Label - the part of a package that carries information about the product
it contains; a label may be a permanent part of the primary package or
a tag, sticker, band, etc. See Brand Label; Descriptive Label; Flag; Grade
Label; Informational Label.
Labelling - activities associated with the design and content of the
wording on a product or package which identifies it and provides instructions
for its handling and use.
Laboratory Test Markets - see Accelerated Test Marketing.
Laggards - those in a community who are slowest to adopt a new product.
See Diffusion of Innovation; Early Adopters; Early Majority; Innovators;
Late Majority.
Lagged Effect - see Lagged Response.
Lagged Response - a delayed response by consumers to an advertising
campaign; measuring the effect of a campaign which is running currently
is made more difficult by a lagged response to an earlier one. Also called
Lagged Effect.
Last-Chance Close - see Standing Room Only.
Late Majority - the large, conservative group in a community slower
than all except the "laggards" to adopt a new product. See Diffusion
of Innovation; Early Adopters; Early Majority; Innovators; Laggards.
Latent Demand - demand for a product which can satisfy a want which
is unable to be satisfied by any existing product.
Lead Generation - the activity of identifying potential customers.
Leader Pricing - see Loss Leader Pricing.
Leads - see Sales Leads.
Learning - fixed behavioural changes resulting from an individual's
experiences.
Learning Curve - a graphical representation of the way in which average
unit cost of production decreases as output rises; also called an Experience
Curve.
Learning Process - the way in which an individual's behaviour changes
as a result of previous experiences; the process consists of four basic
components - a stimulus or cue which creates a drive; the drive which motivates
the individual to make a response; the response or action undertaken by
the individual; and reinforcement by means of reward or punishment which
determines whether the individual will act in that way again.
Leasing - the granting, under contract, of use of a product for an agreed
upon period of time in return for a rental payment.
Legal and Political Environment - factors in government, the law and
the regulatory system which affect the way an organisation operates.
Less-Than-Carload Freight Rate - a U.S. term for the freight rate charged
by a railroad company when a producer's shipment is less in volume than
one full carload. See Carload Freight Rate.
Lexicographic Model (of Brand Evaluation) - a model used in the study
of consumer decision processes to evaluate alternatives; the idea that
if two products are equal on the most important attribute, the consumer
moves to the next most important, and, if still equal, to the next most
important, etc. Thus, the purchase decision is made when one of the brands
possesses more of an attribute, looked at in order of importance, than
its rival. Other models of brand evaluation include the expectancy-value
model, ideal brand model, conjunctive model, disjunctive model, lexigraphic
model and determinance model.
Liability - see Product Liability.
Licensed Characters - figures from fiction, television, movies, etc
which are used, under license from their creators, in the marketing of
consumer goods such as breakfast cereals, chocolate bars, ice creams and
so on.
Licensed Product Strategy - marketing plans and actions based on the
use of licensed characters. See Licensed Characters.
Licensing - the granting of permission by one manufacturing organisation
to another to use a registered brand, symbol, process, patent, etc.
Life Cycle Cost - the costs associated with the use and maintenance
of a product over its expected life span.
Life Stage Buying Power Segmentation - the division of a total heterogeneous
market into relatively homogeneous groups on the basis of their ability
to afford a product at their particular stage in the family life cycle.
See Family Life Cycle.
Lifestyle - an individual's way of life as shaped by his or her interests,
attitudes and opinions.
Lifestyle Segmentation - the division of a total heterogeneous market
into relatively homogeneous groups on the basis of their way of life as
shaped by their interests, attitudes and opinions. See Psychographic
Segmentation.
Likert Scale - a rating device frequently used in marketing research
questionnaires in which respondents indicate their level of agreement with
a statement by choosing the appropriate response from a scale, eg. strongly
disagree, disagree, undecided, agree, strongly agree.
Limited Decision Making - see Limited Problem Solving.
Limited Problem Solving - buying situations in which a purchaser has
had some previous experience but is unfamiliar with suppliers, product
options, prices, etc. Also referred to as Limited Decision Making. See
Extensive Problem Solving; Routine Problem Solving.
