Marketing Terms

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Term Definition
Innovation

Anything new that offers solutions to needs by providing a significant advantage (e.g., more features, ease of use) over existing products, services or methods.

Initial Price (also List Price or Published Price)

The first step in the price setting process that produces a starting point from which further price changes may be made before the customer pays the final price and at the retail level may also serve as the manufacturer’s suggest retail price (MSRP).

Inferential Data Analysis

Refers to techniques for analyzing research data where advanced statistical techniques are used to make judgments (i.e., inferences) such as comparing one customer group to another group, that are statistically supported.

Inelastic Demand

Refers to market conditions where a certain percentage change (positive or negative) in the price of a product results in a smaller and opposite percentage change in demand (i.e., purchases) of the product.

Industrial Distributor

Wholesale format represented by distributors, carrying either broad or narrow product lines, that primarily distribute to business customers (i.e., businesses use the product) rather than selling to other resellers (i.e., those would resell what is purchased).

Individual Product Branding

A branding strategy in which products are given brand names that are newly created and generally not connected to names of existing brands offered by the company.

Indirect Distribution System

A distribution design where a marketer reaches the intended final customer by distributing a product indirectly through resellers who generally take ownership of the product and in doing so the resellers assume many responsibilities to help sell the product.

Independent Channel Arrangement (also Conventional Distribution)

A non-binding arrangement between channel members to engage in a business relationship that allows channel members to move away from the relationship if they feel it is not in their best interest.

Impulse Purchasing

Represents customer purchase decisions that result in a customer making unplanned purchases often due to marketer’s promotions (e.g., coupons, in-store demonstrations) or product placement strategies (e.g., product located at checkout lane).

Image Advertising

A type of advertising that focuses on enhancing the perceived image of the organization rather than promoting specific products.

Ideas

In marketing this represents a type of product that consists of the marketer attempting to convince customers to alter their existing behavior or perception on some issue.

Hypothesis Testing

A key concept in scientific research, including marketing research, that is designed to test theory or “gut feelings” about some issues usually with the use of statistical analysis.

Guarantee

Assurance offered by a marketer that the product will perform up to expectations or the marketer will support the customer’s decision to replace, have the product repaired or accept a return for a refund.

Growth Stage of PLC

Stage within the Product Life Cycle which occurs when a product is widely accepted and often reaches rapid growth characterized by a large percentage sales increase over previous periods.

Group Membership

A component of the external influences on consumer buying behavior that represents people and organizations with which a person shares certain characteristics and which may influence a persons purchase decisions.