glossary

'B'

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"B" through "D" credit customers - These consumers have less than perfect to bad credit and usually cannot qualify for traditional financing. Also called sub-prime credit customers.

B2B Commerce – The impact of Business to Business Web sites is to make markets more efficient. In the past, buyers had to exert a lot of effort to gather information on worldwide suppliers. Buyers have access to much greater information from supplier Web sites, infomediaries, third parties who create markets linking buyers and sellers, and customer communities that swap stories about suppliers’ products and services.

Baby Boomers –

• Leading-Edge Baby Boomer Cohort — Shaped by the assassinations of Kennedy & Martin Luther King & the Vietnam War; aged 46-54 in 2000.  This cohort on the one hand champions causes (civil rights, women’s rights) and simultaneously is hedonistic and self-indulgent.

• Trailing-Edge Baby Boomer Cohort - Shaped by Watergate and the energy crisis; aged 35-45 in 2000.  This cohort is less optimistic than the Leading-Edge Boomers.

• Generation X Cohort - Shaped by bad economics times, the Challenger explosion, and AIDS awareness; aged 24-34 in 2000. This cohort puts the quality of personal life ahead of their work life; they are not team players, and are cynical about advertising.

• Generation Y Cohort - Shaped by economics prosperity and the Internet; aged 23 and under in 2000. This cohort is more idealistic and less cynical then Gen 'X'ers.

Backdoor Strategy -  (also called end-run or blind side) An attempted way to gain market share in which the challenger runs around the dominant firm rather than into it.

Backward Channels - A route different than the normal channels for movement of products.

Backward Integration - It consists of a company's seeking ownership or increased control of its supply systems.

Bad Debt - Any debt that is delinquent and has been written off as uncollectible. 

Balance Sheet - A financial statement that shows a business' current financial condition, with assets on the left side and liabilities and net worth on the right side. 

Balloon - The balance of principal that is due and owing in its entirety at a specified point in time, but in any event, less than the time required to fully amortize the debt. 

Bankruptcy - A state of insolvency of an individual or organization. The inability to pay debts.

Banner Ads – Are small boxes containing text and perhaps a pictures are the most extensively used Internet advertising tool. 

Bargain Hunters - Buyers who see the product as very important and demand the deepest discount and the highest service.  They know the alternative suppliers, bargain hard, and are ready to switch at the slightest dissatisfaction.  The company needs these buyers for volume purposes, but they are not very profitable.

Barter - Is a non-monetary exchange... an exchange of products and/ or services for other products and/ or services... sometimes used to minimize cash outlays or to maximize the value of sunk costs.

Base Salary or "Base" - The guaranteed portion of a salesperson's monetary compensation... not always a part of a salesperson's compensation.

Belief - A state of mind in which our trust, or confidence, is placed in something or someone.

Beliefs - A belief is a descriptive thought that a person holds about something. 

Benchmarketing - From relying on self-improvement to studying “world class performers” and adopting “best practices”.

Benchmarks - Customers are shown a “benchmark” offering and then a new market offering.  They are asked how much more they would pay for the new offering.  They can also be asked how much less they would pay if certain features were removed from the benchmark offering.

Beneficiary - The person or party entitled to receive the benefits, or proceeds, of the life insurance policy upon the death of the insured person.

Benefit - An advantage, or a profit from a purchase. Also the value experienced by the customer.

Beta Testing - Enlists a set of customers to use the prototype and give feedback.  Beta testing is most useful when the potential customers are heterogeneous, the potential applications are not fully known, several decision makers are involved in purchasing the product, and opinion leadership from early adopters is sought.

Bill of Lading - A shipping document which gives instructions to the company transporting the goods. 

Bill of Sale - A document used to transfer the title of certain goods from seller to buyer.

Bird-Dogging or SmokeStacking - In the old days, sales reps called on companies door to door; this was called bird-dogging or smoke stacking. 

Black Box - The unseen, inner process that is taking place in the prospect as he or she reaches a decision whether to buy or not buy.

