1. penetration price policy
    A pricing policy that sets a low initial price in an attempt to increase market share rapidly. This policy is effective if demand is perceived to be fairly elastic.
  2. perceived-value pricing
    A method of pricing in which the seller attempts to set price at the level that the intended buyers value the product. It is also called value-in-use pricing or value-oriented pricing
  3. percent-of-sales budgeting
    An advertising budget method in which advertising expenses are established as a fixed percentage of past, current, or future sales levels.
  4. perfect competition
    A market model that assumes pure competition plus perfect knowledge, perfect freedom of movement, and perfect substitutability of the factors of production.
  5. peripheral route to persuasion
    One of two types of cognitive processes by which persuasion occurs. In the peripheral route, the consumer does not focus on the product message in an ad but on other stimuli such as attractive or well-known celebrities or popular music. The presence of these other stimuli may change the consumer's beliefs and attitudes about the product.
  6. permanent income hypothesis
    A hypothesis that postulates that consumption patterns are relatively stable over time, or that consumer expenditures are based on average income expectations over time.
  7. permission marketing
    Marketing centered around getting customer's consent to receive information from a company.
  8. perpetual inventory system
    A stock control system that is designed to keep continuous track of all additions and deletions to inventory.
  9. person marketing
    Marketing designed to influence target audiences to behave in some positive manner with respect to the positions, products, or services associated with a specific person. Comment: Attempts by an individual or organization to educate target audiences or change their attitudes about a person are not marketing.
  10. personal consumption expenditure
    The aggregate amount spent each year by consumers to buy goods and services from the marketplace.
  11. personal relationships in organizational buying
    Personal relationships in business marketing have a strong influence on organizational buying behavior. Positive or negative relationships between members of the buying and selling organizations often represent the deciding factor in supplier's choice.
  12. piecemeal processing
    A cognitive process in which an individual considers each piece of information separately in order to arrive at an evaluation. This type of processing is fairly effortful and is based on the assumption that each piece of information has some subjective value and that the individual somehow combines the pieces of information to determine the overall value. Information Processing Theory approaches traditionally assume this type of processing. Piecemeal processing is an alternative to category-based processing.
  13. point-of-purchase (POP)
    Promotional materials placed at the contact sales point designed to attract consumer interest or call attention to a special offer.
  14. point-of-purchase advertising
    Advertising usually in the form of window and/or interior displays in establishments where a product is sold to the ultimate consumer.
  15. point-of-purchase display
    On- and off-shelf display material or product stocking generally at the retail level that is used to call special attention to the featured product. It is sometimes referred to as point-of-sale display.
  16. polycentric orientation
    The unconscious bias or belief that it is necessary to adopt totally to local culture and practice. It is a host country orientation in management.
  17. portfolio
    1. (advertising definition) A collection of the best creative work done by an art director or copywriter, used in job interviews to demonstrate the individual's talent, skill, and experience. 2. (product development definition) A set of things that are developed and/or marketed in relationship to each other. It most often is applied to that group of projects currently active in a research laboratory, but may apply to all new projects underway.
  18. portfolio analysis
    More diversified companies are more usefully considered as being composed of a portfolio of strategic business units (SBUs). Portfolio analysis is used to assess needs and to allocate resources in recognition of differences in the contributions of different SBUs to the achievement of corporate objectives for growth and profitability. Portfolio analyses are often performed using models that classify SBUs and product-markets within a two dimensional matrix in which one dimension represents the attractiveness of the market and the other dimension the strength of competitive position. The position of the SBU within the matrix has direct implications for the generic investment strategy of the business-that is, whether it is appropriate to have an investment strategy/build strategy, hold strategy, harvesting strategy, or divest strategy. Some of the best known models for portfolio analysis include the Boston Consulting Group's growth-share matrix and General Electric's market attractiveness-competitive position matrix.
  19. portfolio management
    The arrangement of investments so as to achieve a balance of risks and rewards acceptable to the investor. The term can be applied to a global product portfolio.
