Marketing Definitions (T-U-V)
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Tactic - a detailed, specific plan or course of action by which a strategy is to be implemented. 

Tactical Planning - planning of the shorter-term tactics to be used in implementation strategies to be employed in achieving planned marketing objectives.

Tactile Communication - a form of nonverbal communication or body language in which touching, handshaking, kissing, etc. conveys a message from sender to receiver. 

Tamper-Proofing - the sealing of packages of products in such a way as to make deliberate, undetected interference with them, for malicious or nuisance purposes, virtually impossible.

Tangible Product Attributes - elements of a product which have physical dimensions or are discernible by the senses. See Intangible Product Attributes.

Tangible Symbol - a service mark or design, usually of solid appearance, used by some service organizations as a means of positioning their intangible offerings. 

Target Audience Rating Points - a commonly used measure of the gross cumulative exposure of an advertising campaign.

Target Margin on Sales - the desired profit on each sale; used to determine the selling price where the average total cost is known.

Target Market - the group whose needs and wants the company wishes to satisfy.

Target Price - a price which is set in order to achieve a set percentage return on investment or a certain level of profit on net sales. 

Target Public - the group whose needs and wants are served by a non-profit organization.

Target Return on Investment - a pricing method which seeks the achievement of a desired return on investment.

Target Return Pricing - a pricing method in which a formula is used to calculate the price to be set for a product to return a desired profit or rate of return on investment assuming that a particular quantity of the product is sold.

Targeted Revenue - the desired income from sales of the goods and services produced.

Tariff - a government tax or duty on imported goods.

Team Selling - the use of two or more representatives from a selling company to present a product to a buying organization; the selling team may include sales and technical specialists.

Technical Sales Representative - a salesperson hired primarily for his or her technical or scientific expertise.

Technological Environment - that part of the firm's external environment in which changes in technology affect the firm's marketing effort; the changing technological environment may pose threats or present opportunities.

Telemarketing - a cost effective method of selling to prospective customers and of maintaining contact with existing customers using the telephone and other advanced telecommunications technologies.

Telephone Interviews - a rapid and moderately inexpensive means of gathering marketing research data.

Tele-shopping - a form of non-store or in-home retailing in which the consumer can purchase goods and services shown on television; the purchaser telephones an order, or orders with the aid of a computer, and the products are delivered to the home. 

Terminal Market - the market to which commodity products are shipped from local and regional markets for processing and packing for final shipment to wholesalers and retailers.

Territorialization - the division of a sales region into territories.

Test Market - a city, region or state used to test market reaction to a new product and marketing program before full commercialization begins; test markets can also be simulated by bringing together selected individuals from the target market. 

Testimonials - written recommendations from satisfied purchasers of a product to be used in selling it to new prospects.

Theory-in-Use Model - a decision-making tool employing previous learning and experience; theory-in-use models incorporate statements such as "if action X is taken, then result Y will occur".

Third-Line Forcing - an arrangement in which a manufacturer sells a product to a reseller only on the condition that the reseller also buys another product from some other (nominated) manufacturer. T

Thought-Leader Survey - a technique sometimes used in the exploratory stage of marketing research where personal interviews are conducted with community leaders or experts who may be expected to shed some light on a problem to be investigated.

Thrust Marketing - a term used to refer to situations in which sales managers change their titles to marketing managers but continue to ignore the satisfaction of customer needs and wants, emphasizing instead the selling of the products their firms can make most cheaply and easily.

Tie-In Arrangements - an arrangement in which a manufacturer sells a product to a reseller only on condition that the reseller also buys another less popular product; also called a Tying Contract. Tie-In Arrangements are usually illegal under the Trade Practices Act.

Time Analysis - a time management technique in which the amount of time allocated to each job activity is recorded and later reviewed in order to plan for more productive use of the available time. See Time Management.

Time Management - the perception of time as a valuable asset and the systematic structuring of it to conserve resources and maximize productivity.

