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Key Terms & Glossary
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Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
 
Administered distribution system  A distribution system in which producers manage all of the marketing functions at the retail level
(See page(s) 466)
Advertising  Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message
(See page(s) 468)
Agents/brokers  Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods
(See page(s) 459)
Brand  A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors
(See page(s) 452)
Brand awareness  How quickly or easily a given brand name comes to mind when a product category is mentioned
(See page(s) 453)
Brand equity  The combination of factors— such as awareness, loyalty, perceived quality, images, and emotions—that people associate with a given brand name
(See page(s) 452)
Brand loyalty  The degree to which customers are satisfied, like the brand, and are committed to further purchase
(See page(s) 452)
Brand manager  A manager who has direct responsibility for one brand or one product line; called a product manager in some firms
(See page(s) 453)
Break-even analysis  The process used to determine profitability at various levels of sales
(See page(s) 455)
Bundling  Grouping two or more products together and pricing them as a unit
(See page(s) 457)
Channel of distribution  A whole set of marketing intermediaries, such as wholesalers and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
(See page(s) 459)
Competition-based pricing  A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors’ prices
(See page(s) 455)
Contractual distribution system  A distribution system in which members are bound to cooperate through contractual agreements
(See page(s) 466)
Convenience products  Goods and services that the consumer wants to purchase frequently and with a minimum of effort
(See page(s) 449)
Corporate distribution system  A distribution system in which all of the organizations in the channel of distribution are owned by one firm
(See page(s) 465)
Direct marketing  Any activity that directly links manufacturers or intermediaries with the ultimate consumer
(See page(s) 465)
Direct selling  Selling to consumers in their homes or where they work
(See page(s) 465)
Electronic retailing  Selling goods and services to ultimate customers (e.g., you and me) over the Internet
(See page(s) 464)
Everyday low pricing (EDLP)  Setting prices lower than competitors and then not having any special sales
(See page(s) 456)
Exclusive distribution  Distribution that sends products to only one retail outlet in a given geographic area
(See page(s) 463)
High–low pricing strategy  Set prices that are higher than EDLP stores, but have many special sales where the prices are lower than competitors
(See page(s) 457)
Industrial goods  Products used in the production of other products. Sometimes called business goods or B2B goods
(See page(s) 450)
Integrated marketing communication (IMC)  A technique that combines all the promotional tools into one comprehensive and unified promotional strategy
(See page(s) 468)
Intensive distribution  Distribution that puts products into as many retail outlets as possible
(See page(s) 463)
Marketing intermediaries  Organizations that assist in moving goods and services from producers to industrial and consumer users
(See page(s) 459)
Penetration price strategy  A strategy in which the product is priced low to attract many customers and discourage competitors
(See page(s) 456)
Personal selling  The face-to-face presentation and promotion of goods and services
(See page(s) 470)
Price leadership  The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow.
(See page(s) 455)
Product differentiation  The creation of real or perceived product differences
(See page(s) 449)
Product line  A group of products that are physically similar or are intended for a similar market
(See page(s) 448)
Product mix  The combination of product lines offered by a manufacturer
(See page(s) 448)
Promotion mix  The combination of promotional tools an organization uses
(See page(s) 467)
Psychological pricing  Pricing goods and services at price points that make the product appear less expensive than it is
(See page(s) 457)
Public relations (PR)  The management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance
(See page(s) 472)
Publicity  Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller
(See page(s) 473)
Pull strategy  Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they’ll request the products from retailers
(See page(s) 476)
Push strategy  Promotional strategy in which the producer uses all the promotional tools to convince wholesalers and retailers to stock and sell merchandise
(See page(s) 476)
Retailer  An organization that sells to ultimate consumers
(See page(s) 459)
Sales promotion  The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities
(See page(s) 474)
Sampling  A promotional tool in which a company lets consumers have a small sample of a product for no charge
(See page(s) 475)
Selective distribution  Distribution that sends products to only a preferred group of retailers in an area
(See page(s) 463)
Shopping products  Goods and services that the consumer buys only after comparing value, quality, price, and style from a variety of sellers.
(See page(s) 450)
Skimming price strategy  A strategy in which a new product is priced high to make optimum profit while there’s little competition
(See page(s) 456)
Specialty products  Consumer goods and services with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them
(See page(s) 450)
Target costing  Designing a product so that it satisfies customers and meets the profit margins desired by the firm
(See page(s) 455)
Telemarketing  The sale of goods and services by telephone
(See page(s) 464)
Total fixed costs  All the expenses that remain the same no matter how many products are made or sold
(See page(s) 455)
Total product offer  Everything that consumers evaluate when deciding whether to buy something; also called a value package
(See page(s) 447)
Trademark  A brand that has been given exclusive legal protection for both the brand name and the pictorial design
(See page(s) 452)
Unsought products  Goods and services that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem
(See page(s) 450)
Utility  An economic term that refers to the value or want-satisfying ability that’s added to goods or services by organizations when the products are made more useful or accessible to consumers than before
(See page(s) 461)
Value  Good quality at a fair price. When consumers calculate the value of a product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs
(See page(s) 446)
Variable costs  Costs that change according to the level of production
(See page(s) 456)
Wholesaler  A marketing intermediary that sells to other organizations
(See page(s) 459)







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