Marketing Definitions (C-D)
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Call - a visit to a client or prospective buyer by a sales representative to gather information, make a sales presentation, secure an order, etc.

Call Planning - the arrangement of a sales representative's visits to buyers into an orderly sequence, the setting of objectives, and the formulation of strategies for each call.

Call Report - a written record of sales calls made by a representative for submission to a supervisor. 

Call Back Approach - making a second or subsequent attempt to sell to a particular buyer, usually presenting the product from an entirely new angle. See Call.

Cannibalization - the loss of sales of an existing product to a new offering in the product line. 

Capital Items - long-lived business assets (buildings, plant and equipment, etc) of a firm.

Captive Product - a product made specifically to be used with another, such as a refill with a ball-point pen, a blade with a razor, a battery with a torch, etc.

Carrying Costs - costs associated with maintaining inventory, such as financing, storage, insurance and obsolescence.

Cartel - a group of firms (or nations) attempting to act as a monopoly to control the market price.

Cash Cows - products or strategic business units within the organization's mix which are characterized by high market share and low market growth; Cash Cows produce the revenue required to develop and support less successful or newer products. 

Cash Discount - a reduction in price offered to a buyer in return for prompt settlement of account.

Cash Flow - the money required by a company to meet expenses in a given period.

Cash Rebate - money refunded to customers who buy merchandise from retailers within a specified time; the rebate allows dealers to clear inventories without cutting list price. 

Catalogue Marketing - a form of direct marketing in which customers order from catalogues which are sent to them by mail; the ordered goods are shipped directly to them.

Catalogue Retailer - retailers who mail catalogues to their customers and maintain showrooms where samples of the products for sale are displayed; orders are filled from back-room warehouses. 

Category Manager - an individual responsible for the marketing strategies of all the brands in a product line; also referred to as a Product Line Manager.

Celebrity Testimonials - advertisements featuring endorsements of products by well-known personalities from the field of entertainment, sport, politics, etc.

Census - the collection of data from all possible sources in a population.

Centre-of-Influence Method - a prospecting method based on referrals; a salesperson uses influential people (bankers, solicitors, consultants, etc) to obtain leads to potential buyers. 

Chain Store - a group of retail stores, centrally owned and managed, generally carrying the same kind of merchandise.

Channel Captain - a member of a marketing channel assuming a leadership role in organizing the system in order to lessen conflict, achieve economies of scale and maximize business impact. 

Channel Conflict - discord among members in a marketing channel. 

Channel Flows - the flow of physical goods and services, title, promotion, information and payment along a channel of distribution. 

Channel Length - the number of levels of marketing intermediaries used in the channel of distribution. 

Channel Power - the circumstances - economic or social - that allow one channel member to control another. 

Channel Strategy - decision-making related to the selection of the most appropriate method of controlling the flow of goods or services from producer to end-user.

Classified Advertising - print media advertising in which similar goods and services are grouped together in categories under appropriate headings.

Close -the critical stage in the selling process when the salesperson attempts to obtain the buyer's commitment to the purchase.

Closed Promotion - a sales promotion which is available only to a specific, high-potential target; for example, a bank might wish to target graduating university students and send coupons to them by mail. 

Closed Territory - an exclusive territory assigned to a reseller by a manufacturer; the reseller is required to sell only to customers within the territory. 

Closed-End Question - a question which allows a respondent to choose an answer from a given list. 

Closing - the act of gaining a commitment to purchase from a buyer; getting an order.

Closing Skill - the ability of a salesperson to obtain the buyer's commitment to the purchase.

Closing Techniques - methods employed by a salesperson when asking for an order and aimed at obtaining a favourable response from a buyer.

Cluster Analysis - a multivariate statistical technique used to identify entities with similar characteristics from those without them.

Cluster Sample - a form of probability sample where respondents are drawn from a random sample of mutually exclusive groups (usually geographic areas) within a total population; also called an area sample. 