Time Prices - the shopping time, travel time, waiting time, performance time and monitoring time that are part of the total price a consumer pays for a product. S

Time Utility - the value given to a product by virtue of the fact that it is available at the time it is required. 

Time-Efficient Retailing - a recent trend in retailing in which retailers attempt to position themselves by emphasizing the speed and convenience of their services, which include non-store retailing, such as computer, credit card and telephone shopping.

Timing Objection - an objection by a prospective buyer to the timing of the purchase of the goods offered by a salesperson; the buer indicates that the goods are not required at this particular time. 

Title Flow - the transfer of title or ownership of products as they pass from one member to the next in a channel of distribution. 

Top-Down Approach to Planning - an approach to planning in which senior management determines objectives, strategies, tactics, etc with minimal input from subordinates. 

Top-Down Approach to Promotion Budgeting - an approach to promotion budgeting in which the amount to be spent on promotion is determined by senior management with minimal input from subordinates.

Top-Down Approach to Sales Forecasting - an approach to forecasting which takes the company's objectives rather than market conditions as its basis. 

Total Costs - the sum of the fixed and variable costs incurred in the production of any given quantity level.

Trade Barriers - economic and financial measures, including tariffs, quotas, documentation requirements, etc. imposed by some countries to limit the inflow of foreign goods to protect local industries.

Trade Discount - an allowance or price reduction in payment for a channel member's participation in the distribution network; also called a Functional Discount. 

Trade Publications - magazines, newsletters, journals, directories, etc which serve the interests of particular industries; often used by salespeople as a source of leads.

Trade Sales Promotion - an incentive offered to resellers to encourage them to buy more of a particular product and to sell it more aggressively.

Trade Selling - selling products to wholesalers and retailers for resale purposes.

Trade Show - an exhibition or fair at which manufacturers display their products for the benefit of visiting wholesalers and retailers.

Trademark - a name, design or symbol registered for the exclusive use by a manufacturer to distinguish its product.

Traders - the earliest form of salespeople, existing in most ancient societies; typically, traders had ownership in the goods they sold.

Trading Areas - major cities and centres of business, often used as the basis of sales territory organization to minimize problems caused by the inequality of territories drawn on strictly geographical lines.

Trading Down - adding a lower-priced version of a product to the range, generally to capture a new market segment not served effectively because the original version of the product was too expensive for it. 

Trading Stamps - a form of sales promotion used by retailers in which customers receive stamps or coupons in proportion to the amount of their purchases; the stamps can be redeemed later for merchandise.

Trading Up - adding a higher-priced, higher-quality version of a product to the range, generally to increase sales of the lower-priced model through consumer association of its image with the more prestigious model. 

Traffic Builder - the lowest-priced item in a product line. 

Transactional Functions - one of the three kinds of functions (with facilitating functions and logistical functions) performed by intermediaries in a marketing channel; transactional functions are the activities associated with buying products and reselling them, and the risks incurred in keeping the products in stock. 

Transfer Price - the price charged by one division of a large company for the shipment of its goods from one profit centre to another.

Traveler - an old term for a salesperson; a traveling salesperson.

Trend Analysis - a forecasting method in which likely future sales are estimated by statistical analysis of previous sales patterns.

Trial Close - a technique used in selling to assess the buyer's readiness to make a purchase decision. A trial close usually takes the form of questions that ask for decisions on minor selling points; if the salesperson gets favourable responses to these questions, he or she can more confidently attempt to close the sale. 

Trial Objective - one of a three possible aims or objectives (with loading objective and loyalty objective) of a consumer sales promotion; purchasers are offered incentives to try a new product. 

Trickle-Across Concept - the notion that the adoption of a particular fashion will spread horizontally within several socioeconomic classes at the same time. 

Trickle-Down Concept - the notion that the adoption of a particular fashion will flow downward from one socioeconomic layer or consumers to the next. 

Trickle-Up Concept - the notion that the adoption of a particular fashion will flow upward from one socioeconomic layer of consumers to the next. 

