Narrowcasting - a term used in reference to cable television, where cable TV stations, with specialized interests such as sports, news, weather, movies, etc, allow advertisers great selectivity; that is, advertisers can 'narrowcast' their messages rather than broadcast them.
National Account Marketing - the creation of marketing teams or groups (NAM Teams) within a company specifically to meet the needs of major client organizations; the teams or groups usually consist of marketing and sales personnel as well as engineers, production specialists, and so on.
National Accounts - major accounts which are sometimes served by a separate sales force because of their importance. Account specialists try to meet their special needs and to develop close relationships with key personnel.
National Introduction - the immediate launch of a new product on a nation-wide scale. Because of the risk and the substantial investment in production and marketing that a national introduction requires, many organizations choose rollout approach instead.
National Marketing Manager - a marketing manager with the responsibility for the nation-wide operations of a marketing division.
National Sales Manager - a sales manager with responsibility for the nation-wide operations of a sale division.
Near-Pack Premium - a sales promotion in which a gift is to be collected from elsewhere in the store by consumers who have purchased a particular product.
Need-Directed Consumers - one of three broad groups of consumers (with outer-directed consumers and inner-directed consumers) identified in the Stanford Research Institutes survey of American lifestyles. Need-directed consumers, representing about ten per cent of consumers in the U.S., are motivated by need rather than by choice.
Need-Gap Analysis - an approach to identifying the unmet needs of consumers, in which respondents are asked to envisage the ideal brand or product and then to rate various existing brands or products on key attributes; if no existing brand or product measures up to the ideal, a gap exists which could be filled by a new brand or product.
Need Objection - an objection by a prospective buyer that they have no need for the product offered by a salesperson.
Need-Satisfaction Approach - an approach to selling based on soliciting information to uncover a buyerís need before attempting to present an appropriate product from the range to satisfy it.
Needs - innate feelings of deprivation in a person.
Negative Demand - demand for products which consumers dislike and would prefer not to have to purchase. Negative demand for a particular product exists when consumers, generally, would be prepared to pay more than the price of the product to avoid having to buy it, as in the case of unpleasant and painful medical treatment.
Negotiated Contract - a formal arrangement for the supply of goods or services at a price agreed upon both the buyer and seller.
Negotiated Price - a price agreed upon for the supply of goods or services by both buyer and seller.
Negotiated Rate - a non-standard charge for the carriage of goods agreed to by both manufacturer and transport company.
Negotiated Selling - a selling approach in which a salesperson attempts to produce a win-win outcome for both parties. The approach entails the assumption of a partnership between buyer and seller, the salesperson acting as a counsellor to assist the buyer to find the best solution to a problem.
Networking - establishing an informal set of contacts among people with common social and business interests as a source of prospects, for the exchange of information, and for support.
New Account-Conversion Ratio - a measure used to evaluate salespeople in which the conversion rate of prospects to customers is calculated.
New Product Committee - a group within a company responsible for new product policies, including the assignment of priorities to options and ideas for new products and the final decision on whether or not to commercialize them.
New Product Department - a permanent department within a company responsible for overseeing the development of all new products.
New Product Development - the creation of new products needed for growth or to replace those in the decline stage of their life-cycle; the stages in the new product development process are commonly listed as idea generation; screening; concept development and testing; the formulation of marketing strategies; business analysis; production; market testing; and commercialization.
New Product Duplication - the introduction by a company of a product that is known to the market but new to the company.
New Products - products which are new in one or other of two - new to a company or new to a market; they include existing products which have been improved or revised, brand extensions, additions to existing line, repositioned products targeted at to new markets, and new-to-the-world products.
New Task Buying - an organizational buying situation in which the organization has had no previous experience with the purchase of product of the kind required.
New To The World Products - products which serve a purpose for which no product has previously existed.
Niche Ė a small but profitable segment of a market unlikely to attract competitors
Nichemanship - a term used to refer to the art of skilful selection of market segments in which a firm can compete effectively.
Noise - any influence external to the sender or receiver which distorts the message in the communication process.
No-Name Brand - a "generic" brand; a product that does not carry a brand name
No-Need Objection - an objection rose by a prospective buyer on the ground that the product offered by a salesperson is not needed.
Non-Cumulative Quantity Discount - a one-time reduction in list price for a quantity purchased.
Non-Family Households - singles and non-related individuals living together; the increase in the number of non-family households is an important feature if the changing Australian demography in recent years.
Non-Manipulative Selling Techniques - methods used in selling where a salesperson, rather than trying to force an unwanted product on a customer by high-pressure means, works with the customer to identify a genuine need and to provide a satisfying solution.
Non-Monetary Price - that which it costs a consumer, other than money, to buy a product; the non-monetary price of purchasing a product includes the time devoted to shopping for it and the risk taken that it will deliver the expected benefits. Non-monetary price is an important concept in social marketing - for example, the price of avoiding the cancellation of a driverís license is the abstinence from alcohol if driving.
