Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
Back Matter Glossary © The McGraw−Hill
Companies, 2002Glossary G-7Merchant wholesalersWholesalers who own (take title to)
the products they sell.
Message channelThe carrier of the message.
Metropolitan Statistical Area (MSA)An integrated eco-
nomic and social unit with a large population nucleus.
Micro-macro dilemmaWhat is good for some producers and
consumers may not be good for society as a whole.
Micro-marketingThe performance of activities that seek to
accomplish an organization’s objectives by anticipating customer
or client needs and directing a flow of need-satisfying goods and
services from producer to customer or client.
MiddlemanSomeone who specializes in trade rather than pro-
duction, sometimes called an intermediary.
Mission statementSets out the organization’s basic purpose
for being.
Missionary salespeopleSupporting salespeople who work
for producers by calling on their middlemen and their
customers.
Modified rebuyThe in-between process where some review of
the buying situation is done—though not as much as in new-
task buying or as little as in straight rebuys.
Monopolistic competitionA market situation that develops
when a market has (1) different (heterogeneous) products and
(2) sellers who feel they do have some competition in this
market.
Multinational corporationsFirms that have a direct invest-
ment in several countries and run their businesses depending on
the choices available anywhere in the world.
Multiple buying influenceSeveral people share in making a
purchase decision—perhaps even top management.
Multiple target market approachSegmenting the market
and choosing two or more segments, then treating each as a sep-
arate target market needing a different marketing mix.
NationalismAn emphasis on a country’s interests before
everything else.
Natural accountsThe categories to which various costs are
charged in the normal financial accounting cycle.
Natural productsProducts that occur in nature—such as fish
and game, timber and maple syrup, and copper, zinc, iron ore,
oil, and coal.
NeedsThe basic forces that motivate a person to do some-
thing.
Negotiated contract buyingAgreeing to a contract that
allows for changes in the purchase arrangements.
Negotiated priceA price that is set based on bargaining
between the buyer and seller.
NetAn invoice term meaning that payment for the face value
of the invoice is due immediately—also see cash discounts.
Net profitWhat the company earns from its operations during
a particular period.
Net salesThe actual sales dollars the company receives.
New productA product that is new in any wayfor the com-
pany concerned.
New-task buyingWhen an organization has a new need and
the buyer wants a great deal of information.New unsought productsProducts offering really new ideas
that potential customers don’t know about yet.
NoiseAny distraction that reduces the effectiveness of the
communication process.
NonadoptersPrefer to do things the way they have been done
in the past and are very suspicious of new ideas—sometimes
called laggards—see adoption curve.
Noncumulative quantity discountsReductions in price
when a customer purchases a larger quantity on an individual
order.
Nonprice competitionAggressive action on one or more of
the Ps other than Price.
North American Free Trade Agreement (NAFTA)Lays out a
plan to reshape the rules of trade among the U.S., Canada, and
Mexico.
North American Industry Classification System (NAICS)
codesCodes used to identify groups of firms in similar lines of
business.
Odd-even pricingSetting prices that end in certain numbers.
OligopolyA special market situation that develops when a
market has (1) essentially homogeneous products, (2) relatively
few sellers, and (3) fairly inelastic industry demand curves.
One-price policyOffering the same price to all customers who
purchase products under essentially the same conditions and in
the same quantities.
Open to buyA buyer has budgeted funds that he can spend
during the current time period.
Operating ratiosRatios of items on the operating statement to
net sales.
Operating statementA simple summary of the financial
results of a company’s operations over a specified period of time.
Operational decisionsShort-run decisions to help implement
strategies.
Opinion leaderA person who influences others.
Order gettersSalespeople concerned with establishing rela-
tionships with new customers and developing new business.
Order-gettingSeeking possible buyers with a well-organized
sales presentation designed to sell a good, service, or idea.
Order takersSalespeople who sell to the regular or established
customers, complete most sales transactions, and maintain rela-
tionships with their customers.
Order-takingThe routine completion of sales made regularly
to the target customers.
PackagingPromoting, protecting and enhancing the product.
Pareto chartA graph that shows the number of times a prob-
lem cause occurs, with problem causes ordered from most
frequent to least frequent.
Penetration pricing policyTrying to sell the whole market at
one low price.
PerceptionHow we gather and interpret information from the
world around us.
Performance analysisAnalysis that looks for exceptions or
variations from planned performance.
Performance indexA number that shows the relation of one
value to another.