Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/eBack Matter Glossary © The McGraw−Hill
Companies, 2002G-2 Glossary
Buying centerAll the people who participate in or influence a
purchase.
Buying functionLooking for and evaluating goods and
services.
CapitalThe money invested in a firm.
Capital itemA long-lasting product that can be used and
depreciated for many years.
Cash-and-carry wholesalersLike service wholesalers, except
that the customer must pay cash.
Cash discountsReductions in the price to encourage buyers
to pay their bills quickly.
Cash flow statementA financial report that forecasts how
much cash will be available after paying expenses.
Catalog showroom retailersStores that sell several lines out
of a catalog and display showroom with backup inventories.
Catalog wholesalersSell out of catalogs that may be distrib-
uted widely to smaller industrial customers or retailers who
might not be called on by other middlemen.
Central marketsConvenient places where buyers and sellers
can meet one-on-one to exchange goods and services.
Chain of supplyThe complete set of firms and facilities and
logistics activities that are involved in procuring materials, trans-
forming them into intermediate and finished products, and
distributing them to customers.
Channel captainA manager who helps direct the activities of a
whole channel and tries to avoid, or solve, channel conflicts.
Channel of distributionAny series of firms or individuals who
participate in the flow of products from producer to final user or
consumer.
CloseThe salesperson’s request for an order.
Clustering techniquesApproaches used to try to find similar
patterns within sets of data.
Combination export managerA blend of manufacturers’
agent and selling agent—handling the entire export function for
several producers of similar but noncompeting lines.
Combined target market approachCombining two or more
submarkets into one larger target market as a basis for one
strategy.
CombinersFirms that try to increase the size of their target
markets by combining two or more segments.
Communication processA source trying to reach a receiver
with a message.
Comparative advertisingAdvertising that makes specific
brand comparisons using actual product names.
Competitive advantageA firm has a marketing mix that the
target market sees as better than a competitor’s mix.
Competitive advertisingAdvertising that tries to develop
selective demand for a specific brand rather than a product cate-
gory.
Competitive barriersThe conditions that may make it diffi-
cult, or even impossible, for a firm to compete in a market.
Competitive bidsTerms of sale offered by different suppliers in
response to the buyer’s purchase specifications.
Competitive environmentThe number and types of competi-
tors the marketing manager must face, and how they may behave.
Competitive rivalsA firm’s closest competitors.
Competitor analysisAn organized approach for evaluating
the strengths and weaknesses of current or potential competitors’
marketing strategies.
Complementary product pricingSetting prices on several
related products as a group.
ComponentsProcessed expense items that become part of a
finished product.
Concept testingGetting reactions from customers about how
well a new product idea fits their needs.
Confidence intervalsThe range on either side of an estimate
from a sample that is likely to contain the true value for the
whole population.
Consultative selling approachA type of sales presentation
in which the salesperson develops a good understanding of the
individual customer’s needs before trying to close the sale.
Consumer panelA group of consumers who provide informa-
tion on a continuing basis.
Consumer Product Safety ActA 1972 law that set up the
Consumer Product Safety Commission to encourage more aware-
ness of safety in product design and better quality control.
Consumer productsProducts meant for the final consumer.
Consumer surplusThe difference to consumers between the
value of a purchase and the price they pay.
ConsumerismA social movement that seeks to increase the
rights and powers of consumers.
ContainerizationGrouping individual items into an economi-
cal shipping quantity and sealing them in protective containers
for transit to the final destination.
Continuous improvementA commitment to constantly
make things better one step at a time.
Contract manufacturingTurning over production to others
while retaining the marketing process.
Contractual channel systemsVarious channel members
agree by contract to cooperate with each other.
Contribution-margin approachA cost analysis approach in
which all costs are not allocated in allsituations.
ControlThe feedback process that helps the marketing man-
ager learn (1) how ongoing plans and implementation are
working and (2) how to plan for the future.
Convenience (food) storesA convenience-oriented varia-
tion of the conventional limited-line food stores.
Convenience productsProducts a consumer needs but isn’t
willing to spend much time or effort shopping for.
Cooperative advertisingMiddlemen and producers sharing
in the cost of ads.
Cooperative chainsRetailer-sponsored groups, formed by
independent retailers, to run their own buying organizations and
conduct joint promotion efforts.
Copy thrustWhat the words and illustrations of an ad should
communicate.
Corporate chainA firm that owns and manages more than
one store—and often it’s many.
Corporate channel systemsCorporate ownership all along
the channel.