
Routine response behaviour              when consumers regularly select a particular way of
satisfying a need when it occurs (p. 206).
Rule for maximising profit the highest profit is earned at the price at which marginal
cost is just less than or equal to marginal revenue (p. 430).
Safety needs needs concerned with protection and physical wellbeing (p. 197).
Safety standards        specify certain standards that must be satisfied before goods can
be sold (p. 197).
Sale price       a temporary discount from the list price (p. 402).
Sales analysis          a detailed breakdown of an organisation’s sales records (p. 594).
Sales decline a stage of the product life cycle when new products replace the current
offerings (p. 298).
Sales forecast          an estimate of how much an industry or company hopes to sell to a
market segment (p. 580).
Sales growth objective          setting prices so that sales volumes increase (p. 394).
Sales orientation       a time when a company emphasises selling because of increased
competition.
Sales-oriented price objective          seeks some level of unit sales, dollar sales, or share
of market, without referring to profit (p. 394).
Sales presentation      a salesperson’s effort to make a sale or address a customer’s
problem (p. 529).




Glossary and index                            30
Sales promotion          a promotion activity, other than advertising, publicity, public
relations and personal selling, that stimulates interest, trial, or purchase from final
customers or others in the channel (pp. 44 and 459).
Sales quota       the specific sales or profit objective a salesperson is expected to achieve
(pp. 520 and 528).
Sales territory          a geographic area that is the responsibility of one or more
salespeople (p. 520).
Sample            a fraction of the relevant population (p. 128).
Sampling buying          inspecting only part of a potential purchase.
Scientific method        a decision-making approach that focuses on the objective and
orderly testing of ideas before they are accepted (p. 120).
Scrambled merchandising          retailers carrying any product lines that they believe they
can sell profitably (p. 349).
Screening         evaluating new ideas using product-market screening criteria (p. 309).
Search bots       specialised software packages used to identify where a product is
mentioned on the Web (p. 226).
Search engine            a computer program that helps a marketing manager find
information that is required (p. 137).
Seasonal discounts       discounts offered to encourage buyers to purchase earlier than
current demand requires (p. 401).
Secondary data           information previously collected, or published, for purposes
unrelated to those of the current project (p. 123).
Segmenters        aim at one or more homogeneous segments and try to develop a different
marketing mix for each segment (p. 156).
Segmenting        an aggregating process—clustering people with similar needs into a
market segment (p. 154).
Selective demand         demand for a company’s own brand rather than a product
category.
Selective distribution           selling through only those intermediaries willing to devote
special attention to the product (p. 337).



Glossary and index                             31
Self-actualisation needs           personal needs for accomplishment and self-fulfilment (p.
197).
Selling agents           agent intermediaries who handle the whole marketing function for.
Selling formula approach           a sales presentation that starts with a prepared presentation
outline, much like the prepared approach, and leads the customer through some logical
steps to a final close (p. 532).
Senior citizens          people over 65 years of age (p. 193).
Service           a deed performed by one party for another (p. 267).
Service mark the words, symbols or marks (that refer to a service offering) that are
legally registered for use by a single company (p. 275).
Shopping products        items that a customer feels are worth the time and effort needed to
make comparisons with competing products (p. 270).
Simple trade orientation           a time when families traded or sold their ‘surplus’ output
to local intermediaries who resold these goods to other consumers or distant
intermediaries.
Single-line (or general-line) wholesalers         service wholesalers who carry a narrow line
of merchandise—only food or apparel or certain types of industrial tools.
Single-line (or limited line) stores      retailers that specialise in certain lines of related
products rather than a wide assortment.
Single target market approach             segmenting the market and selecting a
homogeneous segment as the company’s target market (p. 155).
Situation analysis       an informal study of available information relating to each
problem area (p. 122).
Social class      a group of people who have approximately equal social position in the
eyes of others in the society (p. 202).
Socially responsible company              focuses on long-run consumer welfare by pursuing
desirable and salutary opportunities rather than deficient ones (p. 309).
Social needs      needs concerned with love, friendship, status and esteem—issues that
involve a person’s interaction with others (p. 197).




Glossary and index                              32
Social responsibility a company’s obligation to improve its positive effects and reduce
its negative effects on society.
Societal marketing orientation            the whole company effort is focused on developing
long-range plans to meet the long-term needs of consumers and the wider society (p. 10).
Sorting          separating products into grades and qualities desired by different target
markets (p. 334).
Source           the sender of a message (p. 453).
Specialty products        consumer products that the customer really wants and makes a
special effort to find (p. 270).
Specialty shop            a type of conventional limited-line retailer, usually small and with
a distinct personality.
Specialty wholesalers              service wholesalers who carry a very narrow range of
products—for example, health foods or Asian foods, or specific auto products.
Sponsorship a commercial agreement between two parties, sponsor and sponsee,
whereby the sponsor invests in kind or cash into the sponsee’ s activities for the purpose
of exploiting any benefits which such an association might create (p. 459).
Standard mark-up percentage               add the same percentage of the selling price to the
cost to obtain the selling price for all products (p. 421).
Staples          products that are bought often, routinely and without much thought.
Statistical packages user-friendly computer programs that analyse data (p. 134).
Status quo pricing objectives             aim to ‘stabilise prices’, ‘meet competition’ or even
‘avoid competition’ (p. 394).
Stocking allowances allowances given to an intermediary to obtain shelf space for a
product or product line (p. 404).
Storage          the marketing function of holding goods to provide time utility (p. 375).
Straight rebuy            a routine repurchase that may have been made many times before
(p. 223).
Strategic business unit (SBU)             an organisational unit (within a larger company)
that focuses its efforts on some product markets and is treated as a separate profit centre
(p. 92).



