FABS - acronym for Features and Benefits Selling.
Face Validity - the apparent plausibility of the results of marketing
research, which on the basis of logic and common sense, seems to be correct.
Face-to-Face Selling - selling situations in which salesperson and buyer
meet together (rather than use telephone or mail, for instance) to conduct
their business.
Facilitating Channel Institution - an agency or organisation, such as
a bank, transport company or insurance agency, which provides specialised
assistance to members of a marketing channel; the facilitating channel
institution does not take title to the goods.
Factor Analysis - a statistical procedure for trying to discover the
basic factors that may underlie and account for the correlations among
a larger number of variables. For example, factor analysis might be used
to determine and interpret the basic factors underlying some negative attitudes
towards the purchase and use of male toiletries and cosmetics.
Factory Outlet - a retail store that sells the products of one manufacturer,
usually at very low prices.
FACTS - abbrev. Federation of Australian Commercial Television Stations.
Fad - a product, especially a fashion, that comes quickly to the attention
of an eager public, achieves peak sales in a relatively short time, and
rapidly declines in popularity; that is, a popular product with a particularly
short life cycle. See Fashion.
Fake Interview - a job interview held when a company advertises a non-existent
position in its firm hoping to attract personnel from competing firms;
the aim of this unethical tactic is usually, to obtain competitive information.
False Objection - see Hidden Objection; Objections.
FAMI - abbrev. Fellow of the Australian Marketing Institute.
Familiarity Scale - a scaling device for measuring a target audience's
awareness and knowledge of a company or its products. Responses are commonly
recorded on a five-stage scale: 1. Never Heard of It; 2. Heard of It;
3. Know a Little; 4. Know a Fair Amount; 5. Know It Well. See Favorability
Scale.
Family Brand - a brand name used for a number of products in the same
line, such as Revlon cosmetics or Heinz canned foods; also referred to
as a Blanket Brand. See Corporate Branding; Individual Brand; Corporate
Branding; Single Brand Name.
Family Life Cycle - a series of stages through which the typical family
passes, including bachelor stage, young marrieds, full nest, empty nest
and sole survivor.
FARB - abbrev. Federation of Australian Radio Broadcasters.
FAS - abbrev. Free-alongside-Ship (at port of export).
FAS Pricing - see Free-alongside-Ship Pricing.
Fashion - a product that is popular at the moment; fashions tend to
follow recurring life cycles. See Fad.
Fast Moving Consumer Goods - a term used in reference to frequently
purchased consumer goods, such as foodstuffs, toiletries, etc.
Favorability Scale - a scaling device for measuring a target audience's
feelings or attitudes towards a company or its products. Responses are
commonly recorded on a five-stage scale: 1. Very Unfavorable; 2. Somewhat
Unfavorable; 3. Indifferent; 4. Somewhat Favorable; 5. Very Favorable.
Also called Image Analysis. See Familiarity Scale.
Fear Appeals in Advertising - advertising messages which use fear as
their focus; often employed in public service announcements, such as those
seeking to discourage smoking, reduce the road toll, warn of the dangers
of hard drugs, etc. See Emotional Appeals in Advertising; Rational Appeals
in Advertising.
Feature Modification - a change made to any feature of a product in
order to make it safer, more useful or more valuable to a purchaser; also
called Functional Modification.
Features - prominent or distinctive characteristics of a product's use,
construction or design; also referred to as Attributes.
Features and Benefits Selling - a selling style in which a salesperson
is careful to relate each feature of the product being presented to a particular
benefit which the feature will deliver to the buyer.
Federation of Australian Commercial Television Stations - an association
of Australian commercial television stations responsible for the control
of television advertising standards; the Federation must preview and approve
all commercial announcements before they are broadcast.
Federation of Australian Radio Broadcasters - an association of Australian
commercial radio stations responsible for the control of radio advertising
standards; the federation must preview and approve all radio commercials
before they are broadcast.
Feedback - the mechanism in the communication process which allows
the sender to monitor and evaluate the receiver's response to a message.
See Communication Process.
Fictitious Pricing - the unethical, possibly illegal, practice of announcing
a price reduction (eg. "now $20, formerly $49") when, in fact,
there has been no reduction at all.
Field Research - see Primary Research.
Field Sales Manager - a sales manager whose prime responsibility is
for the supervision of the sales force in its outside selling activities;
generally, the field sales manager will have only minimal involvement in
the internal, administrative sales management operations.
Field Selling - face-to-face sales calls made by company representatives
on customers in their homes or places of business.
Fighting Brand - a low-priced manufacturer's brand sold with minimal
advertising and promotional expenditure; the brand is used to compete with
dealers' brands and generics. Also called a Price Brand.
Financial Leverage - a measure of the extent to which a firm uses debt
in its total capital structure; the higher the component of debt the more
leveraged is the firm. Leverage is calculated by dividing total assets
by equity.
Financial Resources - the availability of money in the form of cash,
securities, creditors, loan facilities, etc possessed by an organisation.
Financial Risk - concern in the buyer's mind that the product being
considered for purchase is too expensive, or will be a waste of money.
