Glossary
80/20 rule. Majority of a business’s profits come from asset. Something of value that a business owns. (30)
a small number of customers; based on research assortment. Selection of goods that a retailer
that shows that 80 percent of the sales come from 20 carries. (28)
percent of the customers in many businesses. (16)
attitude. The way you look at the world and the way
A you respond to events that happen. (51)
ability. Knowledge to perform a task. (47) audience. Person or people to whom a message is
active listening. Listening in which the listener is sent; also called receiver. (34)
thinking about what is being said. (49) automation. Use of machines to perform tasks that
active reading. Reading in which the reader is were originally done by people. (24)
thinking about what he or she is reading. (49)
B
adaptation strategy. Making changes in product or B2B. Business selling to business. (4)
promotion or both to meet the target market’s culture,
B2C. Business selling to consumers. (4)
needs, and wants. (25)
balance of payments. Income from exports minus the
adding value. Adding a feature or service that makes
outgo from imports. (12)
a product meet more customer wants and needs. (3)
balance sheet. Financial record that shows a
advanced technology. Industrial and digital
company’s net worth. (30)
technologies. (6)
bank credit card. Credit extended by a bank, credit
advertisement. Single advertising message paid for by
union, or finance company; can be used at any
an identified sponsor; also called ad. (38)
business that accepts the card. (45)
advertising. Nonpersonal promotion paid for by an
banner ad. Rectangular ad that runs the width of a
identified sponsor. (36)
Web page; also refers to ads of other sizes that appear
advertising agency. Business that develops an ad on a Web page. (41)
or commercial, and then places it in the appropriate
behavioral segmentation. Segmenting a market based
media. (39)
on the way customers use a product or behave toward
advertising plan. Plan that specifies how the money a product. (16)
budgeted for advertising will be used. (39)
benchmarking. Comparing your company’s goods,
agenda. List of topics to be discussed, decisions to be marketing, and production processes with the pro-
made, or other goals for a meeting. (51) cesses of the leading companies in your market. (24)
agent. Intermediary who brings buyers and sellers benefit. Need-satisfying quality of a product. (22)
together; also called broker. (26)
Better Business Bureau (BBB). Organization that
approach. Second step of the approach stage of the promotes fair advertising and selling practices across
sales process; salesperson makes first contact with a all industries. (39)
potential customer. (43)
bid. Formal written proposal that lists all the goods
aptitude. Natural talent or natural ability to do and services that will be provided, their prices, and
something. (47) the timeline. (18)
artifact. Object or product used to communicate
information about oneself or one’s status. (35)
754 Glossary
body language. Communication through facial business-to-business sales (B2B sales). Sales made
expressions, gestures, body movements, and body from one business to another business; also called field
position in space. (35) sales, industrial sales, organizational sales. (42)
bottom line. Last line of an income statement; it buyer. Person who buys items for resale; also called
shows whether a business has made a profit or had professional buyer, retail buyer, merchandise manager. (18)
a loss. (30) buying motive. Reason that a consumer seeks a
brand. Mark or design placed on a product to product. (17)
distinguish it from other products and to identify the buying signals. Verbal or nonverbal signs that a
owner of the brand. (22) customer is ready to buy. (45)
brand loyalty. Situation in which the customer will buzz marketing. Promotion designed to look as
buy only a certain brand of a product. (22) though it is coming from an unbiased stranger or a
brand name. Part of a brand that consists of words, friend, instead of from a corporation. (37)
numbers, or letters that can be spoken. (22)
C
brand position. Image that a brand has in the mind of call center. Office equipped with a large number of
the customer. (22) telephones. (42)
break-even point. Point at which revenue from sales capital. Any manufactured product used to make
equals costs. (33) another product; includes machinery, buildings,
bricks-and-mortar business. Business that serves vehicles, and computers; also can refer to the money
customers from a building or store; also called used to buy capital. (6)
traditional business. (29) capital goods. Manufactured products used to make
broker. Intermediary who brings buyers and sellers final products. (6)
together; also called agent. (26) capital-intensive goods. Goods that require mainly
budget. Financial plan for a business. (30) machines for production. (24)
bulk-breaking. Process of separating a large quantity capitalism. Another term for market economy. (7)
of goods into smaller quantities for resale. (26) capitalist economy. Another term for market
business. General term for all the activities involved economy. (7)
in the development and exchange of products. Also career. Series of related jobs in the same career area or
used to refer to a specific person or group of people occupation. (48)
who are involved in the development and exchange
career and technical student organization (CTSO).