Glossary and index                             33
Strategic management planning            the managerial process of developing and
maintaining a match between an organisation’s resources and its market opportunities (p.
37).
Stratified sampling      selecting fixed proportions of each group of interest in the sample
(p. 128).
Styles appearances that come back over time as fashions and fads (p. 302).
Substitutes     products that offer the buyer a choice.
Supplies        expense items that do not become part of a finished product and buyers
order routinely (p. 274).
Supporting salespeople           salespeople who help the order-oriented salespeople—but
do not try to obtain orders themselves.
SWOT analysis            identifies and lists the company’s strengths and weaknesses and its
opportunities and threats (pp. 37 and 88).
Target market            a fairly homogeneous (similar) group of customers to whom a
company wishes to appeal (p. 37).
Target market potential          what a whole market segment might purchase (p. 580).
Target marketing         a marketing mix is tailored to fit some specific target customers
(p. 38).
Target return objective          sets a specific level of profit, usually stated as a percentage
of sales or capital investment (p. 392).
Target return pricing            pricing to earn a percentage return on investment or a
specific total dollar return (p. 427).
Tariffs         taxes on imported products.
Task method estimating the cost and budget for each activity based on the operation to
be performed (p. 594).
Task utility    provided when someone performs a task for someone else—for instance,
when a bank handles financial transactions (p. 16).
Team selling different sales representatives working together on a specific account (p.
520).




Glossary and index                             34
Technical specialists supporting salespeople who provide technical assistance to order-
oriented salespeople.
Technology        the application of science to convert the resources of an economy to
output (p. 77).
Teenagers         persons aged from 13 to 19 years.
Telemarketing            using the telephone to ‘call’ on customers or prospects (p. 521).
Teleology         assessing the moral worth of a behaviour by its consequences (p. 23).
Tendering         offering a specific price for each possible job, rather than setting a price
that applies for all customers (p. 440).
Time series       historical records of the fluctuations in economic variables (p. 582).
Time utility      having the product available when the customer wants it (p. 16).
Total cost (TC)          the sum of total fixed and total variable costs.
Total cost approach evaluating each possible physical distribution system and
identifying all the costs involved in each alternative (p. 366).
Total fixed cost (TFC)           the sum of those costs that are fixed in total, no matter
what quantity is produced (p. 424).
Total quality management (TQM) a management approach in which everyone in the
organisation is concerned about the quality of all activities within the organisation, in
order to better serve customer needs (p. 589).
Total variable cost (TVC)        the sum of those variable expenses that are closely related
to output, including expenses for parts, wages, packaging materials, outgoing freight and
sales commissions (p. 424).
Trade (functional) discount                a list price reduction given to channel members for
the task they undertake (p. 402).
Trade-in allowances price reductions given for used products when similar new
products are purchased (p. 404).
Trade Marks Act          laws protecting the rights of the owners of trademarks and brand
names.




Glossary and index                              35
Trade Practices Act Australian law aimed at ensuring that companies behave in a
competitive manner so that consumers are offered a genuine choice in terms of both price
and quality.
Trademark or brand mark those words, symbols or marks that are legally registered
for use by a single company (p. 275).
Traditional channel system a channel in which the various channel members make
little or no effort to cooperate with each other (p. 335).
Training        showing customer-contact employees how the rest of the business
operates, so they learn how their contribution fits in with the total effort—usually
includes role-playing related to the handling of requests and problems from different
customers (p. 591).
Transfer pricing        pricing of products sold between affiliated companies (such as
between parent and subsidiary, or between different subsidiaries) based in different
countries (p. 400).
Transportation          the marketing function of moving goods (p. 371).
Trend extension         extends past experience to predict sales in the future (p. 581).
Triple bottom line      a principle whereby companies should care about people, the
planet and profit (p. 622).
2/10, net 30    allows a two per cent discount off the face value of the invoice if the
invoice is paid within 10 days; otherwise, the full face value is due within 30 days.
Uniform delivered pricing        making an average freight charge to all buyers (p. 406).
Universal product code (UPC) or bar code                a product’s special identifying mark
that is readable by an electronic scanner (p. 283).
Unsought products       items of which potential customers have no knowledge or that
they do not yet want (p. 270).
Utility the power to satisfy human needs (p. 16).
Validity        the extent to which data measures what it is intended to measure (p. 129).
Value-in-use pricing setting prices that will capture some of what customers will save
by substituting the company’s product for the one currently being used (p. 434).




Glossary and index                            36
Value pricing           setting a fair price level for a marketing mix that provides the
target market with superior customer value (p. 406).
Vertical cooperation involves the cooperation of members from different levels of a
distribution channel—is common in relation to advertising decisions (p. 486).
Vertical integration acquiring companies at different levels of channel activity (p.
336).
Vertical marketing systems channel systems in which the entire channel focuses on the
same target market at the end of the channel (p. 336).
Voluntary chains        wholesaler-sponsored groups that work with independent retailers.
Wants           expression of needs that are learned during a person’s life and are,
therefore, often culturally defined (p. 196).
Warranty        explains what the seller promises about a product (p. 284).
Wholesalers     companies whose main function is providing wholesaling activities.
Wholesaling the activities of those organisations (or people) selling to retailers and
other merchants, and/or industrial, institutional and commercial users, but who do not sell
in large amounts to final consumers (p. 341).
Wholly-owned subsidiary           a separate business operation owned by a parent company.
World Trade Organization (WTO)                   the only international body dealing with the
rules of trade between nations.
Written or expressed warranty            additional warranty that increases the responsibility
of the company above that required by statutory laws (p. 284).
Zone or regional pricing          making an average freight charge to all buyers within a
specific geographic area (p. 405).