Non-Packaged Goods - a sub-category of consumer non-durables; for example, petrol is a non-packaged consumer non-durable good.
Non-Price Competition - competition in which an element other than price (e.g.: prestige, convenience, taste etc) is the major means of differentiating the product of one company from that of a rival.
Non-probability Sample - a sample in which the chance of an individual within the total population being chosen is not known.
Non-probability Sampling - the selection of a sampling unit by arbitrary methods, such as convenience and judgment.
Non-Profit Marketing - marketing activity undertaken by a firm whose primary objective is one other than profit; sometimes called Non-Business Marketing.
Non-Profit Organizations - organizations that buy and distribute goods and services for reasons other than the return of profit to their owners.
Non-Selling Activities - tasks other than selling activities which form part of a salespersonís duties and responsibilities - paperwork, reports and sales meetings, for example.
Non-Store Retailing - the merchandising of goods by means other than retail shops; merchandising by mail order, vending machines, telephone, door-to-door, etc.
Nonverbal Communication - the transmission of a message from sender to receiver without using words.
Normative Influence - the influence exerted on an individual by a reference group to conform to its norms.
Nutritional - the requirement, either by law or under voluntary industry codes, that certain products be marked with the nutritional value of their ingredients.
Objections - any form of sales resistance offered by a buyer to a salesperson.
Objectives - specific, measurable outcomes or results that an organization plans to achieve in a given period.
Observation Method - a method of obtaining marketing research data by watching human behaviour; mechanical monitoring devices are also commonly used.
Odd Pricing - pricing so that all prices end in an odd number, as in $7.95, $19.95; sometimes referred to as Odd-Even Pricing.
Off-Invoice Allowance - a reduction in price allowed to a retailer in return for purchasing specific quantities of goods within a specified time; the purpose of the allowance is to push slow-moving merchandise, to counter competitive programs, to introduce new products or line extensions, or to "load" channels members. Also referred to as a Purchase Allowance.
Off-Premise Buying - buying that is done by wholesalers and retailers through buying offices located overseas or in distant locations.
Off-Price Retailer - a retail store specializing in buying leading brand items in bulk for resale at discount prices.
Oligopolistic Competition - a competitive situation in which there are only a few sellers (of products that can be differentiated but not to any great extent); each seller has a high percentage of the market and cannot afford to ignore the actions of the others.
Oligopoly - a market situation in which there are only a few sellers; in an oligopolistic situation the marketing action of one firm will have a direct effect on the others.
Oligopoly - a market situation in which there are only a few buyers.
Omnibus Survey - a type of marketing research survey, commonly organized by a major professional marketing research company, in which different cross sections of the community are interviewed by probability sampling at regular intervals about buying habits, product and brand preferences, etc; called an "omnibus" survey because any marketer can join in (on a regular or ad hoc basis), for a fee, to add questions.
On-Pack Premium - a common form of consumer sales promotion in which a gift is banded to the package of another product to encourage its purchase.
On-the-Job Training - sales training given in the field rather than in a formal classroom setting.
One Level Channel - a marketing channel in which there is only one intermediary (for example, a retailer) between manufacturer and end-user.
One-Price Policy - a policy of offering the same price to every customer.
Open Bid - a system, common in the government market, of calling for bids from selected suppliers.
Open Dating - an aspect of labeling in which certain products are required, either by law or under voluntary industry codes, to be marked with a "use-by" date to indicate their expected shelf life; also called Date Stamping.
Open Promotion - a sales promotion which is advertised widely and available to all who wish to enter.
Open System - any system or enterprise (nation or business firm) that is affected by external forces.
Open-Ended Question - a question that allows the respondent the opportunity to express an opinion in his or her own words.
Open-to-Buy - the money that a reseller has available to spend on stock purchasing at any given time.
Operating Expenses - all the costs incurred by a firm in carrying out its day-to-day activities.
Operating Statement - a statement of the financial results of a company's operations during an accounting period.
Opinion Leader - an individual who actively provides opinions about products to others or from whom views, opinions and advice is sought.
Opportunity Analysis - the systematic examination and evaluation of the firm's external environment in order to identify market needs and wants which it can satisfy profitably.
Opportunity Cost - the value of the benefit forfeited by choosing one alternative over another.
Opportunity Matrix - a diagnostic marketing tool providing a means of appraising environmental attributes to alert managers to the benefits associated with changing environmental conditions and to impending dangers.
Optimizing - an approach to planning in which a firm expresses its intention to do things better (as opposed to "better things") in the future.
Order Cycle Time - the time between placement of the order by the customer and the receipt of the merchandise.
Order Filling Costs - costs associated with filling orders - warehousing, transportation, order processing, billing and collection of payments.
Order Generation Costs - costs associated with obtaining orders - advertising, personal selling and sales promotion.
Order Getter - a salesperson responsible for actively persuading customers to buy rather than simply collecting orders that the customers wish to place.
