Iceberg Principle - a theory that suggests that aggregated data can
hide information that is important for the proper evaluation of a situation.
Idea Generation - the first stage in the new product development process
- the sourcing of ideas for new products; important sources include the
firm's own R & D work, focus groups, competitor's products and suggestions
from customers, distributors and salespeople. See New Product Development.
Idea Marketing - activities associated with the marketing of a cause
or idea. See Broadening Concept.
Idea Screening - see Screening.
Ideal Brand Model - a model used to study consumer evaluation of alternative
products; the consumer compares actual brands comparing them to a hypothetical
ideal brand. Among other models used for the purpose are the expectancy-value
model, conjunctive model, disjunctive model, lexicographic model, and determinance
model.
Identifiability - see Measurability.
Image -
Image Analysis - see Favorability Analysis.
Image Differentiation - as a source of competitive advantage, a company
may differentiate itself from its competitors by image; the particular
image or "personality" it acquires is created by its logo and
other symbols, its advertising, its atmosphere, its events and personalities.
Other sources of differentiation for competitive advantage include product
differentiation, services differentiation, and personnel differentiation.
Image Oriented Change Strategy - an advertising plan or tactic intended
to change a brand's image (rather than to maintain it over time) and which
relies on imagery and symbolism (rather than the provision of information)
to achieve its objective. See Image-Oriented Maintenance Strategy; Information-Oriented
Change Strategy; Information-Oriented Maintenance Strategy.
Image Oriented Maintenance Strategy - an advertising plan or tactic
intended to maintain a brand's position over time (rather than to change
its position) and which relies on imagery and symbolism (rather than the
provision of information) to achieve its objective. See Image-Oriented
Change Strategy; Information-Oriented Change Strategy; Information-Oriented
Maintenance Strategy.
Image Persistence - the idea that images may persist long after an
organisation has changed; for example, one government instrumentality's
services might be highly regarded in the public mind even though its programs
have deteriorated, while another's might still be poorly regarded long
after they have been improved.
Image Pricing - see Psychological Pricing; Prestige Pricing.
Image Utility - the value given to a product by virtue of the fact
that it brings satisfaction to the user in creating prestige and esteem.
See Utility.
Imagery - the symbols, images or graphic representations used in advertising
to suggest a particular mood or feeling.
Impact - the force that an advertisement or message will have on a target
consumer; television advertising, for example, because it combines sight
and sound, will typically have greater impact than print media.
Implementation - the stage in the marketing management process when
plans are put into action. See Marketing Management.
Implied Warranty - the notion, upheld by courts in recent years in
response to mounting consumer complaints, that a product is covered by
warranty even if not expressly stated, and that manufacturers are liable
for injury caused by a product even if there has been no negligence in
manufacturing; hence, caveat vendor or "let the seller beware".
See Warranty; Express Warranty; Promotional Warranty; Protective Warranty.
Import Quota - a government-imposed limit on the number, quantity or
value of a product to be imported, usually to protect local industry.
Impression Management
Improved Services Strategy
Impulse Buying - unplanned consumer buying of attractively presented
or conveniently located products.
Impulse Goods - goods which are purchased quickly because of a sudden
urge to have them. See Convenience Goods.
In-Home Shopping - see Home Shopping.
In-Magazine Recognition Tests - to test the effectiveness of advertising,
individuals selected from the target market are asked to look through a
magazine and then to recall advertisements they have seen. See Recognition
Tests.
In-Pack Premium - a type of sales promotion in which a small gift is
included inside the package of a product to encourage consumers to buy
it. See Premiums; Near-Pack Premium; On-Pack Premium; With-Pack Premium.
In-Store Media - in-house media, usually radio or TV networks, inside
department or variety stores to encourage foot traffic and generate more
sales; music and news, as well as commercials and promotion, are carried
by the media.
In-Suppliers - suppliers who are already well known to an organisation
and from whom they will purchase with confidence. See Out-Suppliers.
Inbound Telemarketing - telemarketing in which a company receives
telephone orders and enquiries from customers; often, toll free telephone
lines are used. See Outbound Telemarketing.
Incentive Marketing - the offering of gifts, rewards, premiums, etc
to motivate the sales team, to get bigger or more frequent orders from
dealers, or to induce customers to buy.
Incentives - (i)in learning theory, an object, person or situation
that an individual believes will satisfy a motive; (ii) in selling, any
bonus, reward, contest, recognition program, etc. intended to motivate
members of a sales team to greater efforts. See Learning Process; Motive.
Incremental Approach (to Calculating Salesforce Size) - an approach
used in determining the ideal size of a sales force based on the difference
between the expected gross profit that will be earned by the addition of
an extra salesperson and the cost of hiring, training and maintaining that
salesperson.
Incremental-Cost Pricing - an approach in which the price of all additional
units produced after the fixed costs of production have been met are based
on variable cost rather than on total cost.