Black Friday - A retail sales term used to describe the Friday after Thanksgiving... traditionally a big selling day for the retail world... originated as a description of the day in the year when a retailer begins to profit or "be in the black".

Blanket Contract - A blanket contract establishes a long-term relationship in which the supplier promises to resupply the buyer as need, at agreed upon prices, over a specified period of time.  Because the stock is held by the seller, blanket contracts are sometimes called stockless purchase plans.  The buyer’s computer automatically sends an order to the seller when stock is needed.

Bonus - Additional commission given to the salesperson that is over what is usually earned.

Boomerang Method - The process of turning an objection into a reason to buy.

Bottleneck Products -  Are products that have low value and cost to the customer but they involve some risk (e.g. spare parts).

Brainstorming - Organized group exercise, sole purpose is to produce a lot of ideas, experts not included, and usually 6-10 people. 

Brand  - A name, term, sign, symbol, or design, or a combination of them, which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.   

Brand Beliefs - Beliefs abut where each brand stands on each attribute.

Brand Bonding - When customers experience the company as delivering on its benefit promise. Brands are not built by advertising but by the brand experience.  All of the customers’ contacts with company employees and company communications must be positive.

Brand Building Tools -

1. Public relations and press releases - Brands can gain a lot of attention from well-placed newspaper & magazine stories, not to mention appearing visually in Hollywood films.
2. Sponsorships - Brands a frequently promoted in sponsored events such as world-famous bicycle & car race.
3. Clubs & consumer communities - Brands can form the center of a customer community such as Harley-Davidson motorcycle owners or Bradford Plate collectors
4. Factory visits - Hershey’s & Cadbury's, two candy companies, have built theme parks at their factories & they invite visitors to spend a day.
5. Trade Shows - Trade shows represent a great opportunity to build brand awareness, knowledge, & interest.
6. Event marketing - Many automobile companies make an event out of introducing their new car models.
7. Public facilities - Perrier, the bottled water company, etched its identity in the public mind by building running tracks in public parks to promote healthful lifestyles.
8. Social cause marketing - Brands can achieve a following by donating money to charitable causes.
9. High value for the money - Some brands create positive word of mouth by offering exceptional value for the money. 

10. Founder’s or a celebrity personality - A colorful founder or a celebrity personality can create positive affect for a brand.

11. Mobile phone marketing - Customers will hear about brands on their wireless mobile phones as m-commerce grows.

Brand Choice - Different manufactures products known to the consumer.  

Brand Definition - A name, term, sign symbol, or design, or combination of them which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 

Brand Development Index - The ratio of brand consumption intensity to population intensity. 

Brand Equity - Brand equity is defined as the positive differential effect that knowing the brand name has on customer response to the product or service. The extent to which customers are willing to pay more for the particular brand is a measure of brand equity.

Brand Essence - Relates to the deeper, more abstract goals consumers are trying to satisfy with the brand. 

Brand Extension Strategy - Launching a new product under a well-known brand name gives it more recognition and credibility with much less advertising outlay.  

Brand Image - The set of beliefs held about a particular brand is known as the brand image. 

Brand-Loyal Market – A brand-loyal market is one with a high percentage of hard-core brand-loyal buyers. Consumers who buy one brand all the time.

Brand-Management Organization – Companies producing a variety of products and brands often establish a product- or brand-management organization as another layer of management. 

Brand Mark - That part of a brand that can be recognized but is not utter able, such as a symbol, design or distinctive coloring or lettering. 

Brand Name - That part of a brand, which can be vocalized - the utter able. 

Brand Pyramid - Helps construct the image of a brand. Marketers must decide at which level(s) to anchor the brand’s identity.

1. brand attributes - Is the lowest and least desired level. Competitors can easily copy.

2. brand’s benefits - Is the second level and first looked at as a  buyer.

3. brand’s beliefs & values - Is the highest level and most desired.

Branding - The general term describing the establishing of brand names, marks, or trade names for a product.  

Break-Even Analysis - In which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.  Or the estimate may be in terms of how many years it will take to break even.