of products; also called firm, company, organization,
Organization for high school students interested in a
corporation, enterprise. (2)
career area such as marketing. (48)
business cycle. Alternating periods of expansion and
career ladder. Series of jobs organized in order of
contraction in the economy. (10)
education and experience requirements. (48)
business market. Customers who buy products
career plan. List of steps that will enable you to
for use in a business; also called industrial market,
achieve your career goal. (47)
organizational market, commercial market. (4)
carrier. Company that owns trucks, trains, planes, or
business opportunity. Chance for success provided by
ships used for transportation; also called transportation
the combination of a product idea and a market that is
company. (27)
willing and able to buy the product. (15)
cellular phone. Wireless, portable telephone that can
business plan. Written document that describes a
send and receive messages in most areas. (49)
business and how it will operate. (52)
census. Count of the people in a country made by the
business products. Products (goods, services,
government on a regular basis. (16)
and ideas) sold to businesses (or organizations or
governments) for business uses. (21) centrally planned economy. Economy in which
the national government makes all the economic
business social responsibility. Obligation to make
decisions; also called command economy. (7)
business decisions that consider the impact on society;
includes the requirement to reduce harmful impacts chain. Business that has more than one location, but
of business processes and to contribute to improving only one owner. (52)
society. (5) chamber of commerce. Group of businesses that get
together to promote business in their area. (20)
Glossary 755
channel member. Specific business that is part of the consumer. Member of the consumer market; customer
channel of distribution for a specific product. (26) who buys products for his or her own use. (4)
channel of distribution. Route a good takes from consumer economy. Another term for market economy
its original source to its final customer; also called because consumers have a great influence on this type
supply chain. (26) of economy through what they buy and how much
charge card. Type of credit extended by a store; looks they buy. (7)
like a credit card, but can be used only at the store that consumer market. Customers who buy products for
issued the card. (45) their own use. (4)
clarity. Ability of a message to be understood. (35) consumer price index (CPI). Measures the average
close. The moment when a customer agrees to buy a change in prices over time of goods and services
product; also the third stage in the selling process. (45) purchased by households. (9)
code of ethics. List of rules to help a person make consumer products. Products (goods, services, and
ethical decisions. (5) ideas) sold to customers for personal use. (21)
collaboration. Working with others to achieve a consumer sales. Sales to the final consumer, includes
common goal. (51) store and nonstore sales; also called retail sales. (42)
color scheme. Description of color combinations. (40) contact point. Instance when an employee and a
customer interact. (46)
color wheel. Standard arrangement of 12 colors in
a wheel that shows the relationships among the continuing professional education. Education for
colors. (40) people who have already completed their formal
schooling and training; also called professional
command economy. Economy in which the national
development. (48)
government makes all the economic decisions; also
called centrally planned economy. (7) contract. Written legal agreement. (27)
commercial. Advertising message sent by broadcast contraction. Period of economic slowdown. (10)
media. (38) cooperative education program. High school program
communication. An exchange of information. (34) that prepares students for an occupation through
a paid job and classes at school; also called co-op
communication process. Path a message follows. (34)
program. (48)
competition. Contest between two or more businesses
copy. Text that provides information and sells the
to get customers. (8)
product. (38)
competition grid. Chart used for recording
corporate brand. Brand that represents the whole
information about competitors. (19)
company. (22)
competitive advantage. Aspect of a product that is
corporation. Legal entity established for the purpose
better than the competitors’ products. (23)
of doing business. (2)
competitive edge. The special feature or aspect of a
correspondence course. Course in which the student
product that makes it different from and better than
and teacher communicate through the postal system
the others. (19)
or via the Internet. (48)
competitor. One of the businesses that compete for
counterfeit. Fake money. (11)
customers. (19)
counterfeiting. Process of making fake money with
computer-aided design (CAD). Use of computers for
the intent of using it as real money. (11)
designing goods. (24)
coupon. Printed piece of paper that indicates the
computer-aided manufacturing (CAM). Use of
product and the amount of price reduction when the
computers to control production processes. (24)
coupon is used. (36)
confidentiality. Ability to keep confidential
cover letter. Letter that accompanies your resume and
information private. (5)
expresses your interest in a job. (50)
conflict. Situation in which disagreements lead to
CPI. Consumer price index; measures the average
hostile behavior, such as shouting or fighting. (51)
change in prices over time of goods and services
consolidated shipping. Putting two or more purchased by households. (9)
companies’ orders in a truckload, train car, or
creativity. Ability to produce something new. (23)
shipping container. (27)
756 Glossary
credit. Payment arrangement that enables a customer developed country. Country that has a strong base of
to take possession of a product now, but pay for it industrial production, good infrastructure, and a high
later. (45) standard of living; also called industrialized country,
credit contract. Document that spells out the rights advanced economy. (12)
and responsibilities of the credit grantor and the credit developing country. Country that has little industry,
user; also called credit agreement. (45) poor infrastructure, and a low standard of living; also
cultural bias. Belief that a person’s own culture or called emerging market. (12)
ethnic group is the best; also called ethnocentrism. (14) direct competitors. Businesses that sell similar
culture. Ways of acting, thinking, and feeling that products. (19)
are characteristic of a specific group of people; may direct distribution. Channel of distribution with no
include language, food, clothing, religion, history, art, intermediaries. (26)
etiquette, and values. (14) direct-response campaign. Seller communicates
currency. Money in use in a country. (12) directly with the buyer and asks for an immediate
customer. Individual or group who buys products. (1) response, but uses some method other than face-to-
face selling, such as a TV shopping program. (37)
customer relationship management (CRM).
Gathering and using customer data to develop better discount. Reduction in price. (33)
communications with customers. (37) discount pricing. Reduction from the regular or list
customer satisfaction. Positive feeling a customer gets price of the product, used in B2B sales. (33)
when the product purchased meets or exceeds the discretionary income. Income left after taxes and after
customer’s expectations. (3) the necessities of life have been paid for. (16)
customer service mind-set. Attitude that customer discrimination. Unfair treatment of individuals based