Glossary and index                              37
Index
Page references in bold are to material in breakout boxes


‘100% pure New Zealand’ campaign 488
3M 228
80/20 rule 339, 594


A
Abela, Richard 294–5
above-the-line activities 467
ABS 133, 232
accessories, in business markets 273–4
accounting
               in advertising agencies 471
               in Asia 97
               marketing and 18
accumulating products 334
action, evoking 493
action sports 289
activity-based accounting 18
adaptations, relationship-specific 230
administered channel systems 336–7
administered prices 395–406
adoption process 316–17, 461
adspend 483
advertising 457–9, 482–96
               allowances for 404, 486
               costs reduced by 616
               defined 44
               for fast cars 24



Glossary and index                           38
               in cinemas 326–7
               management 468
               outdoors 178–9
               sex appeal in 617–19
advertising agencies 469–73, 494–6
advertorials 494
ageing population 188–9
agent intermediaries 343
AIDA model 462–3, 491–3, 532
AIOs 200–1
Air New Zealand 569–71
air transportation 373–4
air travel
               Air New Zealand 569–71
               pricing wars 396, 399–400
               Singapore Airlines 514–15
Alcoa 395
Aldi 413
alliances 231, 337
allocating costs, see costs
allowances 400–4, 486
ambush marketing 503
Ansett 396
Antimos Sdn Bhd 558–60
ANZSIC codes 232
Apple Macintosh computers 627, 675–80
appliances 643–7
approved suppliers for government organisations 234
Arnott’s 303–4, 563–5
ASEAN 81



Glossary and index                         39
Asia 81, 97, 587
Association of Southeast Asian Nations 81
assorting products 334–5
ATAS 536
attention-getting 491
attitudes, consumer behaviour and 199–200
auction sites 225–6, 397, 434
auditing 56, 601, 613–17
Ausbuy 666–74
Ausflag 670
Aussie Home Loans 408
Austin Powers, SMS tie-in 107–10
Australasia, see Australia; New Zealand
Australia
boutique beers 313
closer economic relationship with NZ 81
coffee consumption in 659–66
coupons in 500
ethical companies preferred in 625
foreign ownership in 666–74
management training in 631–8
manufacturers in 231–2
over-research in 121
Pay TV in 584
population and income 188–95
privacy issues 623–4
rail transportation 372
Australia Post, surveys by 497
Australian and New Zealand Food Authority 631
Australian Bureau of Statistics 133, 232



Glossary and index                          40
Australian Communications Authority 409
Australian Competition and Consumer Commission 473
Automatic Telephone Answering Systems 536
average-cost pricing 424–7
Avon 524


B
baby boom and bust 188–9
bait pricing 409
Bangarra Dance Theatre 648–53
bankruptcies, increase in 392–3
banks 12, 186, 545–7
bar codes 234, 283–4
Bardot, pre-teen market 211
basic list prices 400
battle of the brands 281
BCG matrix 93
beer 313
behavioural dimensions 159, see also consumers, behaviour
               beliefs and 199–200
               business markets 222
               forecasting from 581–2
beliefs, consumer behaviour and 199–200
below-the-line activities 467
Benaud, Chris 360–1
benchmarking 593, see also performance measures
Bennett, Rebekah 548–51
Best Western International 136
Beta vs. VHS 627




Glossary and index                        41
beverages, see beer; bottled water; Coca-Cola; coffee consumption; ready to drink
beverages
BHP, public relations 504
Bi Lo 413
bicycle, marketing of 6
Billabong 14–15, 289
biocides 321
birth rate decline 188
Bison, re-formation of 101–3
Blundstone 26
Bolger, Anna 66–7
Bonds 294–5
book selling 388–9
Boston Consulting Group matrix 93
bots 226, see also search engines
bottled water 164
boutique beers 313
boutique hotels 170
Bowles Veal Glaze 555–7
boycotts of products 625
Boyes, Justin 388–9
brands 274–81, see also trademarks
                brand counterfeiting 285
                brand managers 315–16
break-even analysis 427–9
breakdowns of sales 595
breakthrough opportunities 47, 85
bribes 237
BRL Hardy 171
broad product markets 153–5



Glossary and index                         42
broadcast sponsorship 502–3
budgeting 56, 464–7, see also costs
bulk-breaking 334
bullying vs. motivation 597
business markets 24, 215–43
                 communications and 464–6
                 government organisations 234
                 products for 269, 272–4
                 purchasing specifications 220
                 rigging of specifications 237
                 segmentation 161–2
                 trends in 255–7
                 wardrobe manufacturers 245
Butler, Pat 326–7
buyer-seller relationships 227–31
buying centres 222
buying decisions 234
buying processes 222–4


C
Cadbury’s Yowies 44–5
Café Series appliances 643–7
Canterbury New Zealand 450–1
capital items 272
car rental 586
Carlton & United Breweries 63
cars, see motor vehicles
Cartier 438
Cascade Premium Light 63
cash discounts 402



Glossary and index                               43
cash rebates 403
Casuarina Shopping Center 143
catalogue sites 224–5
Cats (musical) 252–4
celebrities, amounts earned by 445
centralised purchasing 220–1
CER 81
Certified Practicing Marketer 615–16
CFCs 21
chains of supply 368–71
Chalmers, Bruce 639–71
Chan, Alvin 666–74
channels of distribution 42
               channel specialists 332–5
               cooperation in 350
               logistics within 366–8
               managing 325–53
               pricing policies and 400
Chemeq 321
children, marketing to 454, 654–8
China
               Internet use in 470
               negotiation styles 526
chloro fluorocarbons 21
cinemas
               advertising in 326–7
               digital 332
Citibank, international marketing 186
classes 269–74
Clemes, Michael 255–7



Glossary and index                         44
click-through rates 498
closed-ended questions 128
closer economic relationship 81
closing a sale 530
clustering, via information systems 164
Coca-Cola
               bottled water 164
               distribution channels 383
               Greenpeace campaigns against 4–5
               Harry Potter brand 277, 495
               in Japan 300
codes of ethics 24, 120
coffee consumption 659–66
Coles supermarkets 349
collaboration hubs 226
Coman, Keith 545–7
combined target market approach 155
combiners 155–6
Commerce Act (NZ), see legal issues
Commerce Commission (NZ) 473
commercialisation 314
commission approach, advertising agencies 472
communications 449–75
               marketing mix 479–511
               social impact of 454
               with the customer 42–4
community sites 224
company objectives 53–4, 68–71
               benefits from relationship marketing 536
               for advertising 483–4