Indirect Competitive Advertising - advertising intended to stimulate
purchase of a particular brand at some future time. See Direct Competitive
Advertising.
Indirect Competition - a product that is in a different category altogether
but which is seen as an alternative purchase choice; for example, coffee
and mineral water are indirect competitors. See Direct Competition.
Indirect Costs - costs that cannot be traced directly to a particular
product; commonly called Overheads. See Direct Costs.
Indirect Denial Method - handling a buyer's objection by initially
admitting the validity of the objection in order to maintain rapport but
then offering evidence to rebut the objection; sometimes referred to as
the "Yes, but... Method." See Objections.
Individual Brand - a brand name used for a single product within a
product line. See Corporate Branding; Family Brand.
Individual Brand Name - the part of the brand name which identifies
a particular product when it follows a family brand name; for example,
in the brand name "Holden Commodore", Holden is the family brand
name, while Commodore is the individual brand name. See Corporate Branding;
Family Brand; Product Line Brand Name; Single Brand Name.
Individual Product - see Product Item.
Industrial Buyer Behaviour - the study of the motives and actions
of, and the influences upon, industrial buyers while engaged in the purchasing
of goods and services. See Organisational Buying Behaviour.
Industrial Buyers - individuals who purchase goods and services on
behalf of the organisations by which they are employed; purchasing officers.
See Organisational Buyer.
Industrial Distributor - a marketing intermediary, roughly equivalent
to a wholesaler in consumer markets, who purchases industrial products
in bulk from manufacturers for resale to small industrial users.
Industrial Goods - goods and services purchased by industrial buyers
for use in the production of their own goods and services or in the conduct
of their business; industrial goods can be broadly classified as equipment,
raw materials and services. See Industrial Product Classes.
Industrial Marketing - the marketing of goods and services to business
organisations for use in the manufacture of their products or in the operation
of their businesses; also called Business-to-Business Marketing.
Industrial Packaging - the protective wrapping and boxing of finished
industrial goods for shipment.
Industrial Product Classes - categories of goods and services bought
by organisations for use in production or in the operation of their business;
classes include installation, accessories, raw materials, component parts,
supplies, and services.
Industrial Selling - all forms of personal selling to organisational
and industrial buyers of products for resale, or for use in manufacture,
or for use in the operation of their businesses.
Incentive - an inducement to buy; incentives include special price
deals, premiums, contests, etc.
Inelasticity of Demand - demand which is not greatly affected by a
change in the price of the product. See Elasticity of Demand.
Inept Set - brands that a buyer is aware of when considering a purchase,
thinks poorly of , but uses in some way as a sourch of information. See
Inert Set; Evoked Set.
Inert Set - brands that a buyer is aware of when considering a purchase
but has no interest in. See Evoked Set; Inept Set.
Inertia Buying - consumer buying, of unimportant items, which is done
frequently and in which the buyer chooses the same brand over and over
again without consideration of other brands.
Inertia Selling - a selling practice in which unsolicited goods and
services are sent to consumers in expectation that many will prefer to
purchase rather than to return them; the practice is considered undesirable
and legislation protecting consumers has been enacted.
Inflation - an economic situation in which rising prices result in
a fall in the purchasing value of money.
Infomercial - a word coined to describe a particular type of commercial,
for print, TV, radio, etc., in which a company promotes its own product
while offering valuable information and advice on an important public issue.
For example, Volvo may seek to increase awareness of its product and its
safety positioning by producing an infomercial on road safety.
Informal Marketing Organisation - the part of a marketing organisation
made up of the many working relationships that develop over time, outside
the formal lines of authority, among departmental managers.
Information Flow - the information about products, potential customers,
consumer needs and wants, etc. that is passed forwards and backwards along
a channel of distribution. See Marketing Channels.
Information Oriented Change Strategy - an advertising plan or tactic
intended to change a brand's image (rather than to maintain it over time)
and which relies on the provision of information (rather than imagery and
symbolism) to achieve its effect. See Image-Oriented Maintenance Strategy;
Information-Oriented Change Strategy; Information-Oriented Maintenance
Strategy.
Information Oriented Maintenance Strategy - an advertising plan or
tactic intended to maintain a brand's image over time (rather than to change
its image) and which relies on the provision of information (rather than
imagery or symbolism) for its effect. See Image-Oriented Change Strategy;
Image-Oriented Maintenance Strategy; Information-Oriented Change Strategy.
Information Utility - the value given to a product by virtue of the
fact that it can provide the user with information that is useful. See
Utility.
Informational Influence - one of three types of influence (with comparative
influence and normative influence) exerted on consumers by reference groups;
informational influence occurs when the group is the source of information
about products and brands. See Reference Groups; Comparative Influence;
Normative Influence.
Informational Label - a label which carries information including use
instructions, precaustions and warnings, etc. See Label.
Informative Advertising - advertising intended to inform rather than
to persuade or remind.