Clutter - All non-programming time on radio and TV; this includes time given to advertising commercials, station or channel promotions, station or channel identifications and program credits. Excessively high clutter levels may result in audience tune-out. 

Cognitive Dissonance - a doubt that surfaces when a buyer becomes aware that an alternative product may offer more desirable benefits than the one purchased. The buyer wonders whether the right choice has been made.

Cold Calling - making a sales call on a client without an appointment.

Collusion - agreement between a group of companies to fix a common price. 

Combination Branding - emphasising a corporate or family name as well as an individual brand name in product marketing. 

Commercialization - the final stage of the new product development process in which the decision is made to put the new product into full scale production and to launch it. 

Commission - a payment made to a salesperson based on a percentage of the value of the goods sold.

Commodity Markets - markets typified by the homogeneity of products and a virtual irrelevance of branding.

Commodity Product - a product that cannot be significantly differentiated from competitors' products.

Common Carrier - regular scheduled transportation services such as railways, airlines and trucking lines, available to all users.

Common Market - a group of geographically associated countries limiting trade barriers among member nations and applying common tariffs to products from non-members; also known as regional trading blocks. 

Communicability - the extent to which the benefits of a new product are likely to be noticed and discussed by consumers; a major determinant of the rate of new product adoption.

Communication Effect of Advertising - the influence that an advertisement or some other form of promotional activity might have, is having, or has had, on consumers or on the usage of a product advertised. 

Communication Process - the process by which a message, encoded by a sender, is transmitted through a medium to a receiver, who encodes the message and provides feedback.

Comparative Advertising - advertising in which a firm names a competitor's product and compares it with its own.

Comparison Pricing - a pricing method in which the price for a new product is set by comparing the benefits it offers to those of other products in the same category.

Compatibility - the extent to which a new product requires consumers to adjust to unfamiliar methods of use; a major determinant of the rate of new product adoption. 

Compensation - remuneration for work done on behalf of another.

Compensation Method - handling a buyer's objection by admitting the validity of the objection but pointing out some advantage that compensates for it. 

Competition-Oriented Pricing - a method of pricing in which a manufacturer's price is determined more by the price of a similar product sold by a powerful competitor than by considerations of consumer demand and cost of production. 

Competitive Advertising - advertising which points out features of a brand which may not be available in other brands but does not directly name a competitor. 

Competitive Analysis - the assessment of the strengths and weaknesses of competing firms.

Competitive Attack Strategies - options available for attacking a competitor; these include a frontal attack (head-on), a flanking attack (attack at a point of weakness), an encirclement attack (attack on several fronts at once), a by-pass attack (attack by diversifying into new territories, products or technologies) and a guerrilla attack (attack by waging small, intermittent skirmishes).

Competitive Bidding - a process in which buyers request potential suppliers to submit quotations or tenders for a proposed purchase or contract.

Competitive De-positioning - attempting to change the beliefs of buyers about the attributes of a competitor's product; the attempt may be especially useful in cases where buyers generally have an inflated perception of the quality of a competitor's product. 

Competitive Environment - that part of the company's external environment which consists of other firms vying for patronage of the same market.

Competitive Equilibrium - a market situation of relatively stable competitive position and activity.

Competitive Myopia - marketing short-sightedness in regard to the activity of competitors.

Competitive Niche - a segment in a market in which a company can compete effectively.

Competitive Position - an organization's ranking in its industry by size and business strength; hypothetically, each competitor may be classified as a market leader, market challenger, market follower, or market niche player, according to the market share it holds.

Competitive Scope - the breadth or narrowness of an organization's focus as measured horizontally by the range of industries, market segments, or geographical regions it targets, or vertically by the degree to which it is integrated.

Competitive Situation - the standing of an organization in its markets, relative to its competitors, when all players are described in terms of their size, resources, capabilities, product range and quality, marketing strategies, opportunities, goals, intentions, behaviour and similar variables. 