Glossary and index                           45
               for communications 456–7
               for implementation 587–8
company-oriented pricing 439
Compaq 355
comparison shopping 348
compensation for sales staff, see costs
competition
               among grocers 413
               among non-profit organisations 21
               barriers to 73
               communications and 463–4
               competitive advantage 85, 167, 584–5
               competitive bids 225
               competitor analysis 73
               effect on marketing 13–14, 72–5
               freedom of 82–3
               non-price competition 394–5
               pricing for 398–400
complaints 535, 614, see also consumers, satisfaction of
complementary products 439–40, 486–8
complex channel systems 340–1
components, in business markets 274
computers, see also information systems; technological changes
               Apple Macintosh 627, 675–80
               computer-aided design 312
               direct marketing of PCs 355
               Netscape Navigator 299–301
               simulations in market research 133
               software distribution 605
concept testing 311–12



Glossary and index                           46
confidence intervals 128–9
conflict in advertising agencies 471
conjoint analysis 165
Construction Industry Trading Exchange 226
consultative selling approach 530–1
consumer credit, see credit sales
consumer products 269–71
consumerism 81–2
consumers
               adopting new products 316
               behaviour of 177–213, see also           behavioural dimensions
               benign neglect of 160
               brand benefits to 275
               communications with 454–6
               customer value 3–32
               databases of 164–5
               ethical responsibilities of 626
               expectations of 591
               mobility of 191
               needs 152, 196, 590–2
               prefer ethical companies 625
               privacy issues 497, 623–4
               protection for 83
               relationships with 14–15, 42–4, 228,     533–6
               retail selection for 344
               sales promotions to 500
               satisfaction of 10, 534–5, 589, 613–14
               super consumers 162
               targeting individuals 529
               types of 152



Glossary and index                           47
containerisation 374
content of marketing plan 51
context advertising 497
contracts
               contractual channel systems 336–7
               for government organisations 234–5
               in business markets 230
contribution-margin approach 598
control
               implementation and 577–607
               in marketing plan 56
               over sales staff 527
               sharing in business markets 230
convenience products 269–70
               e-commerce 418–19
               Internet retailing 345–9
cooperation
               channels of distribution 350
               in business markets 227
               in market research 119
coordination 365–8, 486–8
corporate advertising 484–5
corporate social responsibility, see social responsibility
corporate systems 336
costing the line 439
costs, see also budgeting
               environmental 375
               in marketing plans 593–4
               of advertising 472–3, 483
               of dissatisfied customers 589



Glossary and index                            48
               of market research 134
               of marketing 18, 596–9, 614–16
               of sales staff 527–9
               of storage 377–8
               of transportation 371
               packaging and 283
               savings through relationships 227
               trade-offs with 364–5
               types of 424–5
Council for Marketing and Opinion Research 121
country-to-country variations in competition 75
coupons 403, 500
cousins relationship 648–53
Creative Wardrobes 245–8
creativity 57, 471
credit sales 402
Croagh, Jacinta 178–9
cross-tabulation 134
cues, learning from 199
cultural variation 83–5, 203, 526
cumulative quantity discounts 400
customer reference prices 434–5
customer service 363–5, 533–6
customers, see business markets; consumers


D
Darwin, shopping centres 143
data collection 123–9, 165, see also research and development
databases of customers 164–5
Davies, Ivor 631–8



Glossary and index                         49
de facto households 191–2
Dean, David 255–7
debt financing 17
deceptive advertising 473
decision support systems 137
declining products 298, 305
decoding 453–4
Dell computers 355
demand curves 429–31
demand-oriented pricing 432–8
demographic dimensions 46–7, 159, 181–95
deontological ethics 23
desire, arousing 491–3
determining dimensions 160–1
development, see research and development
Dick Smith products 666–74
Dickheads matches 673
differentiation and positioning 282
digital cinemas 332
dilemmas, see ethical issues
dimensions used to segment markets 158–61
direct distribution 330–1
direct marketing 331, 355, 460, 496–8
direct-response promotion 459, 496–8
disaggregating markets 153–4
disclaimers 623–4
discount grocers 413
discounts 401
discrepancies of assortment 334
discrepancies of quantity 333–4



Glossary and index                      50
discretionary spending 162, 192
disposable income 192, see also discretionary spending
distribution centres 378
distribution channels, see channels of distribution
diversification, strategy for 86–8
diving expeditions 249–51
DMG Radio 480–1
domestic tourism 422
dual distribution systems 340
dumping 431
Dyson vacuum cleaners 31


E
e-commerce, see also Internet
               Avon 524
               convenience products 418–19
               e-markets 226
               in business markets 224–7, 255–7
               in China 470
               logistics and 364
               sales forces for 521–2
e-tailing, see e-commerce
early adopters 317
early majority 317
economic influences 75–7, 180–1
economic needs 180, 218–20, 344
economies of scale, in transportation 375
Efficient Consumer Response 363
egoist ethics 23
electronic data interchange 234, 370–1



Glossary and index                           51
Elegant Wardrobes 245–8
email campaigns 165
emotional needs 345
empowering staff 591
empty nesters 193
encoding 453–4
end users, see consumers
environment for marketing 68, 90–1
environmental issues 375, 621–3
Establishment Hotel, Sydney 170
esteem needs 197
ethical issues 22–5, 609–33, see also social responsibility
               affect consumer choices 625
               benign neglect 160
               in coffee marketing 663–4
               in market research 119–20
               in promotion 454
               international marketing 187
               new product development 307
               packaging 285
               penetration pricing 399
               personal selling 533
               product availability 371
ethnic dimensions 194–5, 196
ethnocentrism 79–81
European Union 81
evaluating marketing 56, 88–92, 601, 613–17
evaluative criteria in problem-solving 205
everyday low pricing 403
evolution of marketing 8–10



Glossary and index                           52
exchange rates 77, 400
exchanges (markets) 225
exclusive distribution 339
executive summary 52
expense items 273
experience curve pricing 426–7
experimental methods 132–3
expressed warranties 284
extensive problem solving 206