satisfaction always comes first. (46) on prejudice. (14)
customer services. Actions done for customers to help display. Arrangement of merchandise designed to get
them buy or use the product and provide comfort and attention and thus promote sales. (40)
enjoyment during the buying experience. (46) disposable income. Income a person has available
customized strategy. Developing a totally new to spend (dispose of) after taxes have been taken
product to meet specific target market needs. (25) out. (16)
D distance learning. Method of education that uses
database. Computerized file of information. (20) technology so that students can take courses without
stepping into a classroom. (48)
debit card. Card that deducts the amount of purchase
immediately from your checking account. (45) distribution. Process of physically delivering goods
to customers. (1)
debt. Another term for liability. (30)
distribution plan. Plan for moving goods in the
decoding. Translation of a message into terms that the
best way. (27)
receiver can understand. (35)
diversity. Word used in business to refer to a group
demand. Quantity of a specific product that a buyer is
that includes people from two or more different
able and willing to buy at a certain price, usually at a
backgrounds. (5)
particular time and place. (8)
domestic trade. Trade that occurs within the borders
demographic changes. Changes over time in the
of a nation. (12)
number of people in a demographic category, such as
age or income. (14) dot-com. Business that conducts all of its sales and
most of its promotion online via a Web site. (29)
demographic information. Statistics (numbers) that
describe the characteristics of a population of people, downward spiral. Process that starts moving
such as age or income. (16) downward slowly, and then starts moving faster and
faster downward. (10)
demographic segmentation. Segmenting a
market based on demographic variables, that is, E
characteristics of a population of people. (16) e-commerce. Business activities conducted via the
depression. Economic slowdown that is very severe Internet; short for electronic commerce. (29)
and lasts a long time. (10) economic goods and services. Products that you buy
design. Purposeful arrangement of materials so that a to satisfy economic needs. (2)
certain effect is produced. (35)
Glossary 757
economic indicator. A measurement of the economy. (9) encoding. Turning the idea for the message into
economic inputs. Resources used to make products. (6) symbols that can be communicated, usually written or
spoken words. (35)
economic needs and wants. Needs and wants that
you can satisfy by buying something. (2) encryption. Process that converts data into a form
that can only be read by a person with an authorized
economic outputs. Products (goods, services, and
code. (29)
ideas) produced by an economic system. (6)
entrepreneur. Person who starts a new business. (52)
economic system. The system that a nation has
developed to turn its resources into products that entrepreneurship. The willingness and ability to start
satisfy needs. (6) a new business. (6)
economies of scale. Cost reductions per item resulting entry-level job. First job on a career ladder; requires
from producing or transporting large numbers of the least amount of education and experience. (48)
items at one time. (27) e-tailing. Selling products to consumers over the
effective communication. Communication that gets Internet; short for electronic retailing; also called online
the desired result. (34) retailing. (29)
effective promotion. Promotion that achieves its ethics. Rules for deciding the right behavior in a
goals. (36) situation. (5)
efficiency. Degree to which something is produced ethnic group. Group of people distinguished from
without waste of time or materials. (24) other groups based on country of origin, language,
and/or racial characteristics. (14)
elastic demand. Demand that changes with price. (32)
European Union (EU). Twenty-five European
electronic data interchange (EDI). The business-to-
countries that have joined together to create a
business exchange of data (information) by way of
supranational organization that works for peace and
computers using standard formats. (28)
prosperity in all the member nations. (12)
electronic funds transfer. National computer
exceptional customer service. Service that meets and
system that links banks and businesses; it works by
exceeds customers’ needs. (46)
transferring funds electronically from one account to
another. (45) exchange. To trade something of value for something
you want. (2)
electronic resume. Resume written to be searched by
a computer. (50) expansion. Period of economic growth. (10)
e-mail. Electronic document sent through an internal expenses. Money that goes out of the business to
computer system or over the Internet, short for pay for the things that a business buys. Two basic
electronic mail. (41) types of expenses are cost of goods and operating
expenses. (30)
embargo. Government order that prohibits trade. (13)
exports. Products that are sold (go out) to another
emergency. Unforeseen event that can cause harm to
country. (12)
people and property. (31)
express. Communicate personal feelings, entertain,
emergency action plan. Detailed plan that describes
and socialize. (34)
what to do in case of an emergency; also called
emergency response plan. (31) extensive decision making. Consumer buying
decision that involves a great deal of research and
emerging market. Developing country; because
planning. (17)
developing countries are trying to improve their
economies, they are often good markets for F
business. (12) facilitate. To make an action easier. (26)
emotion. Another word for feelings. (35) fad. Something that enjoys high popularity for a short
empathize. Show that you understand another amount of time and then disappears. (20)
person’s feelings. (44) feature. A physical characteristic of a tangible product
empathy. Awareness of another’s feelings and the or one of the tasks that will be done as part of an
ability to understand those feelings. (43) intangible service. (21)
employed. Refers to everyone who is working. (9) feature-benefit selling. Selling technique that
consists of translating product features into customer
employment trend. Direction of change in the number
benefits. (44)
of jobs in a particular career. (48)
758 Glossary
feedback. Response to a message; feedback is a geographic segmentation. Segmenting a market
message sent from the receiver back to the sender. (34) based on where customers live. (16)
final product. Consumer product, that is, a product giving notice. Notifying your supervisor that you
purchased by consumers. (6) intend to leave your job. (51)
finance. The function of business that includes all global economy. All the economic actions of all the
activities involving money. (2) countries and all the customers in the world. (13)
financial institution. Business whose product is a globalization. Process in which the economies of
service: handling money. (30) nations become interconnected and interdependent. (13)
financial planning. Process of setting financial goals global strategy. One marketing mix that is used with
and developing methods for reaching them. (30) minimal changes in all markets. (25)
financial services. Money-handling services that a goal. Something that you want to achieve. (47)
financial institution provides, including deposits and goal setting. Process of deciding what you want to
checking, loans, investments, and insurance. (30) achieve. (47)
fixture. Item designed to hold merchandise for display good. A physical item; something that you can touch.