Competitive Strategy - planning intended to give a company a competitive advantage over its competitors.

Competitors - firms vying for patronage of the same market. 

Complementary Product Pricing - the pricing of one product at the optimum level, regardless of cost or profit considerations, so that the demand for another product which is used with it will increase and so maximize the profits from both products together.

Complete Segmentation - the division of a market into segments consisting of individual customers and tailoring a product and marketing program for each. 

Complex Decision Making - in consumer behaviour, buying which is associated with the purchasing of high-involvement products which are important to the consumer and therefore require considerable thought and effort. 

Complexity - the degree of difficulty which a purchaser of a new product has in understanding it; a major determinant of the rate of new product adoption. 

Computer Modelling - constructing and manipulating computer-based simulations of marketing situations to examine the consequences of alternative courses of action; computer models, often developed from an analysis of historical data, may be used to determine the optimum level of advertising and other promotional expenditure.

Concentrated Marketing - a marketing segmentation strategy in which the firm concentrates its entire efforts and resources on serving one segment of the market; also called Niche Marketing.

Concentrated Segmentation Strategy - one of four possible segmentation strategies (with market segment expansion strategy, product line expansion strategy and differentiated segmentation strategy); in a concentrated segmentation strategy a firm targets one product to one segment of the market. 

Concentric Diversification - a growth strategy in which a company seeks to develop by adding new products, also called convergent diversification, to its existing product lines to attract new customers. 

Concept Development and Testing - a two-phase stage in the development of a new product in which potential buyers are presented first with the idea or description of the new product (concept testing) and later with the product itself in final or prototype form (product testing), in order to obtain their reaction. 

Conference Selling - a selling situation in which a salesperson enlists the assistance of other people in the company (technicians, engineers, etc.) in meeting with a group of buyers from different firms to explain a new product or discuss problems and opportunities. 

Conglomerate Diversification - a growth strategy in which a company seeks to develop by adding totally unrelated products and markets to its existing business. 

Conjoint Analysis - a statistical technique used to determine the optimal combination of variables.

Conjunctive Model (of Brand Evaluation) - the idea that consumers establish minimum attribute levels which acceptable brands must possess; when about to make a purchase, they will consider only those brands that exhibit a conjunction of all the minimum requirements.

Consequence Probes - verbal tactics used by a salesperson to illustrate the disadvantages to a buyer of not making a particular purchase.

Consultative Selling - an approach to personal selling emphasising the role of the salesperson as consultant; the salesperson assists the buyer to identify needs and find need-satisfactions in the product range, seeking to build long-term customer relationships leading to repeat business. 

Consumer Behaviour - the behaviour of individuals when buying goods and services for their own use or for private consumption.

Consumer Credit - finance made available by leading companies to consumers for purchases with arrangements having been made for the loan to be repaid with interest.

Consumer Durables - a classification of consumer products consisting of goods with a long useful life, such as cars, electrical appliances and furniture. 

Consumer Franchise - the understanding consumers have of a brand. 

Consumer Goods - items purchased by consumers for personal and household use; consumer goods are classified as durables and non-durables. 

Consumer Market - buyers and potential buyers of goods and services for personal and household use.

Consumer Non-Durables - a classification of frequently purchased consumer goods; non-durables are items which are consumed in one use or a few uses; expendables. Consumer non-durables are further sub-divided into packaged and non-packaged goods. 

Consumer Product Classes - categories of goods and services bought by consumers for their personal use; classes include convenience goods, shopping goods, specialty goods, unsought goods, and services.

Consumer Research - marketing research into the requirements, opinions, attitudes, etc. of consumers.

Consumer Rights - fair entitlements due to consumers when buying from producers and resellers.

Consumer Sales Promotion - promotional activity - excluding advertising, personal selling and publicity - intended to motivate potential purchasers of personal and household products to buy.

Consumerism - a social movement intended to safeguard the rights of consumers.