See Risk.
FIS - abbrev. Free-in-Store.
FIS Pricing - see Free-in-Store Pricing.
Fishyback - a term used in the physical distribution of goods to refer
to a system of transportation requiring the transfer of containers from
truck to ship. See Birdyback; Piggyback.
Fixed-Sum-Per-Unit - an approach to promotional budget setting in which
the total to be spent in a given period is the sum of a certain set amount
allocated to each item produced.
Flag - an area on a product label which interrupts the design to announce
a special offer or similar promotion.
Flanker Brand - a brand introduced into a market by a company which
already has an established place in order to increase overall market share
in a product category.
Flanking Attack - a competitive marketing strategy in which one company
attacks another in a weak spot, commonly by paying maximum attention to
either a geographic region or a market segment in which the rival is under-performing.
Flanking Defence - a competitive marketing strategy in which the market
leader attempts to identify and strengthen its own weak points, commonly
geographic areas or market segments in which it is under-performing, before
a smaller rival can mount an attack against it.
Flanking Strategy - see Flanking Attack; Flanking Defence.
Flexible Pricing - a pricing method in which the price charged for some
consumer shopping goods and specialty goods and for many industrial products
is open to negotiation between buyer and seller; also known as Multiple
Pricing and Variable Pricing.
Flighting - scheduling advertising campaigns in irregular bursts followed
by periods of relative or complete inactivity. See Continuity; Pulsing.
Floor Price - see Price Floor.
Fluctuating Demand - demand in the industrial sector which rises and
falls sharply in response to changing economic conditions and consumer
spending patterns.
Flyer - a promotional leaflet or mailing piece.
FMCG - abbrev. Fast Moving Consumer Goods.
FOB - abbrev. Free-on-Board.
FOB Pricing - see Free-on-Board Pricing.
FOC - abbrev. Front-of-Counter.
Focus Group - a qualitative marketing research technique in which an
independent moderator interviews a small group of consumers from the target
market in an informal setting to get an immediate market reaction to a
new product or brand name, to generate new product ideas, etc. Also referred
to as a Customer Panel. See Qualitative Marketing Research.
Follow-the-Leader Strategy - decisions and actions taken by a firm which
chooses to follow the market leader as an alternative to challenging it;
essentially reactive, follow-the-leader strategies, also known os "me-too"
strategies, minimise the risk of retaliation which might result from an
attack, direct or indirect, on the market leader's share. See Breakthrough
Strategies.
Follow-the-Leader Pricing Strategy - a pricing strategy adopted by firms
which copy the market leader's prices.
Follow-Up - the vital final stage in the selling process; the salesperson's
call-back upon a client after the ordered goods have been supplied to check
that all has been handled to the buyer's satisfaction.
Follower Role - see Market Follower.
Foothold Firm - see Market Nicher.
Forecasting - predicting future variables, such as the level of sales
in a given period, the environmental factors that will influence the firm's
performance, etc.
Foreground Radio - a term used in reference to pre-recorded or live
radio programs featuring music and commercial announcements broadcast direct
to stores where the advertised merchandise is available.
Foreign Currency Exchange Rate - the price of one country's currency
expressed in terms of the currency of another country.
Foreign Market Entry - expansion by entering an overseas market; the
four possible ways of entry an overseas market are by exporting, licensing,
joint venturing or direct ownership.
Foreseeability Doctrine - the notion under product liability laws that
a manufacturer has an onus to foresee how a product might be misused and
warn consumers accordingly.
Form Utility - the value given to a product by virtue of the fact that
the materials and components which comprise it have been combined to make
the finished product. See Utility.
Formal Product - see Actual Product.
Formal Training - training given in a classroom setting as opposed to
that given in the field. See Curbside Sales Training; On-the-Job Training.
Formula Approach - an approach to selling in which the salesperson uses
a formula such as AIDA - awareness, interest, desire, action - as a guide
to taking the buyer from one stage of the buying process to the next; also
called the Mental States Approach. See AIDA Concept.
Formula Marketing - a term used to describe an approach to marketing
practice which relies heavily on conventional wisdom and spurns anything
innovative.
Forward Buy - the placement of an inventory purchase order earlier than
required in order to take advantage of a special price offer, or similar.
Forward Integration - a strategy for growth in which a company develops
by seeking ownership of, or some measure of control over, its distribution
systems. See Backward Integration; Horizontal Integration.
Four Ps - the four major controllable variables of the marketing mix
- product, price, promotion and place.
Franchise-Building Sales Promotions - consumer sales promotions which
impart a selling message along with the deal, as in the case of free samples
or premiums related to the product. Consumer sales promotions which are
not "franchise-building" include price-off packs, contests and
sweepstakes, and premiums not related to the product. See Consumer Franchise.
Franchise Extension - see Brand Extension.
Franchising - an arrangement in which a supplier grants a dealer the
right to sell a product in return for some percentage of the total sales;
typically, the supplier provides buildings and equipment, management advice
and marketing assistance to the franchisee, who agrees to operate according
to the franchisor's general rules.