and sale. (40) (1) Goods are tangible. (21)
focus group. Small group of people who discuss government. Consists of the organizations and
topics of interest to a researcher. (20) institutions that run a geographic area, such as a
foreign exchange rate. Cost of one currency in terms country, and includes federal, state, county, and local
of another currency. (12) governments. (4)
form utility. Type of utility added to a product when graphics. Visual part of an ad, such as photographs,
a business changes the form of something to make it illustrations, and color. (38)
more useful. (3) greeting approach. Type of sales approach; consists of
Four Ps. Product, price, place, and promotion. (1) a friendly welcome to your store or department. (43)
franchise. The right to do business using the brand gross domestic product (GDP). Total value of all final
and products of another business. (52) products produced in a country during a specific time
franchise agreement. Legal document that sets up a period; also called economic output. (9)
franchise. (52) growth rate of the economy. Rate of change of GDP
franchisee. Person who buys the right to use the for a specific time period. (9)
brand. (52) guarantee. Promise that a product has a certain
franchise fee. Money that the outside person pays quality or will provide satisfaction; this term is usually
the chain owner for the right to use the chain’s brand used in promotions. (21)
name and to sell the chain’s products. (52) H
franchisor. Person who owns the chain and the hazard. Situation that could result in injury or
brand. (52) damage. (31)
free enterprise. Another term for market economy. (7) headline. Words that grab the attention of the reader
free market economy. Another term for market in an advertisement. (38)
economy. (7) headset. Device connected to a telephone that enables
free trade zone. Group of countries that have reduced you to use the telephone hands-free. (49)
or eliminated trade barriers among themselves. (13) honesty. Quality of telling the truth, not stealing,
full-service presentation. Merchandise presentation in doing the work assigned to you, not wasting time,
which none of the items for sale are on the floor. (40) keeping accurate records, and respecting the property
of others. (5)
G
hypothesis. Statement that can be tested and proven
GDP. Gross domestic product; the total value of all
either true or false. (20)
final products produced in a country during a specific
time period; also called economic output. (9) I
generation. Group of people born during a particular idea. A concept, cause, issue, image, or philosophy
period of history. (16) that can be marketed. (1)
generic brand. Product that is not branded. (22) import license. Legal document that allows the
importer to import certain items in certain
quantities. (13)
Glossary 759
imports. Products that are bought (come in) from intangible. Characteristic of something that exists but
another country. (12) is not physical and cannot be touched. (21)
impulse purchase. Consumer buying decision made integrity. Quality of following ethical rules, even if
with no planning or research. (17) no one is around to enforce them; includes treating
income statement. Financial report that shows people fairly, applying rules consistently, and being
whether a business has made or lost money during a unbiased and unprejudiced. (5)
specific time period; also called profit and loss statement, interdependence. Situation in which countries rely on
P&L, statement of earnings. (30) each other for economic goods and services. (13)
independent business. Business that has only one interest. Cost of borrowing money; usually charged as
location and is not part of any other business. (52) a percentage of the money borrowed. (30)
index. A number that shows change in value, not the interior display. Type of display that is located inside
actual value itself. (9) a store. (40)
indirect distribution. Channel of distribution that intermediaries. Businesses between the original
uses one or more intermediaries. (26) source and the customer; also called resellers. (26)
industry publication. Magazine or newsletter that international trade. Trade between nations; also called
focuses on a specific industry; also called trade world trade, foreign trade. (12)
journal. (20) Internet. Computer-based communications network,
industry sales. All the sales in a product category. (25) short for interconnected networks. (29)
inelastic demand. Demand that is not affected by interpersonal skills. Group of skills that enable you to
price. (32) interact with others in a positive way. (51)
inflation. General rise in prices throughout the interstitial ad. Online ad that displays while the
economy. (9) viewer is waiting for a Web page to download. (41)
inflation rate. Rate of change in prices. (9) interview. Formal meeting between two or more
inform. Provide information and education. (34) people, during which questions are asked of one
person. (20)
information interview. Talking to someone to learn
about his or her career. (48) intrusive promotion. Any promotional message
that interrupts what the viewer is doing or that the
information utility. Type of utility added to a product
receiver did not request. (41)
when a business provides information about a
product to a customer. (3) inventory. Items held in storage. (24)
infrastructure. The transportation systems and inventory control. Process of keeping track of all
utilities necessary for a modern economy. (6) items held in storage. (24)
initiative. Self-motivation; ability to get a job done inventory planning. Deciding which goods to buy,
on your own, without someone constantly reminding when to buy them, and in what quantities; the goal is
you. (51) to satisfy customer demand while keeping inventory
costs low. (28)
inseparable. Characteristic of a service such that
production of the service cannot be separated from inventory shrinkage. Difference between the perpet-
use of the service. (21) ual inventory and the actual physical inventory. (28)
inside sales. Selling that is done from the seller’s J
place of business. (42) job. Regular position that a person goes to every
institution. Nonprofit corporation, such as a school, day, to perform tasks for pay for a specific business or
hospital, or charitable organization. (4) organization; also a specific task done by a
worker. (48)
institutional advertising. Advertising that is intended
to generate goodwill toward a company and to create a job application. Form that most jobs require you to
favorable image; type of institutional promotion. (38) fill out; has spaces for information about you, your
education, and your work experience. (50)
institutional promotion. Communication that focuses
on the image of the organization. (36) job lead. Information that leads to a job opening. (50)
insurance. Financial service used to protect job shadowing. Following a person while he or she
individuals and businesses against financial loss. (31) does a job. (48)
760 Glossary
just-in-time (JIT). Distribution strategy: materials logistics. General term for the handling of details
should not be delivered to the factory until the of any complex activity. When used in reference
moment they are needed for production; similarly, to distribution, it means the details involved in
finished goods should not be delivered to a retail store physically moving goods; also used as a synonym for
until the moment they are needed for sale. (28) physical distribution. (27)
L logo. Picture, design, or graphic image that is asso-
labor. Workers; the people who turn resources into ciated with a brand; can include the brand name. (22)
products; also called human resources. (6) long-term goal. Large goal that will take a relatively
labor-intensive goods. Goods that require mainly long time to achieve. (47)
workers for production. (24) M
laissez-faire. Policy of not interfering with the management. The function of business that includes
economy; a French term that means let them do as they all the activities required to plan, coordinate, and