Contests - a form of sales promotion in which consumers are induced to buy earlier, or in greater quantity, by the offer of prizes of cash or merchandise to be won in a competition. 

Continuum of Planning - the idea that planning is a multi-level process, beginning at the top with corporate planning and going downwards through all divisions of the firm, with each subsequent level linked to the one above it by the over-riding mission and objectives of the corporation.

Contract Carrier - a transportation firm operating exclusively in one industry and contracted to particular firms.

Contract Manufacturing - the production and marketing by agreement of a company's product by an overseas firm.

Contractual Sales Force - salespeople who are not full or part-time paid representatives of a company but who sell for it on a commission basis.

Contractual Vertical Marketing System - a form of vertical marketing system in which independent firms at different levels of distribution are tied together by contract to achieve economies of scale and greater sales impact. S

Control-Oriented Pricing - a system of pricing in which a product's price is controlled by government or by some regulating body.

Convenience Goods - a category of consumer goods which are bought frequently, quickly and with a minimum of emotional involvement; the category includes staples, impulse goods and emergency goods.

Convenience Product - a category of consumer product purchased frequently and with little thought and effort.

Convenience Store - a neighbourhood store which stocks frequently purchased items such as milk, bread and cigarettes.

Conversional Marketing - marketing activity intended to get people to change their ideas and attitudes about something they dislike.

Cooling-Off Period - a short period of time, usually a few days, in which purchasers of a product may void a sale contract if they change their minds about purchasing the goods offered.

Co-operative Advertising - advertising sponsored by two or more organizations to promote the goods or services of each.

Copy Strategy Statement - a document prepared by advertising agency executives as a guide for their creative staff in the preparation and execution of an advertisement; the copy strategy statement describes the objectives, content, support and tone of the desired advertisement.

Copy Testing - the pre-testing of advertising copy for print advertisements, usually by giving respondents a portfolio of dummy advertisements in a magazine format and asking them to recall copy points; or the post-testing of advertising copy, usually by asking respondents to look through an actual magazine and then comment on advertisements they remember.

Copycat Product - a product that has been designed, branded or packaged to look exactly like that of a well-established competitor; a cheap imitation.

Copyright - protection in law afforded to authors, musicians, artists, etc. in respect to the works they have created.

Corporate Advertising - a form of institutional advertising focusing not on a particular product or product range but on the organization itself; the objective of corporate advertising may be patronage, image or issue. 

Corporate Branding - associating the name of a corporation with the individual brand name in product marketing, usually to ensure that new product introductions will be more readily accepted; differs from family branding in that corporate branding is used for all products of the company or division rather than merely for a family of brands. 

Corporate Culture - the particular strategies, style, systems, environment and shared values within an organization which contribute to its individuality.

Corporate Image - the identity or perception of itself that an organization attempts to convey to its publics, usually through corporate advertising. 

Corporate Image Advertising - advertising aimed at establishing an identity for a firm in the public mind. 

Corporate Logo - a mark, design, symbol, etc. used to identify, and reflect an appropriate image of a company or organization; a form of institutional reminder advertising.

Corporate Mission Statement - the answer to the question "What business are we in?"; the corporate mission statement, with a broad focus and a customer orientation, provides management with a sense of purpose.

Corporate Objectives - specific, realistic and measurable goals which an organization plans to achieve within a given period of time.

Corporate Patronage Advertising - advertising which encourages customers to patronize the firm. 

Corporate Planning - planning at the highest level in an organization, involving an analysis of the current situation, the setting of objectives, the formulation of strategies and tactics, implementation and evaluation. 

Corporate Sponsorship - a form of below the line advertising in which a corporation offers funding to a group, association, sporting body, etc. in return for a range of promotional opportunities. 

Corporate Umbrella - a term used in reference to the use made of the corporate name and corporate image as a shield for new product introductions, etc.

Corporate Vertical Marketing System -  a system of distribution channel organization in which the orderly flow of products from producer to end-user is controlled by common ownership of the different levels of the system. 

