Marketing Definitions (H-I-J)
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Habitual Decision Making - consumer decision making or problem solving requiring only minimal search for, and evaluation of, alternatives before purchasing. Also referred to as Automatic Response Behaviour, Routine Response Behaviour and Routinized Problem Solving.

Halo Effect - the transfer of goodwill from one product in a company's line to another; the attribution, by association, of the qualities of one item to others in the group.

Hard Sell Approach - an approach to selling in which the salesperson puts pressure on the buyer to make a commitment to purchase.

Harvest Strategy - a deliberate decision to cut back expenditure of all kinds on a particular product (usually in the decline stage of its life cycle) in order to maximize profit from it, even if in doing so it continues to lose market share. See Hold Strategy.

Head-to-Head Competition - a competitive situation characteristic of oligopolistic circumstances, where the second or third leading company, decides to challenge the leader.

Hedonists - formally, those who habitually seek pleasurable experiences; individuals who, by nature, seek products which provide them with the most pleasure, without regard to calories, sugar content, salt content, cholesterol levels, colouring or preservative additives, and so on; hedonists are above-average consumers of chocolates, soft drinks, beer, etc.

Herzberg's Theory of Motivation - a theory of motivation developed by Henry Herzberg in which satisfiers (factors that cause satisfaction) are distinguished from dissatisfiers (factors which cause dissatisfaction). Thus, consumers will compare the number and degree of satisfiers to the number and degree of dissatisfiers before making purchase decisions.

Heterogeneous Shopping Goods - shopping goods perceived by consumers as markedly different in quality and attributes; price is consequently less important.

Hidden Objection - an unstated objection which a prospective buyer has to a product offered by a salesperson. See Objection; Invalid Objection; Stated Objection; Valid Objection.

Hierarchy of Effects Models - various illustrations of the notion that marketing promotion induces consumers to move in steps from one mental state to the next before eventually deciding to purchase a particular product; in the AIDA model the steps, in ascending order, are awareness, interest, desire and action, while in Lavidge and Steiner's expanded model they are ignorance, awareness, knowledge, liking, preference, conviction and purchase.

High-Contact Retailing - a recent trend in retailing in which some retailers attempt to position themselves by emphasizing the services aspects of their products more than the goods themselves.

High-Involvement Products - products for which the buyer is prepared to spend considerable time and effort in searching.

High-Price Strategy - 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.

High-Touch Service - customer service that is characterized by a high level of personal contact with customers, as opposed to "low-touch" customer service which is provided by vending machines, self-service counters, etc.

Historical Analogy - an approach to sales forecasting in which the past sales results of a similar product are used to predict the likely sales of a similar new product.

Ho-Hum Products - a colloquial term used in reference to common, everyday items (such as paper clips, drawing pins, staples and scribble-pads) which cannot be differentiated significantly from those of competitors; purchasers of "ho-hum" products will generally favour the cheapest available.

Hold Strategy - a course of action appropriate for a product (usually in the decline stage of its life cycle) in which a company decides to hold by keeping expenditure on it to a minimum to maximize the return before having to delete it from the line. See Harvest Strategy.

Holding Costs - costs associated with keeping inventory, including warehousing, spoilage, obsolescence, interest and taxes; also called Inventory Carrying Costs.

Home Shopping - forms of non-store retailing which include television home shopping (in which articles are demonstrated on TV so that consumers can place telephone orders for direct-to-home delivery), videotext or electronic catalogue shopping, etc.

Homogeneous Shopping Goods - shopping goods perceived by consumers to be essentially the same in quality and attributes; price is consequently the deciding factor.

Horizontal Channel Conflict - discord among members at the same level of a marketing channel, e.g. wholesaler-wholesaler discord or retailer-retailer discord. Horizontal Co-operative Advertising - shared advertising by two or more members at the same level of a distribution channel, each paying part of the total cost.

Horizontal Diversification - a growth strategy in which a company seeks to add to its existing lines new products that will appeal to its existing customers.

Horizontal Integration - a strategy for growth in which a company develops by seeking ownership of, or some measure of control over, some of its competitors.

Horizontal Market - a market for a product which is bought by many industries.