Order Processing - all of the activities related to filling a customer's order - checking the order, prices, terms, customer credit and stock levels; producing an invoice; picking the goods from the warehouse; packing and shipping them, and collecting payment.
Order Taker - a salesperson who writes up orders but is not involved in persuading customers to buy.
Organization Marketing - activity related to the marketing of an association, school, college, hospital, sporting or social group, club, charitable body, etc.
Organizational Buyer - the individual responsible for the firm's purchasing.
Organizational Buying - purchasing done by organizations for resale purposes, for use in the manufacture of other goods and services, or for the operation of their businesses.
Organizational Buying Behaviour - the study of the motives and actions of, and the influences upon, organizations while engaged in purchasing goods and services.
Organizational Goals - an organizationís broad, longer-term aims or performance expectations as opposed to its organizational objectives which are of a more specific nature and generally cover a shorter, specified period of time.
Organizational Markets - the sum of all industrial, institutional, reseller and government markets whose buyers purchase products for use in making other products, for resale, or in the operation of their businesses.
Organizational Objectives - the sum of all industrial, institutional, reseller and government markets whose buyers purchase products for resale, for use in the manufacture of other products, or in the operation of their businesses.
Organizational Structure - the way in which a firm has arranged its lines of authority and communication, and allocated duties and responsibilities; the structure may be of a divisional, geographic or functional kind or some combination of these.
Out-of-Stock Costs - the cost of sales lost when a particular item is not available when ordered by a customer.
Out-Suppliers - suppliers with whom the buying organization has not had dealings previously and therefore considers risky.
Outbound Telemarketing - telemarketing in which a company uses trained salespeople to sell to customers by telephone.
Outdoor Advertising - advertising by means of posters and signs, stationary or mobile.
Outside Order-Taker - a salesperson who visits customers to write up orders but is not responsible for persuading them to buy.
Outside Sales Facilities - manufacturers' agents and representatives, sales agents, dealers, distributors, etc available to supplement or even to replace a firm's own sales force.
Package - the wrapping, packet, carton, bottle, box, etc, used for containment, protection or promotion of a product. See Packaging.
Package Modification - making any change to the attributes (shape, colour, size, graphics, lettering, etc.) of a package.
Packaged Goods - a sub-category of consumer non-durable goods; toothpaste, shampoo and soap powder are packaged consumer non-durables
Packaging - the materials (glass, aluminum, cardboard, etc) originally intended merely to contain and protect a product; in recent years the role of packaging has been broadened so that, in addition to containment and protection, its purpose is to attract attention, provide additional product information, and assist in promotion.
Palletization - the packing of goods on to small wooden platforms, or pallets, for ease of handling in shipment.
Panel Test - a technique used to pre-test advertising, new products, etc; a group of individuals selected from the target market are asked to evaluate alternative versions (of an advertisement, new product, etc.)
Parasitic Advertising - advertising by one group which has an adverse effect upon another group. For example, the advertising of beef may reduce sales of pork, the advertising of apples may reduce sales of pears.
Pareto's Principle - the idea or notion in business, commonly known as "the 80:20 rule", which says that eighty per cent of the revenue comes from twenty per cent of the products, that eighty per cent of the sales volume is derived from twenty per cent of the customer accounts, etc; named after Vilfredo Pareto, the nineteenth century economist and sociologist.
Paretopoly - a market situation in which there are a few large sellers and many smaller ones.
Paretopsony - a market situation in which there are a few large buyers and many smaller ones.
Pass-Up Method - handling a buyer's objection by attempting to ignore or "pass off" the buyer's objection, especially if there is reason to believe that the objection is not made seriously and does not warrant a response.
Payback Period - the time taken for a new product to recover its investment cost and to generate profits; used as a measure of performance for new products.
Penetrated Market - the individuals or organizations in a particular market who have already purchased the product.
People-Based Services - services in which people, rather than equipment or machinery, play the major role in delivery; for example, people play the major role in the delivery of financial planning services.
Per Capita Income - average income per person in a population.
Per Diem Expense Plan - the payment of travel and accommodation expenses to a salesperson at a fixed daily rate.
Percentage-of-Sales Method - a method of setting a budget for promotion in which the sum to be expended in a given period is a fixed percentage of the sales income for the previous period.
Perception - the way in which an individual interprets stimuli received by the senses.
Perceptual Mapping - a tool or process used in marketing research for charting the way individuals selected from the target market perceive different companies, products or brands; also called Position Mapping.
Performance Allowance - a discount or price reduction given to a wholesaler or retailer who promises to perform some additional activity (special display, etc) to sell a greater quantity of product.
Performance Appraisal - an evaluation of the activities and effectiveness of a salesperson, marketing officer, etc during a given period.
Performance Price - the value to a consumer of the time saved by using a new product to complete a specified task; the performance price can often offset other "time prices". See Non-Monetary Price; Time Price.