please. (11) monitor a business. (2)
land. All the natural resources that a nation has. (6) manager. Worker who directs the work of others and
law of demand. When prices fall, demand will rise (in makes decisions. (48)
a constant environment). (8) manufacturer brand. Brand created by a manufacturer
law of diminishing marginal utility. As a consumer for its own products; also called national brand, regional
consumes more units of the same product, the brand. (22)
marginal utility (satisfaction) from each unit goes manufacturing. Large-scale production process;
down. (32) usually takes place in large factories equipped with
law of supply. When prices are high, supply will rise machines and run by many workers. (24)
(in a constant environment). (8) marginal utility. Additional satisfaction you get when
laws. A country’s rules for proper behavior. (5) you use an additional unit of the same product. (32)
lawsuit. Process of bringing a complaint to a court for market. Group of people who want a product and are
resolution. (31) able to buy it. (4)
layout. Arrangement of copy and art on a page. (38) market coverage. Number of stores a retailer chooses
to have in a specific geographic area. (26)
leader. Person who guides others to a goal. (51)
market demand. Sum of all the individual demands
leadership. Ability of a person to guide others to a
for a specific product, for a specific time period. (8)
goal. (51)
market diversity. Term used to describe a market
letterhead. Stationery that has the name and address
made of groups of people with different needs and
of the company printed at the top of the page. (49)
wants. (14)
letter of inquiry. Letter to an employer that expresses
market economy. Economy in which individuals
your interest in working for that company, highlights
answer the economic questions and market forces
your qualifications, and asks if there are any job
are allowed to operate; also called capitalism, capitalist
openings. (50)
economy, consumer economy, free enterprise, free market
liability. Money that the business owes to another economy, private enterprise. (7)
business, organization, government, or individual;
marketing. Dynamic activities that focus on the
also called debt. (30) Responsibility for actions and
customer to generate a profitable exchange. (1)
costs. (31)
marketing communication. Communication from an
limited decision making. Consumer buying decision
organization to its customers, potential customers,
that is made with some research and planning. (17)
and the public; promotion. (36)
limited liability. The owners are only responsible for
marketing concept. Approach to business that says
the amount of money that they invested when they
that the way to make a profit is to focus on customer
bought shares of the stock. (52)
satisfaction. (3)
list price. Established price of a product, as published
marketing mix. Plan of action for marketing a
(listed) in a catalog, on a price tag, or in a price list. (32)
product; it consists of the decisions made about each
loan. Money that has been borrowed with a promise of the Four Ps for that product—product, place, price,
to repay it. (30) and promotion. (1)
Glossary 761
marketing research. Gathering of information to make merchandise approach. Type of sales approach; you
marketing decisions. (20) start with a comment about the product. (43)
marketing strategy. The selection of a target market merchandise presentation. The way merchandise is
and the development of a marketing mix to meet the displayed for sale in a store. (40)
needs and wants of the target market. (4) message. Information that you want to
market price. Actual price you pay for a product, after communicate. (34)
any discounts or coupons. (32) mixed economy. Economy in which both the
market segment. Subgroup of a larger market; this government and individuals are involved in making
subgroup has similar wants and needs for a particular economic decisions. (7)
product. (4) moderate quality. The middle range of quality in
market segmentation. Process of dividing a large products; it usually combines good quality materials
market into smaller parts. (16) with moderate prices. (21)
market segment profile. Detailed description of the modified rebuy decision. Organizational buying
typical consumer in a market segment. (16) decision to buy a familiar product but to research
market share. One competitor’s percentage of the other vendors or slightly different products. (18)
total sales in a specific market. (19) money. A consistent item that people accept in
market share leaders. Companies with the largest exchange for goods or work. (2)
market shares. (19) money order. Legal document that pays a specific
market size. Total sales per year for a specific amount of money to a specific person or business. (45)
product. (19) monopoly. Exclusive control of a product by one
market supply. Sum of all the individual suppliers’ company. (19)
supply of a specific product, for a specific time motivate. To provide the internal push that results in
period. (8) action. (17)
mass communication. Communication that sends the motive. Internal push, based on needs, that causes a
same message to a large number of receivers. (34) person to act. (17)
mass market. All the customers for a type of product MSRP. Stands for manufacturer’s suggested retail price;
considered together. (4) the price that the manufacturer recommends. (32)
mass marketing. Development of only one marketing multi-channel retailing. Use of more than one type of
mix for a specific product. (15) retail outlet within one company. (29)
mass production. Making large numbers of identical multicultural society. Society consisting of people
products for sale to large numbers of customers. (24) from many different cultures; also called culturally
media. In advertising, the physical means of carrying diverse society. (14)
an advertising message, for example, newspapers, TV, N
and the Internet. (38) natural resources. Raw materials; examples include
media, the. The organizations and companies used soil, water, minerals, plants, animals, and climate. (6)
to communicate with the public; includes companies need. Something that is necessary for survival. (2)
that communicate via television and radio stations,
networking. Process of making connections with
wire services, newspapers, magazines, and the
people in the work world. (50)
Internet. (34)
net worth. Value of a company; also called owner’s
medium. Substance or technology that is used to carry
investment, owner’s equity. (30)
a message. (34)
new task decision. Organizational buying decision
memo. Brief message sent to someone within your
to buy a new product; this type of decision requires a
organization; short for memorandum. (49)
great deal of research and thought. (18)
mental ownership. During the sales process, the
noise. Things that interfere with the communication
attitude of the customer when he or she acts and
process; also called interference, distraction. (34)
speaks as if the product is already his or hers. (45)
nonpersonal promotion. Promotion that
merchandise. Goods to be sold directly to
communicates the same message to all potential
consumers. (28)
customers. (36)
762 Glossary
nonprice competition. Competition that is based on overselling. Promising more than the product or the
something other than price, such as product quality or business can deliver. (45)
customer service. (19)
P
nonprofit corporation. Legal entity, like a for-profit paraphrasing. Restating what someone said in
corporation; however, instead of profit, its main different words; one of the sales techniques to
goal is to achieve something to benefit society; also determine customer needs. (43)
called nonprofit, nonprofit organization, not-for-profit
parliamentary procedure. Process for holding a
organization. (2)
meeting so that the meeting is orderly and
nonsecure connection. Internet connection over democratic. (51)
which anyone can see any of the information. (29)
partnership. Business owned by a small number of