Horizontal Marketing Management - the organization of marketing activities by independent firms on the same level in a marketing channel so that they work closely together in buying, promotion, etc. to achieve economies of scale.

Horizontal Price Fixing - the practice, usually unlawful, of sellers of different brands of the same product making agreements to charge the same price to consumers.

Hypermarket - a giant, one-stop shopping facility offering a wide choice of grocery and general merchandise at discount prices.


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Iceberg Principle - a theory that suggests that aggregated data can hide information that is important for the proper evaluation of a situation.

Idea Generation - the first stage in the new product development process - the sourcing of ideas for new products; important sources include the firm's own R & D work, focus groups, competitor's products and suggestions from customers, distributors and salespeople.

Idea Marketing - activities associated with the marketing of a cause or idea.

Ideal Brand Model - a model used to study consumer evaluation of alternative products; the consumer compares actual brands comparing them to a hypothetical ideal brand.

Image Differentiation - as a source of competitive advantage, a company may differentiate itself from its competitors by image; the particular image or "personality" it acquires is created by its logo and other symbols, its advertising, its atmosphere, its events and personalities. Other sources of differentiation for competitive advantage include product differentiation, services differentiation, and personnel differentiation.

Image Oriented Change Strategy - an advertising plan or tactic intended to change a brand's image (rather than to maintain it over time) and which relies on imagery and symbolism (rather than the provision of information) to achieve its objective.

Image Oriented Maintenance Strategy - an advertising plan or tactic intended to maintain a brand's position over time (rather than to change its position) and which relies on imagery and symbolism (rather than the provision of information) to achieve its objective.

Image Persistence - the idea that images may persist long after an organization has changed; for example, one government instrumentality's services might be highly regarded in the public mind even though its programs have deteriorated, while another's might still be poorly regarded long after they have been improved.

Image Utility - the value given to a product by virtue of the fact that it brings satisfaction to the user in creating prestige and esteem.

Imagery - the symbols, images or graphic representations used in advertising to suggest a particular mood or feeling.

Impact - the force that an advertisement or message will have on a target consumer; television advertising, for example, because it combines sight and sound, will typically have greater impact than print media.

Implementation - the stage in the marketing management process when plans are put into action.

Implied Warranty - the notion, upheld by courts in recent years in response to mounting consumer complaints that a product is covered by warranty even if not expressly stated, and that manufacturers are liable for injury caused by a product even if there has been no negligence in manufacturing; hence, caveat vendor or "let the seller beware".

Import Quota - a government-imposed limit on the number, quantity or value of a product to be imported, usually to protect local industry.

Impulse Buying - unplanned consumer buying of attractively presented or conveniently located products.

Impulse Goods - goods which are purchased quickly because of a sudden urge to have them.

In-Magazine Recognition Tests - to test the effectiveness of advertising, individuals selected from the target market are asked to look through a magazine and then to recall advertisements they have seen.

In-Pack Premium - a type of sales promotion in which a small gift is included inside the package of a product to encourage consumers to buy it.

In-Store Media - in-house media, usually radio or TV networks, inside department or variety stores to encourage foot traffic and generate more sales; music and news, as well as commercials and promotion, are carried by the media.

In-Suppliers - suppliers who are already well known to an organization and from whom they will purchase with confidence.

Inbound Telemarketing - telemarketing in which a company receives telephone orders and enquiries from customers; often, toll free telephone lines are used.

Incentive Marketing - the offering of gifts, rewards, premiums, etc to motivate the sales team, to get bigger or more frequent orders from dealers, or to induce customers to buy.

Incentives - (a) in learning theory, an object, person or situation that an individual believes will satisfy a motive; (b) in selling, any bonus, reward, contest, recognition program, etc. intended to motivate members of a sales team to greater efforts.

Incremental Approach (to Calculating Sales force Size) - an approach used in determining the ideal size of a sales force based on the difference between the expected gross profit that will be earned by the addition of an extra salesperson and the cost of hiring, training and maintaining that salesperson.

Incremental-Cost Pricing - an approach in which the price of all additional units produced after the fixed costs of production have been met are based on variable cost rather than on total cost.

Indirect Competitive Advertising - advertising intended to stimulate purchase of a particular brand at some future time.

