glossary

'E'

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E-Business - Describes the use of electronic means and platforms to conduct a company’s business. The advent of the Internet has greatly increased the ability of companies to conduct their faster, more accurately, over a wider range of time & space, at reduced cost, and with the ability to customize and personalize customer offerings.

E-Commerce - The activity of buying and selling over an electronic data interchange... typically referred to when describing the activity of buying and selling over the Internet and a web interface.

E-Mailing - E-mail (short for electronic mail) allows users to send a message or file from one computer directly to another. The message arrives almost instantly but id stored until the receiving persons turns on the computer. Marketers den sales announcements, offers, & other messages to e-mail addresses—sometimes to a few individuals, sometimes to large groups.

E-Marketing - Describes company efforts to inform, communicate, promote, and sell its products and services over the Internet.

E-Purchasing - Means companies decide to purchase goods, services, and information from various online suppliers.

Earth's Materials Fall Into 3 Groups:

A.     Infinite Resources - such as water and air, pose no immediate problem, though some think there is too high a level of pollution.

B.     Finite Renewable Resources - such as forests and food, pose no immediate problem, but perhaps there is one in the long run. 

C.  Finite Nonrenewable Resources - such as oil, coal, and various minerals, do pose a serious problem.

Economic Environment - Markets require purchasing power as well as people. The available purchasing power in an economy depends on current income, prices, savings, debt, and credit availability. Marketers must pay close attention to major trends in income and consumer-spending patterns.

Economic Needs - The buyer’s need to purchase the most satisfying product for the money.

Economy Trends (Faith Popcorn's The Popcorn Report) -

• Anchoring - The tendency to use ancient practices as anchors or support for modern lifestyles: aromatherapy, meditation, yoga, & Eastern religions.

• Being Alive - The desire to lead longer and more enjoyable lives: vegetarianism, low-tech medicine, mediation.

• Cashing out - The desire for a simpler, less hectic lifestyle. A nostalgic return to small-town values.

• Clanning - The need to join groups in order to confront a more chaotic world: Harley-Davidson’s Harley Owners Group (Hog).

• Cocooning - The impulse to stay inside when outside gets too tough and scary: redecorating, watching TV & rental movies, ordering from catalogs.

• Down-Aging – The tendency for older people to act and feel younger than their ages: youthful clothes and hair coloring, adult toys, adventure vacations.

• Egonomics—the wish to individualize oneself through passions & experience: customized goods, services, experiences.

• Fantasy Adventure - The need to find emotional escapes: safari vacations, exotic foods.

• 99 Lives - Doing many things at once, “multitasking”: cluster marketing enterprises-all-in one service stops.

• S.O.S. (Save our Society) - The desire to make society more socially responsible: education, ethics, the environment.

• Female Think - The recognition that men and women act and think differently.

• Mancipation - The emancipation of men from stereotypical male roles of being macho and strong, and instead showing them as nurturing dads and concerned husbands.

• Small Indulgences - The desire to indulge in small-scale splurges to obtain an occasional emotional lift.

• Pleasure Revenge - The proud and public pursuit of pleasure as a rebellion against self-control and self-deprivation.

• Icon Toppling - The return to interest in smaller and more local organization and products.

• The Vigilant Consumer - Intolerance for shoddy products and poor service.

Educational Groups - The population in any society falls into five educational groups: illiterates, high school drop-outs, high school degrees, college degrees, and professional degrees.

Effective Segmentation - To be useful, market segments must exhibit the following characteristics:

• Measurability - the degree to which the size and purchasing power of the resulting segments can be measured.

• Accessibility - the degree to which the resulting segments can be effectively reached and served.

• Substantiality - the degree to which the resulting segments are large and/or profitable enough to be worth considering for separate marketing attention.

Efficiency Control - Purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures; prime responsibility of line and staff management and marketing controller.

Eighty/Twenty (80/20) Principle - A situation in which a few key or large accounts bring in 80 percent of profitable sales although they represent only 20 percent of total accounts.

Electronic Mail - Allows information to be sent electronically through a system that delivers the message immediately to any number of recipients.

Elephant – A sales slang... used to refer to a prospect who, if brought in as a customer, would have a tremendously positive impact on revenue generated. (see also-- whale).

Emergency Goods - purchased when a need is urgent. Manufacturers of emergency goods will place them in many outlets to capture the sale.

Emotional Appeals - Appeals designed to stir up some negative or positive emotion that will motivate product interest or purchase. 

Empathy - The ability to identify and understand another person’s feelings, ideas, and circumstances.

Employee Planning - The recruitment and selection of applicants for sales jobs.

Employee Rights - Rights desired by employees regarding their job security and the treatment administered by their employers while in the job, irrespective of whether or not those rights are currently protected by law or collective bargaining agreements of labor unions.

Employee Satisfaction in Service and Quality - Excellent service companies know that positive employee attitudes will promote stronger customer loyalty. Companies need to market a career rather than just a job, design a sound training program & provide support & rewards for good performance.

Empty Nest - Older married couples with dependent children. Financial position is still better. Some children get jobs. It is hard to influence with advertising. High average purchase of durables: new, more tasteful furniture, auto travel, unnecessary appliances, boats, dental services, and magazines.

Empty Nest II - Older married. No children living at home, head of household retired. Drastic cut in income, Keep home. Buy: medical appliances, medical-care products.

