Of the following, which product/service category accounts for lowest percentage of online sales?

Advertising - A paid form of communication and promotion involving a product and its attributes.

• Advertising campaign - A marketing message(s) focused on a target audience over an extended period.
• Advertising platform - The product attributes and issues conveyed in an advertising message to the target audience.
• Advertising target market - The specific group of individuals identified as willing and able buyers at which an advertising message is aimed. 
• Advertising theme - The central message of an advertising campaign that is repeated throughout the campaign.
• Cooperative advertising - Advertising (usually in-store) that is designed and paid for cooperatively by both the marketer and retailer.
• Selective demand advertising - Advertising in which the marketer attempts to create awareness of, and provide information about, a specific brand.
• Slice-of-life advertising - An advertising message that portrays consumers in situations similar to their perceptions of their own lifestyles.
• Testimonial - An advertising message that is presented by someone who is viewed as an expert or user of the product.
• Vertical cooperative advertising - Advertising by marketers at different stages of the distribution system who advertise jointly.

Agent - An intermediary who does not take title to merchandise but facilitates exchanges by bringing buyers and sellers together.

• Commission merchant - An agent that sells for manufacturers.
• Manufacturer’s agent - An independent sales representative who works for several manufacturers of related but non-competing product lines.
• Selling agent - An individual who is responsible for all of the marketing activities for a manufacturer.

Brand - An identification (name, symbol, etc.) of a product that is unique and distinguishable from competitor’s products.

• Brand leveraging - Using the power of an existing brand name to support a company’s entry into a new, but related, product category.
• Brand line extension - Using an established product’s brand name to launch a new, slightly different item in the same product category.
• Brand mark - The symbol or design associated with a brand.
• Brand name - The words or numbers associated with a brand.
• Dealer brand - A brand that is created and owned by an intermediary.
• Flanker brand - A new brand introduced into the market by a company that already has an established brand in the same product category. It is designed to compete in the same category but target a different consumer group.
• Generic name - A brand name associated with the type of a product rather than with a specific product.
• Manufacturer’s brand - A brand that is owned and marketed by the manufacturer that produces the branded product.
• Trademark - Legal production against copycats of a brand.

Channel of distribution - A product’s trip from producer or manufacturer to the buyer.

• Consumer - The ultimate user of a product.   
• Buyer’s remorse - The anxiety associated with a buyer’s perception that they made a poor purchase decision.  
• Consumer market - A market dominated as consumers as buyers.
• Early buyers - Consumers who look for new products or product attributes and often buy a product early in its life cycle.
• Early majority - Consumers who watch early buyer’s response to new products before buying. 
• Laggards - Consumers who are strongly oriented toward existing products and are the last buyers of a new product.

Coupon - A certificate that entitles a consumer to a price reduction or a cash refund.

Demand - A schedule of the amount of a product that will be purchased at various prices.

• Derived demand - A demand that is predicated on another demand. For example, the demand for cattle by meat packers is derived from the demand for beef by consumers.
• Effective demand - The combination of the desire to buy a product and the financial ability to buy the product.
• Elastic demand - When a percentage change in price results in a greater percentage change in quantity demanded.
• Inelastic demand - When a percentage change in price results in a smaller percentage change in quantity demanded.
• Joint demand - When the demand for two different products are complementary.
• Selective demand - Demand for a particular product brand.
• Unitary demand - When a percentage change in price results in the same percentage change in quantity demanded.

Discount - A deduction from the list price in the form of cash or something else of value.

• Cash discount - A discount offered to buyers who pay for the product within a stated period.
• Seasonal discount - A discount offered to customers who purchase a product during a season of the year when demand for the product is low.
• Quantity discount - A discount offered to buyers who purchase larger than normal quantities of the product.

Forecasting - To predict the quantity of a product that will be sold at various times in the future.

• Barometric techniques - Using the analyses of past trends to predict the future.
• Delphi technique - A panel of experts is asked to assign rankings and probabilities to various factors that may influence future events.
• Market breakdown technique - The sales forecast for a large unit is divided into forecasts for smaller units
• Market buildup technique - Forecast information on market segments is aggregated to arrive at a total sales forecast.
• Market share analysis - The sales forecast for the firm is based on the forecast for the industry (based on assumption of market share).
• Scenario analysis - A description of future outcomes is developed based on probabilities of occurrence and cause-and-effect relationships.
• Simple trend analysis - Historical data is used to project future trends.

Income - Money received in return for labor or services provided, sale of assets and return on investments.

• Discretionary income - The amount of disposable income a consumer has remaining after essentials such as food, shelter and clothing are purchased.
• Disposable income - The amount of after-tax income a consumer has available for spending.

Intermediary - An independent or corporate-owned business that helps move products from the producer to the ultimate consumer.

• Intermediate market - A set of wholesalers and retailers that buy goods from others and re-sells them.
• Merchant middleman - An intermediary that takes title to the products it distributes.

Label - A tag or part of a package that provides information about a product.

