1. ABC analysis
    An approach for classifying accounts based on their attractiveness. A accounts are the most attractive while C accounts are the least attractive.
  2. ABC inventory classification
    A classification scheme used to implement inventory management strategies. Products are segmented into groups based upon unit sales or some other criterion. (For example, class A might be items with the highest frequency of sales, etc.) Inventory management is then guided by this segmentation
  3. above-the-line cost
    Any cost involved in the advertising production process that is specifically listed in the budget.
  4. absolute advantage
    When a country has the capacity to produce goods at a lower cost than another country, it is said to have an absolute production advantage. Even if a country has an absolute advantage in the production of all goods, it can still gain from specialization and trade if it has a comparative advantage in the production of any good.
  5. accelerated development
    The process of speeding up the new product development process. Development can be accelerated in a number of ways, such as speeding up the development process, eliminating unnecessary steps, undertaking two or more development tasks in parallel, and eliminating or minimizing decision-making delays.
  6. accelerated purchase
    A sales promotion goal achieved when consumers or channel members purchase the product before the time they would have normally bought.
  7. acceptable price range
    This includes those prices that buyers are willing to pay for goods or services.
  8. account
    A customer, usually an institution or another organization, that purchases a company's products or services.
  9. account classification
    The categorization of a salesperson's customers into groups, based on criteria such as potential sales, for the purpose of developing a sales call plan. Comment: The classification scheme reflects the relative attractiveness of the various customers and is used to direct sales effort.
  10. Account Executive
    1. (advertising definition) The person in an advertising agency who serves as the principal contact with a specific agency client (or more than one client) and coordinates the work of agency staff members assigned to those client(s). 2. (sales definition) A salesperson who has responsibility for the overall relationship between his or her firm and a few major accounts. Comment: An account executive coordinates financial, production, and technical capabilities of the firm to satisfy the needs of the account.
  11. account group
    The members of the various advertising agency functional departments (such as account management, creative, media planning, research, traffic, etc.) who are assigned to work on an ongoing basis on the projects related to a particular agency client.
  12. account opener
    A premium or special promotion item offered to induce the opening of a new account, especially in financial institutions and stores operating on an installment-credit plan basis.
  13. acculturation
    1. (consumer behavior definition) The learning of the behaviors and mores of a culture other than the one in which the individual was raised. For example, acculturation is the process by which a recent immigrant to the U.S. learns the American way of life. 2. (consumer behavior definition) The process by which people in one culture or subculture learn to understand and adapt to the norms, values, life styles, and behaviors of people in another culture or subculture
  14. acquisition (1)
    1. (product development definition) The acquiring by one firm of another firm's technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm's current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely different business). Acquisition is a method of expanding one's product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger.
  15. acquisition (2)
    2. (strategic marketing definition) The acquiring by one firm of other technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm's current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely new business). Acquisition is a method of' expanding one's product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger.
  16. Acquisition Strategy
    A process of finding those potential customers who are in the market and ready to buy. The attempt to lead customers to a web site and to welcome them, answer their questions and close the sale. Source: SEMPO
  17. Acquisition Value
    The buyers' perceptions of the relative worth of a product or service to them. It is formally defined as the subjectively weighted difference between the most a buyer would be willing to pay for the item less the actual price of the item.
  18. Activation
    Defined by IEG as the marketing activities a company conducts to promote its sponsorship. Money spent on activation is over and above the rights fee paid to the sponsored property. Also known as leverage. Source: IEG
  19. activities, interests, and opinions (AIO)
    A measurable series of psychographic variables involving the interests and beliefs of consumers.
  20. activity based costing
    A cost accounting system that ties actual costs to the direct performance and value of activities. Costs are not allocated based on a formula, but are traced and charged to specific activities.
  21. activity goal, sales
    The behavioral objective for salespeople, such as the number of calls made or number of displays set up in a day
  22. activity quota
    A quota that focuses on the activities in which sales representatives are supposed to engage. Activity quotas focus on a salesperson's efforts rather than the sales volume outcomes of these activities. Examples of activity quotas include number of letters to potential accounts, number of product demonstrations, number of calls on new accounts, and number of submitted proposals.
  23. actual value
    The customer's current and future value if the current level of business is maintainted over time. This dimension of value includes revenue, but also elements such as how engaged the customer is in the business, communications and referals.
  24. adaptive control budgeting
    An advertising budget method whereby the advertiser uses test markets to examine the sales level and profitability of advertising spending levels that are higher and lower than the spending level currently being used by the advertiser. The advertiser may decide to adapt to either a higher or lower spending level depending on test market results.