Encoding Process - One of the eight elements of the communication process. This is the conversation by the salesperson of ideas and concepts into the language and materials used in the sales presentation.

End-User Specialist - The firm specializes in serving one type of end-use customer. For example, a value-added reseller customizes the computer hardware and software for specific customer segments and earns a price premium in the process.

Engineering – Engineering has responsibility for finding practical ways to design new products and new production processes. They are interested in achieving technical quality, cost economy, and manufacturing simplicity.

Engineering Testing - Done after package is designed, done to insure that the packaging stands up under normal conditions.

Enthusiasm - A state of mind wherein a person is filled with excitement toward something.

Entrepreneurial Marketing - Most companies are started by individuals who live by their wits. They visualize an opportunity and knock on every door to gain attention.

Entry and Operating Decision - Determines the best way to enter and operate in an attractive foreign market.

Entry Barriers - Major entry barriers include high capital requirements; economies of scale; patents and licensing requirements; scarce locations, raw materials, or distributors; and reputation requirements.

Entry, Mobility, and Exit Barriers - Industries differ greatly in ease of entry.  It is easy to open a new restaurant but difficult to enter the aircraft industry.  Major entry barriers include high capital requirements; economies of scale; patents and licensing requirements; scarce locations, raw materials, or distributors; and reputation requirements.  Even after a firm enters an industry, it might face mobility barriers when it tries to enter more attractive market segments.

Environmentalism - An organized movement of concerned citizens and government to protect and enhance man's living environment.

Environmental Threat - A challenge posed by an unfavorable trend or specific disturbance in the environment that would lead, in the absence of purposeful marketing action, to the stagnation or demise of a company, product, or brand.

Environments:

A.     Stable Environment - the major forces of economics, technology, law, and culture remain stable from year to year.

B.     Slowly Evolving Environment - smooth and fairly predictable changes take place.

C.     Turbulent Environment - major and unpredictable changes occur often. 

Equity - The value or interest an owner has in property over and above any indebtedness owed on the property. 

Escrow - The system by which money documents, personal property, or real property is held in trust for another party by a disinterested third party until the terms and conditions of the escrow instructions are completed or terminated.

Ethical Behavior - Behavior demonstrating a willingness to treat others fairly. It shows one to be honest and trustworthy, as well as exhibiting loyalty to company, associates, and the work for which one is responsible.

Ethics - Principles of right or good conduct, or a body of such principles, that affects good and bad business practices.

Ethnic or Other Markets - Countries vary in ethnic and racial makeup. Each different group has certain specific wants and buying habits, but marketers need to be careful not to over generalize about ethnic groups. Within each ethnic group are consumers who are quite different from each other.

Evaluating - Comparing actual performance to planned performance goals to determine whether to take corrective action if goals are not achieved, or to continue using the same method if goals are met.

Event Creation - An important skill in publicizing fund-raising drive for nonprofit organizations using special events, book sales, auctions benefits, etc. For profit organizations also use events to call attention to products & services such as celebrity appearances, sponsorship of rodeos, races, etc. and media events.

Everyday Low Price - A retailer who holds to an everyday low pricing policy charges a constant low price with little or no price promotions and special sales. These constant prices eliminate week-to-week price uncertainty.

Exchange - The act of obtaining a desired product from someone by offering something in return.

Exchange Markets - Many commodities are sold on spot electronic markets where prices change by the minute.

Exclusive Assortment - Representing the line of only one manufacturer.  

Exclusive Dealing - When the seller requires that these dealers not handle competitors’ products.

Exclusive Distribution - A policy of granting dealers exclusive rights to distribute the company's products in their respective territories.

Execution Styles of Advertising:

1.      Slice of life - shows one or more people using product in an everyday setting.

2.      Life style - emphasizes how a product fits in with a life style.

3.      Fantasy - creates a fantasy about what might happen in connection with the use of the product.

4.       Mood or image - builds an evocative mood or image around the product.  No claim made about product except through suggestion.

5.      Musical - shows one or more persons singing a song about the product.

6.      Personality symbol - creates a character that represents or personifies the product.

7.      Technical expertise - features the care that the company exercises and the experience it has in selecting the ingredients for this product or in manufacturing the product.

8.      Scientific evidence - present survey or scientific evidence that the brand is preferred to or out performs one or more other brands.

9.      Testimonial evidence - features a highly credible or likable source endorsing the product.

Expansible Market - Is very much affected in its total size by the level of industry marketing expenditures. The major tendencies of the four groups with high resources are:

• Actualizers - Successful, sophisticated, active, “take charge” people. Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products.

• Fufilleds - Mature, satisfied, comfortable, reflective. Favor durability, functionality, and value in products.

• Achievers - Successful, career & work oriented. Favor established, prestige products that demonstrate success to their peers.

• Experiencers - Young vital, enthusiastic, impulsive, and rebellious. Spend a comparatively high proportion of income on clothing, fast food, music, movies, and video.
   

Exhibitions and Demonstrations - A situation in which a firm operates a booth at a trade show or other special-interest gathering staffed by salespeople.

Expert Opinion - Companies can obtain forecasts from experts, including dealers, distributors, suppliers, marketing consultants, and trade associations.

Expertise - Salesperson will attempt to demonstrate strong knowledge of the buyer's situation and of his or her own company's products, doing this without being overly "smart".

Exposure - The message physically appears in the target audience's immediate environment.

Extended Warranty - Sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price, may diminish in importance.

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