nonstore retailer. Business that sells directly to people, usually two or three. (2)
consumers through ways other than a retail store. (26)
peer pressure. Social influence that comes from the
nonverbal communication. Messages sent without people your age with whom you interact daily. (17)
words. (35)
per capita GDP. A nation’s GDP divided by the
O nation’s population; tells you how much GDP there is
offshore production. Manufacturing that is done in a for each person in the country. (9)
foreign country. (24) perishable. Characteristic of a product such that it
offshore sourcing. Buying items for company opera- cannot be stored for later use. (21)
tions from a company outside the United States. (24) permission promotion. Advertiser obtains permission
online. Condition of being connected to the Internet from each customer to send him or her promotional
or being available on the Internet. (29) messages. (41)
online media. Any form of advertising that is placed perpetual inventory. Consists of keeping a record
on the Internet. (38) (usually on computer) of the total number of each
online promotion. Promotion that occurs via the SKU in inventory, and then adding whenever new
Internet or the World Wide Web. (41) items are received and subtracting whenever items are
sold. (28)
operating expenses. Costs to keep a business
running. (52) personal promotion. Promotion in which the
marketer and the customer communicate in person,
opportunity cost. Value of the opportunity you did
and the marketer can immediately customize the
not choose. (6)
message; personal selling. (36)
optimism. Expectation that things will turn out
personal selling. Process of helping customers find
well. (51)
solutions to problems created by their needs and
option. A feature that can be added to a product at the wants; the salesperson and the customer communicate
customer’s request. (21) in person, over the telephone, or over the Internet in
order getting. Process of finding customers and then real time. (42)
influencing them to buy your product. (42) persuade. To try to change the behavior of the
order processing. Receiving and filling orders. (27) receiver. (34)
order taking. The recording of orders. (42) philanthropy. Actions that improve human welfare
organizational buyer. Person who buys products and spread goodwill. (5)
for a business; also called buyer, merchandise manager, physical distribution. Physical movement of goods in
professional buyer, purchaser, purchasing agent, retail the distribution channel; also called logistics. (27)
buyer. (18) physical inventory. Consists of actually going into the
out-of-frame ad. Animated ad that jumps around a storage and sales areas and counting every item. (28)
Web page. (41) place. Marketing activities involved in making
outside sales. Selling that takes place outside the products available to customers; includes
seller’s place of business; salesperson often goes to the distribution. (1)
customer’s home or place of business; includes trade place utility. Type of utility added to a product when
shows. (42) a business makes products available at convenient
outsourcing. Hiring an outside company to do specific places. (3)
work. (27) plan. List of steps that lead to accomplishment of a
goal; also called action plan. (47)
Glossary 763
pop-under ad. Online ad that hides “under” or private enterprise. Another term for market economy. (7)
“behind” a Web page; it appears when the viewer procrastination. Postponing doing something that
leaves the Web site. (41) should be done now. (51)
pop-up ad. Online ad that pops into view after a Web producer. Business that makes goods and services. (4)
page has appeared. (41)
product. Anything that can be bought or sold;
portfolio. Collection of items that show your includes goods, services, and ideas. (1)
accomplishments. (50)
product brand. Brand of a specific product, in contrast
positioning. Actions marketers take to create a certain to a corporate brand. (22)
image of a product in the minds of customers. (22)
product category. Group of similar products; like
possession utility. Type of utility added when a a product line but made by many companies; for
business makes it easier for a customer to acquire a example, running shoes is a product category. (25)
product. (3)
production. Any activity related to making a product
postsecondary. After high school. (48) (good, service, or idea). (2) The process of turning
potential customer. Person or business that may economic inputs into economic outputs. (6)
need the goods or services you offer; also called productivity. Amount of product a worker produces
prospect. (43) per hour (product/hour). (8)
preapproach. First step of the approach stage of the product life cycle. Stages that a product or a
sales process; consists of tasks that are performed product category goes through from its beginning to
before contact is made with a customer. (43) its end. (25)
prejudice. Hostility toward a group of people, often product line. Group of similar products, made by one
based on a negative stereotype. (14) company. (25)
premium. Item given to the customer for free or at product management. Developing strategies for a
a reduced price along with the purchase of a company’s product mix. (25)
product. (36)
product mix. All the types of products that a company
premium quality. The highest level of excellence in sells. For a retailer, the product mix is the variety of
products; it usually uses the highest quality materials products that the store carries. (25)
and has the highest price. (21)
product promotion. Marketing communication that
presell. To influence a customer positively toward focuses on the product and selling the product, in
a product or create demand for a product before the contrast to institutional promotion. (36)
customer actually enters a selling situation (such as a
profit. Money that a business has left after all the
retail store). (38)
expenses and costs of running the business are paid. (2)
presentation. Formal speech that presents information
profit motive. Drive to earn more profit. (8)
to one or more receivers. (49) Also, second stage in
sales process. (42) promotion. Process of telling people about the
product and the company that offers it. (1) Also,
price. Amount of money requested or exchanged for a
all communications from an organization to its
product. (1)
customers, potential customers, and the public;
price competition. Competing on the basis of price. (19) marketing communication. (36)
price discrimination. Situation in which a company promotional advertising. Advertising that focuses
plays favorites by charging lower prices to some on products; also called product advertising; part of
companies for the same products. (32) product promotion. (38)
price-fixing. Situation in which a group of competitors promotional campaign. A series of coordinated
gets together and sets (fixes) the price for a specific promotional activities designed to achieve a specific
product; they then all agree to sell that product for the goal. (37)
same price. (32)
promotional mix. Combination of promotional ele-
pricing objectives. Goals that tell what a marketer ments—personal selling, advertising, sales promotion,
wants to achieve through pricing. (33) and public relations—used in a promotion. (37)
primary data. Data collected for and about a specific prospect. Person or business that may need the goods
business. (20) or services you offer; also called potential customer. (43)
private brand. Brand owned by a reseller; also called prospecting. Searching for potential customers. (43)
store brand, distributor brand, dealer brand, private label
brand. (22)
764 Glossary
prosperity. Economic good times, when people are quota. Limit on the amount of a specific product that
doing well financially. (10) can be brought into a country. (13)
prototype. Working model of the actual product. (23) R
psychographic segmentation. Segmenting a rate of change. An indicator that tells you how much
