affordability budgeting Method in which companies budget for marketing based on what they believe

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1 Glossary -1 Glossary for Wood, The Marketing Plan 2e affordability budgeting Method in which companies budget for marketing based on what they believe they can afford. (Chapter 10) annual plan control Type of marketing control used to assess the progress and performance of the current year s marketing plan. (Chapter 10) attitudes An individual s lasting evaluations of and feelings toward something. (Chapter 3) B2B marketing Business-to-business marketing (Chapter 1) benefits Need-satisfaction outcomes customers desire from the product. (Chapter 6) brand equity Extra value perceived in a brand that enhances long-term loyalty among customers. (Chapter 6) brand extension Putting an established brand on a new product in a different category, aimed at a new customer segment; also known as category extension. (Chapter 6) branding Using words, designs, or symbols to give a product a distinct identity and differentiate it from competing products. (Chapter 6) break-even point Point at which revenues cover costs and beyond which the product becomes profitable. (Chapter 8) budget Time-defined allocation of financial outlays for a specific function or program. (Chapter 10) business market Companies, non-profit organizations, and institutions that buy products for operations or as supplies for production; also known as the organizational market. (Chapter 3) cannibalization Allowing a new product to cut into sales of one or more existing products. (Chapter 6) cause-related marketing Marketing a product or brand through a link to benefiting a charitable cause. (Chapter 5)

2 Glossary -2 channel The set of functions and structure of organizations performing them outbound on the value chain to make a particular good or service available to customers in each market; also known as the distribution channel. (Chapter 7) competitive-parity budgeting Method in which company creates a budget by matching what competitors spend, as a percentage of sales or a specific dollar amount. (Chapter 10) concentrated marketing Focusing one marketing strategy on one attractive market segment. (Chapter 4) consumer market Individuals and families that buy products for themselves (Chapter 3) contingency plan Plan that is ready to implement if significant, unexpected changes in the situation disrupt one (or more) of the organization s strategies or programs. (Chapter 10) core competencies The set of skills, technologies, and processes that allow a company to effectively and efficiently satisfy its customers. (Chapter 1) cost leadership strategy Generic competitive strategy in which the company seeks to become the lowest-cost producer in its industry. (Chapter 2) customer churn Turnover in customers during a specific period; often expressed as a percentage of the organization s total customer base. (Chapter 6) customer lifetime value Total amount a customer spends with a company over the course of a longterm relationship. (Chapter 6) derived demand In B2B marketing, the principle that demand for a business product is based on demand for a related consumer product. (Chapter 3) differentiated marketing Creating a separate marketing strategy for each targeted segment. (Chapter 4) differentiation strategy Generic competitive strategy in which the company creates a unique differentiation for itself or its product based on some factor prized by the target market. (Chapter

3 Glossary -3 2) diversification Growth strategy of offering new products to new markets through internal product development capabilities or by starting (or buying) a business for diversification purposes. (Chapter 5) dynamic pricing Prices vary from customer to customer or situation to situation. (Chapter 8) emotional appeal Message strategy that relies on feelings rather than facts to motivate audience response. (Chapter 9) ethnographic research Type of marketing research in which customers are observed in actual product purchase or usage situations (Chapter 3) features Specific attributes that enable the product to perform its function. (Chapter 6) financial objectives Targets for performance in managing specific financial results. (Chapter 5) fixed pricing Pricing that does not vary; the customer pays the price set by the marketer. (Chapter 8) focus strategy Generic competitive strategy in which the company narrows its competitive scope to achieve a competitive advantage in its chosen segments. (Chapter 2) forecast Future projection of what sales and costs are likely to be in the period covered by the plan. (Chapter 10) frequency How many times, on average, the target audience is exposed to the message during a given period. (Chapter 9) goals Longer-term performance targets for the organization or a particular unit. (Chapter 1) integrated marketing communication Coordinating content and delivery so all marketing messages are consistent and support the positioning and direction in the marketing plan. (Chapter 9) internal marketing Marketing that targets managers and employees inside the organization to support the marketing mix in the marketing plan. (Chapter 5)

4 Glossary -4 lifestyle The pattern of living that an individual exhibits through activities and interests. (Chapter 3) line extension Putting an established brand on a new product added to the existing product line. (Chapter 6) logistics Managing the movement of goods, services, and related information from the point of origin to the point of sale or consumption and balancing the level of service with the cost. (Chapter 7) macroenvironment Largely uncontrollable external elements that can potentially influence the ability to reach goals; these include demographic, economic, ecological, technological, political-legal, and social-cultural forces. (Chapter 2) market All the potential buyers for a particular product. (Chapter 3) market development Growth strategy in which the company identifies and taps new segments or markets for existing products. (Chapter 5) market penetration Growth strategy in which the company sells more of its existing products to customers in existing markets or segments. (Chapter 5) market segmentation Grouping customers within a market according to similar needs, habits or attitudes that can be addressed through marketing. (Chapter 4) market share The percentage of sales in a given market held by a particular company, brand, or product; can be calculated in dollars or units. (Chapter 3) marketing audit A detailed, systematic analysis of an organization s marketing capabilities and performance. (Chapter 10) marketing control The process of setting goals and standards, measuring and diagnosing results, and taking corrective action when needed to keep marketing plan performance on track. (Chapter 1) marketing objectives Targets for performance in managing specific marketing relationships and activities. (Chapter 5)