Performance Risk - concern in the buyer's mind that the product being considered for purchase will not work efficiently; also called Functional Risk. See Risk.
Perishability - one of the four characteristics (with inseparability, intangibility and variability) which distinguish a service; perishability expresses the notion that a service cannot be made in advance and stored.
Person Marketing - marketing activity aimed at creating target market awareness, and a favourable opinion, of a particular person.
Personal Income - the wages, salary, etc. earned by an individual.
Personal Interview - a face-to-face meeting with a client, job applicant, buyer, marketing research respondent, etc.
Personal Selling - a form of promotion utilizing the services of a sales team; one of the major controllable variables (with advertising, sales promotion and publicity) of the promotion mix.
Personality - the distinctive character of an individual; used as a basis for the psychographics segmentation of a market in which individuals of relatively similar personality, with similar needs or wants, are grouped into one segment.
Personality Segmentation - the division of a heterogeneous market into homogeneous groups on the basis of personality characteristics and enduring patterns of behaviour such as aggressiveness, compliance or compulsiveness.
Persuasive Advertising - advertising intended to persuade (rather than to inform or remind).
Phantom Freight - a freight charge imposed upon a customer in excess of the true freight cost incurred by the supplier. For example, in the base-point pricing approach, a local customer will be charged a phantom freight when the freight charge is calculated from an arbitrarily-chosen, possibly distant, central point.
Physical Distribution - the storage, handling and movement of goods within an organization and their shipment to customers.
Physical Distribution Management - the management and control of the activities involved in the storage, handling and movement of goods within an organization and in their shipment to customers.
Physical Risk - concern in the buyer's mind that the product being considered for purchase will be harmful, unhealthy or cause injury.
Physiological Needs - innate human feelings of deprivation related to an individual's biological well-being.
Piggyback - a system of transportation requiring the transfer of containers from truck to rail.
Piggybacking - a low-cost market entry tactic in which manufacturers of products arrange for manufacturers of complementary, non-competing products to represent their products in another country or region.
Pioneering Advertising - advertising which is intended to create primary rather than selective demand; commonly used at the introductory stage of the product's life cycle.
Pipeline Transportation - the carriage, delivery or shipment of a gas or liquid product by pipeline.
Place - one of the four controllable variables (with product, price and promotion) of the marketing mix; the delivery of a good or service to a consumer; also referred to as Distribution.
Place Marketing - marketing activity intended to promote an awareness, and favourable opinion, of a particular place or region.
Place Strategy - the element of a firm's decision-making concerned with developing an efficient and effective means of storing and handling finished products and of getting them efficiently to the target market.
Place Utility - the value given to a product by virtue of the fact that it is where it is wanted.
Plain Vanilla - slang term for a product with only the most basic features.
Planned Cannibalization - the expected loss of sales of a product in a line to a more recent product introduction; planned cannibalization might occur when a company wants its customers to switch to another of its own products rather than to a product of a competitor.
Planned Obsolescence - a tactic by which a manufacturer deliberately seeks to make earlier versions of its product appear undesirable in the eyes of consumers who have purchased them in order to expand the market for later versions by improving the characteristics of later versions or by altering consumers' perceptions of the desirability of the models they have already purchased.
Planning Horizon - the total time span covered by a firm's marketing plans; the length of the planning horizon is commonly determined by the degree of uncertainty in the environment.
Point-of-Purchase Displays - a form of promotion used to support personal selling and advertising; displays, consisting of packages, signs, display cartons and so on (more common in the marketing of consumer goods) are used to provide additional product information and to impel on-the-spot buying.
Oligopoly - a market situation in which there are no large sellers but many small ones.
Polyopsony - a market situation in which there are no large buyers but many small ones.
POP - abbrev. Point of Purchase.
Population - in marketing research, the total group that a researcher wishes to study; also called the Universe.
Population Characteristics - variables including age, gender, income, marital status, education, nationality, race, religion, etc. upon which a population may be segmented.
Portfolio Analysis - the systematic evaluation or assessment of a company's businesses or products; two variables frequently used in the evaluation are market attractiveness (including market growth rate) and business strength (including relative market share).
Portfolio Tests - a method of pre-testing an advertisement; after looking through a portfolio of different versions of a particular advertisement, respondents chosen from the target market are asked to recall in detail those which they can remember.
Positioning - marketing activity intended to place a product into a desired position in a market and to have it perceived in that way by consumers.
Possession Utility - the value given to a product by virtue of the fact that the purchaser has the legal right to own and use it freely.
Post-Purchase Evaluation - the quick mental assessment of a low-involvement product by a consumer after purchase.
Post-Purchase Satisfaction - the pleasure that a carefully selected high-involvement product gives to a consumer after purchase.
Poster - an outdoor advertising medium; a billboard.
Potential Market - all the individuals and organizations in a particular market who have some level of interest in the product.
PR - abbrev. Public Relations.