market based on psychological characteristics of something changes over time; also called percent
customers. (16) change over time. (9)
psychological influences. Influences that come from rebate. Return of a portion of the money paid for a
within a person. (17) purchase. (36)
psychological pricing. Set of pricing techniques receiver. Person to whom a message is sent; also
used to create an image of a product and to entice called audience. (34)
customers to buy. (33) receiving. Actual exchange of goods between the
public good. A good or service that has the following vendor’s transporting agent and the retailer. (28)
aspects: it benefits everyone in the society; it is recession. Period of economic contraction. (10)
difficult to monitor the use of the good; it is difficult
recovery. Period after a recession during which the
to charge for the use; and there is usually no way to
economy is expanding. (10)
prevent use of the good whether the user pays for it or
not. Examples include roads, education, and national reference. Person who is willing to talk with
defense. (11) employers about your job qualifications and personal
qualities. (50)
publicity. Information about a company and its
products that appears in the media; however, the reference group. Group of people who influence a
company does not pay the media to carry the message consumer’s buying decisions. (17)
and therefore has no control over the information in relationship marketing. Approach to marketing that
the story. (36) focuses on building long-term relationships with
public relations. Promotional activities designed customers. (45)
to create goodwill between a company and the reseller. Business that buys finished products to resell
public. (36) at a profit. (4)
public service advertisement (PSA). Advertisement responsibility. Quality of being reliable, following
whose goal is to publicize information that will through on your promises, and performing tasks
contribute to human welfare. (5) assigned to you. (5)
pull strategy. Promotional efforts are focused on the resume. Written document that lists your
consumer. (37) qualifications for a job, including education and work
purchase order (PO). Document authorizing the experience. (50)
purchase and delivery of certain goods at specific retailer. Business that buys products to resell to final
prices and times. (27) consumers. (25)
purchaser. Person who buys goods and services retail sales. Sales to the final consumer; usually
for use within the company; also called purchasing refers to store sales but may include nonstore sales to
agent. (18) consumers; also called consumer sales. (42)
purchasing agent. Person who buys goods and service return on investment (ROI). Ratio that tells you how
for use within the company; also called purchaser. (18) much the company earned as a percentage of the
purchasing power. Amount of goods and services you investment it made to earn the money; ROI is often
can buy with a specific amount of money. (9) used to indicate the profitability of a company. (33)
push strategy. Promotional efforts are focused on revenue. Money that a business takes in for the
the intermediaries—wholesalers, distributors, and products it sells; also called revenues, income, sales,
retailers. (37) receipts. (30)
risk. Possibility of loss, damage, or injury. (31)
Q
quality. The level of excellence in something. (21) risk assessment. Process of analyzing a business for
possible risks. (31)
quality service. Service that meets customers’
needs and meets the standards for service set by the robotics. Equipment that can be programmed to
company. (46) automatically do mechanical tasks, with little or no
input from human workers. (24)
questionnaire. A series of questions used to get
information from people. (20)
Glossary 765
role. A set of responsibilities and expectations that go service mark. Same as a trademark, except that it
with an aspect of your life. (51) identifies and distinguishes the source of a service. (22)
routine buying decision. Consumer buying decision service quality. Ability of a particular service to satisfy
that is made quickly and without much thought. (17) a customer. (46)
S shipping. Process of transporting products. (27)
sales process. A series of steps that a salesperson shoplifter. Person, posing as a customer, who steals
goes through to help the customer make a satisfying displayed goods from a store. (31)
buying decision. (42) shoplifting. Stealing of merchandise from a store by a
sales promotion. Marketing activities designed person posing as a customer. (28)
to entice customers to buy a company’s products. short-term goal. Relatively small goal that is to be
Examples include coupons, contests, free samples, and achieved in the near future. (47)
gift-inside. (36)
signature. Words that identify the sponsor of
sales representatives. Salespeople in B2B sales, sales the ad. (38)
reps for short. (42)
site. Another term for location. (26)
sales support. People behind the scenes who help
situational influences. Influences that come from the
sales representatives. (42)
environment. (17)
saturated market. Market in which most of the
slogan. Phrase or sentence that summarizes some
potential customers who need, want, and can afford a
essential aspect of the product; also called tag line. (22)
product have bought it. (25)
social class. Ranking of people based on wealth,
scarcity. Condition in which there are not enough
education, ancestry, and power; also called
resources to meet needs. (6)
socioeconomic class. (14)
search engine. Software that searches the Web to find
social influences. Influences that come from the
Web sites on your topic. (29)
society in which you live. (17)
secondary data. Data collected for someone else or
social responsibility. Responsibility that each person
for nonmarketing reasons, but are available for you
has not to harm another person; includes the duty to
to use. (20)
help others and to improve society in general. (5)
secret shopper. Person hired by a company to visit its
sole proprietorship. Business owned by one
place of business and observe the quality of service;
person. (2)
also called mystery shopper. (20)
sourcing. Process of finding and obtaining items
secure connection. Internet connection that uses
needed for company operations. (24)
encryption; no one else can see your information
when you use a secure connection. (29) spam. E-mail that you did not ask for, that you do not
want, from sources unknown to you; junk e-mail. (41)
security. Actions taken to prevent crime and to protect
the safety of people and property. (31) specialty media. Useful or decorative items that carry
advertising messages; also called specialty advertising,
segmentation variable. Customer characteristic that is
promotional products. (38)
used to segment a market. (16)
sponsorship. Marketing activity in which the sponsor
self-assessment. Process of learning about
pays (in part or in whole) for an activity such as a
yourself. (47)
sporting event, cultural performance, or charity
self-service presentation. Merchandise presentation event. (37)
in which all of the merchandise for sale is on the
standard of living. How much the average person in a
selling floor. (40)
country has; measured by per capita GDP. (9)
selling points. Features and benefits of a product
start-up costs. Costs to start a new business. (52)
that will most likely convince a customer to buy the
product. (44) stereotype. Over-simplified view of a group of
people; often takes one characteristic, exaggerates it,
sender. Person who has a message to
and assumes that all members of a group have that
communicate. (34)
characteristic. (14)
service. Action that is done for you. (1) Services are
stocking. Moving merchandise from storage to the
intangible, inseparable, and perishable. (21)
sales area. (28)
service approach. Type of sales approach; starts with
stock-keeping unit (SKU). Smallest unit of an item for
the phrase “May I help you?” (43)
which sales and stock records are kept. (28)
766 Glossary
stock market. A marketplace where stocks are bought tech prep. Career preparation program that combines