Corrective Advertising - advertising to correct erroneous claims or misleading messages in previous promotional announcements.

Correlation Techniques - a range of statistical techniques used to discover relationships between diverse elements in a marketing situation.

Cost Advantage - the competitive edge which can be gained by one company over another by reducing production or marketing costs or both so that it can offer cheaper prices or use excess profits to bolster promotion or distribution.

Cost of Goods Sold - the price paid by a company for the goods it sells to its customers.

Cost Per thousand Criterion - a measure for comparing the cost effectiveness of media vehicles, calculated by dividing the cost of an advertisement in a particular medium by the number of thousands of its circulation.

Cost Plus Pricing - a simple method of pricing in which a specified amount or percentage, known as the standard mark-up, is added to the unit cost of production of an item to determine its selling price. 

Cost/Profit Analysis - a sales management control measure involving the calculation of expenditure incurred in making sales; profitability analysis.

Counter Advertising - advertising sponsored by pressure groups in opposition to certain products.

Coupon - a popular form of sales promotion, distributed on the package of the product, by direct mail, or in newspaper and magazine advertisements; the consumer is usually offered "cents-off" the next purchase upon presentation of the coupon.

Creative Selling - an approach to selling in which salespeople aggressively seek out customers and use well-planned strategies to secure orders.

Credit - the allowance of time in which to pay for a purchase.

Credit Card - a small card, usually of plastic, used to obtain consumer products without immediate payment; the card is issued by a financial institution on the understanding that the consumer repays sums spent against the card with interest.

Credit Terms - conditions negotiated between seller and buyer relating to the time within which the buyer is obliged to pay for the products purchased and any discounts to be allowed by the seller for earlier payment or additional services performed.

Critical Path Analysis - a planning technique used to keep projects on schedule; a flowchart shows time allotments and priorities for each activity.

Cross Elasticity of Demand - a measure of the affect a change in the price of one product will have on the demand for a substitute or complementary product. 

Cultural Diversity - the range of different value systems existing in a multicultural society.

Cultural Values - ideas, beliefs, attitudes, opinions, principles, etc long cherished by members of a society.

Culture - the basic beliefs and values cherished by a society as a whole and handed down from one generation to the next.

Cumulative Quantity Discount - a price reduction offered to a purchaser in which the amount of the discount increases over time with the volume purchased. 

Current Ratio - the commonest of three financial ratios used to evaluate a firm's liquidity; current assets are expressed as a percentage of current liabilities. 

Custom Marketing - marketing activity in which a company attempts to satisfy the unique needs of every customer.

Custom Publishing - the publishing of a magazine by an organization wishing to strengthen its bonds with its customers and to exercise greater control over the editorial environment in which its advertisements appear; a custom published magazine will usually carry outside advertisements as well in order to defray the cost of the launch and lend an air of legitimacy. 

Customary Price - the traditional price; the price that consumers expect to pay for a certain product.

Customer Relations Department - a division of an organization with responsibility for ensuring that customers are satisfied with the goods or services they have purchased and with the way the organization has served them.

Customer Retention - maintaining the existing customer base by establishing good relations with all who buy the company's product.

Customer Service - a wide variety of activities intended to ensure that customers receive the goods and services they require to satisfy their needs or wants in the most effective and efficient manner possible.

Customer Driven Distribution Systems - a system of distribution designed with customer requirements rather than a company's convenience in mind.

Customer Oriented Management - a management philosophy or state-of-mind in which it is recognized that the effective and efficient satisfaction of customer needs and wants provides the surest means of achieving the organization's own goals.

Customer Value Analysis - an organization's rating of the value it provides to its customers relative to that provided by its competitors.

Customized Marketing Mix - in international marketing, a marketing program uniquely designed for a particular country. 

 

D    C

Daily Activities Report - a record of a salesperson's activities on a day-by-day basis, showing clients visited, products presented and results.