• Grade label - Product quality is identified by a number, word or letter.
• Descriptive label - Describes the important attributes of a product.
• Informative label - Explains the use or preparation of a product.
• Open dating - Provides the expected shelf life of a product.
• Nutritional labeling - Describes the ingredients of a food product (i.e., amounts of protein, fat, carbohydrates, calories, etc.).

Market - A group of individuals with unsatisfied wants and needs who are willing and able buyers. It can be defined as narrowly as a specific place where buying and selling takes place or as broadly as the demand for a product.

• Contestable markets - Rivalry among competitors keeps profits to a competitive level.
• Horizontal market - Includes a broad spectrum of industries.
• Industrial market - Consists of firms that engage in the manufacture of products.
• Institutional market - Not-for-profit organizations that buy products for use in achieving a particular goal or mission.
• Market segment - A portion of a large market group of customers within a broader market who possess a common set of characteristics. A group of buyers within a market who have similar wants and needs.
• Market share - The number of units of a product (or their dollar value) expressed as a percentage of the total number of units sold by all competitors in a given market. The percentage of the total amount of product sold in a market that is sold by an individual company.
• Market structure - The number and size distribution of firms in a market.
• Marketing audit - A systematic and periodic examination of an organization’s marketing environment, including its goals, strategies and activities.
• Marketing information system - A set of procedures and methods for the regular planned collection, analysis, and presentation of marketing information.
• Marketing intelligence system - Activities for monitoring the external environment for emerging trends.
• Marketing mix - Focusing on product, price, place and promotion to create a successful marketing program (the four Ps of marketing).

Marketing research - A systematic and objective approach to developing and providing information for decision making regarding a specific marketing problem.

• Causal studies - Research where cause-and-effect relationships are explored.
• Consumer panel - A group of consumers who provide information about a product and its attributes.
• Demographics - Statistics about population (gender, age, marital status, birthrate, mortality rate, education, income and occupation).
• Observational approach - Observing people’s behavior and recording these observations.
• Secondary source - Published data that has been collected by a public or private sector organization and provided (published) to users.
• Test-marketing - Introducing a small amount of a new product into a market to identify consumer acceptance.
• Primary data - Data collected from the actual market (surveys, panels, interviews, etc.).

Marketing strategy - Marketing approach or method used to achieve a marketing goal.

• Differentiated marketing - Where a broad market is segmented and a separate marketing program is designed for each market segment.
• Industrial marketing - Designing a product and its attributes for industrial customers.
• Market aggregation - A single marketing program focuses on all potential consumers.
• Market atomization - Treating each individual consumer as a unique market segment.
• Positioning - Communicating a distinct place for a product or a brand in the minds of consumers.
• Product differentiation - Using promotion and other marketing activities to convince consumers that the product is different from, or better than, those of competitors.
• Social media marketing – The use of social media or social networks to market a product.
• Target marketing - A market segment is identified and marketing activities are focused on the segment.
• Trading down - When a company known for selling high-priced products offers lower-priced products for sale.
• Trading up - When a company known for selling low-priced products offers higher-priced products for sale.

Packaging - Designing and producing the container or wrapper for a product.

Personal selling - Person-to-person communication in which the receiver provides immediate feedback on the source’s message.

Purchasing - To obtain a product in exchange for money or its equivalent.

• Just-in-time purchasing - Parts or ingredients are provided just before production in order to reduce inventory costs.

Price - The amount of money asked in exchange for something else (e.g. product).

• Even pricing - A form of psychological pricing in which the price is an even number.
• Limit pricing - The practice where a firm can discourage entry into the industry by charging a low price.
• List price - The initial price of a product. Also termed the base price.
• Transfer price - The price at which a good or resource is transferred from one enterprise (strategic business unit) to another within the firm. Market price is usually used as the basis for determining transfer price.

Price fixing - When several firms in an industry collectively establish the price for a product.

• Horizontal price fixing - Marketers of the same or similar products collectively decide to set their price at the same level.
• Vertical price fixing - Marketers at different levels of the distribution system collectively set the retail price.

Pricing strategies (market based) -- Approaches to setting prices based on the willingness of the buyer to purchase the product.

• Bait-and-switch pricing - A product is priced low to lure customers into the store. Then an attempt is made to persuade them to buy a more expensive product.
• Customary pricing - A traditional price level is used.
• Flexible price policy - The product is sold to different customers at different prices.
• Loss leader - A product that is priced below its normal price in order to attract customers to a store.
• Penetration pricing - The price is set low in order to generate the greatest possible penetration of the market (largest market share).
• Predatory pricing - Aggressive pricing against a rival with the intent of driving them out of business.
• Price lining - Prices are set at various levels so that products are sorted into different categories or product lines based on product attributes.
• Price-off - A price reduction used to entice customers to try a product or expand usage of it. 
• Psychological pricing - A product is priced to psychologically appeal to consumers.
• Skimming - The price is set high to skim off those buyers in the market who are willing to pay a high price for the product.

Pricing strategies (cost based) - Approaches to setting prices based on the cost of producing the product.