  20. position analysis
    The analysis of existing products including the manufacturing program of the present company and of the subsidiaries, analysis of competitors' market shares, a technical and economic evaluation of all products in comparison with competitors' products, assessment of manufacturing capacity, assessment of sales capacity in the field and in the home organization, appraisal of product knowledge within the group, analysis of custom duties and tariffs, and some study of innovations to be expected in the future.
  21. POSSE
    A decision support system for making product design decisions. The approach uses conjoint analysis to identify the relation between the attributes possessed by a product and the desirability of that product, for each of a set of potential customers. In a second step, the level of market demand for any potential product is estimated by aggregating the individual preference models across customers. An optimization routine then reveals the most desirable product (or products) in terms of some specific management objective (e.g., maximizing incremental market share). This objective may take into account the presence of specific other products in the market and/or any cannibalization effect of the new product on specific existing products. Finally, the market segment most attracted to this optimal new product is identified.
  22. possession utility
    The increased usefulness created by marketing through making it possible for a consumer to own, use, and consume a product. It is also called ownership utility.
  23. post-buy analysis
    A comparison of the actual advertising schedule run to the original expectations of the schedule as purchased, considering adherence to buy specifications, actual audience achieved as measured by audience ratings services when available, and conformity to standard industry practices
  24. postindustrial society
    A concept referring to the next stage in our societal evolution in which the production of knowledge will be our major activity and most of the employment opportunities will be in the service sector.
  25. potential value
    A measure of unrealized opportunity - how much of the customer's share-of-wallet is going to competitors, spending potential is treatment is modified and how much you could expect to grow the customer. Note: Break down potential value by product or service category. If potential exists across a customer's overall portfolio, but you don't know where specifically that opportunity exists, it is difficult to capture new business.
  26. PPC Advertising
    Acronym for Pay-Per-Click Advertising, a model of online advertising in which advertisers pay only for each click on their ads that directs searchers to a specified landing page on the advertiser’s web site. PPC ads may get thousands of impressions (views or serves of the ad); but, unlike more traditional ad models billed on a CPM (Cost-Per-Thousand-Impressions) basis, PPC advertisers only pay when their ad is clicked on. Charges per ad click-through are based on advertiser bids in hybrid ad space auctions and are influenced by competitor bids, competition for keywords and search engines’ proprietary quality measures of advertiser ad and landing page content. Source: SEMPO
  27. PPC Management
    The monitoring and maintenance of a Pay-Per-Click campaign or campaigns. This includes changing bid prices, expanding and refining keyword lists, editing ad copy, testing campaign components for cost effectiveness and successful conversions, and reviewing performance reports for reports to management and clients, as well as results to feed into future PPC campaign operations. Source: SEMPO
  28. preindustrialized country
    The characteristics exhibited by this group of countries are (1) low literacy rates and high percentage of employment in agriculture; (2) low population density and low degree of urbanization; (3) linguistic heterogeneity and a small percentage of working age population; (4) industrial sectors virtually nonexistent and undeveloped; and (5) heavy reliance upon foreign sources for all manufactures and principal engagement in agricultural endeavors
  29. preprint
    An advertisement printed at the retailer's expense and distributed as a free standing insert with a newspaper.
  30. preprint advertising
    Any advertising material printed ahead of a publication's regular press run, often on a printing press other than the regular publication press. The preprint advertising is inserted into the publication during its regular printing and binding process. Preprint advertising includes a variety of approaches, including multipage inserts, free standing inserts, reply cards and reply envelopes, and ads printed on a paper stock that is different from the paper stock on which the publication is printed.
  31. presentation, sales
    The core of the personal selling process in which the salesperson transmits the information about the product and attempts to persuade the prospect to become a customer.
  32. press clipping bureau
    A service organization that monitors a wide range of media sources (newspapers, magazines, television and radio talk shows and newscasts) in order to collect and log mentions of the publicist's product, service, or organization.
  33. press conference
    The convening of representatives of the media by a person or organization to explain, announce, or expand on a particular subject.
  34. press party
    The convening of representatives of the media at a social event to distribute information or material for possible future use or to influence their opinion of the sponsoring organization.