Daily Sales Plan - a record of a salesperson's intended sales calls on a day-by-day basis, listing the clients to be visited, the objectives of each call, and the anticipated outcomes.

Data - facts or information gathered in a marketing research study.

Data Analysis - the processing of marketing research findings to summarize a situation, discover relationships between elements of the information, or to draw conclusions from them. 

Data Collection - the activity of gathering facts or information about a subject in a marketing research study. 

Database - information arranged in such a way that it can be stored in, and processed by a computer.

Database Marketing - the use of large collections of computer-based information in marketing; the database listings may be reference databases containing information on specific topics; full databases which contain full transcripts of documents or articles being sought; or source databases which contain listings of names and addresses, etc of prospective customers.

Date Code - a date on a package indicating either the date by which the product should be used or the date the product was packed. 

Dealer Loader - a gift given to a retailer who purchases a specified quantity of a product during a trade sales promotion. 

Decentralized Exchange System - any system for the exchange of goods or services which does not utilise a central marketplace.

Deceptive Advertising - advertising intended to deceive consumers with false or misleading claims.

Deceptive Packaging - packaging intended to deceive the purchaser. 

Deceptive Pricing - the pricing of goods and services in such a way as to cause a customer to be misled.

Deciders - those who actually make the decision in the organizational buying process; the deciders are often difficult to identify because they may not necessarily have the formal authority to buy. 

Decision Matrix - a tool used in decision making in which the various dimensions of a problem are listed and rated to determine the most appropriate alternative in a particular situation.

Decision Support System - any computerized system of changing raw data (sales, stock levels, etc) into information that can be used by management in decision making.

Decision Tree - a decision-making tool in which alternative options are portrayed graphically as branches on a tree.

Decline Stage - the final stage of the product life cycle (after introductory stage, growth stage and maturity stage) when sales are dropping because the original need and want have diminished or because another product innovation has been introduced. 

Decoding - the step in the communication process in which the receiver accepts and interprets the message. 

Deep Assortment - an assortment strategy in which a reseller decides to carry many variants of each product in the range. 

Defensive Advertising - advertising intended to combat the effects of a competitor's promotion.

Deflation - a slowing of the economy characterized by falling prices and wages; the reverse of inflation.

Delivered Pricing - a pricing method in which the final price to the buyer is adjusted to include transportation costs; the seller takes responsibility for arranging delivery but adds the cost to the quoted price. 

Demand - a measure of those in a market who wish to buy a product and can afford to do so.

Demand Backward Pricing - a pricing method in which an estimation is made of the price that customers are willing to pay for a given product; this price is then compared to the per unit cost to see if it meets the firm's profit objectives.

Demand Curve - a line drawn on a graph to represent the number of units of a product which will be purchased at any particular price point.

Demand Pull Approach - developing new products on the basis of market demand rather than on that of company-generated ideas. 

De-marketing - marketing aimed at limiting growth; practised, for example, by governments to conserve natural resources, or by companies unable to serve adequately the needs of all potential customers.

Demographic Segmentation - the division of the heterogeneous population of a country into relatively homogeneous groups on the basis of variables within the population mix.

Demography - the study of the range of physical, social and economic characteristics that exist within a population.

Department Store - a large retail store offering a wide variety of goods in different departments. 

Dependent Variables - the variables in a research experiment which are affected by manipulation of the explanatory or experimental variables. 

Deployment - the configuration or arrangement of a sales force into territories on some logical basis.

Depreciation - an allowance made in a balance sheet for wear and tear; a measure of the loss of value of a fixed asset because of use or obsolescence.

Depth Interviews - a qualitative marketing research approach in which interviews are conducted by a trained moderator with individuals, rather than with groups, to obtain information about a product or brand.

Deregulation - the complete or partial removal of government control and restrictions relating to a specific business activity or industry.

Derived Demand - demand for raw materials in a producer market which is based on the demand for consumer products. 