  25. adaptive experimentation
    An approach (and philosophy) for management decisions, calling for continuous experimentation to establish empirically the market response functions. Most common in direct marketing, it can and has been applied to advertising and other marketing mix variables. The experiment should reflect the needed variation in stimuli, cost of measuring the results, lost opportunity cost in the non-optimal cells, and management confidence in the base strategy
  26. adaptive planning
    An iterative process framework for organizing myriad information flows, analyses, issues, and opinions that coalesce into strategic decisions. There are four stages to this process: (1) situation assessment-the analysis of internal and environmental factors that influence business performance, combined with a comparison of past performance relative to objectives and expectations, (2) strategic thinking-identification of key issues that have a major impact on performance and the generation of creative strategic options for dealing with each issue, (3) decision making-selection of strategic thrust, choices of options, and allocation of resources in light of mutually acceptable objectives, and (4) implementation-ongoing activities that translate strategic decisions into specific programs, projects, and near-term functional action plans. The process is iterative because the implementation phase will eventually be followed by a revised situation assessment.
  27. adaptive product
    Also called adapted product, this market entry acquires its uniqueness by variation on another, more pioneering product. The degree of adaptation is more than trivial (to avoid being an emulative product or "me-too" product) but it varies greatly in significance.
  28. adaptive control budgeting
    An advertising budget method wherebythe advertiser uses test markets to examine the sales level and profitability of advertising spending levels that are higher and lower than the spendinglevel currently being used by the advertiser. The advertiser may decide to adapt to either a higher or lower spending level depending on test market results.
  29. adaptive experimentation
    An approach (and philosophy) for management decisions,callingforcontinuous experimentationto establish empirically the market response functions. Mostcommon indirect marketing,itcan and has been applied to advertising and other marketing mix variables. The experiment should reflect the needed variation in stimuli, cost of measuring the results, lost opportunity costinthe non-optimal cells, and management confidence in the basestrategy
  30. administered vertical marketing system
    A form of vertical marketing system designed to control a line or classification of merchandise as opposedto an entire store's operation.Such systems involve the developmentofcomprehensive programs for specified lines of merchandise. The vertically aligned companies, even though in a non-ownershipposition,mayworktogether toreduce the total systems costofsuchactivities as advertising, transportation,anddata processing.
  31. advance dating
    An arrangement by which the seller sets a specific future date when the terms ofsale become applicable. For example, the order may be placed on January 5 and the goods shipped on January 10, but underthe terms "2/10, net 30 as of May 1." In this case, the discount andnetperiods are calculated from May 1. Season dating is another name for terms of this kind
  32. advertised brand
    A brand that is ownedbyan organization(usuallya manufacturer) that uses a marketing strategy usually involving substantial advertising. An advertised brand is a consumer product, thoughit need not be,andis contrastedwitha private brand, which is not normally advertised heavily.
  33. advertising allowance
    A payment made to a retail or wholesale operator by the seller of an advertised product or for use in purchasinglocaladvertising timeandspace for the advertiser's product.
  34. advertising effectiveness
    An evaluation of the extent to which a specific advertisement or advertising campaign meets the objectives specified by the client. There is a wide variety of approaches to evaluation, including inquiry tests, recall tests, and market tests. The measurement approaches include recall of ads and advertising themes, attitudes towardthe advertising, persuasiveness,andimpact on actual sales levels.
  35. advertising strategy
    A statement prepared by the advertiser(often in association with an advertising agency) settingforth the (1) competitive frame,(2) target market, and(3) message argument to be used in an advertising campaign for a specific product or service.
  36. advertising substantiation
    The documentation by means oftests orother evidence of product performance claims made in advertising. FederalTradeCommission decisions indicate that it is a deceptive and/or unfair practice for advertisers to fail to possess reasonable documentationforproduct performance claims made in advertising messages before the claims are disseminated to the public.
  37. advertising wearout
    The occurrence of consumers becoming so used to an ad that theystoppaying attention to it
  38. advertising/display allowance
    A form of trade sales promotion inwhichretailers are given a discount inexchange foreither promotingthe product intheirown advertising, setting up a product display, or both. Itis also known as a displayallowance.
  39. Advisor
    A descriptive modelexplaining the levelof marketing communicationexpenditures for industrial products. Two of the more important explanatory variables are the size of the product market (i.e., dollar sales in the previous year) and the numberofpotentialcustomers that the marketing effort is to reach (Lilien 1979).
  40. advocacy advertising
    A type of advertising placed by businesses and otherorganizations that is intended to communicate a viewpointabouta controversial topic relating to the social,political, or economic environment.