Brick-N-Click Companies - Companies who moved quickly to open Web sites describing their business but resisted adding e-commerce to their sites.  They felt that selling their products or services online would produce channel conflict—they would be competing with their offline retailers and agents.  These companies struggled wit the question of how to conduct online sales without cannibalizing their own stores, resellers, or agents.

Bridge - Is a person who is a member of one clique and who has a link to a person who is a member of another clique.

Broad Assortment - Representing a wide range of product lines that still fall within the natural coverage of the reseller's type of business. 

Brochure - An advertising pamphlet or booklet (usually with fewer pages than a catalogue) distributed via direct mail or individual hand out. Advantages: Flexibility; full control; can dramatize message. Disadvantages: Overproduction could lead to runaway costs.

Broker - A person who acts on behalf of a company to sell its products or services... a broker is typically compensated on a commission only basis... also see agent.

Browser Ads - Browser ads pay a viewer to watch them. 

Budget - The amount of money available for use to a salesperson or purchasing agent for a particular time period or a particular project... can also be used to describe a sales target (in revenue and/ or units) for a specified time period... also referred to as a quota, goal or forecast. There are five specific factors to consider when setting the advertising budget:

1. Stage in the product life cycle:  New products typically receive large advertising budgets to build awareness & to gain consumer trial.  Established brands usually are supported with lower advertising budgets as a ratio to sales.

2. Market share & consumer base:  High market-share brands usually require less advertising expenditure as a percentage of sales to maintain share.  To build share by increasing market size requires larger expenditures.  On a cost-per-impression basis, it is less expensive to reach consumers of a widely used brand than to reach consumers 0f low-share brands.

3. Competition and clutter:  In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard.  Even simple clutter from advertisements not directly competitive to the brand creates a need for heavier advertising.

4. Advertising frequency:  The number of repetitions needed to put across the brand’s message to consumers has an important impact on the advertising budget.

5. Product substitutability:  Brands in a commodity class (cigarettes, beer, soft drinks) require heavy advertising to establish a differential image.  Advertising is also important when a brand can offer unique physical benefits or features.

Built to Order Marketing - The concept that companies customize their products to each individual’s wants and preferences as in a tailor fitting a suit, or a cobbler making shoes.

Built to Stock Marketing – Ushered in by the Industrial Revolution, companies began to mass-produce products.  Now companies make standard goods in advance of orders and leave it to the individuals to fit into whatever was available.

Business-Based Income Streams - Cash flow instruments that are paid to a business by another business or government.

Business Market Segmentation - Business markets can be segmented with some of the same variables used in consumer market segmentation, but business marketers also use other variables such as ; demographic, operating variables, purchasing approaches, situational factors, and personal characteristics.

Business to Business Commerce - The impact of business to business Web sites is to make markets more efficient. In the past, buyers had to exert a lot of effort to gather information on worldwide suppliers. Buyers have access to much greater information from supplier Web sites, intermediaries, third parties who create markets linking buyers and sellers, and customer communities that swap stories about suppliers’ products and services.

Business to Consumer Commerce - Most attention has been paid to consumer web sites. The exchange process in the age of information has become customer-initiated and customer-controlled. Customers define what information they need, what offerings they are interested in, and what prices they are willing to pay.

Business Promotion – Companies spend billions of dollars on business- and sales-force-promotion tools (trade shows and conventions, sales contests, and specialty advertising). These tools are used to gather business leads, impress and reward customers, and motivate the sales force to greater effort. Companies typically develop budgets for each business-promotion tool that remain fairly constant from year to year.

Buy Back Arrangement - The seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment. 

Buy Phases - Also called the buying process, consists of eight stages.  (1) problem recognition, (2) general need description, (3) product specification, (4) supplier search, (5) proposal solicitation, (6) supplier selection , (7)order-routine specification, and (8) performance review.

Buyer Behavior - Consumer decision-making varies with the type of buying decision and is distinguished by four types of consumer buying behavior.

• Complex Buying Behavior - which involves a three-step process.  First the buyer develops beliefs about the product.  Second, they develop attitudes about the product.  Third, makes a thoughtful choice.