Try-On-For-Size Method - a buyer-based approach to pricing in which salespeople test resellers' reactions to the proposed price of a forthcoming product before a final decision on price is made.

Two Level Channel - a marketing channel in which there are two levels of intermediaries (for example, a wholesaler and a retailer) between the manufacturer and the end-user. 

Two-Way Stretching - introducing new products into a product line at both the higher and lower priced ends at the same time. 

 

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Ullage - the amount by which a bottle, box, packet, etc (of soft drink, breakfast cereal, potato chips, or the like) falls short of being full.

Umbrella Pricing - a pricing situation common in oligopolistic market situations where the larger firms, by keeping prices high, create room for smaller companies to operate profitably below them. 

Unaided Recall Test - a means of evaluating the effectiveness of a company's recent advertising; without help from the researcher, selected respondents from the target market are asked to bring to mind advertisements they have seen or heard recently. 

Unbundling - eliminating one or more of the elements of a firm's product offering; for example, a firm selling computers might discontinue its offer of free training with each computer sold, deciding instead to charge separately for it. 

Uniform Delivered Price - a pricing method, sometimes referred to as "postage stamp" pricing, in which all customers pay the same freight costs regardless of their distance from the dispatch point; also called Single-Zone Pricing. 

Unique Selling Proposition - the particular quality, feature or benefit of a product which a competitor's product, although similar, cannot or does not offer.

Unit Pricing - an aspect of labelling in which, either by law or under voluntary industry codes, marketers are required to mark the price per unit of standard measure on certain product items as well as the price of the item so that shoppers in retail stores can compare packs of varying weight and volume.

Unit Volume Quota - a common form of sales assignment, goal or target used to measure a salesperson's performance; the salesperson is expected to sell a certain number of units of the product or product range in each budget period. Other commonly used types of quota are dollar volume quota, gross margin quota, net profit quota and activity quota.

Universal Product Code - the American system of computer-assisted product identification.

Universality - a feature of ideas marketing that distinguishes it from other forms of marketing; universality means that ideas can be made (and, therefore, marketed) by anyone.

Unplanned Cannibalization - the unexpected loss of sales from one product to another more recently introduced product in the line; unplanned cannibalization is more likely when there is little significant difference between the two products. 

Unsought Goods - a category of goods and services which the buyer (a) is unaware of, or (b) would prefer not to think about buying; commonly quoted examples include cemetery plots, encyclopaedias and life insurance. S

UPC - abbrev. Universal Product Code.

Upside Elasticity - a term used in reference to the sensitivity of consumers to an increase in the price of a particular product; upside elasticity means that there will be a significant drop in consumer demand as prices increase. 

Upside Inelasticity - a term used in reference to the sensitivity of consumers to an increase in the price of a particular product; upside inelasticity means that there will be no significant change in demand as prices increase. 

Upward Stretching - introducing a new product into a product line at the higher priced end of the market.

Usage Rate - a measure of the quantity of a product consumed by a user in a given period; users may be subdivided as heavy, moderate and light. 

Users - those individuals in the buying centre who will actually use the product being considered for purchase. 

USP - abbrev. Unique Selling Proposition.

Utility - the inherent quality or ability of a product to satisfy a want. 

 

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Valid Objection - a truthful objection raised by a prospective buyer to a good or service offered by a salesperson; some valid objections are answerable, while others (no money, no need for the product) are not. 

Validity - in marketing research, the obtaining of the right information for the purposes of the study.

Value Analysis - the rating by a buying organization of slightly different product offerings for the same task on a scale to select the most appropriate.

Value Pricing - a pricing approach in which the selling price of a good or service is based on the company's assessment of the highest value of the product to the consumer; that is, on what the consumer is willing to pay for it. S

Value Proposition - a clear statement of who the target market for a particular product is, of what key benefits the product will deliver, and of the price that will be charged.