  41. affiliate fraud
    A dishonest tactic used by affilitates in an affiliate marketing program to generateunearned, illegitimate income. For example, an affiliate in a pay-per-click advertising program repeatedly clicking on a link to generatecommission income.
  42. affiliate marketing
    An online marketing strategy that involves revenue sharing between online advertisers/merchants and online publishers/salespeople. Compensation is typically awarded based on performance measures such as sales, clicks, registrations ora combination of factors
  43. affiliate network
    Any of a numberofbusinesses that provide support services to affiliate marketing programs. Services can includetrackingcommissions and activity, providing marketing and sales support, or otherservices.
  44. affiliate merchant
    The advertiser in an affiliate marketing relationship.
  45. affinities
    A tendency for similar or complementary retail stores to be located inclose proximity toone another.For example,furniture stores ina city may be located inclose proximity toone another in order to facilitate consumer comparison shopping
  46. after sales support
    The services offered by the selling firm after the sale has been made to promote goodwill, ensure customer satisfaction, and develop customer loyalty. Comment: This requires a salespersonto monitororderprocessing; toensure proper installation and initial use of products; and to provide maintenance, repair services, and information on the care and use of products.
  47. after-market
    The potential future sales generated by owners of equipment for repair and replacement parts.
  48. aggregation
    A concept of market segmentation that assumes that most consumers are alike. Retailers adhering to the concept focus on common dimensions of the market rather than uniqueness,andthe strategy is to focus on the broadest possible numberofbuyers byan appealto universal product themes. Reliance is on mass distribution, mass advertising, and a universal theme of low price
  49. AIDA
    An approach to understanding how advertising and selling supposedly work. The assumption is that the consumerpasses through severalsteps in the influence process.First, Attention must be developed, to be followed by Interest,Desire, and finally Action as called for in the message. Another,butsimilar,scheme was developedby Lavidge and Steiner in 1961, later to be dubbed the AIDA: HierarchyofEffects Model byPalda in 1966. This approach involves the hierarchy of effects: awareness, knowledge, liking, preference, conviction, and finally purchase in that order. Notethe similarity to the adoptionprocess.
  50. Algorithm
    The process a search engine applies to web pages so it can accurately produce a list of results based on a search term. Search engines regularly change their algorithms toimprove the quality of the search results. Hence search engine optimisation tendstorequire constantresearch and monitoring.Source:Lazworld
  51. all-you-can-afford budgeting
    An approach to the advertising budget that establishes the amount tobe spenton advertising as the funds remaining afterall other necessaryexpenditures andinvestmentshave been covered in the comprehensive budgetfor the business ororganization.
  52. alteration cost
    The net cost of altering goods forcustomers fo rrepair of items in stock. The cost includes labor, supplies, and all expenses, including costs for this service when purchased outside the store.
  53. ambush marketing
    A promotionalstrategy where by a non-sponsor attempts to capitalize on the popularity/prestige of a property by giving the false impression that it is a sponsor. Often employed by the competitors ofa property’s official sponsors. Source: IEG
  54. analog approach
    A method of trade area analysis that is also known as the similar store or mapping approach. The analysis is divided into four steps: 1) describing the current trade areas by using a technique known as customer spotting; 2)plotting the customer on a map; 3)definingthe primarytrade zone, secondary trade zone,and tertiary trade zone; and 4) matching the characteristics of stores in the trade areas with a potential new store to estimate its sales potential.
  55. anchor store
    A large and well-known retail operation located in a shopping center and serving as an attracting force to draw consumers to the center
  56. antitrust laws
    Federal antitrust policy is set forth in four laws: the Sherman Antitrust Act, the Clayton Act, the Federal Trade Commission Act,and the Robinson-Patman Act.These laws are negative in character and outlaw restraints of trade,monopolizing,attempting to monopolize,unfair methods of competition,and, where they may substantially lessen competition or tend to create a monopoly,price discrimination,exclusive dealing, and mergers.
  57. API
    Acronym for Application Programming Interface. This is a program that advertisers create to manage their SEM campaigns, bypassing the search engines' interfaces. Source: SEMPO
  58. approach, sales
    The initial stage in a sales interaction. Comment: The objectives of the approach are securing approval for the sales call, getting the prospect's attention and interest, and building rapport with the prospect
  59. arbitrage
    The simultaneous purchase andsale ofthe same commodity or security intwo different markets in an attempt to profit from price differences in the two markets.
  60. assortment
    1. (retailing definition) The range of choice offered to the consumer within a particular classification of merchandise. In terms of men's shirts, for example,it is the range of prices, styles, colors, patterns, and materials that is available for customer selection. 2. (retailing definition) The range of choice among substitute characteristics of a given type of article. 3. (channels of distribution definition) A combination of similar and/or complementary products that,taken together, have some definite purpose for providing benefits to specific markets.