Free Associations - a method of collecting qualitative marketing research
data in which respondents are asked to supply the word or idea which first
comes to mind in response to a word or phrase given to them by a researcher;
the technique is used to further understand shopping, advertising, branding,
etc.
Free Market - a market place which has minimum direct involvement of
government in market decisions.
Free Merchandise - a type of trade sales promotion in which resellers
are given a certain quantity of merchandise free of charge in return for
an order of a specified size. See Trade Sales Promotion.
Free Samples - see Samples.
Free-alongside-Ship Pricing - a pricing approach in which the manufacturer
pays the freight cost to the wharf; costs associated with loading and shipping
are borne by the purchaser. See Geographical Pricing.
Free-Form Presentation - a selling approach which does not rely upon
any set formula or method. See Formula Approach.
Free-in-Store Pricing - a pricing method in which the producer is responsible
for all freight and delivery costs; the ordered goods are delivered freight
free to the customer. See Geographical Pricing.
Free-In-The-Mail Premium - a type of sales promotion in which consumers
are offered a gift which is sent to them by post in return for proof of
purchase of the product.
Free-on-Board Pricing a pricing method in which a producer bears only
the costs involved of delivery of goods "free-on-board" to a
local carrier's despatch point; at that time, title for the goods passes
to the purchaser, who is responsible for the remainder of the freight charge.
See Geographical Pricing.
Free-Standing Inserts - brochures, leaflets and similar advertising
material distributed with magazines and newspapers as loose inserts.
Free-Standing Retailer - a retail store, not located in a shopping complex
with other retailers, having its own premises and parking area.
Freight Absorption Pricing - a pricing method in which the manufacturer
bears some or all of the freight costs involved in transporting the goods
to the customer. See Delivered Pricing.
Freight Charges - transportation costs involved in shipping goods from
producer to customer.
Freight Forwarders - firms specialising in the supply of transportation
services; by buying large volumes of land, sea, air and pipeline transportation
at low rates, they are able to offer attractive rates to small businesses
whose products they combine into large shipments.
Frequency - the number of times the target consumer will be exposed
to the message during the specified period of the campaign.
Freudian Motivation Theory - the theory that a consumer's buying preferences
are dictated by unconscious motives, and that visual, auditory and tactile
elements of a product may evoke emotions which stimulate or inhibit purchase.
See Motivation; Maslow's Theory of Motivation; Herzberg's Theory of Motivation.
Fringe Benefits - benefits enjoyed by employees as part of a total remuneration
or compensation package; fringe benefits are subject to taxation in Australia.
Front-of-Counter - the prime and most sought after position for impulse
goods. Hence, front-of-counter (or FOC) display pack.
Full Nesters - a term used to describe the stage in the typical family
life cycle in which the household consists of parents and growing children;
three sub-stages of "full nesters" are used by marketers in targeting
their products: Full Nest 1, where the youngest child is under six years
of age; Full Nest 2, where the yougest child is over six; and Full Nest
3, where the household consists of parents and older dependent children.
See Family Life Cycle.
Full-Cost Pricing - a pricing strategy in which all relevant variable
costs and a full share of fixed costs directly attributable to the product
are used in setting its selling price. See Incremental-Cost Pricing.
Full-Function Merchant Wholesaler - see Full-Service Wholesaler.
Full-Line Department Store - a department store which offers many different
lines of products, including clothing, sporting goods, food, furniture,
electrical goods, etc., and many diffrent services, including wrapping,
delivery and credit. See Limited-Line Department Store.
Full-Line Strategy - the decision by a producer to offer a large number
of product variations in a product line. See Limited-Line Strategy.
Full-Service Advertising Agency - an advertising agency offering a complete
range of services including marketing research; media planning; creative
design of packaging and advertisements, etc. See Limited-Service Advertising
Agency.
Full-Service Research Supplier - a marketing research firm which can
offer a client a complete range of services, including problem definition
or conceptualisation, research design, data collection and analysis, and
reporting. See Limited-Service Research Supplier.
Full-Service Wholesaler - a wholesaler offering a complete range of
services including buying, selling, storage, transporting, sorting, financing,
providing market feedback and risk-taking; also called a Full-Function
Wholesaler. See Limited-Function Wholesaler.
Functional Costs - costs associated with a specific business activity,
such as selling, advertising, marketing research, etc.
Functional Discount - a price allowance given to a firm performing some
part of the marketing function for other members of the channel of distribution;
also called Trade Discount.
Functional Middlemen - see Functional Wholesalers.
Functional Modification - see Feature Modification.
Functional Organisation - the organisation of a firm's business activities
so that a separate division is responsible for each business function -
production, finance, personnel, marketing, etc; the organisation of a firm's
marketing activities so that a separate division is responsible for each
marketing function - planning, research, sales, advertising, distribution,
new product development, etc. See Organisational Structure.
Functional Risk - see Performance Risk.
Functional Wholesalers - agents, brokers, commission merchants, etc.
who facilitate exchanges between producers and resellers and receive commissions
for their services; also referred to as Functional Middlemen.