  35. pretest
    The use of a questionnaire (or observation form) on a trial basis in a small pilot study to determine how well the questionnaire (or observation form) works.
  36. pretesting
    The testing of the potential communication effectiveness of advertising messages before they are exposed to audiences as part of a regular media schedule. Advertisers often expose versions of advertising messages that are under development to small samples of audience members to examine the extent to which the intended message is likely to be conveyed.
  37. price awareness
    The degree to which buyers are knowledgable of the prices of alternative products and services that they are interested in buying.
  38. price consciousness
    The degree to which buyers are sensitive to differences in price between alternative choices. Generally, a price-conscious person seeks to minimize the price paid for an item.
  39. price control
    A legal limitation placed on market prices by a government.
  40. price elasticity of demand
    A measure of the sensitivity of demand to changes in price. It is formally defined as the percentage change in quantity demanded relative to a given percentage change in price.
  41. price leader
    1. (pricing definition) In competitive situations, the seller who normally initiates price changes in the market. 2. (retailing definition) An item of merchandise priced abnormally low for the purpose of attracting customers
  42. price premium
    Price premium is the percentage by which a product’s selling price exceeds (or falls short of) a benchmark price.
  43. price promotion
    The advertising of a price for a product or service. Usually, the price being promoted is a reduction from a previously established price and may take the form of a lower price, a coupon to be redeemed, or a rebate to be received.
  44. price structure
    A price structure includes the time and conditions of payment, the nature of discounts to be allowed the buyer, and where and when title is to be taken by the buyer.
  45. price thresholds
    The lowest and highest prices that buyers are willing to pay for a particular good or service.
  46. price-quality relationship
    The degree to which product or service quality covaries with price.
  47. primary advertising
    An approach to the advertising message that emphasizes the basic attributes of the product category. This approach is usually employed by trade associations in an attempt to build demand for all the competing brands in the product category and to enhance the image of the industry involved.
  48. primary buying motive
    The motive that induces an individual to buy a certain kind or general class of article or service, as opposed to the selection of brands within a class.
  49. primary data
    The information collected specifically for the purpose of the investigation at hand.
  50. primary demand
    The demand for a general product category, as contrasted with the demand for a branded product marketed by a firm.
  51. primary metropolitan statistical area (PMSA)
    An area of at least one million people that includes a large urbanized county or a group of counties that have strong economic and social ties to neighboring communities.
  52. private label
    1. (product development definition) A brand that is owned by the product's reseller rather than by its manufacturer. In rare instances, the reseller may be the manufacturer as well. The term is often associated with (1) advertised brand versus unadvertised brand (a private brand is most often unadvertised) and (2) national brand versus regional brand or local brand (a private brand is usually less than national). These distinctions have become clouded by large retail and wholesale organizations (e.g., Sears, Kroger, Kmart, Ace) who advertise their private brands and market them nationally and internationally. 2. (retailing definition) Abrand name or label name attached to or used in the marketing of a product other than by the product manufacturers; usually by a retailer.
  53. private sector
    The economic activities that are outside the so-called public sector, or those activities that are independent of government control. They are usually, but not exclusively, carried on for profit.
  54. proactive pricing
    The managerial practice of deliberately analyzing the factors that influence prices before setting prices. Normally, a proactive pricer establishes specific objectives to be accomplished by the prices and then proceeds in the development of specific prices.
  55. probability mixture model
    A stochastic model for representing the behavior (e.g., brand choice or media viewing) of a set of individuals. This type of model is characterized by two components. First, a particular family of probabilistic models (such as a Poisson process) is selected to represent the behavior of any single individual (for example, the number of product purchases made by the individual). Second, there is an explicit realization that individuals differ from each other (heterogeneity). That is, a distribution is selected to represent the variation across individuals in the particular probabilistic model followed, within the family of models noted above. (For example, the Poisson purchase rate varies from individual to individual.) Probability mixture models have been used to predict brand choice, product purchase, and media viewing patterns over time
  56. product adaptation
    The strategy of developing new products by modifying or improving on the product innovations of others. This contrasts with the strategies of pioneering and imitation.
