Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/eBack Matter Glossary © The McGraw−Hill
Companies, 2002G-6 Glossary
Major accounts sales forceSalespeople who sell directly to
large accounts such as major retail chain stores.
Management contractingThe seller provides only manage-
ment skills—others own the production and distribution
facilities.
Manufacturer brandsBrands created by producers.
Manufacturers’ agentsAgent middlemen who sell similar
products for several noncompeting producers for a commission
on what is actually sold.
Manufacturers’ sales branchesSeparate warehouses that
producers set up away from their factories.
Marginal analysisEvaluating the change in total revenue and
total cost from selling one more unit to find the most profitable
price and quantity.
Marginal costThe change in total cost that results from pro-
ducing one more unit.
Marginal profitProfit on the last unit sold.
Marginal revenueThe change in total revenue that results
from the sale of one more unit of a product.
MarkdownA retail price reduction that is required because
customers won’t buy some item at the originally marked-up
price.
Markdown ratioA tool used by many retailers to measure the
efficiency of various departments and their whole business.
MarketA group of potential customers with similar needs who
are willing to exchange something of value with sellers offering
various goods and/or services—that is, ways of satisfying those
needs.
Market developmentTrying to increase sales by selling
present products in new markets.
Market-directed economic systemThe individual decisions
of the many producers and consumers make the macro-level
decisions for the whole economy.
Market growthA stage of the product life cycle when industry
sales grow fast—but industry profits rise and then start falling.
Market information functionThe collection, analysis, and
distribution of all the information needed to plan, carry out, and
control marketing activities.
Market introductionA stage of the product life cycle when
sales are low as a new idea is first introduced to a market.
Market maturityA stage of the product life cycle when indus-
try sales level off and competition gets tougher.
Market penetrationTrying to increase sales of a firm’s present
products in its present markets—probably through a more
aggressive marketing mix.
Market potentialWhat a whole market segment might buy.
Market segmentA relatively homogeneous group of cus-
tomers who will respond to a marketing mix in a similar way.
Market segmentationA two-step process of (1) namingbroad
product-markets and (2) segmentingthese broad product-markets
in order to select target markets and develop suitable marketing
mixes.
Marketing auditA systematic, critical, and unbiased review
and appraisal of the basic objectives and policies of the market-
ing function and of the organization, methods, procedures, and
people employed to implement the policies.
Marketing company eraA time when, in addition to short-
run marketing planning, marketing people develop long-range
plans—sometimes 5 or more years ahead—and the whole com-
pany effort is guided by the marketing concept.
Marketing conceptThe idea that an organization should aim
allits efforts at satisfying its customers—at a profit.
Marketing department eraA time when all marketing
activities are brought under the control of one department to
improve short-run policy planning and to try to integrate the
firm’s activities.
Marketing ethicsThe moral standards that guide marketing
decisions and actions.
Marketing information system (MIS)An organized way of
continually gathering, accessing, and analyzing information that
marketing managers need to make decisions.
Marketing management processThe process of (1) planning
marketing activities, (2) directing the implementationof the
plans, and (3) controllingthese plans.
Marketing mixThe controllable variables that the company
puts together to satisfy a target group.
Marketing modelA statement of relationships among market-
ing variables.
Marketing orientationTrying to carry out the marketing
concept.
Marketing planA written statement of a marketing strategy
andthe time-related details for carrying out the strategy.
Marketing programBlends all of the firm’s marketing plans
into one big plan.
Marketing researchProcedures to develop and analyze new
information to help marketing managers make decisions.
Marketing research processA five-step application of the
scientific method that includes (1) defining the problem,
(2) analyzing the situation, (3) getting problem-specific data,
(4) interpreting the data, and (5) solving the problem.
Marketing strategySpecifies a target market and a related
marketing mix.
MarkupA dollar amount added to the cost of products to get
the selling price.
Markup chainThe sequence of markups firms use at different
levels in a channel—determining the price structure in the
whole channel.
Markup (percent)The percentage of selling price that is added
to the cost to get the selling price.
Mass customizationTailoring the principles of mass produc-
tion to meet the unique needs of individual customers.
Mass marketingThe typical production-oriented approach
that vaguely aims at everyone with the same marketing mix.
Mass-merchandisersLarge, self-service stores with many
departments that emphasize soft goods (housewares, clothing,
and fabrics) and staples (like health and beauty aids) and selling
on lower margins to get faster turnover.
Mass-merchandising conceptThe idea that retailers should
offer low prices to get faster turnover and greater sales volume by
appealing to larger numbers.
Mass sellingCommunicating with large numbers of potential
customers at the same time.