Limited-Line Department Store - a department store which carries a narrower
range of merchandise than a full-line department store; typically, a limited-line
department store will be characterised by high-quality merchandise and
high prices.
Limited-Line Retailer - a retailer carrying only one line, or a few
related lines, but a large assortment of produce. See Assortment Strategies.
Limited-Line Strategy - the decision by a producer to offer a lesser
number of product variations than is possible. See Full-Line Strategy.
Limited-Service Research Supplier - a marketing research firm which
offers clients fewer services than a full-service research supplier. See
Full-Service Research Supplier.
Limited-Service Wholesaler - a wholesaler providing less than the full
range of services of some other wholesalers but attempting to compensate
for this by offering lower prices. See Full-Service Wholesaler.
Line - see Product Line.
Line Extension - see Product Line Exyension.
Line Manager - see Category Manager.
Line Organisation - an organisational structure in which authority moves
down in a line from the chief executive; typically, there are no specialists
or advisors, the chief executive having complete authority over decision
making. See Organisational Structure.
Line Pruning - see Product Line Pruning.
Line Retrenchment - see Product Line Retrenchment.
Liquidity - current assets, other than inventory and work in progress,
to which a firm has ready access; liquidity represents a company's ability
to meet its immediate liabilities.
List Brokers - firms which compile and sell mailing and prospect lists.
List Price - the regular price of a product before any discount is given
or allowances made. See Allowances; Discounts; Net Price.
Loading Objective - one of a three possible aims or objectives (with
loyalty objective and trial objective) of a consumer sales promotion; purchasers
are offered incentives to buy a greater quantity of the product than they
would otherwise have done. See Loyalty Objective; Trial Objective.
Local Buy - the buying of media (print, newspapers, television, radio
and outdoor advertising) serving a local region only.
Logistical Costs - costs involved in the acquisition and transportation
of materials required for production, and for the storage, handling, and
shipment of finished goods to customers.
Logistical Functions - one of the three kinds of functions (with transactional
functions and facilitating functions) performed by intermediaries in a
marketing channel; logistical functions include the assembling of a variety
of products, storing them, sorting them into appropriate categories and
sizes, and arranging them on retail shelves. See Facilitating Functions;
Transactional Functions.
Logistics - activities involved with the orderly and timely acquisition
and transportation of materials required for production, and with the storage,
handling and despatch of finished goods to customers.
Logo - a distinctive mark, sign or symbol, or a graphic version of a
company's name, used to identify and promote its product.
Long-Range Planning - strategic planning over an extended horizon; "long-range"
is commonly thought to be at least three years into the future.
Long-Run Average Cost - the average cost per unit of a set or group
of products in the long term. Note that the long-run average cost may
be somewhat lower than the short term average cost because of the effects
of greater production experience. See Average Cost; Short-Run Average
Cost.
Loss Leader - a product offered at less than cost to attract purchasers
to a store so that they will buy other items at regular prices.
Loss Leader Pricing - the pricing of a product at less than cost to
attract purchasers to a store so that they will buy additional items at
normal prices. See Loss Leader.
Lost Account Ratio - a measure used to evaluate salespeople in which
the salesperson's ability to keep prior accounts as active customers is
calculated.
Lottery - a form of consumer sales promotion in which purchasers are
offered to win prizes if their names are drawn from a barrel; a game of
chance. Also called a Sweepstake.
Low-Involvement Products - products which are bought frequently and
with a minimum of thought and effort because they are not of vital concern
nor have any great impact on the consumer's lifestyle. See High-Involvement
Products.
Low-Touch Service - customer service characterised by a low level of
personal contact with customers; low-touch customer service is primarily
automated or provided by vending machines, such as automatic telling machines
at banks, self-service petrol pumps at garages, etc. See High-Touch Service.
Loyalty Objective - one of three possible aims or objectives (with
loading objective and trial objective) of a consumer sales promotion; purchasers
are offered incentives to stay loyal to a particular brand. See Loading
Objective; Trial Objective.