Descriptive Label - a label on a product which announces the size, net weight, ingredients, composition, nutritional value, etc. 

Determinacy Model (of Brand Evaluation) - a model used in the study of consumer decision processes to evaluate alternative brands. The idea that consumers, about to make a purchase, will not be swayed in their product choice by any one product attribute, no matter how important, if all products possess the same amount of the attribute. Thus, the decision is made on the basis of a less important attribute. 

Deterministic Models - a statistical tool used in sales forecasting in which marketing variables, such as price levels, advertising expenditures and sales promotion expenses, are used to predict market share or sales.

Developmental Marketing - marketing activity intended to increase demand for a product that appears to meet an evident market need.

Dichotomous Question - a closed-ended question in a marketing research questionnaire in which the respondent must choose one of only two possible responses. 

Differential Advantage - the element or factor in a firm's product or strategy which makes it superior to that of a competitor.

Differential Pricing - a pricing strategy in which a company sets different prices for the same product on the basis of differing customer type, time of purchase, etc; also called Discriminatory Pricing, Flexible Pricing, Multiple Pricing, Variable Pricing. 

Differentiated Marketing - the division of a heterogeneous market into relatively homogeneous segments so that the needs and wants of the different segments may be served more effectively; a segmented approach to marketing.

Differentiated Segmentation Strategy - one of four possible approaches (with concentrated segmentation strategy, market segment expansion strategy and product line expansion strategy) available to a firm in relation to the segment or segments it wishes to target; in a differentiated segmentation approach a firm operates in several or all segments and targets different products to each. 

Diffusion of Innovation - the idea that some groups within a market are more ready and willing to adopt a new product than others and that the product is diffused through a society in waves; the groups, in order of their readiness to adopt are innovators, early adopters , early majority, late majority  and laggards.

Diffusion Process - the manner in which an innovative technology spreads across a market group by group according to the readiness of each group to adopt it. 

Direct Accounts - large accounts serviced by head office personnel or company executives rather than by salespeople in regional offices; sometimes called National Accounts.

Direct Close - the most straight-forward closing approach; the salesperson simply asks the buyer for an order.

Direct Competition - a product or brand which competes in the same product category.

Direct Competitive Advertising - advertising intended to stimulate immediate purchase of a particular brand. 

Direct Costs - costs which can be attributed directly to the production of a particular product. 

Direct Denial Method - handling a buyer's objection by contradicting it in a "head-on" manner.

Direct Mail Marketing - advertising direct to end-users by sending catalogues or other sales literature through the post.

Direct Marketing - selling to end-users by means other than direct sales contact between salesperson and buyer; the use of catalogues, direct-mail advertisements, etc. to sell merchandise and services. 

Direct Marketing Channel - a distribution channel in which no intermediaries are used; a manufacturer sells direct to an end-user; also called a Zero Level Channel. 

Direct Selling - selling directly to end-users by means of a sales force. 

Direct Response Marketing - a form of non-store retailing in which customers order merchandise by mail or telephone and the goods are shipped direct to their homes; also referred to as Direct-Response Selling.

Directive Probes - questions posed to prospective buyers to obtain a better understanding of the customer and the customer's business.

Directories - classified lists of names and addresses of individuals and organizations used in selling for prospecting for new accounts and in marketing research as sources of secondary data.

Disaggregated Market - a market in which separate products must be made for each customer because each has different needs; also referred to as Complete Segmentation. 

Discontinuous Innovation - entirely new to the world products made to perform a function for which no product has existed previously.

Discount - a reduction off the list price offered by a producer to a buyer; five types of discounts are common: trade, quantity, cash, seasonal and allowances. 

Discount House - a retailer specializing in consumer durables and soft goods, attracting customers with low prices; typically, discount houses operate on low mark-ups and offer a minimum of customer service.

Discretionary Income - the balance of a person's income which is available for spending after payment of the basic necessities of life and fixed commitments such as mortgage, rent and rates. 