Informed Judgement Techniques - the use of the opinions of knowledgeable
people to forecast demand and sales.
Inner-Directed Consumers - one of three broad groups of consumers (with
Need-Directed Consumers and Outer-Directed consumers) identified in the
Stanford Research Institute's survey of American lifestyles; inner-directed
consumers, representing about twenty per cent of consumers in the U.S.,
buy to meet their own inner-needs rather than in response to social norms.
See Value and Life Style Program (VALS); Need-Directed Consumers; Outer-Directed
Consumers.
Innovation - the introduction of a product which is new to both the
company and its customers; a new-to-the-world product. See Product Extension;
New Product Duplication.
Innovators - the small group of alert people who the earliest to adopt
a new product. See Diffusion of Innovation; Early Adopters; Early Majority;
Laggards; Late Majority.
Inseparability - one of the four characteristics (with intangibility,
perishability and variability) which distinguish a service; inseparability
expresses the notion that a service can not be separated from the service
provider. See Services Marketing; Intangibility; Perishability; Variability.
Inside Order-Taker - a salesperson who writes up sales orders at a
sales counter, or those forwarded to the company by telephone, but is not
required to sell persuasively to customers. See Outside Order-Taker.
Installations - a classification of industrial goods which includes
land, buildings and major equipment.
Institutional Advertising - advertising intended to promote a company
or organisation rather than its products; also called Corporate Advertising.
Institutional Market - a market consisting of schools, universities,
hospitals, charities, clubs and similar organisations which buy goods and
services for use in the production of their own goods and services.
Intangibility - one of the four characteristics (with inseparability,
perishability and variability) which distinguish a service; intangibility
expresses the notion that a service has no physical substance. See Services
Marketing; Inseparability; Perishability; Variability.
Intangible Product - see Actual Product.
Intangible Product Attributes - the unobservable characteristics which
a physical good possesses, such as style, quality, strength, beauty, etc.
See Tangible Product Attributes.
Intangibles - see Services.
Integrative Growth - a strategy for growth in which a firm acquires
some other element of the chain of distribution of which it is a member.
See Backward Integration; Forward Integration; Horizontal Integration.
Intensive Distribution - making a product available in as many outlets
as are willing to stock it. See Distribution Intensity; Exclusive Distribution;
Selective Distribution.
Intensive Growth - growth opportunities related to a company's current
operations; intensive growth opportunities are market penetration, product
development and market development.
Inter-type Channel Conflict - discord among members of different types
at the same level of a marketing channel, eg. department store-convenience
store discord. See Channel Conflict; Horizontal Channel Conflict; Vertical
Channel Conflict.
Intermediate Sellers - see Marketing Intermediaries.
Intermodal Transportation - a shipping method in which two or more
modes of transport are used; for example, where containerised goods are
loaded from truck to ship and back to truck again in the port of destination.
Internal Data - information recorded and stored by an organisation
as it completes it normal transactions and activities.
Internal Information Search - a stage in the consumer buying process
for a low-involvement product; past experiences with items in this product
class are considered. See Low-Involvement Products.
International Marketing - marketing actvities intended to facilitate
the exchange or transfer of goods between nations.
Interviewer Bias - intentional or unintentional prompting by a marketing
researcher which affects the interviewee's response.
Interview Study - a common technique for gathering primary data in
marketing research. Respondents in an interview study complete a questionnaire
delivered to them by telephone or mail or in a face-to-face interview.
Intraorganisational Environment - an organisation's internal environment;
the forces arising from the organisation's formal structure and from interactions
with employees which affect the marketing operations.
Intrapreneur
Introductory Allowance - see Slotting Allowance.
Introductory Stage of Product Life Cycle - the first stage in the life
cycle of a successful product; the product wins acceptance relatively slowly,
there are limited versions of it, there is no competition, distribution
is patchy, promotion is designed to inform the market (rather than to persuade
or remind), penetration or skimming pricing strategies are appropriate.
Invalid Objection - an excuse offered by a prospective buyer to cover
some hidden objection to the product. See Hidden Objection; Valid Objection.
Inventory - finished goods stored in a warehouse.
Inventory Carrying Costs - see Holding Costs.
Inventory Management - activities involved in maintaining the appropriate
level of stock in a warehouse.
Inventory Remarketing - an innovative strategy for reducing the risks
of introducing a new product. Prior to the launch of the new product,
a firm may negotiate with an inventory remarketing company for the sale
of any unused stock of the new product in the event that it fails to sell
as well as expected; thus, the inventory remarketing company will buy the
balance of the stock, at the previously agreed price, and resell it, usually
in a different market and through different distribution channels.
Inventory Turnover - the ratio of dollar or unit sales or gross profit
to average inventory; used in inventory control where the average number
of times a company sells the value of its inventory in a year is measured.
Isolation Effect - the notion that a price will appear more attractive
if the product is placed in the store next to a an alternative product
which is more expensive.
