Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
Back Matter Glossary © The McGraw−Hill
Companies, 2002AccessoriesShort-lived capital items—tools and equipment
used in production or office activities.
AccumulatingCollecting products from many small producers.
Administered channel systemsVarious channel members
informally agree to cooperate with each other.
Administered pricesConsciously set prices aimed at reaching
the firm’s objectives.
Adoption curveShows when different groups accept ideas.
Adoption processThe steps individuals go through on the
way to accepting or rejecting a new idea.
AdvertisingAny paidform of nonpersonal presentation of
ideas, goods, or services by an identified sponsor.
Advertising agenciesSpecialists in planning and handling
mass-selling details for advertisers.
Advertising allowancesPrice reductions to firms in the chan-
nel to encourage them to advertise or otherwise promote the
firm’s products locally.
Advertising managersManagers of their company’s mass-sell-
ing effort in television, newspapers, magazines, and other media.
Agent middlemenWholesalers who do not own (take title to)
the products they sell.
AIDA modelConsists of four promotion jobs: (1) to get Atten-
tion,(2) to hold Interest,(3) to arouse Desire,and (4) to obtain
Action.
Allowance(accounting term) Occurs when a customer is not
satisfied with a purchase for some reason and the seller gives a
price reduction on the original invoice (bill), but the customer
keeps the goods or services.
AllowancesReductions in price given to final consumers, cus-
tomers, or channel members for doing something or accepting
less of something.
AssortingPutting together a variety of products to give a target
market what it wants.
AttitudeA person’s point of view toward something.
Auction companiesAgent middlemen who provide a place
where buyers and sellers can come together and complete a
transaction.
Automatic vendingSelling and delivering products through
vending machines.
Average cost (per unit)The total cost divided by the related
quantity.
Average-cost pricingAdding a reasonable markup to the
average cost of a product.
Average fixed cost (per unit)The total fixed cost divided by
the related quantity.
Average variable cost (per unit)The total variable cost
divided by the related quantity.
Bait pricingSetting some very low prices to attract customers
but trying to sell more expensive models or brands once the cus-
tomer is in the store.Balance sheetAn accounting statement that shows a com-
pany’s assets, liabilities, and net worth.
Basic list pricesThe prices that final customers or users are
normally asked to pay for products.
Basic sales tasksOrder-getting,order-taking,and supporting.
Battle of the brandsThe competition between dealer brands
and manufacturer brands.
BeliefA person’s opinion about something.
BenchmarkingPicking a basis of comparison for evaluating
how well a job is being done.
Bid pricingOffering a specific price for each possible job rather
than setting a price that applies for all customers.
BirthrateThe number of babies per 1,000 people.
Brand equityThe value of a brand’s overall strength in the
market.
Brand familiarityHow well customers recognize and accept a
company’s brand.
Brand insistenceCustomers insist on a firm’s branded product
and are willing to search for it.
Brand managersManage specific products, often taking over
the jobs formerly handled by an advertising manager—some-
times called product managers.
Brand nameA word, letter, or a group of words or letters.
Brand nonrecognitionFinal customers don’t recognize a
brand at all—even though middlemen may use the brand name
for identification and inventory control.
Brand preferenceTarget customers usually choose the brand
over other brands, perhaps because of habit or favorable past
experience.
Brand recognitionCustomers remember the brand.
Brand rejectionPotential customers won’t buy a brand—
unless its image is changed.
BrandingThe use of a name, term, symbol, or design—or a
combination of these—to identify a product.
Break-even analysisAn approach to determine whether the
firm will be able to break even—that is, cover all its costs—with
a particular price.
Break-even point (BEP)The sales quantity where the firm’s
total cost will just equal its total revenue.
Breakthrough opportunitiesOpportunities that help innova-
tors develop hard-to-copy marketing strategies that will be very
profitable for a long time.
BrokersAgent middlemen who specialize in bringing buyers
and sellers together.
Bulk-breakingDividing larger quantities into smaller quanti-
ties as products get closer to the final market.
Business and organizational customersAny buyers who
buy for resale or to produce other goods and services.
Business productsProducts meant for use in producing other
products.Glossary
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