Interpretive/PriSim - 1 StratSim: Glossary of Terms Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising Message: The point that an advertisement is trying to make, whether to build a particular image, stress the benefits of the product, compare with other brands, or maintain awareness. Average Retail Price: The average price for a product charged by retailers, including both those dealerships with higher prices due to increased personal service, exclusive merchandise lines, attractive showroom atmosphere, special promotions, convenient location, or special services, and those who offer a no-frills, low-price approach. Awareness: The level of consumer familiarity with a product, brand name or advertisement. Breakeven Analysis: An attempt to determine the volume of sales necessary (at various prices) for the manufacturer or merchant to cover his or her costs or to break even between revenue and costs. Breakeven analysis is useful to help set prices, estimate profit or loss potentials, and to help determine the discretionary costs that should be incurred. Cannibalization: Sales of a new product that take away sales of another product in the product line. Capacity Utilization: The extent to which the physical production ability of a plant facility is being used. Normally described as a percent of total capacity (i.e. 50% of capacity). Channel of Distribution: Any firm or individual who participates in the flow of goods and services as they move from producer to ultimate user (consumer or industrial). Competitive Analysis: The process of studying other companies who are vying to satisfy similar consumer needs. This includes analyzing competitors' strategy, product, pricing and channels of distribution. Dealership: The retail distribution outlet where consumers purchase the product (automobiles). Demand: The desire of consumers for a certain product. Fixed Costs: Financial obligations of a firm that remain at the same level no matter how many units of a product are produced and marketed. Amortization charges for capital equipment and plant, plus such charges as rent, executive salaries, property taxes, and insurance are examples. Gross Margin: Total revenue less product manufacturing costs (materials, labor, plant and equipment). Inflation: A general rise in the prices that people must pay for goods and services. Inventory: Stock of a product that is already produced but not yet sold.
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Interpretive/PriSim - 1
StratSim: Glossary of Terms Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising Message: The point that an advertisement is trying to make, whether to build a particular image, stress the benefits of the product, compare with other brands, or maintain awareness. Average Retail Price: The average price for a product charged by retailers, including both those dealerships with higher prices due to increased personal service, exclusive merchandise lines, attractive showroom atmosphere, special promotions, convenient location, or special services, and those who offer a no-frills, low-price approach. Awareness: The level of consumer familiarity with a product, brand name or advertisement. Breakeven Analysis: An attempt to determine the volume of sales necessary (at various prices) for the manufacturer or merchant to cover his or her costs or to break even between revenue and costs. Breakeven analysis is useful to help set prices, estimate profit or loss potentials, and to help determine the discretionary costs that should be incurred. Cannibalization: Sales of a new product that take away sales of another product in the product line. Capacity Utilization: The extent to which the physical production ability of a plant facility is being used. Normally described as a percent of total capacity (i.e. 50% of capacity). Channel of Distribution: Any firm or individual who participates in the flow of goods and services as they move from producer to ultimate user (consumer or industrial). Competitive Analysis: The process of studying other companies who are vying to satisfy similar consumer needs. This includes analyzing competitors' strategy, product, pricing and channels of distribution. Dealership: The retail distribution outlet where consumers purchase the product (automobiles). Demand: The desire of consumers for a certain product. Fixed Costs: Financial obligations of a firm that remain at the same level no matter how many units of a product are produced and marketed. Amortization charges for capital equipment and plant, plus such charges as rent, executive salaries, property taxes, and insurance are examples. Gross Margin: Total revenue less product manufacturing costs (materials, labor, plant and equipment). Inflation: A general rise in the prices that people must pay for goods and services. Inventory: Stock of a product that is already produced but not yet sold.
Interpretive/PriSim - 2
Margin: The difference between the price of a product and its per unit cost. Market: People or businesses with the potential interest, purchasing power, and willingness to spend the money to buy a product or service that satisfies a need. Market Share: The percentage of sales of a certain product in a market in relation to other products in that market (i.e. Brand X / Total sales in market). Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Marketing Research: The systematic and objective approach to the development and provision of information for marketing decision making. Net Contribution: The contribution after marketing less fixed costs. Net Income: The profit remaining after all costs are subtracted from revenues. Price: The amount of money required for a product or brand in order for an exchange of ownership to take place. Product Mix: All of the individual products available from an organization. Promotion: The communication mechanism of marketing designed to inform and to persuade consumers to respond. Quality: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. In the automobile industry, quality is sometimes more narrowly defined and measured by defects per 1000 cars or reliability. Research and Development: Portion of a firm designated to research, analyze, and design products to meet consumer and market needs. Segmentation: The process of dividing large heterogeneous markets into smaller homogeneous segments of people of businesses with similar needs and / or responsiveness to marketing mix offerings. Unit Sales: The total volume of units sold by a manufacturer in a market. Variable Costs: Costs directly tied to production including direct labor and raw materials charges.
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