• Dissonnance - Reducing Buyer Behavior – The consumer is highly involved in a purchase but sees little difference in brands.

• Habitual Buying Behavior - Many products are bought under conditions of low involvement and the absence of significant brand differences.

• Variety – Seeking Buying Behavior – Some buying situations are characterized by low involvement but significant brand differences, where consumers often do a lot of brand switching.

Buyer Characteristics - Understanding cultural, social, personal, and psychological factors that operate in their life.

Buyer Classification - Buyers can be classified according to the benefits they seek:

• Road warriors: premium products & quality service (16%)

• Generation F: fast fuel, fast service, and fast food (27%)

• True Blues: branded products & reliable service (16%)

• Home Bodies: convenience (21%)

• Price Shoppers: low price (20%)

Buyer Orientation – The purchaser’s focus is short-term and tactical.  Buyers are rewarded on their ability to obtain the lowest price from suppliers for the given level of quality and availability.  Buyers use two tactics: Commodization, where they imply that the product is a commodity and care only about price; and multi-sourcing, where they use several sources and make them compete for shares of the company’s purchase.

Buyer-Readiness Stage - A market consists of people in different stages of readiness to buy a product.  Some are unaware of the product, some are aware, some are informed, some are interested, some desire, the product, and some intend to buy.  The relative numbers make a big difference in designing the marketing program.

Buyer Role - Product buyers can be distinguished by five different roles. The initiator, the influencer, the decider, the buyer, and the user.

Buyer Turnover - Expresses the rate at which new buyers appear in the market; higher the rate, the more continuous the advertising needs to be to reach new buyers. 

Buyers: Types of Buyers

A)   Loyal Buyer - remains loyal to a resource, or group of resources, year after year, for reasons other than that he obtains the best deal.

B)   Opportunistic Buyer - selects mainly from a pre-selected list of those vendors who will further his long-term interests.  Within his pre-selected list, he will pursue the best arrangement possible.

C)   Best-deal Buyer - looks for and selects the best deal available to him in the market at a given point in time.

D)   Creative Buyer - tries not to accept the marketing mixes offered by any of the vendors.  He attempts to sell his offers to the market.  This may or may not involve a change in the physical product.

E)   Advertising Buyer - attempts primarily to obtain advertising moneys; advertising moneys must be a part of every deal and are the prime target of each negotiation.

F)   The Chiseler - constantly negotiates extra concessions in price at the time of the offering.  He tends to accept the vendor offer carrying the greatest discount from the price he feels that other accounts might pay.

G)   Nuts-and-Bolts Buyer - selects merchandise that is the best constructed, assuming that the merchandise policies of the vendor are acceptable within a very broad range.  He is more interested in the thread count than in the number that will sell.

Buying Alliances - When several companies join forces to form a buying alliance to use their combined leverage to obtain lower prices for raw materials.

Buying Service – A store-less retailer serving a specific clientele – usually employees of large organizations –who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership.

Buying Signal - A communication from a prospect or customer that indicates she/he is or is strongly considering making a purchase... typically delivered in the form of a question (i.e., can I have it delivered before the end of the month?).

Buzz - The sum of all comments about a particular product or company at a certain point in time. This is a broad definition that views everything being communicated about a product as the buzz about it. In contrast, Newsweek defined buzz as "infectious chatter; genuine, street-level excitement about a hot new person, place or thing." This describes what I would refer to as strong buzz, which is an important subset of buzz.

Bypass Attack (Buying Phase) – An indirect assault strategy, which means bypassing the enemy and attacking easier markets to broaden one’s resource base.  This strategy offers three lines of approach: diversifying into unrelated products, diversifying into new geographical markets, and leapfrogging into new technologies to supplant existing products.

By-Product Pricing (Buying Phase) – The production of certain goods – meats, petroleum products,  and other chemicals – often results in by-products.  If by-products have value to a customer group, they should be priced on their value.  Any income earned on the by-products will make it easier for the company to charge a lower price on its main product if competition forces it to do so.

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