Indirect Competition - a product that is in a different category altogether but which is seen as an alternative purchase choice; for example, coffee and mineral water is indirect competitors.

Indirect Costs - costs that cannot be traced directly to a particular product; commonly called Overheads.

Indirect Denial Method - handling a buyer's objection by initially admitting the validity of the objection in order to maintain rapport but then offering evidence to rebut the objection; sometimes referred to as the "Yes, but... Method."

Individual Brand - a brand name used for a single product within a product line.

Individual Brand Name - the part of the brand name which identifies a particular product when it follows a family brand name; for example, in the brand name "Holden Commodore", Holden is the family brand name, while Commodore is the individual brand name.

Industrial Buyer Behaviour - the study of the motives and actions of, and the influences upon, industrial buyers while engaged in the purchasing of goods and services.

Industrial Buyers - individuals who purchase goods and services on behalf of the organizations by which they are employed - purchasing officers.

Industrial Distributor - a marketing intermediary, roughly equivalent to a wholesaler in consumer markets, who purchases industrial products in bulk from manufacturers for resale to small industrial users.

Industrial goods- goods and services purchased by industrial buyers for use in the production of their own goods and services or in the conduct of their business; industrial goods can be broadly classified as equipment, raw materials and services.

Industrial Marketing - the marketing of goods and services to business organizations for use in the manufacture of their products or in the operation of their businesses; also called Business-to-Business Marketing.

Industrial Packaging - the protective wrapping and boxing of finished industrial goods for shipment.

Industrial Product Classes - categories of goods and services bought by organizations for use in production or in the operation of their business; classes include installation, accessories, raw materials, component parts, supplies, and services.

Industrial Selling - all forms of personal selling to organizational and industrial buyers of products for resale, or for use in manufacture, or for use in the operation of their businesses.

Incentive - an inducement to buy; incentives include special price deals, premiums, contests, etc.

Inelasticity of Demand - demand which is not greatly affected by a change in the price of the product.

Inept Set - brands that a buyer is aware of when considering a purchase, thinks poorly of , but uses in some way as a source of information.

Inert Set - brands that a buyer is aware of when considering a purchase but has no interest in.

Inertia Buying - consumer buying, of unimportant items, which is done frequently and in which the buyer chooses the same brand over and over again without consideration of other brands.

Inertia Selling - a selling practice in which unsolicited goods and services are sent to consumers in expectation that many will prefer to purchase rather than to return them.

Inflation - an economic situation in which rising prices result in a fall in the purchasing value of money.

Infomercial - a word coined to describe a particular type of commercial, for print, TV, radio, etc., in which a company promotes its own product while offering valuable information and advice on an important public issue.

Informal Marketing Organization - the part of a marketing organization made up of the many working relationships that develop over time, outside the formal lines of authority, among departmental managers.

Information Flow - the information about products, potential customers, consumer needs and wants, etc. that is passed forwards and backwards along a channel of distribution.

Information Oriented Change Strategy - an advertising plan or tactic intended to change a brand's image (rather than to maintain it over time) and which relies on the provision of information (rather than imagery and symbolism) to achieve its effect.

Information Oriented Maintenance Strategy - an advertising plan or tactic intended to maintain a brand's image over time (rather than to change its image) and which relies on the provision of information (rather than imagery or symbolism) for its effect.

Information Utility - the value given to a product by virtue of the fact that it can provide the user with information that is useful.

Informational Influence - one of three types of influence (with comparative influence and normative influence) exerted on consumers by reference groups; informational influence occurs when the group is the source of information about products and brands.

Informational Label - a label which carries information including use instructions, precautions and warnings, etc.

Informative Advertising - advertising intended to inform rather than to persuade or remind.

Informed Judgment Techniques - the use of the opinions of knowledgeable people to forecast demand and sales.

Inner-Directed Consumers - one of three broad groups of consumers (with Need-Directed Consumers and Outer-Directed consumers) identified in the Stanford Research Institute's survey of American lifestyles; inner-directed consumers, representing about twenty per cent of consumers in the U.S., buy to meet their own inner-needs rather than in response to social norms.

Innovation - the introduction of a product which is new to both the company and its customers; a new-to-the-world product.