F
factor models, sales forecasting 582
fads 302
failure of products 308
false tastes 617
families, see also household composition
               decision-making 201–2
               family brands 280
               family life cycle 192
farm products 274
fashions 301–2
fast-moving consumer goods 270
feedback, see control
finance 17–18, 71, 471
First Training 631–8
fishbone diagrams 590
‘five forces’ framework 73
five-step approach to market research 121–35
fixed-cost contribution per unit 428
fixed costs 598



Glossary and index                         53
fixed-price policies 395
flexibility
                  advertising agencies 471–2
                  in pricing 395–7
                  in production 71
                  reduced through relationships 227
                  sales staff payment 528
flow charts 586–7
FMCGs 270
FOB pricing 404–5
focus group interviews 126–7
food marketing 14, 148–9
                  Bowles Veal Glaze 555–7
                  Dick Smith products 666–74
                  genetic modification 631
                  gourmet biscuits 563–5
Forbes, Keith 477
foreign ownership 666–74
form utility 16
Formula One racing 509
Forshaw, Stephen 514–15
four Ps, see marketing mix
Fox, Julius 450–1
Foxtel 584
Franklins 413
free on board pricing 404–5
free speech 617–19
freedom of competition 82–3
freight absorption pricing 406
full-cost approach 598



Glossary and index                             54
full-line pricing 439–40
full-service wholesalers 342–3
functional accounts vs. nominal accounts 598
functional discounts 402


G
gaps model 534–5
Garline, Francine 654–8
GDP 185
General Electric 91–2
generic markets 150–2
generic products 280, 281
genetically modified food 631
geographic areas 133, 152–3, 159, 404–6
gifts and bribes 237
global aspects of marketing 25, 58–9, 621, see also international marketing
               advertising agencies 494–6
               global economy 77
               population trends 181–7
               protests against 622
               sales promotions 502
Gloria Jean’s 663–4
glossary 683–99
GNP 185
goals, see company objectives
goods, see products
Gordon, Mary Ellen 675–80
government organisations, see also non-profit organisations
               as customers 234–6
               data from 133



Glossary and index                          55
               gifts and bribes to 237
               marketing and 19–21
               sources of data 124–5
grease money 237
Great Jelly Tug-of-war 672–3
green marketing 621–3, see also environmental issues
Greendale Harness Racing Company 639–71
Greengrocer 364
Greenpeace 4–5, 150
grocers, competition among 413
gross domestic product 185
gross margins 421
gross national product 185


H
Hallmark 150
Harley Davidson 48
Harry Potter brand 277, 495
HCF 175
health insurance 175
Heart Foundation 578–9
Heinz 504
Hertz 586
Hibiscus Shopping Centre 143
HIH Insurance 567–8
Hilton Hosiery 47
Himalayas caveman 672
Hingorani, Anurag 561–2
Holden Monaro 548–51
Holloway, Rowena 654–8



Glossary and index                        56
home loans 84, 167–9, 408
HomeScan 132
Homeshop 364
horizontal cooperation 486–8
hotels 170, 541
house brands 281
household composition 191–2
HP 355
HSBC Bank 509
Hugo Boss 116–17
human resources 18–19
hypothesis testing 308


I
icecream 46
idea evaluation 311–12
idea generation 309
ideal market exposure 337–8
Iku Wholefood 148–9
immigration, see ethnic dimensions
implementation of marketing plan 48, 484, 577–607
implied warranties 284
improving products 304–5
inbound tourism 422
incentives for sales staff 527–8
income distribution 185–6, 192–3
indices, sales forecasting 582–3
indirect distribution 331–2, 335–7, see also intermediaries
individual brands 280
individual products 268



Glossary and index                          57
inferior products 627
influences on marketing 235, 237
informal investigation 122–3
information sharing, in business markets 227
information systems 136–9, 370–1, see also computers; technological changes
                automatic re-ordering 234
                Automatic Telephone Answering            Systems 536
                in implementation 584–5
                in sales 522–4
                management of 115–45
                marketing and 19
                needs for 125
                segmentation via 164–5
                social changes due to 77–9
                spreadsheet analysis 581
                technological changes 585
informed opinions 122–3
innovation 317, 368, 588
input-output models 207
insistence on brands 278
installations, in business markets 273
institutional advertising, see corporate advertising
integration 10–11, 315, 467–8
intelligent agents 522
intensive distribution 337–8
interactive technologies 455
interest, holding 491
interest rates 76
intermediaries 341–51, see also retailers; wholesalers
                as customers 233–4



Glossary and index                           58
               communications with 464–5
               in advertising 486
               sales promotions to 501
intermodal transportation 374–5
internal marketing 19, 465
international marketing, see also global aspects of marketing
               advertising for 494–6
               business markets 220
               Citibank 186
               communications and 469
               cultural variation 75, 203
               evaluating opportunities 88
               intermediaries in 333
               market research for 134–5
               Papua New Guinea 552–4
               planning and implementation 598–9
               price escalation 423
               pricing policies 400
               product classes 271
               sales forces for 520–1
               sales promotions 502
               segmentation 162–3
               strategy planning 57–9
               to government organisations 236
Internet, see also e-commerce
               advertising on 490
               competitor information from 74–5
               dating online 561–2
               direct-response promotion 459, 496–8
               e-commerce sites 224–6



Glossary and index                           59
               effect on marketing 77–9
               interactive technologies 455–6
               monitoring activity 241
               publicity on 505
               retailing over 345–9
               secondary data from 123–4
               use in China 470
               Yahoo brand 279–80
interpretation of data 134–5
interpretation of messages 454
intra-company pricing 400
intranets, use in marketing 137
introduction fees 404
introduction for marketing plan 52–3
introductory offers 398
inventory 233–4, 375–8, 423, see also storage
involvement in problem-solving 205–6
ISO9000: 220
Israel, Ken 148–9


J
Japan
               Coca-Cola 300
               disposable nappy sales 73–4
               negotiation styles 526
JC Decaux 178–9
jewellery pricing 438
job descriptions, salespeople 525
Johnson, Sonia 216–17
Jordan, Michael 445