  61. attraction model
    A market share model that predicts a particular brand's market share as the quotient of that brand's "attraction" divided by the sum of the "attraction" levelforallbrands in the market. The attraction level for a brand is often in turn expressed as a function of customer characteristics, the marketing mix, and the competitive environment. Conditionsunderwhichan attraction model can be expected to hold have been described by Bell, Keeney, and Little (1975).
  62. auditing (post and pre)
    Transportation freight bills are checked to assure billing accuracy. Preauditing determines the proper rate and charges prior to payment of a freight bill. Postauditing makes the same determination after payment.
  63. augmented product
    This is the viewofa product that includes not only its core benefit and its physical being, but adds other sources of benefits such as service, warranty, and image. The augmented aspects are added tothe physical product by action of the seller, e.g., with company reputation or with service.
  64. assignment
    The formal transfer of property, as for benefit of creditors, especially accounts receivable as collateral for a loan.
  65. attraction model
    A market share model that predicts a particular brand's market share as the quotientofthat brand's "attraction" divided by the sum of the "attraction" level for all brands in the market. The attraction level for a brand is often inturn expressed as a function of customer characteristics, the marketing mix, and the competitive environment.Conditions under which an attraction modelcan be expected to hold have been described by Bell, Keeney, and Little (1975).
  66. average revenue (AR)
    1. (economic definition) The total revenue divided by the numberofunits marketed. 2.pricing definition) The total revenuedivided by the number of units sold.
  67. average total cost
    The total cost divided bythe number of units produced and sold.
  68. average variable cost
    The total variable cost divided by the number of units produced and sold.
  69. adjacencies plan
    A store layout plan that determines which categories of merchandise willbe placed adjacent to each other.
  70. Arts Marketing
    Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphonyconcert series,museumexhibit,etc.). Source: IEG
    A model for predicting the marketshare ofa new frequently purchased product using pretest market information. Perceptions and preferences of potential customers are measured via interview and a simulated shopping experience conducted at a central location. The prediction is based on the sample participants' reaction to advertising (exposure to advertisements for severalbrands), estimated level of product trial (based on the simulated shopping experience),estimated repeat purchase level (via follow-up interview), and brand preference judgments(Silk and Urban 1978). Evidenceon the model's predictive validity has been reported by Urban and Katz (1983).
  72. B2B
    Stands for "Business to Business." A business that markets its products or services to other businesses. Source: SEMPO
  73. B2C
    Stand for "Business to Consumer."A business that markets its services or products to consumers. Source: SEMPO
  74. back order
    1. (retailing definition) A part of an order that the vendor has not filled on time and that the vendor intendsto ship as soon as the goods inquestion are received, manufactured, or procured. 2. (physical distribution definition) An order not filled or shipped at time originally requested and "kept on the books"to be shipped later.
  75. backdoor selling
    1. Sales to ultimate consumers by wholesalers who hold themselves out tobe sellers only to retailers. 2. A salesperson's practice of avoiding a purchasing agent by visiting departments in plants to obtain orders without authorization from the purchasing agent.
  76. backgrounder sheet
    A brief review of an organization's history, mission, financial support, or otherinformation provided to the media with other publicity materials in order to supply basic information that may be used in a news story. It is also known as a fact sheet.
  77. Backlinks
    Backlinks are incoming links to a webpage. Backlinks are important for search engine optimization (SEO) because some search engines, give more credit to websitesthat have a good numberof quality backlinks. Sites with better backlink counts usually rank better in SERPs. Source: Lazworld
  78. bait advertising
    An alluring but insincere offer to sell whereby the advertiser does not intend to sell the advertised product at the advertised price; the purpose is to increase customer traffic. It also is called bait and switch advertising.
  79. bait and switch
    A deceptive sales practice whereby a low-priced product is advertised to lure customers to a store, where they are then induced to buy higher priced models by disparaging the less-expensive product
  80. bait and switch advertising
    The advertising of a product or service at an unusually low price with an intention to switch the customer to a higher priced item when the customer comes tothe store to buy the advertised item. This practice is illegal if customers find it difficult or impossible to buy the advertised item.
  81. balance of payments
    1. (economic definition) The difference between monetary transactions of one country with the rest of the world in a given time period. 2.(globalmarketing definition) A record of all the economic transactions between a country andthe rest ofthe world. For the worldas a whole,theoretically,importsmust equal exports. The balance of payments can be divided into the so-called current account and capital account.The current account is for goods and services,the capital accountis for money and investments.