Value Retailing - positioning a retail store as one in which consumers receive greater overall value-to-cost benefits (if not necessarily lower prices) than in competitors' stores.

Value-Added Consumer Orientation - a recognition by the company that the price consumers are prepared to pay for its product will depend on the benefits received and not just on the physical product itself.

Value-Added Wholesaling - providing more wholesaler services and lowering the cost of these services to retailers to improve productivity and profitability.

Value-Added Tax - a tax based on the amount by which value has been added to a product at each stage of production.

Values - enduring moral beliefs shared by members of a society and contributing to its culture.

Vampiring - a colloquial term used in reference to a situation in which a celebrity (from the media, arts, sporting world, etc) is so dominant in an advertisement or advertising campaign that the advertiser's message tends to be diminished.

Variability - one of the four characteristics (with inseparability, intangibility and perishability) which distinguish a service; variability expresses the notion that a service may vary in standard or quality from one provider to the next or from occasion to the next. Also referred to as Heterogeneity. 

Variable Costs - costs that vary directly with the volume or quantity produced; variable costs plus fixed costs equal total costs. See Fixed Costs; Total Costs.

Variety Seeking Decisions - purchase decisions made by consumers who are willing to try a diversity of brands for variety and to avoid boredom; variety seeking decisions occur when the degree of involvement with a product is low. 

Vending Machine - a coin-operated device which can be used to dispense a variety of consumer products (food, cigarettes, etc) and services (automatic teller machines at banks).

Vendor Analysis - the rating by a buying organization of all possible suppliers of a product on a scale to select the most appropriate; also referred to as Vendor Rating. 

Vendor Loyalty - the allegiance a firm gives to a supplier; straight rebuys usually reflect vendor loyalty but they are sometimes due to inertia.

Vendor Selection Strategy - the decision-making that occurs when a firm selects a supplier in order to minimize the risk of choosing the wrong one. Strategies used include the rating of vendors on a scale; the practice of choosing vendors from an approved list; multiple sourcing; and choosing the lowest priced vendor to minimize the potential for financial loss.

Venture Team - key people from various departments of an organization given responsibility for the development of a new product from concept to commercialization.

Vertical Channel Conflict - discord among members at different levels of a marketing channel, for example manufacturer-wholesaler or wholesaler-retailer discord. See Channel Conflict; Inter-Type Channel Conflict; Horizontal Channel Conflict.

Vertical Co-operative Advertising - shared advertising by two or more members at different levels of a channel of distribution, each paying part of the total cost. 

Vertical Decisions - management decisions which coordinate the flow of goods and services, title, information, payment and promotion along the channels of distribution.

Vertical Integration - a strategy for growth in which a company adds new facilities to existing manufacturing or distribution facilities; vertical integration can be either forward or backward. Also called Vertical Diversification. 

Vertical Market - a market for a product that is used in one (or few) industries. 

Vertical Marketing System - an organized, structured and unified distribution channel system in which producer and intermediaries or middlemen (wholesalers and retailers) work closely together to facilitate the smooth flow of goods and services from producer to end-user. 

Vertical Price Fixing - agreement between producers and retailers to maintain the producers' recommended retail price.

Voice-Over - a commentary heard on a TV advertisement, but spoken by an off-screen announcer.

Volume Analysis - a technique or method of marketing control in which sales volume in dollars or units or physical volume in units is measured over a given period in an attempt to identify underachieving salespeople, sales territories, etc.

Volume Segmentation - the division of a market into segments on the basis of the varying volume of demand for the product by individuals, groups or types of customers; typically, the segments are ranked to denote heavy usage, medium usage or light usage.

Voluntary Chain - a group or chain of retailers working together on a non-contractual basis to achieve economies of scale in buying, advertising, etc.

Voucher - a type of consumer sales promotion in which vouchers (or coupons) sent by mail or included in newspaper advertisements, etc. can be exchanged for merchandise to encourage trial of a new product.

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Last modified: November 21, 2007