and sold. (9) the last two years of high school with two years of
stockroom. Storage area within a store’s building, postsecondary education. (48)
usually in the back of the store. (28) technology. Use of tools to improve human life. (6)
stock turnover. Number of times the average telemarketing. Personal selling done over the
inventory on hand is sold and completely replaced telephone. (42)
in a specific time period, such as a year; also called terms of sale. Conditions governing a sale. (27)
inventory turns. (28)
test marketing. Introducing a new product to a small
storefront. Store exterior; it includes the store sign, portion of the target market, for example one city. (23)
display windows, entrances, outdoor lighting,
time utility. Type of utility added to a product when
landscaping, and the building itself. (40)
a business makes products available at the times that
store image. Idea of a store in people’s minds. (40) customers want them. (3)
store layout. Plan that shows how the space in a store title. Legal document that verifies the owner of a
will be used. (40) good. (26)
straight rebuy decision. Organizational buying tone. Feeling conveyed to the receiver from the words
decision that requires little research and thought. (18) you choose. (35)
streaming media. Technology that enables files of ton-mile. Movement of one ton of freight one
audio and video to be viewed while the files are being mile. (27)
transmitted. (41)
trade agreement. Document that establishes rules for
strong dollar. A dollar that is worth relatively more of trading between two or more nations. (13)
a certain foreign currency. (12)
trade allowance. Discount or money paid to the
suggestion selling. Technique of suggesting intermediary who buys the product. (36)
additional items to go with merchandise requested by
trade association. Organization of people in a specific
a customer. (44)
type of business. (20)
supplier. Business that sells to organizational buyers
trade barrier. Anything that interferes with trade. (13)
(businesses); also called vendor. (18)
trade deficit. Negative balance of payments; income
supply. Quantity of a specific product that a supplier
from exports minus income from imports is negative;
is willing to supply at a certain price. (8)
also called unfavorable balance of trade. (12)
supply chain. Route a good takes from its original
trademark. Another term for brand, and refers to the
source to its final customer; also called channel of
word, phrase, symbol, or design, or a combination of
distribution. (26)
words, phrases, symbols, and designs that identifies
surveillance. Process of closely observing what is and distinguishes the source of goods. (22)
going on, in order to prevent crimes. (31)
trade show. Exhibit of products of interest to a specific
survey. Organized study in which a researcher asks industry. (36)
questions of a number of people. (20)
trade surplus. Positive balance of payments; income
T from exports minus income from imports is positive;
tangible. Describes an object that exists physically and also called favorable balance of trade. (12)
can be touched. (21) trading bloc. Group of countries that join together to
target market. The specific group of customers whose trade as if they were one country. (13)
needs a company will focus on satisfying. (1) trading up. Technique of showing products of better
target marketing. Development of a unique marketing quality or with more features than the customer
mix for a market segment (target market). (15) requested. (44)
tariff. Tax on an imported product; also called duty, traditional economy. Economy in which the economic
customs duty, import duty. (13) questions are answered by the elders based on the
tax. Money collected by the government from its society’s traditions. (7)
citizens to pay for activities of the government. (11) transaction. Exchange of payment and product. (45)
team. Two or more people who work together to transition economy. Economy that is changing from
achieve a common goal. (51) command to a more market economy. (7)
transmission. Sending of a message. (35)
Glossary 767
transnational corporation. Corporation that has major visual merchandising. Physical presentation of
offices and manufacturing plants in several countries, merchandise and the design of a place of business for
annual sales in the billions of dollars, and a large the purpose of increasing sales. (40)
percentage of those sales from foreign countries. (13) voice mail. Technology for leaving a message when
transportation. Process of physically moving products no one is available to answer a telephone. (49)
from buyer to seller. (27)
W
trend. Direction of movement of consumer want. Something you desire but you could function
behavior. (20) without. (2)
trial close. Attempt to close a sale. (45) want ad. Written advertisement for a job, placed by
trial run. Trying out a service on a few selected the company that needs the worker. (50)
customers to make sure that everything runs warehouse. Building for storing large quantities of
smoothly. (23) products. (27)
typography. Visual, nonverbal aspect of words warranty. Written document stating the quality of a
printed on a page. (38) product and promising to correct specific problems
U that may occur. (21)
unemployed. Refers to those who do not have a job weak dollar. A dollar that is worth relatively less of a
but want one and are actively looking for one. (9) certain foreign currency. (12)
unemployment rate. Percent of the labor force that Web address. Unique set of letters, numbers, and
does not have a job but is looking for one. (9) symbols used to identify and locate a Web site. (29)
unit pricing. Displaying the price of an item based Web page. Smallest unit of information that can be
on a standard unit of measure, such as an ounce or a accessed on the Web. (29)
pound. (33) Web site. One or more Web pages from the same
universal product code (UPC). Type of bar code; it source connected by hyperlinks. Individuals,
consists of black bars and white spaces of varying companies, organizations, governments, and the
thicknesses, and a set of numbers; the standard UPC military can have Web sites. (29)
has 12 numbers. (28) wholesaler. Business that buys products from a
unlimited liability. The owner himself or herself producer, and then sells them to another business; also
is responsible for all the debts and actions of the called distributor. (26)
business. (52) window display. Type of display that appears in store
upward spiral. Process that starts moving upward windows that face the street or the walkways of a
slowly, and then increases its upward movement mall. (40)
faster and faster. (10) word-of-mouth publicity. Informal conversation
U.S. Small Business Administration (SBA). An people have about their experience with a business
agency of the U.S. government created by Congress in and its products. (17)
1953 to help America’s entrepreneurs form successful work habits. Basic, routine actions that you carry out
businesses. (52) every day at work. (51)
utility. Ability of a product to satisfy human wants work values. The aspects of work that are most
and needs. (3) important to you; areas in which to consider work
V values are work environment, activity level, control,
value. How much something is worth. (2) and rewards. (47)
value quality. An adequate level of quality in World Trade Organization (WTO). Organization
products; it combines the lowest price with the best whose purpose is to administer WTO trade
possible quality at that price. (21) agreements, provide a forum for trade negotiations,
handle trade disputes, and provide technical
vendor. Business that sells to organizational buyers
assistance and training to developing countries. (13)
(businesses); also called supplier. (18)
World Wide Web (Web). Network of information
viral marketing. Promotional message that is set up so
sources that is available over the Internet. (29)
that recipients of the message pass it on to others. (41)