  82. balance of trade
    The balance of merchandise imports and exports.
  83. balance sheet method
    An approach used by salespeople to gain commitment from a buyer by asking the buyer to think of the pros and cons of various alternatives. It is often referred to as the Ben Franklin method.
  84. balanced scorecard
    A comprehensive, top-down view of organizational performance across the entire enterprise, with a strong focus on vision, strategy and return on investment.
  85. balanced stock
    The composition of merchandise inventory in the colors, sizes, styles, and other assortment characteristics that will satisfy customer wants.
  86. balloon test
    n marketing research, a projective interviewing technique in which respondents are presented with a cartoon strip in which there is a blankballoon above the heads of one or more of the characters; respondents are asked to write inside the balloons what they believe the characters are saying. Also referred to as a Cartoon Test.
  87. Bandwidth
    How much information (text,images, video,sound) can be sent through a connection. Usually measured in bits-per-second. A full page of text is about16,000bits. A fast modem can move approximately 15,000 bits in one second. Full-motion full-screen video requires about 10,000,000 bits-per-second, depending on compression. Source: Lazworld
  88. bangtail
    Detachable advertisements on the reply envelop commonly included with credit card or telephone bills.
  89. banner ad
    A graphical Internet advertising tool.Users click on the graphic to be taken to another Website.The term "banner ad" refers to a specific size image, measuring 468 pixels wide and 60 pixels tall (i.e. 468x60), but it is also used as a generic description of all graphical ad formats on the Internet.
  90. banner blindness
    A term referring to the tendency of Internet users to ignore banner ads.
  91. banner exchange
    An advertising network where participating sites display banner ads in exchange for credits which are converted (usinga predetermined exchange rate) into ads to be displayed on other sites.
  92. barriers to competition
    The economic, legal, technical, psychological, or other factors that reduce competitive rivalry below the level that would otherwise occurnaturally. Barriers includebranding, advertising,patents, entry restrictions,tariffs, and quotas.Product differentiation is a barrier to competition.
  93. barter
    1. (advertising definition) The practice of trading time or space in advertising media for merchandise or other nonmonetary formsofcompensation. Syndicated television or radio programs are often carried by television and radio stations on a barter basis with the local stations receivingthe syndicatedprogramincluding some commercials in return for being able to sell the remaining commercial positions tootheradvertisers.2. (global marketing definition) A type of trade transactioninwhichthere is a direct exchange of goods or services between two parties. Although no money is involved,both partners constructan approximate shadow price for products flowing in each direction, without the use of money; e. g.,A West German company sells a $60 million steel making complex to Indonesia andis paid in 3,000,000 barrels of Indonesia oil. (The shadow price of the oil would thus be $20 per barrel.)
  94. basing-point pricing
    A variation of delivered pricing. The delivered price is the product's list price plus transportation from a basing point to the buyer. The basing point is a city where the product is produced.But, inbasing-point pricing,the product maybe shippedfrom a city other than the basing point.
  95. behavioral analysis
    A sales management evaluation and control method for monitoring sales force performance. A behavioral analysis involves evaluating the actual behavior of salespeople as well as their ultimate performance in terms of sales volume. Examples of behavioral analysis techniques include self-rating scales, supervisor ratings,andfield observations.
  96. behavioral self-management
    A process by which a salesperson adopts certain procedures to control his or her behavior in order to achieve favorable results (such as improved performance). Examples of behavioral self management techniques include salespeople's monitoring theirown behavior(e.g.,recording the amount of time spent calling on customers), setting personal goals (e.g., determining the number of new accounts toopen),andrehearsing the desired behavior (e.g., practicing a sales presentation).Use of behavioral self-management affords sales managers additional time to engage in particularly important managerial activities and provides sales personnel opportunity to practice successful time management.
  97. basic low stock
    The lowest level of inventory judged permissible for an item. It indicates a conception of the smallest number of units that couldbe onhand without losing sales at the lowest sales period of the year or season.
  98. below-the-line cost
    Any cost in the advertising production process that is not specifically itemized in the production budget
  99. Behavioral Targeting
    The practice of targeting and serving ads to groups of people who exhibit similarities not only in their location, genderorage,butalso inhow theyact and react in their online environment.Behaviors trackedandtargeted includewebsite topic areas they frequently visitor subscribe to; subjects or contentor shopping categories for which they have registered, profiled themselves or requested automatic updates and information, etc. Source: SEMPO
  100. behavioral intention
    A cognitive plan to perform a behavior or action ("I intend to go shopping later"), created through a choice/decision process that focuses on beliefs about the consequences of the action.
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