Glossary and index                           60
judgment 56, 583
Jump Rope for Heart 579
junk mail 497
jury of executive opinion 583
just-in-time delivery 229, 369–70


K
Keighran, Matthew 116–17
Kennedy, Paul 63
Kiwibank 545–7


L
laggards 317
late majority 317
Le Bon, Gustave 503
leader pricing 435
leading series 582
learning, consumer behaviour and 198–9
Lee, Ivy 504
legal issues
                communications and 473–4
                distribution arrangements 339–40
                effect on marketing 82–3
                ethics and 24
                genetic modification of food 631
                international advertising 494–6
                misleading or deceptive conduct 623–4
                pricing policies 406–9
                privacy 623–4
                product information on packaging 284



Glossary and index                          61
                protecting brands and trademarks 280
                reciprocity 231
                sales promotions 502
less-developed economies 187
liability issues 311
licensed brands 280
life cycles, see product life cycles
lifestyle analysis 200–1
lifetime value of a customer 536
limited problem solving 206
limited-service wholesalers 342–3
line fees 404
literacy levels 186–7
Ljaskevic, Sophia 578–9
logistics 359–85
Lonely Planet guides 66–7
long-run target return pricing 427
Lord of the Rings 488
loss situations 431
Low, David 252–4
loyalty schemes 132
M
M-Marketing 165
Macintosh computers 627, 675–80
macro-marketing 7–8, 616
magazines, advertising in 490
mail surveys 130–1
mailing lists 496
Malaysia, OPSM in 587
‘mall-intercepts’ 131



Glossary and index                         62
Malone, Danielle 252–4
Manage Life Cholesterol 578
management
               feedback improves 584
               of communications 468–9
               of quality control 593
               personal selling and 516
               role in marketing 36–7
               training for 631–8
manufacturer brands 281
manufacturers, as customers 231–2
marginal analysis 423–4, 429–31
Marian Street Theatre 566–8
mark-up pricing 420–7
market-oriented pricing 439
market research, see research and development
market segmentation, see segmentation
market stages, see product life cycles
marketing 6–27
               auditing 56, 601, 613–17
               concept focus 21
               environment 68, 90–1
               market development 86
               market share 394, 484
               marketing model 137
               markets defined 150
               penetration 85–6, 398
               program for 46, 56–7
marketing cost analysis, see costs
marketing information systems, see information systems



Glossary and index                        63
marketing managers, see management
marketing mix 37–45
               communications 479–511
               from target markets 46–7
               in marketing plan 54–5
marketing opportunities, see opportunities
marketing planning, see planning
marketing strategy planning, see strategy planning
Maslow’s hierarchy of needs 196
materialism 617
mature markets 501–2
maximising profit, see profit
McDonalds
               marketing changes 14
               McCafé 663–4
               social responsibility 625
McOmish, Margaret 249–51
media 471, 488–90
Media Key 636
Medlin, Chris 558–60
mega-agencies, see advertising agencies
Merchant, Gordon 289
merchant wholesalers 342–3
messages 454
micro-marketing 8, 614–16
Microsoft 104–6, 605
Mike Ball Dive Expeditions 249–51
MINI Cooper 272
Minogue, Kylie 445
MIS, see information systems



Glossary and index                           64
misleading list prices 407
mission statements 69, see also company objectives
mobile phones 107–10, 165
mobility of consumers 191
modified rebuys 223
Monaro 548–51
monopolies 72
Morgner, Helen 610–11
mosquito repellents 558–60
motel chains 136
motivation 196–8, 597
motor sports, sponsorship of 509
motor vehicles
                 ethics of advertising 24
                 Harley Davidson motorcycles 48
                 Holden Monaro 548–51
                 nostalgic cars 272
                 transportation by truck 373
                 Volvo 171
                 VW Beetle 272
Mount Franklin water 164
multi-product/service companies 92
multinational corporations 598–9, see also global aspects of marketing; international
marketing
multiple buying influence 221–2
multiple target market approach 155
music CDs, pirated 82
Music Industry Privacy Investigation 82


N



Glossary and index                             65
Nader, Ralph 81
NAFTA 81
naming brands 278–9
naming markets 151–3
national account sales forces 221
national economic forecast 581
National Privacy Principles 624
nationalism 79–81
natural products 274
needs 152, 196, 590–2
neglecting consumers 160
negotiated contracts, see contracts
negotiated pricing 441
Nestlé 46
net payment terms 402
Netscape Navigator 299–301
networks, in business markets 231
new product development 306–24
new-task buying 223
New Zealand
               Air New Zealand 569–71
               banking 545–7
               boutique beers 313
               closer economic relationship with   Australia 81
               coupons in 500
               ethical companies preferred 625
               foreign ownership 666–74
               management training 631–8
               manufacturers 231–2
               Pay TV 584



Glossary and index                         66
               population and income 188–95
               privacy issues 623–4
               rail transportation 372
               tourism 488
Nike, social responsibility 625
noise in communication 453
Nokia 262–3
nominal accounts vs. functional accounts 598
non-adopters 317
non-cumulative quantity discounts 400
non-personal communication 44
non-price competition 394–
non-profit organisations 19–21, 236
non-recognition of brands 278
North American Free Trade Association 81
nostalgic cars 272
Nova 969/100: 480–1


O
objective-and-task method 594
objectives, see company objectives
obligations, in business markets 230
observation in market research 131
odd-even pricing 436
Office of the Federal Privacy Commissioner 623–4
Olympics, Val Morgan and 326–7
online research, monitoring Internet activity 241
online shopping 225–6, 364, 397, 434
open-ended questions 128
open to buy 234



Glossary and index                          67
operational decisions 48
operational linkages, in business markets 228–30
ophthalmologists 587
opinion leaders 203
opportunities
evaluation grids 91–2
identifying 65–99
in logistics 378–9
OPSM 587
Optus 584
organisational culture, see also company objectives
organisational markets, see business markets
organisational structure
                marketing and 16–19
                new product development and 314–15
                personal selling and 520–5
                strategic business units 92–3
outbound tourism 422
outdoor advertising 178–9
overseas markets, see global aspects of marketing; international marketing