  57. product and business portfolio models
    Portfolio models of products, market segments, or businesses, not unlike the financial portfolio models, are designed to help allocate resources among the portfolio units (e.g., stocks, products, businesses) and select an optimal portfolio. In marketing, product and business portfolios have included standardized portfolio models (e.g., BCG growth-share matrix, the McKinsey/ GE market attractiveness-competitive position matrix, A. D. Little Business Profile Matrix, and Shell International Directional Policy Matrix), marketing driven modified financial portfolio models (e.g., modified risk return and stochastic dominance models), and customized portfolio models (e.g., conjoint analysis-based simulation models or an analytic hierarchy process-based approach). Whereas the standardized models offer no more than product or business classification systems, the customized models and more recent hybrid models (combining models from the three classes-the McKinsey/GE with stochastic dominance and analytic hierarchy process) can provide operational guidelines for resource allocations
  58. product approach
    A method used by salespeople to approach prospects in which salespeople demonstrate the product features and benefits as they walk up to the prospects.
  59. product assortment
    The collection of products (items, families, lines) that comprise the offering of a given seller. Though sometimes thought to be only a collection of categories of products, more common usage makes the term similar to product mix. Product assortment is used more by resellers; product mix more by manufacturers.
  60. product innovation
    1.The act of creating a new product or process. It includes invention as well as the work required to bring an idea or concept into final form. (2) A particular new product or process. An innovation may have various degrees of newness, from very little to highly discontinuous, but that must include at least some degree of newness to the market, not just to the firm.
  61. product introduction
    The first stage of the product life cycle, during which the new item is announced to the market and offered for sale. Most methods of market testing are considered pre introduction, but many marketers call the market rollout an introduction because of the commitment implied in the method. If successful during the introduction, the new product enters the second (growth) stage.
  62. product life cycle
    1.(product development definition) (from biology) The four stages that a new product is thought to go through from birth to death: introductory, growth, maturity, and decline. Controversy surrounds whether products do indeed go through such cycles in any systematic, predictable way. The product life cycle concept is primarily applicable to product forms, less to product classes, and very poorly to individual brands. 2. (strategic marketing definition) This describes the stages in the sales history of a product. The product life cycle (PLC) has four premises: (1) that products have a limited life; (2) that product sales pass through distinct stages, each stage having different implications for the seller; (3) that profits from the product vary at different stages in the life cycle; and (4) that products require different strategies at different stages of the life cycle. The product life cycle has four stages: (1) introduction-the slow sales growth that follows the introduction of a new product; (2) growth-the rapid sales growth that accompanies product acceptance; (3) maturity-the plateauing of sales growth when the product has been accepted by most potential buyers; and (4) decline-the decline of sales that results as the product is replaced (by a substitute) or as it goes into disfavor.
  63. product line
    A group of products marketed by an organization to one general market. The products have some characteristics, customers, and/or uses in common, and may also share technologies, distribution channels, prices, services, etc. There are often product lines within product lines.
  64. product line optimization
    Models to establish the optimal product line (in terms of number of products and their specific characteristics and positioning) have been typically developed in the context of conjoint analysis and have taken two forms: (1) buyer's welfare models (how to maximize the buyer's utility, utilizing, for example, integer programming or search heuristics); and (2) seller's welfare models that involve the selection of the best set of products to maximize the profits of the firm, utilizing, for example, dynamic programming or search heuristics. For a review of these approaches and a particular example that has been applied, see Green and Krieger (1985).
  65. product management organization
    Product managers or brand managers are responsible for developing marketing plans, coordinating implementation of the plans by the functional departments, and monitoring performance of their assigned products. Product managers report to the marketing manager unless there are large numbers of them, in which case they report to an intervening level of supervision such as the group product manager or category manager. The terms product management and product manager are interchangeable with brand management and brand manager. Comment: The advantage of this form of organization is that each product receives the full attention of one person responsible for its success. The disadvantage is that the product manager has no authority over the functional departments that design, produce, finance, distribute, sell, and service the product. Yet the system works well enough that it is widely used by multiproduct companies.