• Break-even pricing - Setting the price of a product based on the cost of producing the product so that the seller will break-even.
• Cost-plus pricing - An extension of break-even pricing where the price is based on the cost of producing the product plus a profit margin.
• One-price policy - The same price is charged to all customers who purchase the same quantity of the product under the same conditions.
• Target return pricing - The price is based on a specific rate of return on the capital used in producing and marketing the product.
• Unit pricing - Pricing that is based on a standard measure of quantity.

Pricing strategies (geography based) - Approaches to setting price based on the location and transportation costs associated with delivering the product to the buyer.

• Basing-point pricing - One or more geographic locations are established from which the rate that a buyer is charged is calculated.
• Freight absorption - The price includes the same freight rate as the freight rate of the competitor that is located nearest to the buyer.
• Uniform delivered pricing - The same price level is quoted to all buyers regardless of their location.
• Uniform FOB (free on board) pricing - A price based on pickup at the sellers loading dock. The buyer absorbs any freight charges.
• Zone pricing - The geographic market area is divided into zones. Every buyer in a zone is charged the base price plus the standard freight rate for that zone.

Product - Something produced that is sold to willing buyers.

• Convenience products - Inexpensive and frequently purchased products that consumers want to buy with the least possible effort.
• Product life cycle - A series of stages in the life of a product that begins with commercialization and ends with removal from the market.
• Product line - A group of products that are similar in attributes.
• Product mix - The range of products that a company offers to its customers.
• Product portfolio - A strategic view of a company from the perspective of its range of products and the stage of each product in its life cycle.
• Product re-launch - Finding new markets and new product uses to reinvigorate product sales.
• Rollout - Launching a new product in a series of geographic areas over an extended period of time.
• Specialty products - Products designed for unique markets.

Product distribution - The process of providing a product when and where it is desired by the consumer.

• Exclusive distribution - Where the number of intermediaries is limited to one for each geographic territory.
• Extensive distribution - A distribution program that seeks the widest possible geographic coverage.
• Industrial distributor - An independently owned operation that buys, stocks and sells industrial products.
• Selective distribution - Where there are a limited set of outlets in a given territory.
• Physical distribution - All the activities of distribution from the point of procurement to the ultimate consumer.
• Tying agreement - When the producer forces the dealer to buy additional products in order to secure one highly desired product.

Promotion - Providing and communicating favorable information about a product to potential buyers.

• Advertising - A paid form of communication and promotion involving a product and its attributes. 
• Point-of-purchase promotion - Locating attention-getting information at the place of purchase.
• Promotional discount - A discount is offered to intermediaries for carrying out promotional activities.
• Sales promotion - Techniques used to stimulate current sales.
• Publicity - Product information is communicated through mass media but not paid for.
• Public relations - Activities to communicate a favorable image of a company or its product to promote goodwill.
• Pull strategy - A promotional strategy intended to stimulate demand which will pull products through the distribution system.
• Pulsing strategy - An on-going marketing campaign that is combined with short bursts of heavy advertising.
• Push strategy - A promotional strategy intended to push products through the distribution system and present them to consumers.

Quality control - The traditional approach to quality in which problems are detected after manufacturing and an effort is made to remove sub-standard products before shipping to customers.

Retailing - All activities used to sell products to ultimate consumers.

• Specialty-line retailer - A limited-line retailer that carries only one or two product lines, but offers substantial depth and expertise in those lines.

Selling - Assisting or persuading a prospective customer to buy a product.

• Prospecting - Seeking and identifying potential buyers.

Transaction - An exchange between two or more parties.

Value proposition - How a product will provide value to its customers. Why a product will provide sufficient value to its customers to be worth its price.

Wholesaling - All of the activities involved in selling products to retailers: to industrial, institutional, farm and professional businesses; or to other types of wholesaling intermediaries.

• Broker - A wholesaler whose primary purpose is to supply market information and establish contacts to facilitate sales for clients.
• Full-service wholesaler - A wholesaler who performs a full range of services for its customers.
• Limited-service wholesaler - A wholesaler who performs a limited number of services for its customers.
• Mail-order wholesaler - A limited-service wholesaler that sells by means of catalogs.
• Single-line wholesaler - A full-service wholesaler that carries only one or two product lines.
• Specialty-line wholesaler - A full-service wholesaler that carries a limited number of products for customers with specialized needs.
• Manufacturer’s sales branch - A wholesaling establishment that is owned and operated by a manufacturer separately from its factories.
• Merchant wholesaler - A wholesaling business that is independently owned and takes title to the products it sells.
• Truck wholesaler - A limited-service wholesaler that specializes in selling and delivery services.
• Wholesaler - An intermediary that distributes products primarily to commercial or professional users

Don Hofstrand, retired extension value added agriculture specialist,

Which of the following account for the largest portion of firms online?

Which two of the following are among the reasons that consumers typically shop and buy online quizlet?

What are the two most popular showrooming product categories?

Which two are among the reasons that consumers typically shop and buy online?