Pre-Approach Stage - the first stage in the selling process; the stage in which a salesperson prospects for new accounts, qualifies them and prepares to make contact with the client.
Pre-Testing - the testing of a questionnaire, advertisement, etc on respondents selected from the target market before using it in a full-scale research study, campaign, etc.
Pre-Ticketing - the practice by a vendor of placing a tag on each product sold listing its particular style, size, colour, etc; the pre-ticketing is designed to make re-ordering easier for a reseller.
Predatory Pricing - a pricing practice by which a company hopes to inhibit or eliminate competition by charging lower than normal prices for its products in certain geographic regions.
Premium Pricing - a planned approach to pricing, appropriate in situations of inelastic demand, in which an organization decides to keep its prices high; reasons for such a strategy might include a growing super-premium segment of the market, overcrowding at the bottom-end of the market, or the desire to create a prestige image for the product..
Premiums - a type of sales promotion in which merchandise is given free or at a reduced price to purchasers of products or visitors to a store.
Press Conference - a meeting to which media personnel are invited by a government body, organization or company seeking to make a public announcement, usually to gain favourable publicity or to offset some negative reaction.
Press Release - an announcement released to the news media by a government body, organization or firm, usually to obtain publicity or to offset some negative reaction to it or its products.
Pressure Group - any group of individuals who work together to exert an influence upon the decision-making of a company to achieve some specific outcome.
Prestige Builder - the highest-priced item in a product line.
Prestige Pricing - a pricing strategy in which prices are set at a high level, recognizing that lower prices will inhibit sales rather than encourage them and that buyers will associate a high price for the product with superior quality; also called Image Pricing.
Prestige Products - items of superior quality; high status merchandise.
Price - the value agreed upon by the buyer and the seller in an exchange; one of the four controllable variables (with product, promotion and place) of the marketing mix.
Price Adjustments - allowances, discounts, etc. granted by a seller to meet the requirements or circumstances of specific buyers.
Price Band - the range within which a product can be priced as dictated by competitive intensity and the perceived value of the product to consumers.
Price Bundling - a pricing strategy in which various products sold to a customer together are offered at a price less than the sum of the prices of the products sold individually.
Price Ceiling - A price, usually imposed by law, above which market prices are not permitted to rise; also called a Ceiling Price. See Price Floor.
Price Competition - a competitive situation in which price is used as the major means of differentiating the product of one firm from that of a rival. See Non-price Competition.
Price Cycle - the regular, periodic fluctuation in the price of a product, especially of an agricultural product, owing to expansion or contraction in its supply.
Price Discrimination - a pricing strategy, generally illegal, in which a seller charges different prices to marketing intermediaries for the same product.
Price-Elastic Segments - segments of the market which are more responsive to price changes than other segments of the market.
Price Elasticity - buyers' sensitivity to price; measured by the percentage change in quantity demanded that results from a percentage change in price.
Price Fixing - agreement or collusion between competitors to maintain certain fixed price levels to avoid competition.
Price Floor - A price, usually imposed by law, below which market prices are not permitted to floor; also called a Floor Price.
Price Gouging - a monopolistic pricing technique in which the seller takes advantage of the lack of competition by charging unusually high prices relative to a product's cost.
Price Incentives - a common form of sales promotion in which price reductions are offered to consumers to encourage them to buy a particular product earlier or in larger quantity.
Price Inelasticity - buyers' insensitivity to price; when the percentage change in quantity demanded is less than the percentage change in price, consumers are price-insensitive.
Price Leader - a firm whose prices set a lead for other firms in the industry to follow.
Price Leadership - a situation which occurs when one or a few companies, usually larger companies, are consistently the first to institute price changes.
Price Lining - pricing different products in a product line at various price points, depending on size and features, to make them affordable to a wider range of customers.
Price Objection - an objection raised by a prospective buyer on the grounds of price, credit terms, discounts, allowances, freight charges, etc. related to the cost of a product offered by a salesperson.
Price Packs - a type of sales promotion in which consumers are offered a reduction in the regular price of a product; the amount of the reduction is usually marked, or "flagged", prominently on the label or package; also called a "cents-off" deal.
Price Space - the price difference between items in a product line; having the right amount of price space is often critical as too little space may confuse buyers and too much space may leave gaps which can be exploited by competitors.
Price Taker - any firm which is unable to influence the general level of commodity prices by altering the quantity of the product produced; a firm operating in a perfectly competitive market situation is, necessarily, a price-taker. Price-takers are sometimes also referred to as Quantity Adjusters as their chief decision is to adjust the amount they produce to a given price.
Price Wars - a conflict situation likely to occur in industries where products cannot be greatly differentiated; a decrease in price by one company will attract a large number of customers to it, forcing other companies to retaliate by cutting the price even further.
Price Value Relationship - the connection that consumers make between price and quality; products with a higher price are commonly perceived to be of better quality.
Pricing - marketing activity concerned with the setting of prices for new products and the adjustment of prices for existing products.