Innovators - the small group of alert people who are the earliest to adopt a new product. See Diffusion of Innovation; Early Adopters; Early Majority; Laggards; Late Majority.

Inseparability - one of the four characteristics (with intangibility, perishability and variability) which distinguish a service; inseparability expresses the notion that a service can not be separated from the service provider.

Inside Order Taker - a salesperson who writes up sales orders at a sales counter, or those forwarded to the company by telephone, but is not required to sell persuasively to customers.

Institutional Advertising - advertising intended to promote a company or organization rather than its products; also called Corporate Advertising.

Institutional Market - a market consisting of schools, universities, hospitals, charities, clubs and similar organizations which buy goods and services for use in the production of their own goods and services.

Intangibility - one of the four characteristics (with inseparability, perishability and variability) which distinguish a service; intangibility expresses the notion that a service has no physical substance. Intangible Product - see Actual Product.

Intangible Product Attributes - the unobservable characteristics which a physical good possesses, such as style, quality, strength, beauty, etc.

Integrative Growth - a strategy for growth in which a firm acquires some other element of the chain of distribution of which it is a member.

Intensive Distribution - making a product available in as many outlets as are willing to stock it.

Intensive Growth - growth opportunities related to a company's current operations; intensive growth opportunities are market penetration, product development and market development.

Inter-type Channel Conflict - discord among members of different types at the same level of a marketing channel, e.g. department store-convenience store discord.

Inter-modal Transportation - a shipping method in which two or more modes of transport are used; for example, where containerized goods are loaded from truck to ship and back to truck again in the port of destination.

Internal Data - information recorded and stored by an organization as it completes it normal transactions and activities.

Internal Information Search - a stage in the consumer buying process for a low-involvement product; past experiences with items in this product class are considered.

International Marketing - marketing activities intended to facilitate the exchange or transfer of goods between nations.

Interviewer Bias - intentional or unintentional prompting by a marketing researcher which affects the interviewee's response.

Interview Study - a common technique for gathering primary data in marketing research. Respondents in an interview study complete a questionnaire delivered to them by telephone or mail or in a face-to-face interview.

Intra-organizational Environment - an organizationís internal environment; the forces arising from the organizationís formal structure and from interactions with employees which affect the marketing operations.

Introductory Stage of Product Life Cycle - the first stage in the life cycle of a successful product; the product wins acceptance relatively slowly, there are limited versions of it, there is no competition, distribution is patchy, promotion is designed to inform the market (rather than to persuade or remind), penetration or skimming pricing strategies are appropriate.

Invalid Objection - an excuse offered by a prospective buyer to cover some hidden objection to the product.

Inventory - finished goods stored in a warehouse..

Inventory Management - activities involved in maintaining the appropriate level of stock in a warehouse.

Inventory Re-marketing - an innovative strategy for reducing the risks of introducing a new product. Prior to the launch of the new product, a firm may negotiate with an inventory re-marketing company for the sale of any unused stock of the new product in the event that it fails to sell as well as expected; thus, the inventory remarketing company will buy the balance of the stock, at the previously agreed price, and resell it, usually in a different market and through different distribution channels.

Inventory Turnover - the ratio of dollar or unit sales or gross profit to average inventory; used in inventory control where the average number of times a company sells the value of its inventory in a year is measured.

Isolation Effect - the notion that a price will appear more attractive if the product is placed in the store next to an alternative product which is more expensive.


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Joint Demand - a situation in which demand for a product rises and falls with demand for another product with which it is used.

Joint Venture - a risk-reducing method of market entry in which two firms combine forces to manufacture or market a product; a method of entry into a foreign market in which a firm joins with an overseas company to establish a partnership for the production and marketing of its product abroad.

Judgment Sample - a type of non-probability sample used in gathering primary data in marketing research; the sample is drawn from those whom the market researcher judges to be knowledgeable about the subject. See Probability Sample; Non-Probability Sample.

Jury of Executive Opinion - a forecasting method based on the opinions of senior management.

Just-In-Time Inventory System - an inventory control method, devised in Japan, for keeping inventory costs to a minimum; supplies are ordered frequently, but in relatively small quantities..

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Last modified: November 21, 2007