  66. product performance tracking
    A process for tracking the performance of a commercialized product in the market. The specific factors that are tracked depend on the product's marketing strategy. Typically, these factors are measured: sales, share of the market, consumer awareness, advertising effectiveness, and customer satisfaction.
  67. product positioning
    1.The way consumers, users, buyers, and others view competitive brands or types of products. As determined by market research techniques, the various products are plotted onto maps, using product attributes as dimensions. This use of product positioning is perceptual, not necessarily valid as based on measured product attributes. Historically, the competitive product positionings were based on sales rank in the market, but this limited perception has long since given way to the full range of product assessments, including psychological ones. (2) For new products, product positioning means how the innovator firm decides to compare the new item to its predecessors. For the new item, the mental slates of persons in the market place are blank; this is the only chance the innovator will have to make a first impression. Later, after the introduction is over, the earlier definition of positioning will take over, as persons make their own positioning decisions. (3) For both new and established products, a product's positioning may be combined with a target segment to integrate the marketing tool decisions. Its earlier use exclusively in advertising is no longer appropriate.
  68. product proliferation
    A charge sometimes leveled against organizations for marketing so many new products that economic resources are wasted; the consumer becomes confused and mistakes are made in the purchase of products.
  69. product publicity manager
    The product publicity manager is responsible for obtaining favorable publicity for new, improved, or existing products through such means as news stories, pictures and captions in newspapers and magazines, product exposure in programs and movies, direct mail, videocassettes, promotional events in shopping malls, and satellite programs beamed to local TV stations. This manager may report to the marketing manager, advertising manager, or public relations manager.
  70. product/market matrix
    A two-by-two matrix in which the column designations are current products and new products, and the row designations are current markets and new markets. The matrix thus defines four types of new product opportunities ranging from the upper-left quadrant of improved versions of current products to current users to the lower-right quadrant of diversification.
  71. production cost
    The cost of producing a print ad, radio commercial, television commercial, or other advertising materials.
  72. Production era
    A time period in the United States during which firms emphasized manufacturing or producing products, usually at the expense of marketing strategy.
  73. production orientation
    A business philosophy that emphasizes the output of products, usually at the expense of marketing strategy.
  74. production scheduling
    A process that specifies a target output for the production capability of the firm. It is an important operational tool in planning the short-term resource and location focus in a manufacturing environment.
  75. production unit accounting (PUA)
    A specific philosophy of making use of expense figures beyond their accumulation into expense centers. It involves utilizing the expense data through units of measure to determine productivity for the purpose of controlling expense. It is common in department store expense management
  76. productivity
    1. (economic definition) A measure of the economic output per unit of input of some resource, e.g., the economic output per hour of human labor. [DLS] 2. (environments definition) A ratio of output per unit of input employed. It is measured by the U.S. Bureau of Labor Statistics as output per hour and output per combined unit of labor and capital per hour (multifactor productivity) for the business sector as a whole and for its major subsectors
  77. product-market definition
    The boundaries of a market are defined by choices of distinct categories along four dimensions: (1) customer functions, or the pattern of benefits being provided to satisfy the needs of customers; (2) technology, which represents the various ways a particular function can be performed; (3) customer segments, which describes whose needs are being served and where they are geographically located; and (4) the sequence of stages of the value-added system. A product-market boundary is crossed when distinctly different competitive strategies are required. Within this market there may be submarkets composed of customers with similar patterns of uses or applications for the product.
  78. professional services marketing
    The marketing of advisory services offered by licensed or accredited individuals or organizations.
  79. profit maximization objective
    A firm sets as its major objective the maximization of long-run profits. If not stated, this is often the assumed objective of a firm. There are, however, many other variables that may provide the basis of objectives for a firm. Other objectives relate to such variables as sales growth, market share, risk diversification, innovation, etc.
  80. profit-based sales targets
    The purpose of profit-based sales target metrics is to ensure that marketing and sales objectives mesh with profit targets.