Pricing Strategy - the element of a firm's decision-making concerned with the setting of prices that will attract the target market and allow profit objectives to be met.
Primary Advertising - advertising intended to create demand for a class or category of product rather than for a brand.
Primary Data - information that is obtained directly from first-hand sources by means of surveys, observation or experimentation.
Primary Demand - demand for a product class rather than for a particular brand within the class.
Primary Packaging - a product's immediate container or wrapper.
Principle of Integrating Interests - a technique used in selling in which the salesperson, knowing the buyer's personal interests or buying motives, places emphasis on these in the presentation rather than on the features or benefits of the product.
Private Brand - a brand owned by a wholesaler or retailer; also called a private label.
Private Carrier - any form of transport operated by an independent organization and used for the shipment of goods.
Private Treaty - a market agreement arranged by a buyer and seller in private negotiation.
Proactive Marketing Strategies - marketing activates which anticipate competitive action and attempt to forestall it; offensive strategies.
Probabilistic Models - a statistical tool in which the probability that an event will occur again is estimated using historical data; for example, in sales forecasting past purchasing behaviour is used to estimate the degree of probability with which consumers will purchase the same item again.
Probability Sample - a sample in which each individual within a total population has a known chance of being chosen.
Problem Situation Model - a model of a problem situation faced by a decision-maker, constructed (often by a marketing researcher) in order to get as clear a picture as possible of the problem; a problem situation model includes a description of the desired outcomes, the relevant variables, and the relationships of each of the variables to the outcomes.
Problem-Solving Approach - an approach to selling in which the salesperson works with the buyer to evaluate alternative solutions to a problem and to select the best; a consultative approach intended to build long-term relationships with clients. Also called Depth Selling.
Process Materials - a classification of goods bought by organizations for incorporation into a product; the process materials cannot be recognized in the finished product.
Procurement Costs - the costs involved in reordering an inventory item; the costs include the cost of processing and transmitting the order as well as the cost of the item itself.
Product - a bundle of need-satisfying tangible and intangible attributes offered to a buyer by a seller.
Product Advertising - advertising in which a company promotes a particular good or service.
Product attributes - distinctive tangible and intangible features of a product that give it its value to a user.
Product Audit - a systematic appraisal of a firm's product mix to evaluate its strengths and weaknesses and to assess the available opportunities.
Product Category - the specific generic to which a good or service belongs; for example, while Coke is a brand name, the product category to which it belongs is soft drinks.
Product Development - a growth strategy in which the firm develops new products for existing markets.
Product-Differentiated Marketing - a marketing philosophy in which the seller views the market as a homogeneous whole, but produces two or more products for it; the products, differing in attributes (price, style, quality, etc), are designed to offer variety rather than to satisfy the needs and wants of different market segments.
Product Differentiation - a strategy which attempts (through innovative design, packaging, positioning, etc.) to make a clear distinction between products serving the same market segment.
Product Elimination - the decision to drop a product (for example, in the decline stage of its life cycle) in order to use the costs associated with it to enhance profits or to release resources that could be more effectively used in other ways.
Product Extension - the introduction of a product that is known to the company but which has features or dimensions which are new to consumers; three types of product extensions are possible: revisions, additions and repositioning.
Product Failure - a product that does not meet management expectations in the marketplace.
Product Flanking - a competitive marketing strategy in which a company produces its brands in a variety of sizes and styles to gain shelf space and inhibit competitors.
Product Form Competitors - firms offering slightly different variants of the same basic product.
Product Item - a product variant with its own distinctive attributes (price, packaging, etc.).
Product Knowledge - detailed knowledge of a product's features and benefits required by a salesperson to persuade a prospect to purchase.
Product Liability - the onus or responsibility imposed by legislation on a manufacturer to warn consumers appropriately about possible harmful effects of a product, to foresee how it might be misused, etc.
Product Life Cycle - a concept which draws an analogy between the span of a human life and that of a product, suggesting that, typically, a product's life consists of four stages - introductory, growth, maturity and decline; the concept is used as a tool to formulate marketing strategies appropriate to each of the stages.
Product Line - a group of products manufactured or distributed by an organization, similar in the way they produced or marketed; for example, a line of toiletries and a line of pens.
Product Line Brand Name - a brand name applied to several products within a product line.
Product Line Expansion Segmentation Strategy - one of four possible segmentation strategies (with concentrated segmentation strategy, market segment expansion strategy and differentiated segmentation strategy) available to a firm in relation to the segment or segments it wishes to target; in a product line expansion segmentation approach a firm offers several products to one segment.
Product Line Extension - adding depth to an existing product line by introducing new products in the same product category; product line extensions give customers greater choice and help to protect the firm from a flanking attack by a competitor.
Product Line Featuring - a strategy in which certain items in a product line are given special promotional attention, either to boost interest (at the lower end of the line) or image (at the upper end).
Product Line Filling - introducing new products into a product line at about the same price as existing products.