P
packaging 281–4, 285
Palakshappa, Nitha 635–8, 675–80
Panadol 395
panels, sales forecasting 583
Papua New Guinea 552–4
Pareto charts 590
Pareto rule 339, 594
patents 301



Glossary and index                              68
Patrick Corp 374
pay TV 490, 584
payment methods, sales staff 527
payment terms 402
PD, see logistics
Pearce, Glenn 101–3, 639–71
penetration pricing 398
Pepsi Max 316
perception and consumer behaviour 198–9
perceptual mapping 167–9
Peréc, Marie-José 477
performance-based payment, advertising agencies 473
performance measures
               analysis of 595–6
               benchmarking 593
               non-profit organisations 21
perishability of services 267–8
personal computers, direct marketing 355
personal interviews 131
personal selling 44, 461, 513–43, 533
petrol pricing 432
physical distribution strategy, see logistics
physiological needs 197
piggyback transportation 374
pink market 192
pipeline transportation 373
pirated music CDs 82
place 16, 42, 328–30, see also target markets
planned obsolescence 307
planning 46–56, see also strategy planning



Glossary and index                              69
               advertising 491–3
               evaluating whole plans 89–90
               for communications 464–9
               grids for 91–2
               importance of 580
point-casting 497–8
Pokémon 654–8
political environment 79–82
pop music, see rock and roll
population trends
               Australia and New Zealand 188–95
               global aspects 181–7
portals 497, see also Internet
portfolio management 93
positioning 167–71
possession utility 16
post-modern interpretivist models 207
pre-teen markets 211
preference for brands 278
prestige pricing 436
Previte, Josephine 548–51
Prices Surveillance Authority 409
pricing 44, 386–415, 417–47
primary data 123–9
privacy issues 497, 623–4
private data sources 125
private labels 281
private warehouses 377
problem-solving
               business markets 222–7



Glossary and index                        70
              consultative selling approach 530–1
              consumer behaviour and 204–6
Procter and Gamble 73–4, 383
procurement hub sites 225
producers’ sales branches 341–2
product-bundle pricing 440
product life cycles 296–306
              communications and 461
              in retailing 349–51
              influences on marketing 41
              pricing and 397–400
production
              capabilities for 71
              marketing and 16–17
              orientation towards 9, 150
products 40–1, 261–91
              advertising of 484
              availability of 371
              development of 86, 306–24
              inferior 627
              management 293–306, 315–16
              markets for 150–4
              mix 268
              positioning of 167–71
              types 152
              unethical 626–7
professional services 274
profit
              alternative strategies for 581
              as a corporate goal 11



Glossary and index                             71
               margins and 423–4, 430–1
               pricing objectives 392–4
               total profit approach 90
               versus risk 308
promotion 42–4, see also communications
prospecting for customers 529
PSSP needs model 196–7
psychographics 200–1
psychological influences, consumer behaviour 195–201
psychological pricing 435–6
public relations 461, 503–4, see also advertising agencies
public warehouses 377
publicity 44, 459–60, 504–5
pull marketing 465–6
Pump water 164
Punter’s Paradise 639–71
purchasing, see business markets
pure competition 72
Pureprofile 165
push marketing 464–5


Q
Qantas 396
qualifying dimensions 160
qualifying prospects 529
qualitative research 126–7
quality control 227, 264–5, 588–93
quantitative research 127–8
quantity discounts 400
Quatro Four Retail 418–19



Glossary and index                          72
questionnaires 128–31, 583


R
radio, advertising on 490
rail transportation 372–3
rainchecks 371, 409
RAMS Home Loans 84
random sampling 128
rationale for marketing plan 49–51
raw materials 274
ready to drink beverages 34–5
Really Useful Group, The 252–4
rebates 403
rebuys 223
receiver of communication 453
reciprocity, in business markets 230–1
recommended retail prices 395
recruitment of salespeople 525–6
Reebok 477
reference groups 202–3
reference prices 434–5
regional groupings 81
regional pricing 405
regional sales promotions 502
regrouping activities 334
reinforcement of learning 199
relationships 3–32
               in business markets 227–31
               relationship marketing 536, 648–53
               with consumers 42–4, 228, 533–6



Glossary and index                          73
relativistic ethics 23
reliability issues 130
remuneration, see costs
Renaissance Corporation Limited 675–80
repositioning 171
resale price maintenance 408–9
research and development 118–39
                advertising effectiveness 493–4
                excitement generated by 79
                Market Research Society of Australia      121
                new products from 314–15
resident buyers 234
resources 21, 71
response rates, mail surveys 130
retailers 233–4, 343–9
return-on-investment approach 90, 311, see also pricing
reverse auctions 225–6
reverse channels 340–1
reverse logistics 349
risk sharing 230
risk versus profit 308
road-railer services 374
road transportation 373
rock and roll
                Bardot 211
                for children 87
                marketing of 101–3
routine response behaviour 206
Royal Flying Doctor Service of Australia 360–1
rugby 450–1, 648–53



Glossary and index                           74
Rundle-Thiele, Sharyn 245–8
S
safety issues 311
safety needs 197
sale prices 402–3
sales
                  analysis of 594–5
                  declining 298, 305
                  forecasting 580–1
                  growth in 394
                  orientation towards 9, 394
                  promotion of 44, 459, 498–502
                  trade-offs with 364–5
sales marketing, see personal selling
sales staff
                  managers 468, 516
                  presentations by 529–31
                  quotas for 528
                  sales representatives 501
territories 520
                  sampling 128, 134
SBUs 92–3
scanner data 131–2
Scholastic New Media 38
scientific method 120–1
scrambled merchandising 349–51
screening criteria 89–91, 309–11
sea transportation, see ships
search engines 137, 226, see also Internet
seasonal discounts 400–1