  81. profiteering
    The taking advantage of a situation such as famine or natural disaster to charge exorbitant prices and realize excessive profits.
  82. profits
    The excess of total revenues over total costs in a given time period.
  83. profit-volume ratio
    The dollar contribution per unit divided by the unit price. The profit-volume ratio indicates the rate at which fixed costs are recovered and, after the break-even point has been reached, the rate at which profits are earned as sales volume increases.
  84. programmed merchandise agreement
    A joint venture in which a specific retailer and supplier develop a comprehensive merchandising plan to market the supplier's product lines
  85. promotion mix
    The various communication techniques such as advertising, personal selling, sales promotion, and public relations/product publicity available to a marketer that are combined to achieve specific goals.
  86. promotion models
    Models to estimate the effect of a promotion (e.g. temporary price change, etc.) include models based on market response functions, or a combination of empirical data with management subjective judgment as in BRANDAID. Promotion models often are stochastic and based on behavioral assumptions regarding retailers and consumers. Many of these models decompose the value of the promotion into components such as increased loyalty among current customers, attraction of deal prone switchers, etc. Inventory control-based promotion models have also been proposed, incorporating the inventory carrying costs of consumers and retailers. The increased availability and popularity of scanner data have focused attention on promotion models.
  87. promotional advertising
    Advertising intended to inform prospective customers of special sales. It announces the arrival of new and seasonal goods, and it features, creates, and promotes a market for the merchandise items in regular stock.
  88. promotional allowance
    1.(retailing definition) An allowance given by vendors to retailers to compensate the latter for money spent in advertising a particular item in local media, or for preferred window and interior display space used for the vendor's product. 2. (sales promotion definition) The payments, price reductions, or other inducements used to reward channel members for participation in advertising and/or sales promotion programs.
  89. promotional campaign
    The combination of various advertising, public relations, sales promotion, and personal selling activities used by the marketer over a period of time to achieve predetermined goals.
  90. promotional elasticity of demand
    A measure of the change in quantity demanded relative to the change in promotional activity.
  91. promotional package
    The collection of sales promotion materials and offers developed by the seller to influence retailers, wholesalers, or salespeople to support a particular promotional theme.
  92. propaganda
    The ideas, information, or other material commonly disseminated through the media in an effort to win people over to a given doctrine or point of view.
  93. proprietary
    The private or exclusive ownership of such things as a process, design, or patent that competitors cannot duplicate. In the pharmaceutical industry, proprietary products are those over-the-counter products that are differentiated from prescription products.
  94. prospect
    A potential qualified customer who has the willingness, financial capacity, authority, and eligibility to buy the salesperson's offering.
  95. psychic income
    The intangible gratification or value that is derived from products, services, or activities, such as the improvement in a consumer's self image as a result of purchasing certain highly desirable products.
  96. psychographic analysis
    1.(consumer behavior definition) A technique that investigates how people live, what interests them, and what they like; it is also called life style analysis or AlO because it relies on a number of statements about a person's activities, interests, and opinions. 2. (marketing research definition) A technique that investigates how people live and what interests them.
  97. psychographic segmentation
    The process of dividing markets into segments on the basis of consumer life styles.
  98. public affairs
    A management function concerned with the relationship between the organization and its external environment, and involving the key tasks of intelligence gathering and analysis, internal communication, and external action programs directed at government, communities, and the general public.
  99. public relations
    That form of communication management that seeks to make use of publicity and other nonpaid forms of promotion and information to influence the feelings, opinions, or beliefs about the company, its products or services, or about the value of the product or service or the activities of the organization to buyers, prospects, or other stakeholders.
  100. public service announcement (PSA)
    1.(advertising definition) An advertisement or commercial that is carried by an advertising vehicle at no cost as a public service to its readers, viewers, or listeners. 2. (sales promotion definition) An announcement aired free of charge that promotes either government programs, nonprofit organizations, or community service activities. 3. (social marketing definition) A promotional message for a nonprofit organization or for a social cause printed or broadcast at no charge by the media.
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