Product Line Length - the number of different products in a product line.
Product Line Modernization - a strategy in which items in a product line are modified to suit modern styling and tastes and re-launched.
Product Line Pruning - reducing the depth of a product line by deleting less profitable offerings in a particular product category.
Product Line Retrenchment - reducing the width of a product mix by decreasing the diversity of items offered across product categories; product line retrenchment is common following the failure of brand leveraging to launch a brand into a related category.
Product Line Stretching - introducing new products into a product line.
Product Management System - a system which ensures that total marketing control of a product line or brand rests with the person who has profit responsibility for it.
Product Manager - an individual given responsibility for the planning and co-coordinating of a firm's marketing activities related to a single product, product line or market.
Product Mix - the variety of distinct product lines and items manufactured or distributed by an organization.
Product Mix Consistency - the degree of closeness or relatedness between product lines in the product mix.
Product Mix Width - the number of distinct product lines manufactured or distributed by an organization.
Product Modification - any substantial change made to the attributes (size, shape, colour, style, price, etc.) of a product; modification of a product is usually undertaken in an attempt to revitalize it in order to increase demand.
Product Objection - an objection by a prospective buyer to the quality or characteristics of the goods offered by a salesperson.
Product Organization - the deployment of a firm's sales force or the organization of its marketing activities so that a separate division is responsible for each of its major products or product groups.
Product Orientation - a management philosophy, concept, focus or state of mind which emphasizes the quality of the product rather than the needs and wants of the target market; the orientation assumes that consumers will favour products that offer the most quality, performance and features and that the organizationís objectives will be most readily achieved by a concentration on these.
Product Petrification - a term used to describe the small but persistent demand by loyal customers for a declining product.
Product Portfolio - the mix of products manufactured or distributed by a company.
Product Portfolio Analysis - an examination of each of the products manufactured or distributed by the company to assess future marketing strategies.
Product Position Map - a tool used in comparing consumer perception of the differences between products or brands; consumers are asked to mark the particular location of a product or brand on a two-dimensional "map", where the axes of the map are attributes felt by consumers to be important.
Product Positioning Strategy - marketing decisions and actions intended to create a particular place for a product in the market and in the minds of consumers; a product positioning strategy may attempt to differentiate a marketing offer from a competitor's or to appear similar to it.
Product Recall - the advertised request by a company that a product be returned to it by those who have already purchased it; a product recall is often deemed desirable when a product proves to be unsafe or unreliable.
Product Strategy - the element of a firm's decision-making concerned with developing the most appropriate products for its target market.
Product Testing - exposing consumers to a new product, in final or prototype form, so that they might compare it to their usual brand and rate it; the results of product testing will indicate to the company whether further evaluation of the product in test markets is desirable.
Product-Based Marketing Organization - a marketing structure of an organization in which staff specialists have responsibility for various products of the organization (rather than for particular markets); most appropriate when customer needs are differentiated by product.
Product-Differentiated Marketing - an approach to marketing in which a company disregards market segmentation but produces goods and services that are different from others on the market.
Product-Push Approach - an approach to the generation of new product ideas in which a company's strengths rather than market needs are given prime emphasis.
Production Goods - a classification of industrial goods; goods purchased by industrial firms for use in the manufacture of their finished products.
Production Orientation - a management philosophy, concept, focus or state of mind which emphasizes production techniques and unit-cost reduction rather than the needs and wants of the target market; the orientation assumes that consumers will favour those products that are the most readily available and at the most affordable prices and that a concentration on efficiencies in production and distribution will most readily achieve the firm's objectives.
Profit and Loss Statement - an accounting statement showing income, expenditure and profit over a given period.
Profit Centre - a division of an organization with responsibility for generating its own income, and with accountability for profits.
Profit Objective in Pricing - setting prices with short-run profits rather than long-term market share in mind.
Profit Sharing - a compensation system in which employees are awarded a share of the company's profits to encourage increased productivity.
Profitability Control - marketing effort intended to assess the level of profitability of each product in the portfolio, of each market segment, of each marketing channel, etc.
Progressive Commission - a sales commission system in which the commission rate increases as the salesperson sells more goods.
Promotion - one of the four controllable variables (with product, price and place) of the marketing mix.
Promotion Manager - an individual within an organization responsible for promotional activities and campaigns.
Promotion Mix - the range of means available to an organization for communication with its target market - advertising, sales promotion, personal selling, publicity and public relations.
Promotional Adaptation - a strategy in which the same product is sold in different geographic locations but with a unique promotional strategy for some or all of the different locations.
Promotional Allowance - a price reduction or discount granted by a manufacturer to a member of the marketing channel in return for some form of special promotion of a particular product.
Promotional Budget - the sum allocated in a particular accounting period for expenditure on promotion.
Promotional Campaign - a coordinated series of promotional efforts built around a single theme and designed to achieve a specific objective.