Glossary and index                             75
secondary data 123–5
secrecy of marketing plan 55
segmentation 147–76
               in marketing plan 53
               international marketing 187
selective distribution 337–9
self-actualisation needs 197
self-regulation 473
selling formula approach 532
senior citizens 188–9, 193
sensitivity analysis 90–1
Sentient Research Ltd 255–7
Serbos, Voula 294–5
service providers 265–8, see also products
               Australia and New Zealand 232–3
               business marketing by 236–7
               morale of staff 19
               packaging by 282–3
               quality control 591–3
               selling approach 532–3
               service marks 275, see also trademarks
               warranties from 285
sex appeal in advertising 617–19
shared information 227
Sharma, Rajeev 143
Shell Australia 610–11
ships, transportation by 373
shopping products 270, 364
Simon Richards Group 460
simple trade orientation 9



Glossary and index                           76
simplicity, sales staff payment 528–9
simulations in market research 133
simultaneous production 267
Singapore Airlines 514–15
Singapore, OPSM in 587
single target market approach 155
situation analysis 52–3, 122–3
situational influences 203–4
SMART objectives 53
Smith, Dick 666–74
SMS marketing 107–10, 165
social responsibility 21–5
               consumers’ preference for 625
               in packaging 284
               new product development 309–11
social values 617
               class 202
               environment 83–5
               influences of 201–3
               needs from 197
societal marketing orientation 10
software distribution 605
sorting products 334
spamming 108
specialised media 490–1
specialised storage 377
speciality products 270
specifications, see purchasing specifications
spending patterns 192
sponsorship 459, 566–8, see also sports sponsorship



Glossary and index                          77
sports sponsorship 450–1, 502–3
Sportsgirl 150
standard mark-up percentage 421
Starbucks 663–4
statistical packages 134
status quo objectives 394–5
Stegemann, Nicole 104–6, 555–7, 643–7
stocking allowances 404
stockouts, preventing 349
storage 375–8
straight rebuys 223
strategic business units 92–3
strategic options in marketing plan 54
strategic pricing 390–2, 420
strategy planning 33–64, see also planning
                 broad product markets 155–8
                 for different markets 305
                 personal selling and 518
                 problem-solving and 207
                 product life cycle and 302–3
                 retailers 344–5
stratified sampling 128
structure of marketing plan 51–6
suburbanisation 189–90
Sunbeam appliances 643–7
super consumers 162
supplies, in business markets 274
supply chains 368–71
surveys 128–31, 583
Swinton, Robert 175



Glossary and index                              78
SWOT analysis 37, 52
Sydney Swans 648–53
syndicated research 133–4
synergies, creating 505


T
tactical elements, in marketing plan 54–5
tangibility 266–7
target markets 37–9
                  broad product markets 155
                  in marketing plan 53
                  marketing mix from 46–7
                  potential of 580–1
                  sales forces for 520
target return 392–3, 427
targeting of communications 455
task method 594
task utility 16
Tasker, Leah 4–5
team selling 520
technological changes 77–9, 619, see also computers; Internet
                  ATAS 536
                  in sales 522–4
                  inferior products and 627
                  information systems 585
                  interactive technologies 455
                  Pay TV 584
                  segmentation and 165–6
                  service providers 592
Teflon 305



Glossary and index                               79
telemarketing 497, 521
teleological ethics 23
telephone solicitation 497, 521
telephone surveys, in market research 131–2
Teletext 455
tendering 234, 440–1
test markets, sales forecasting 583
testing, see research and development
The Lord of the Rings 488
The Really Useful Group 252–4
The Wiggles 87
third world 187
Thomas, Keith 480–1
Thompson, Beverley 566–8, 648–53
Tiffany & Co 438
time series, sales forecasting 582
time utility 16
timing of implementation 586–7
tobacco products 617
Toll 374
ToNaingau, Isaiah 552–4
total cost approach 365–8, 424
total logistics management 374
total profit approach 90
total quality management 588–9
total variable cost 424
tourism 422, 488
trade, see business markets; intermediaries
trade discounts 402
trade-in allowances 404



Glossary and index                            80
trade magazines 464–5
Trade Marks Act 1953 (NZ) 280, see also legal issues
Trade Marks Act 1955 (Aust) 280, see also legal issues
trade orientation 9
Trade Practices Act (Aust), see also legal issues
trademarks 275
traditional channel systems 335
training 525–6, 591, 631–8
Trans-Tasman balloon flight 671–2
transfer pricing 400
transportation 371–5
trend extension 581–2
triple bottom line principle 622–3
trucks, transportation by 373
Two Dogs International 34–5




U
uniform delivered pricing 406
universal product codes 234, 283–4
unsought products 270
UPCs 234, 283–4
urbanisation 189–90
users, see consumers
utilitarianism 23
utility 16


V
vacuum cleaners 31
Val Morgan 326–7



Glossary and index                          81
validity issues 129
value pricing 406, 434
variability of services 268
vendor analysis 222
vertical cooperation 486
vertical integration 336
vertical marketing systems 335–7
VHS vs. Beta 627
Video Arts 631–8
videos
               management training via 631–8
               VHS vs Beta 627
               video-disk players 302–3
               video publicity releases 454
Virgin Blue 396
Vodafone 216–17
Volvo 171
VW Beetle 272




W
W Hotel 541
Wakelin, Dawn 34–5
wants 196, 198
wardrobe manufacturers 245–8
warehouses 377
warranties 284–5
washing machines 31
water, bottled 164
Web, see e-commerce; Internet



Glossary and index                            82
Wegrzyn, John 418–19
Whitcoulls 388–9
wholesalers 233–4, 341–3, 350
Wiggles, The 87
William Buck 97
Wilson, Anthony 262–3
Wishlist 364
women, changing role of 84–5
Woolworths 364
Workplace Bullying Taskforce 597
World Trade Organisation 622
World Wide Web, see e-commerce; Internet
written warranties 284


x
Xbox 104–6


Y
Yahoo 279–80
Yowies 44–5


z
zone pricing 405




Glossary and index                     83

								
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