Disjunctive Model (of Brand Evaluation) - a model used in the study of consumer decision processes to evaluate alternative brands; the idea that consumers, about to make a purchase, evaluate competing brands on the basis of one or a few attributes, ignoring their standing on other attributes. 

Display Allowance - a type of trade sales promotion in which buyers are given incentives in the form of price reductions or merchandise to encourage them to display the items purchased prominently. 

Disposable Income - the balance of a person's income after payment of tax liability. 

Distribution Centre - a short-term storage centre located close to a major market to facilitate the rapid processing of orders and shipment of goods to customers; unlike a warehouse, the emphasis is on the moving of goods rather than on long-term storage.

Distribution Costs - costs associated with the holding of inventory and the shipment of goods to customers.

Distribution Intensity - the level of availability selected for a particular product by the marketer; the level of intensity chosen will depend upon factor such as the production capacity, the size of the target market, pricing and promotion policies and the amount of product service required by the end-user.

Distribution Based Pricing Strategies - pricing methods designed to recover or offset the costs associated with the shipment of goods to distant customers. 

Distributor's Brand - a brand owned or controlled by an organization, the primary economic commitment of which is to distribution rather than production; also called a private brand or a house brand. 

District Sales Manager - a sales manager with responsibility for the sales activities within a particular region or district.

Divergent Acquisition - diversification into new or unrelated businesses. 

Diversification - a growth strategy in which an organization takes on new products and new markets at the same time. 

Divest Strategy - a planned decision to get out of a particular business or product line; to sell off.

Divisibility - the extent to which a new product can be tested in a limited scale purchase. 

Divisional Marketing Manager - a marketing manager with responsibility for the marketing activities of one of the operating divisions of a company.

Divisional Sales Manager - a sales manager with responsibility for the sales activities of one of the operating divisions of a company.

Dogs -  products with a relatively low market share in a slow-growth market. 

Dollar Volume Quota - a common form of sales assignment, goal or target used to measure a salesperson's performance.

Dominant Design - a product configuration which endures; a particular combination of product features which appears to satisfy the market and survives, without major change, for some time.

Door-to-Door Selling - direct selling in which a salesperson calls on prospective buyers at their homes without appointments.

Down-Market Consumers - consumers who habitually look for, and purchase, low-priced rather than more expensive products. 

Downside Elasticity - a term used in reference to the sensitivity of consumers to a decrease in the price of a particular product; downside elasticity means that the demand for the product increases significantly as the price falls. Sty.

Downside Inelasticity - a term used in reference to the sensitivity of consumers to a decrease in the price of a particular product; downside inelasticity means that there is no significant increase in demand as the price falls. 

Downward Stretching - introducing a new product into a product line at the lower priced end of the market. 

Drip Advertising - limited expenditure on advertising over a relatively long period of time. 

Driver (Social Style) - one of the four social styles (with Amiable, Analytical and Expressive) commonly used to classify salespeople and their customers; Drivers are characterized by high assertiveness and low responsiveness. 

Drop Error - a mistake made by a company in deciding to abandon a new product idea that, in hindsight, might have been successful if developed. 

Drop-In Product - a product that is so nearly identical to that of a competitor that it can be "dropped in" to the competitor's equipment or machinery without the need to alter settings and without affecting performance.

Drop Shipper - a marketing intermediary who receives orders from customers and forwards them to a producer for shipment direct to the customer; the drop shipper takes title to the goods but never actually handles them. 

Dual Distribution - a system of marketing channel organization in which a manufacturer uses two approaches simultaneously to get products to end-users; commonly, one approach is to use marketing intermediaries, while the other is to sell direct to end-users.

Dummy Media Vehicle - a mock-up of a media vehicle (magazine, etc) used to test advertising effectiveness with a representative group of the target market.

Dumping - a practice in which a firm sells its product cheaply into a foreign market undercutting the domestic price.

 

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Last modified: November 21, 2007