Promotional Partnership - an alliance between a manufacturer of a product and another company for the purposes of promotion; for example, Coca-Cola Co. may form a promotional partnership with 20th Century Fox Film Corp., agreeing to pay that company to display the soft drink prominently in a forthcoming feature film.
Promotional Pricing - the temporary pricing of goods and services at lower than normal levels for a special promotional effort.
Promotional Stock - merchandise offered at a reduced price to a reseller for some special promotion or festive occasion; also referred to as Seasonal Stock.
Promotional Strategy - the element of a firm's decision-making concerned with choosing the most appropriate mix of advertising, sales promotion, personal selling and publicity for communication with its target market.
Promotional Warranty - a warranty designed to reduce the perceived financial or performance risk that a consumer might perceive in purchasing an expensive product.
Prospect - a potential customer.
Prospecting - the first step in the selling process; the activity of seeking out potential customers.
Prospecting Plan - a systematic approach to finding new customers involving the setting aside of time after allowing for calls on existing customers specifically for prospecting.
Protectionism - Trade policies of governments aimed at protecting domestic industries by limiting the volume of imports.
Prototype - a sample or early version of a new product made or built specifically for trialing and testing.
Prototype Testing - the trialing of a sample of a newly developed product on selection of customers from the target market .
Proxemic Communication - a form of nonverbal communication or body language in which messages are conveyed from one person to another by the changing space that separates them during a conversation.
Psychodrama - a qualitative marketing research technique in which respondents are asked to engage in impromptu role-playing exercises intended to have them reveal their feelings about certain products or brands.
Psycho drawing - a nonverbal, qualitative marketing research technique in which respondents use colours, shapes, symbols, etc. to express their feelings about certain products or brands.
Psychographic Segmentation - the division of a heterogeneous market into relatively homogeneous groups on the basis of their attitudes, beliefs, opinions, personalities and lifestyles; sometimes called "State-of-Mind" Segmentation.
Psychographic - the study of the attitudes, beliefs, opinions, personalities and lifestyles of individuals in a population.
Psychological Discounting - the advertising of a product at a heavily reduced price, as in "Was $49.95, now only $35.00".
Psychological Needs - innate human feelings of deprivation related to an individual's mental well-being.
Psychological Repositioning - the attempt by a firm to alter the beliefs of prospective buyers about the key attributes of its product offering, especially where the buyers generally underestimate its quality.
Psychological Pricing - pricing intended to influence the customers' perception of the actual price of a product; two common forms of psychological pricing are odd pricing and prestige pricing.
Psychological Set - a consumer's mind set; his or her positive or negative feelings or predispositions towards a particular brand or company. The consumer's mind set is formed by his or her needs, perceptions and attitudes.
Public Policy Environment - that part of a firm's external environment which consists of controversial issues or matters of concern to governments, the media or influential pressure groups; factors in this environment may have an influence on a firm's decision-making or an impact upon its performance.
Public Relations - the relationship which exists between an organization and its several publics; efforts to influence this relationship by obtaining favourable publicity.
Publicity - corporate or product promotion that is obtained free of charge.
Publics - the various groups in a society which can influence or bring pressure to bear upon a firm's decision making and have an impact upon its marketing performance; these groups include the financial public, media public, government public, citizen action public, local public, general public and international public.
Puffing - the legitimate practice of making obviously exaggerated claims in advertising, e.g. "cleaner than clean".
Pull Strategy - promotion to end-users (mainly by means of advertising, sales promotion and publicity) rather than to members of the marketing channel (mainly by personal selling) to facilitate the flow of a good or service from producer to final consumer.
Pulsing - scheduling advertising campaigns in fairly regular bursts followed by periods of relative or complete inactivity.
Purchase Intentions - the likelihood that a consumer will buy a particular product resulting from the interaction of his or her need for it, attitude towards it and perceptions of it and of the company which produces it.
Purchase Probability Scale - a tool used in marketing research surveys of buying intentions; respondents are asked to rate the likelihood of their purchase of a particular product.
Purchasing Officer - an individual within an organization responsible for purchasing the goods and services it requires.
Purchasing Performance Evaluation - the establishment of criteria by which the performance of purchasing officers can be assessed and of incentive systems so that good purchasing can be rewarded.
Pure Competition - a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.
Pure Monopoly - a marketing situation in which there is only one seller of a product.
Push Money - a direct payment of money offered to the sales force of a reseller by a manufacturer to encourage greater efforts with a particular product or range.
Push Strategy - promotion to members of the marketing channel (mainly by means of personal selling) rather than promotion to end-users (mainly by means of advertising, sales promotion and publicity) to facilitate the flow of a good or service from producer to final consumer.
Push-Pull Strategy - promotion of a good or service both to end-users and members of the marketing channel to facilitate its flow from producer to final consumer.
Pyramid Selling - a selling system, now illegal in Australia, in which members of a sales organization derive their earnings by selling to newly introduced members of the distribution network (who pay a fee to enter) rather than to end-users.
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