5 Glossary -5 marketing plan A document that summarizes marketplace knowledge and the strategies and steps to be taken in achieving the objectives set by marketing managers for a particular period. (Chapter 1) marketing planning The process of researching and analyzing the market and situation and developing marketing objectives, goals, strategies, and plans that are appropriate for the organization s resources, competencies, mission, and objectives. (Chapter 1) mass customization Creating products, on a large scale, with features tailored to individual customers. (Chapter 6) metrics Numerical measures of specific performance-related activities and outcomes. (Chapter 10) microenvironment Groups that have a more direct effect on the organization s ability to reach its goals: customers, competitors, channel members, partners, suppliers, and employees. (Chapter 2) mission Statement of the organization s fundamental purpose, its focus, and how it will add value for customers and other stakeholders. (Chapter 2) motivation What drives the consumer to satisfy needs and wants. (Chapter 3) niche Smaller segment within a market that exhibits distinct needs or benefit requirements. (Chapter 4) objective-and-task budgeting Method in which budget is determined by totaling the cost of all marketing tasks needed to achieve the marketing mix objectives and marketing plan objectives. (Chapter 10) objectives Shorter-term performance targets that support the achievement of an organization s or unit s goals. (Chapter 1) penetration pricing Pricing a product relatively low to gain market share rapidly. (Chapter 8) percentage-of-sales budgeting Method in which company allocates a certain percentage of sales revenues to fund marketing programs. (Chapter 10) perception How the individual organizes environmental inputs such as ads and derives meaning from

6 Glossary -6 the data. (Chapter 3) positioning Using marketing to create a distinctive place or image for a brand or product in the mind of customers. (Chapter 1) price elasticity of demand Percentage change in unit sales of demand divided by the percentage change in price; where customers are price-sensitive and demand changes considerably due to small price changes, the demand is elastic. (Chapter 8) primary research Research conducted specifically to address a certain situation or answer a particular question. (Chapter 3) product development Growth strategy in which the company sells new products to customers in existing markets or segments. (Chapter 5) product life cycle The stages of introduction, growth, maturity, and decline through which a product moves in the marketplace. (Chapter 6) product line Group of products made by one company that are related in some way. (Chapter 6) product mix Assortment of all the product lines marketed by one company. (Chapter 6) productivity control Type of marketing control used to assess the organization s performance and progress in managing the efficiency of key marketing areas. (Chapter 10) profitability control Type of marketing control used to assess the organization s progress and performance based on profitability measures. (Chapter 10) psychographic characteristics Variables used to analyze consumer lifestyle patterns. (Chapter 3) pull strategy Using marketing to encourage customers to ask intermediaries for the product, thereby pulling it through the channel. (Chapter 9) push strategy Using marketing to encourage channel members to stock the product, thereby pushing it through the channel to customers. (Chapter 9)

7 Glossary -7 quality How well the product satisfies customer needs. (Chapter 6) rational appeal Message strategy that relies on facts or logic to motivate audience response. (Chapter 9) reach How many people in the target audience are exposed to the message during a particular period. (Chapter 9) schedule Time-defined plan for completing work that relates to a specific purpose or program. (Chapter 10) secondary research Research data already gathered for another purpose. (Chapter 3) segments Groups within a market having distinct needs or characteristics that can be effectively addressed by specific marketing offers and programs. (Chapter 1) service recovery How an organization plans to recover from a service lapse and satisfy its customers (Chapter 5) skimming pricing Pricing a new product high to establish an image and more quickly recover development costs in line with profitability objectives. (Chapter 8) societal objectives Targets for achieving specific results in social responsibility. (Chapter 5) stakeholders People and organizations that are influenced by or that can influence an organization s performance. (Chapter 1) strategic control Type of marketing control used to assess the organization s performance and progress in the strategic areas of marketing effectiveness, customer relationship management, and social responsibility and ethics. (Chapter 10) subcultures Distinct groups within a larger culture that exhibit and preserve distinct cultural identities through a common religion, nationality, ethnic background, or lifestyle. (Chapter 3) sustainable marketing Forming, maintaining, and enhancing customer relationships to meet all parties objectives without compromising the achievement of future generations objectives (Chapter 1)

8 Glossary -8 SWOT analysis Summary of an organization s strengths, weaknesses, opportunities, and threats in preparation for marketing planning. (Chapter 2) target costing Using research to determine what customers want in a product, the price they will pay, then finding ways of producing the product at a cost that will accommodate that price and return a profit. (Chapter 8) target market Segment of the overall market that a company chooses to pursue. (Chapter 4) targeting Decisions about which market segments to enter and in what order, and how to use marketing in each. (Chapter 1) undifferentiated marketing Targeting all market segments with the same marketing strategy. (Chapter 4) value The difference between total benefits and total costs, as perceived by customers. (Chapter 1) value chain The series of interrelated, value-added functions and the structure of organizations that perform these functions to get the right product to the right markets and customers at the right time, place, and price; also known as supply chain. (Chapter 7) value-based pricing Setting prices by starting with customers perspective of the product s value and the price they are willing to pay, then working backwards to make the product at a cost that will also meet the company s objectives. (Chapter 8) word-of-mouth communication People telling other people about an organization, a brand, a product, or a marketing message. (Chapter 9)

Chapter 2 The Role of IMC in the Marketing Process. Learning Objectives. Learning Objectives

Chapter 2 The Role of IMC in the Marketing Process Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.